Wajax sees a steady recovery in its key markets

Article Excerpt

Business conditions due to COVID-19 hurt Wajax’s results. However, volumes improved steadily through 2021, and that trend has continued into 2022, as customer activity increased. WAJAX CORP., $22.35, is a buy. The company (Toronto symbol WJX; TSINetwork Rating: Extra Risk) (www.wajax.ca; Shares o/s: 21.5 million; Market cap: $489.0 million; Yield: 4.5%) sells and services cranes, forklifts and other heavy equipment. Its customers are spread across the resources, construction, manufacturing and transportation industries. In the quarter ended March 31, 2022, overall revenue climbed 13.5%, to $439.5 million from $387.1 million a year earlier. Excluding one-time items, Wajax earned $15.7 million, or $0.73 a share, up 26.6% from $12.4 million, or $0.59. Meanwhile, the company is still cutting costs to conserve cash. Those efforts should let it keep servicing its long-term debt of $153.7 million (as of March 31, 2022). That equals a manageable 31% of its market cap. The $1.00-a-share dividend for investors yields a high 4.5% and appears sustainable. Wajax Corp. is a buy. buy…