| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 35.73 | 74 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 7.90 | -62 |
Savaria Corporation (TSX: SIS) is a leading global provider of accessibility solutions tailored for the elderly and physically challenged individuals. Headquartered in Laval, Canada, the company operates across three key segments: Accessibility, Patient Care, and Adapted Vehicles. Its Accessibility segment specializes in manufacturing and installing stairlifts, wheelchair platform lifts, and home elevators, while the Patient Care segment focuses on therapeutic support surfaces and medical equipment for safe patient handling. The Adapted Vehicles segment distributes mobility-adapted vehicles for personal and commercial use. With a strong presence in North America, Europe, and other international markets, Savaria serves customers through a network of dealers and direct sales. Founded in 1979, the company has established itself as a trusted name in the accessibility and healthcare industries, driven by innovation and a commitment to improving quality of life for individuals with mobility challenges. As aging populations and disability awareness grow globally, Savaria is well-positioned to capitalize on increasing demand for accessibility solutions.
Savaria Corporation presents a compelling investment opportunity due to its strong market position in the growing accessibility and patient care industries. The company benefits from long-term demographic trends, including an aging population and increasing demand for mobility solutions. Financially, Savaria has demonstrated steady revenue growth, with FY revenue reaching CAD 867.8 million, and maintains a solid balance sheet with CAD 35.2 million in cash and equivalents. However, investors should note its moderate net income (CAD 48.5 million) and diluted EPS of CAD 0.68, which reflect competitive pressures and operational costs. The company’s beta of 0.997 suggests market-aligned volatility, making it a relatively stable pick within the industrials sector. A dividend yield of approximately 1.5% (CAD 0.5332 per share) adds income appeal. Risks include exposure to economic cycles affecting discretionary spending on accessibility products and potential supply chain disruptions in its global operations.
Savaria Corporation holds a competitive advantage through its diversified product portfolio and strong brand recognition in the accessibility solutions market. Its vertical integration—spanning design, manufacturing, and distribution—allows for cost efficiencies and quality control. The company’s focus on innovation, particularly in stairlifts and home elevators, differentiates it from generic mobility product providers. Additionally, its Patient Care segment benefits from recurring revenue streams tied to medical equipment and therapeutic support surfaces. However, Savaria faces competition from both specialized accessibility firms and larger medical equipment manufacturers. Its North American and European presence provides geographic diversification, but regional competitors with deeper local market penetration could pose challenges. The company’s acquisition strategy has bolstered its market share, though integration risks remain. Pricing pressure from low-cost manufacturers, especially in Asia, could impact margins. Overall, Savaria’s niche expertise and comprehensive solutions position it well, but maintaining technological leadership and expanding in emerging markets will be critical for sustained growth.