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Savaria (SIS) AI Stock Analysis

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TSE:SIS

Savaria

(TSX:SIS)

Select Model
Rating:69Neutral
Price Target:CAD 31.00â–²(9.35% Upside)
Action:downgraded
Date:09/06/26

The score is primarily supported by improving margins and a meaningfully strengthened balance sheet. It is held back by weaker technical momentum (negative MACD and price below key moving averages) and a moderate valuation (P/E ~23) with only a modest dividend yield (~2%).

Positive Factors
Improving ProfitabilityStronger gross, operating, and net margins indicate improved efficiency and earnings quality. The rise in operating margin from roughly 8–9% to 13.6% provides greater resilience, supports reinvestment, and can help sustain profitability across the next several quarters.
Negative Factors
Moderating Revenue GrowthThe slowdown in revenue growth reduces the pace at which Savaria can expand its earnings base. If accessibility and patient-care demand remains moderate, margin gains may have to carry more of the performance burden, limiting longer-term operating leverage and upside.

Savaria (SIS) vs. iShares MSCI Canada ETF (EWC)

-10%0%10%20%30%40%50%TSE:SIS+33.93%EWC+21.27%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
CAD 2.04B
Dividend Yield
1.99%
Average Volume (3M)
263.47K
Price to Earnings (P/E)
23.0
Beta (1Y)
0.80
Revenue Growth
7.23%
EPS Growth
58.03%
Country
Canada
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...

How the Company Makes Money

Savaria makes money primarily by selling accessibility and patient care products and by earning service and project-related revenue associated with those products. 1) Product sales (core revenue driver): - Accessibility equipment: Revenue is generate...

Savaria Earnings Call Summary

Earnings Call Date:May 05, 2026(Q1-2026)|% Change Since:-3.31%|Next Earnings Date:Nov 03, 2026
Earnings Call SentimentPositive

The call highlighted strong top-line growth (+7%), significant margin expansion (adjusted EBITDA margin +190 bps to 20.4%), an 82% increase in net earnings, reduced leverage (<1.0x) and meaningful operational gains from Savaria One (estimated ~$7M EBITDA uplift in Q1). Most lowlights (FX headwinds, seasonal noise, spare-part tariff issues, working capital timing and the delayed impact of new product lines) are manageable and accompanied by mitigation plans. Given the balance of multiple positive financial and operational trends, ample liquidity for M&A, and clear targets for growth and margin sustainability, the overall tone was constructive and forward-looking.

Positive Updates

Revenue Growth
Consolidated revenue of $235.5M in Q1, up $15.3M or 7% year-over-year driven by 5.7% organic growth, 0.7% from acquisitions and a 0.6% positive FX impact.

Negative Updates

Foreign Exchange Headwinds
Patient Care experienced a -2.7% negative FX impact on U.S. dollar; U.S. results were relatively flat with FX cited as a headwind that offset organic gains in some areas.

Company Guidance

Management reiterated a multi-year target to grow revenues ~12% annually to about $1.6 billion by 2030 while maintaining adjusted EBITDA margins of at least 20%—which translates to roughly $320 million of EBITDA and $4.25 of EBITDA per share by 2030—and said it intends to pursue roughly $200 million of small-to-mid‑sized acquisitions over the next five years, funded in part by $324 million of available liquidity and a net debt/EBITDA ratio of 0.92x. They pointed to Q1 results as validation of the plan (Q1 revenue $235.5M, +7% YoY; organic +5.7%; adjusted EBITDA $48.1M, 20.4%; gross margin 38.9%; operating income +$11.7M YoY; net earnings $22.7M; EPS $0.31; cash from ops $35.8M), noted Q1 CapEx was $6M (2.5% of sales) and full‑year CapEx is expected to be slightly >2.5% but <3% mainly for the Greenville expansion, and said Q1 is seasonally weakest so margins and operating leverage should improve through the remainder of the year.

Savaria Financial Statement Overview

Summary

Strong profitability and efficiency improvements (TTM gross margin ~39%, operating margin ~13.6%, net margin ~9%) and materially reduced leverage (debt-to-equity down to ~0.29 TTM). Offsets include moderating revenue growth (~2% TTM) and slightly negative TTM free cash flow growth with uneven cash conversion.

Income Statement

83Very Positive

Balance Sheet

78Positive

Cash Flow

74Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue947.87M913.53M867.76M836.95M789.09M660.98M
Gross Profit371.08M321.22M321.71M286.02M254.37M215.54M
EBITDA188.39M157.85M136.58M123.82M114.14M82.70M
Net Income87.86M68.77M48.51M37.84M35.31M11.54M
Balance Sheet
Total Assets1.15B1.10B1.11B1.10B1.11B1.11B
Cash, Cash Equivalents and Short-Term Investments33.46M18.62M35.24M54.27M45.24M63.49M
Total Debt202.59M205.91M292.62M319.38M410.07M432.34M
Total Liabilities458.82M458.10M538.94M552.57M656.99M672.32M
Stockholders Equity688.30M640.83M575.27M549.00M452.97M434.60M
Cash Flow
Free Cash Flow114.68M115.53M99.95M59.76M70.22M41.56M
Operating Cash Flow141.17M128.17M120.10M78.62M90.74M57.28M
Investing Cash Flow-34.55M-20.95M-20.63M-6.36M-21.58M-396.44M
Financing Cash Flow-116.72M-125.85M-118.00M-63.11M-83.25M351.80M

Savaria Technical Analysis

Technical Analysis SentimentNegative
Last Price28.35

Price Trends

50DMA28.91Negative
100DMA29.28Negative
200DMA27.94Positive

Market Momentum

MACD0.11Positive
RSI38.71Neutral
STOCH33.07Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SIS, the sentiment is Negative. The current price of 28.35 is below the 20-day moving average (MA) of 29.58, below the 50-day MA of 28.91, and above the 200-day MA of 27.94, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 33.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SIS.

Savaria Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

TSE:SIS against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TSE:SISTSE:SIS69NeutralCAD 2.05B23.0513.41%1.99%7.23%58.03%
TSE:REKOTSE:REKO65NeutralCAD 27.42M8.736.20%4.00%7.21%―
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
TSE:VLNTSE:VLN45NeutralCAD 374.29M-10.52-14.80%3.23%-9.05%73.48%

* Industrials Sector Average

Performance Comparison

0%20%40%TSE:SISTSE:REKOTSE:VLNDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
TSE:SIS and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TSE:SISSavaria Corp.28.356.6830.84%
TSE:REKOReko International5.001.2734.05%
TSE:VLNVelan Inc. SV17.340.613.62%

Savaria Corporate Events

Business Operations and StrategyDividends

Savaria Maintains Monthly Payout With New Dividend Declaration

Positive
Aug 21, 2026

Savaria Corporation, a global manufacturer of accessibility and medical mobility equipment including home and commercial elevators, stairlifts, wheelchair lifts, medical beds and patient-handling devices, operates via an international dealer network...

Business Operations and StrategyFinancial DisclosuresM&A Transactions

Savaria Posts Strong Q2 2026 Growth and Margin Gains on Accessibility Push

Positive
Aug 5, 2026

Savaria reported second-quarter 2026 revenue of $245.8 million, an 8.4% increase driven primarily by 6.6% organic growth and solid performances in its Accessibility and Patient Care segments. Gross profit rose 9.9% to $97.3 million, lifting margin to...

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.

Date of analysis: Sep 06, 2026