What is Savaria's next year p/e?Yahoo finance analysts' consensus is for 67 cents per share and Nationa Bank (who must know this stock extremely well since they lend Savaria million$) says they will earn 65 cents next year. Some of you call this stock expensive and believe it trades at over 30x next year earnings. Based on the earnings estimates above, the stock is trading at 23x times next year earnings. (and I'm not even sure if we are factoring in the earnings that will come from the Span America Medical Systems acquisition).
In any event, the company has been growing earnings by about 30% (and that was before gaining a stronger foothold in America with this recent purchase of Span America. I'm having a hard time seeing how this great growth stock set to profit even more from an aging demographic reality is anything but a screaming buy at this time. Of course, I'm happy to hear the other side. Maybe I'm missing something here. In any event, the only thing you cannot argue with is history. If you had purchased Savaria five years ago you would have something like an 8 bagger or a 10 bagger depending on when exactly you purchased your stock. I expect this growth story to continue.