Value Stocks Episode 14 – Wajax Corporation

by Jun 4, 2019Value Stocks Podcasts Episodes0 comments

Summary: 

  • Wajax’s business is primarily driven by two industries, Construction and Resource extraction.
  • Long term debt has gone up by over 100% and shares outstanding has increased by 20% in the past 10 years
  • A bet on Wajax is a bet on Canada’s resource economy rapidly recovering and growing in the near future combined with a relatively healthy construction market 

In this episode, Alex discusses Wajax Corporation (TSE: WJX).  Wajax Corporation was founded over 160 years ago and is based in Montreal. 

Wajax is an official dealer for such recognizable brands as Hitachi construction and mining equipment, MTU engines, Hyster forklifts and Eaton pumps, motors, transmissions, valves, cylinders, controls, hoses and fittings.  On top of these products it also has a strategically growing business in Engineered Solutions.

In 2018 Wajax recorded $1.4 billion of revenue, net income of $35 million with long term debt of approximately $218 million and shareholders equity of $296 million.   

Alex currently does not have a position in Wajax and rates it a 5 out of 10.  We hope you enjoy the episode.

 

Welcome to StockWriteUps.com!

My name is Alex Middleton and I am from Calgary, Alberta.  I believe investing requires one to carefully study publicly available information in an attempt to develop a thesis based on reason and logic.  It also requires one to properly account for the unknown by applying probabilities and margin of safety to their thesis.  I hope you enjoy the content!

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