In our last Number Cruncher we discussed how Stingray Group (RAY.A), Savaria Corporation (SIS) & Investors Title Company (ITIC) could be good candidates to take advantage of the economic recovery. Now, we’re going to look at these stocks with Stockpointer.
Let’s start with RAY.A
The company has a high score of 68 in our system. The outlook increased by 10 in the last 90 days showing a strong improvement in the fundamentals. The company increased its sales by 31.5% in the last 5-year period, but had to compromise on its EPS to fuel this growth. The performance spread, the return on capital minus the cost of capital, declined recently due to the pandemic.
The company scores well in various factors compared to peers. It has the second highest overall score based on this metric.
SIS has a similar growthj profile than RAY-A, but it also provided decent EPS growth in the last 5-year. It has a solid score of 59 SP score which is fueled by its strong performance, but with a moderate risk. Our system evaluates SIS to be a quality and growth company while being a bad value based on our Price/Intrinsic value metric as well as other well-known metrics.
SIS’s return on capital reached 19% in 2017 and 2018, but the economic downturn has hurt the company. If the company could reach the 2017-2018 level again, shareholders could enjoy a incredible price increase.
ITIC has a incredible score of 71 while being identified as a growth and quality. All metrics are positive as the performance score is high, the risk score is low, the sales and EPS growth are highly positive. The company also managed to increase its performance spread. There is nothing negative around here.
As shown by the intrinsic value calculated by our software, the company achieved an impressive performance between 2017 and 2018. The stock experience negative momentum since 2018, but the trend seems to be reversing as the share price seems to converge towards its intrinsic value.
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