Q: Savaria having a great Week. Overall what do you see and what do you think about the upcoming Year on SIS. Thanks. Barry
5i Research Answer:
SIS is up 5.4% YTD, but up five of the last six trading days. It has not had a lot of news, but did have its first investor day last week. The outlook is solid, with at least 30% earnings growth expected this year. While we would not expect a large acquisition, debt has declined close to $100M in the past year, and SIS could still do a deal if it found an attractive opportunity. Bloomberg shows some insider buying over the last few months (net). It is not particularly cheap at 25X earnings but we continue to have confidence in management here.