Wajax (WJX) ran 7% on the back of its Q4 results, which beat small on revenue and bigger on EPS - thanks to improving margins (lower SG&A).

Leverage reduction was the real story, dropping to the low end of management’s 1.5-2.0x target range thanks to a ~$60M inventory release…

… which frees management up to position for equipment selling season and potential M&A, with the new CEO bringing transaction experience. If WJX can execute, there’s room for multiple expansion…

… with shares trading in-line with the long-term average, but substantially below peers like Finning (FTT) and Toromont (TIH).

You might be interested in…

Disclaimer: Content on this site, including research reports, is provided by Bullpen Finance Inc. for informational purposes only and does not constitute investment advice. Bullpen Finance Inc. receives compensation from issuers for research coverage; such compensation does not influence opinions expressed. For complete disclosures, please see our Legal & Disclosures section.