Savaria (SISXF) AI Stock Analysis

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Savaria

(Other OTC:SISXF)

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Positive Factors

Profitability ExpansionSavaria has materially improved profitability while continuing to grow revenue, indicating stronger operating efficiency and earnings quality than in prior years. Higher EBIT and net margins provide greater capacity to fund product development, acquisitions, and operational investment over the next several quarters.

Negative Factors

Uneven Cash ConversionAlthough operating cash flow and free cash flow remain positive, recent cash conversion has weakened relative to the company’s earnings profile. Below-one coverage and negative TTM free-cash-flow growth could constrain internally funded investment and make working-capital discipline important over the coming quarters.

Savaria (SISXF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $2.18B
Dividend Yield: 1.92%
Average Volume (3M): 22.75K
Price to Earnings (P/E): 23.5
Beta (1Y): 0.45
Revenue Growth: 8.99%
EPS Growth: 48.01%
Country: US
Employees: 2,600
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Savaria Business Overview & Revenue Model

Company Description

Established in 1979 and headquartered in Laval, Canada, Savaria Corporation delivers a comprehensive suite of accessibility solutions tailored for the elderly and individuals with physical challenges. Its global reach extends across Canada, the Unite...

Savaria Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:-4.33%|Next Earnings Date:Mar 10, 2027

Earnings Call SentimentPositive

The call was predominantly positive, supported by record adjusted EBITDA, 9% revenue growth with 6.8% organic growth, higher operating income and net earnings, strong Accessibility performance, product momentum, acquisition progress, improved liquidity, and lower debt. The main challenges were the decline in Patient Care margins, material and logistics inflation, higher foreign exchange losses, lower operating cash flow, and increased investment outflows. Management remained confident in Q4 margin improvement and its long-term growth strategy.

Positive Updates

Record Adjusted EBITDA and Stable Margin

Adjusted EBITDA reached a record $52.1 million in Q3, with an EBITDA margin of 21.2%, unchanged from $47.6 million and 21.2% in Q3 2025.

Negative Updates

Patient Care EBITDA Margin Decline

Patient Care adjusted EBITDA margin declined to 16.2% from 18.3% in Q3 2025. Management attributed the decline to higher selling and administrative costs, unfavorable product and project mix, and higher material costs.

Company Guidance

Savaria said it has the ambition to grow the business at 12% per year in the next 5 years and maintain EBITDA margins at 20% plus, leading to $1.6 billion of sales with over $220 million of EBITDA; it also targets consolidated organic growth of 7% to 8% per year, around $200 million of acquisitions in the next 5 years, and 4% to 5% of acquisition per year. CapEx is expected to end the year at around the high 3%, 3.8%, I think, range, continue for Q4, and return next year to more in the 2.5% range of revenue; Patient Care margins are expected to come back better in the coming quarter, with improvement targeted in Q4 of this year, while inventory is expected to decrease substantially in the fourth quarter ahead of year-end.

Savaria Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

SISXF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:REKO	65Neutral	CAD 31.81M	8.87	6.20%	3.45%	7.21%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TSE:VLN	45Neutral	CAD 385.95M	-10.68	-14.80%	3.13%	-9.05%	73.48%

* Industrials Sector Average

Performance Comparison

SISXF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SISXF	Savaria Corp.	21.21	5.34	33.65%
TSE:REKO	Reko International	5.80	1.90	48.72%
TSE:VLN	Velan Inc. SV	17.88	0.14	0.79%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Savaria AI Stock Analysis