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Wajax Corporation
(TSX:WJX)
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Rating:68Neutral
Price Target:
C$37.00
▲(25.38% Upside)
Action:Reiterated
Date:10/03/26
The score is driven primarily by solid and improving financial performance (better profitability, strong current free cash flow, and de-risking leverage). Valuation is supportive with a moderate P/E and solid dividend yield. Technicals show strong momentum but are heavily overbought (high RSI/Stoch), which tempers the outlook. The latest earnings call reinforced margin/backlog progress but flagged ongoing top-line and cash-flow volatility risks, especially in equipment sales.
Positive Factors
Recurring aftermarket growth
Growth in product support and engineered repair services gives Wajax recurring revenue beyond new-equipment deliveries. These activities support customer assets throughout their operating lives, can improve revenue visibility, and help cushion the company when capital spending cycles weaken.
Negative Factors
Equipment sales cyclicality
Wajax remains exposed to customer decisions on large equipment purchases, which can create uneven revenue and earnings when approvals or deliveries are delayed. The steep equipment decline shows that service growth may not fully offset weakness in capital-intensive activities.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket growth
Growth in product support and engineered repair services gives Wajax recurring revenue beyond new-equipment deliveries. These activities support customer assets throughout their operating lives, can improve revenue visibility, and help cushion the company when capital spending cycles weaken.
Read all positive factors
Wajax Corporation (WJX) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$729.44M
Dividend Yield4.16%
Average Volume (3M)75.53K
Price to Earnings (P/E)11.2
Beta (1Y)0.53
Revenue Growth-4.10%
EPS Growth82.03%
CountryCA
Employees2,900
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)3.02
Shares Outstanding21,779,947
10 Day Avg. Volume50,496
30 Day Avg. Volume75,531
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)1.10
Price to Sales (P/S)0.28
P/FCF Ratio3.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$39.75Price Target Upside34.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)3.09
Revenue Forecast (FY)C$2.09B
Wajax Corporation Business Overview & Revenue Model
Company Description
Wajax Corporation provides comprehensive solutions encompassing equipment sales, parts distribution, and specialized services. The company caters to a diverse range of sectors, including construction, forestry, mining, industrial/commercial, oil s...
How the Company Makes Money
Wajax makes money primarily by selling and supporting industrial equipment and components and by providing recurring aftermarket services. A major revenue stream comes from equipment and systems distribution—selling new and used heavy equipment an...
Wajax Corporation Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 02, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: operational and margin improvements (higher gross margin, adjusted EBITDA and EPS growth), backlog growth, working capital optimization, and reduced leverage were offset by lower overall revenue driven by a steep decline in equipment sales, a significant drop in operating cash flow versus last year, regional softness (Western/Central Canada) and a deterioration in safety metrics. Management emphasized disciplined capital allocation, strategic planning, and organizational investments to drive future growth, but near-term top-line and cash-flow volatility remain key risks.Positive Updates
Improved Profitability Metrics
Gross profit margin improved to 20.9%, up 180 basis points year-over-year; adjusted EBITDA margin rose to 8.9% from 8.2% a year ago and 8.1% in Q1 2026; adjusted EBITDA was $45.9 million, up $1.2 million or 2.6% year-over-year; adjusted net earnings per share increased to $0.84, up 9.7% or $0.07 versus Q2 2025.
Negative Updates
Revenue Decline
Total revenue for Q2 2026 was $515.7 million, down $31.5 million or 5.7% year-over-year, driven primarily by lower equipment volumes.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Profitability Metrics
Gross profit margin improved to 20.9%, up 180 basis points year-over-year; adjusted EBITDA margin rose to 8.9% from 8.2% a year ago and 8.1% in Q1 2026; adjusted EBITDA was $45.9 million, up $1.2 million or 2.6% year-over-year; adjusted net earnings per share increased to $0.84, up 9.7% or $0.07 versus Q2 2025.
