Wajax - What to make of it ?For a company that is older than the country ( 1858) that has a national presence and only a market cap of less than a half billion raises some questions. What has it been doing?
This company serves and supports many sectors of the economy , many that should be blowing tailwinds into the company earnings, Construction , mining, energy, manufacturing and lately renewable energy.
The big drivers are equipment and part sales. These have a high cyclicality . But lately the biggest growing sector of the company seems to be higher margin Engineered Repair services. With companies facing Pressures and increasing labour challenges , these services could provide a lot of value to this company .
The company has been consistently profitable and dividend paying. It trades trades at half the multiple of the likes of Finning. The company may just have too many SKU's on offer.
While Wajax has a new CEO and needs a bit time to do his work , I think at some point there may emerge an activist shareholder or international purchaser come along to recognise the Value in this company. With 5 % percent , I think I will see how this goes