Savaria Stock Has Been Throttled: Here’s Why I’m Buying!

Savaria (TSX:SIS) is a Laval-based company that provides accessibility solutions for the elderly and physically challenged in Canada and around the world. Shares of this promising TSX stock have dropped 9.4% in 2022 as of late afternoon trading on April 21. This has pushed the stock into negative territory in the year-over-year period.

Last year, Allied Market Research released a report on the future of the personal mobility devices market. It projected that this global market would grow from $7.70 billion in 2019 to $14.5 billion by 2027. This would represent a CAGR of 7.1% over the projected period.

The company released its fourth quarter and full-year 2021 results on March 23, 2022. Revenue was reported at $661 million in 2021 – up 86% from $306 million in the previous year. Gross profit jumped 76% to $215 million and adjusted EBITDA climbed 67% year-over-year to $100 million. Savaria’s acquisition of Handicare bolstered its global reach in this very promising market. Moreover, management boasted that the company is on track to deliver $1 billion in revenues by 2025. Investors cannot ignore Savaria this decade.

Shares of Savaria are trading in favourable value territory compared to its industry peers. It neared oversold levels to start this week but has since recovered. Regardless, I’m still looking to snatch up Savria on the dip in late April. It also offers a monthly dividend of $0.0417 per share. That represents a 2.9% yield.