Topic: How To Invest

Power Growth Investor Hotline – Friday, March 10, 2023

Article Excerpt

WAJAX CORP., $24.93, is a buy. Through their shares, investors benefit from the company’s (symbol WJX on Toronto) sales and servicing of 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. In the quarter ended December 31, 2022, overall revenue climbed 34.4%, to $541.3 million from $402.8 million a year earlier. Excluding one-time items, Wajax earned $17.8 million, or $0.83 a share, in the quarter. That’s up 154.3% from $7.0 million, or $0.33. Business conditions due to COVID-19 hurt the company’s results in 2021. However, volumes improved steadily through the end of 2022; now into 2023, customer activity continues to increase. Meanwhile, Wajax is still cutting costs to conserve cash until its markets fully rebound. Those efforts should let it keep servicing its long-term debt of $139.4 million (as of December 31, 2022). That equals a manageable 26%…