Last Updated On: January 1, 2019
Share Price On This Date: $12.75
Operates a chain of heavy farm equipment and truck dealerships.
Cervus operates a chain of farm equipment dealerships spread across western Canada. They also own a similar chain in Australia and New Zealand. Additionally, they operate a trucking division in Ontario which sells Peterbilt trucks. A binge of farm equipment buying in the early 2010's led to a hangover that lasted several years and dragged down sales and profitability in the sector. Conditions seem to be returning to normal again, though and the company is back in growth mode. 2018 saw near record-high profits on the back of strong equipment demand in both the agricultural and trucking sectors. With a trailing p:e of 8.5 at the current share price of $12.75, this stock looks to me to offer good value in an otherwise expensive market.
For the full, in-depth review, please see Spotlight on Cervus Equipment.