Earning popped an impressive 24.0% with 8.3% higher revenues also featuring in the most recent quarter. Wajax’s improved business conditions and strengthening customer demand look set to continue.
What’s more, a recent supplier acquisition should help diversify the company’s services even further.
Meanwhile the stock trades at just 8.4 times the company’s 2024 earnings forecast.
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WAJAX CORP. (Toronto symbol WJX; www.wajax.ca) sells and services cranes, forklifts and other heavy equipment. Wajax also provides related parts and systems such as ball bearings, hoses, diesel engines and transmissions.
The company’s customers are spread across the resources, construction, manufacturing and transportation industries.
Wajax recently acquired Sault Ste. Marie, Ontario-based Beta Fluid Power Ltd. and Beta Industrial Ltd. The purchase price has not yet been disclosed.
Beta Fluid is a leading regional supplier of hydraulic and pneumatic equipment for use in the industrial, mining and construction sectors. It also offers hydraulic and pneumatic maintenance, repair and replacement services, including mobile services. Beta Industrial provides a wide range of on-site facility repair and maintenance services.
Dividend Stocks: Wajax’s steady improvements continue after historic COVID-19 challenges
Meanwhile, in the quarter ended September 30, 2023, overall revenue climbed 8.3%, to $509.7 million from $470.8 million a year earlier.
Excluding one-time items, Wajax earned $20.7 million, or $0.96 a share, in the quarter. That’s up 24.0% from $16.7 million, or $0.78.
Business conditions due to COVID-19 hurt the company’s results in 2021. However, volumes improved steadily through the end of 2022; customer activity has continued to climb in 2023.
The company is raising its quarterly dividend by 6.1% with the April 2024 payment, to $0.35 a share from $0.33. The stock now yields a high 4.4% while trading at just 8.4 times forecast earnings.
Recommendation in Power Growth Investor: Wajax Corp. is a buy.