Read all positive updates
Company Guidance
Management's guidance emphasized disciplined execution—prioritizing margin improvement, working‑capital efficiency and prudent capital allocation while selectively investing to support sales force and technician capacity—backed by Q2 metrics: revenue $515.7M (down $31.5M or 5.7% YoY), gross margin 20.9% (+180 bps), adjusted EBITDA $45.9M (margin 8.9% vs 8.2% YoY and 8.1% in Q1), adjusted EPS $0.84 (+9.7% or $0.07), TRIF 1.43 (+40%), backlog $546.6M (+$24.9M QoQ, +$22.4M YoY) including two large mining shovels, equipment sales $137M (‑22.3% YoY), product support $143M (+6.9% YoY), industrial parts ~$138M (‑1.9% YoY), ERS ~$86M (+2.9% YoY), inventory down $3.7M QoQ and $12.3M YoY, operating cash flow $36.2M (vs $68.3M prior year), leverage 1.3x (from 1.51x), available credit $297.8M, working‑capital efficiency 24.3% (improved 30 bps), inventory turns 2.4x (vs 2.2x YoY), and a Q3 dividend of $0.35/share—with management expecting ERS and product‑support momentum to continue, mixed end‑market conditions overall, and sustained focus on ROIC and margin discipline as the strategic planning work proceeds.Wajax Corporation Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.06B | 2.15B | 2.10B | 2.15B | 1.96B | 1.64B |
| Gross Profit | 407.85M | 405.41M | 413.78M | 444.19M | 390.31M | 331.85M |
| EBITDA | 194.91M | 182.31M | 156.13M | 194.71M | 169.69M | 147.92M |
| Net Income | 65.63M | 57.47M | 42.79M | 80.99M | 72.41M | 53.25M |
Balance Sheet | ||||||
| Total Assets | 1.41B | 1.37B | 1.55B | 1.47B | 1.25B | 1.08B |
| Cash, Cash Equivalents and Short-Term Investments | 4.84M | 8.31M | 7.35M | 0.00 | -158.45M | 9.99M |
| Total Debt | 373.58M | 421.89M | 548.20M | 500.87M | 303.04M | 321.58M |
| Total Liabilities | 854.96M | 830.25M | 1.04B | 977.08M | 800.11M | 690.93M |
| Stockholders Equity | 558.63M | 537.50M | 512.28M | 496.24M | 449.77M | 389.91M |
Cash Flow | ||||||
| Free Cash Flow | 168.42M | 183.97M | 60.81M | -98.85M | 59.12M | 182.81M |
| Operating Cash Flow | 177.25M | 193.00M | 69.95M | -89.00M | 69.13M | 190.15M |
| Investing Cash Flow | 5.35M | 275.00K | 156.00K | -24.63M | -14.35M | -62.58M |
| Financing Cash Flow | -176.90M | -192.31M | -61.36M | 117.47M | -70.00M | -124.20M |
Wajax Corporation Technical Analysis
Neutral
29.51
Price Trends
33.32
Positive
32.24
Positive
31.04
Positive
Market Momentum
0.38
Positive
40.43
Neutral
17.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WJX, the sentiment is Neutral. The current price of 29.51 is below the 20-day moving average (MA) of 36.74, below the 50-day MA of 33.32, and below the 200-day MA of 31.04, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 17.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:WJX.
Wajax Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$4.78B | 22.25 | 13.09% | 2.00% | 18.28% | 35.28% | |
73 Outperform | C$15.78B | 30.57 | 15.53% | 1.14% | 8.83% | 6.15% | |
68 Neutral | C$729.44M | 11.15 | 12.07% | 4.16% | -4.10% | 82.03% | |
64 Neutral | C$2.81B | 28.08 | 24.14% | 0.92% | 16.24% | 10.17% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$12.02B | 22.04 | 19.22% | 1.36% | 0.31% | 18.50% | |
53 Neutral | C$2.51B | 52.64 | 2.66% | ― | 13.75% | ― |
* Industrials Sector Average
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Wajax Corporation Corporate Events
Business Operations and Strategy
Wajax Sets 2027 Strategy Roadmap and Restructures for Profitable Growth
Positive
Oct 8, 2026
Wajax Corporation has unveiled its 2027 Strategy Roadmap, setting out four priorities centered on building a stronger workforce, deepening customer and supplier partnerships, supporting local communities and driving operational discipline for prof...
Business Operations and StrategyFinancial Disclosures
Wajax Boosts Margins and Earnings Despite Lower Q2 Equipment Sales
Positive
Aug 6, 2026
Wajax Corporation reported second-quarter 2026 results showing revenue declined 5.7% year over year to $515.7 million, mainly due to lower equipment sales and the absence of a large mining shovel delivery that boosted the prior-year period. Despit...
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.