Wajax (WJX) sold off nearly 15% on its Q1 print, which missed expectations on lumpiness in equipment sales - with construction, forestry, and mining down Y/Y…

… and driving near-term caution from management. Despite some end market softness, the company is operating efficiently - with inventory turns stabilizing at 2.5x…

… and leverage sitting at the bottom end of Wajax’s 1.5-2.0x target range, positioning it well for a more constructive demand environment and M&A - which could drive multiple expansion…

… but will take time, with the new CEO getting settled into the role over the next couple quarters.