Scotiabank Has Optimistic Outlook of Wajax FY2027 Earnings

Key Points

• Scotiabank raised its FY2027 EPS forecast for Wajax to C$3.65 from C$3.60, above the C$3.49 consensus estimate, while maintaining a “Sector Perform” rating and C$36 price target.
• Wajax reported quarterly EPS of C$0.82 on revenue of C$515.67 million; the company posted a 12.07% return on equity and a 3.18% net margin.
• Analyst sentiment remains cautious, with an overall “Hold” rating and average price target of C$34.80. Wajax shares recently traded at C$30.09, while director Jane Craighead increased her holdings by purchasing 1,100 shares.

Wajax Co. (TSE:WJX - Free Report) - Research analysts at Scotiabank raised their FY2027 earnings per share (EPS) estimates for Wajax in a report issued on Wednesday, August 19th. Scotiabank analyst J. Goldman now forecasts that the company will post earnings of $3.65 per share for the year, up from their prior estimate of $3.60. Scotiabank has a "Sector Perform" rating and a $36.00 price objective on the stock. The consensus estimate for Wajax's current full-year earnings is $3.49 per share.

Wajax (TSE:WJX - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported C$0.82 EPS for the quarter. The business had revenue of C$515.67 million for the quarter. Wajax had a return on equity of 12.07% and a net margin of 3.18%.

Several other research firms have also commented on WJX. TD dropped their price target on shares of Wajax from C$35.00 to C$34.00 and set a "hold" rating on the stock in a research report on Monday, August 10th. National Bank Financial upped their price objective on shares of Wajax from C$34.00 to C$36.00 and gave the stock an "outperform" rating in a research report on Monday, August 10th. One analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of C$34.80.

Wajax Stock Performance

WJX opened at C$30.09 on Monday. The company has a debt-to-equity ratio of 66.87, a current ratio of 1.92 and a quick ratio of 0.71. The firm has a fifty day moving average price of C$31.66 and a 200 day moving average price of C$31.17. Wajax has a 1 year low of C$22.43 and a 1 year high of C$35.00. The stock has a market cap of C$655.36 million, a P/E ratio of 10.23, a P/E/G ratio of 0.50 and a beta of 0.44.

Insider Activity at Wajax

In other news, Director Jane Craighead bought 1,100 shares of Wajax stock in a transaction on Tuesday, May 26th. The shares were bought at an average cost of C$28.84 per share, with a total value of C$31,724.00. Following the completion of the purchase, the director directly owned 11,900 shares of the company's stock, valued at approximately C$343,196. This trade represents a 10.19% increase in their ownership of the stock. 0.97% of the stock is currently owned by corporate insiders.

About Wajax

Wajax Corp is a Canadian distributor of industrial components. The company's core business is the sale of parts and service support of equipment, power systems, and industrial components through a network of branches in Canada. Most of its revenue is generated from the sale of equipment which includes machinery and components used for construction purposes and its industrial components find utility in businesses like mining, forestry, and material handling for other industrial purposes. It sells to leading manufacturer brands such as Hitachi, JCB, Bell, Hyster, Palfinger and other similar industries.

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