Derek Warren StorageVault Canada SVI-T HOLD Feb 14, 2025

Makes video cameras for use in stores or businesses. Have some new contracts with Costco (COST-Q). This should allow them to have a reasonable upside in earnings going forward.

Optimistic for its outlook. Analysts are expecting earnings to double from $.06 to $.12 which would be about an 11 P/E.

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

SVI operates in a structure relatively similar to a REIT but is much more growth-focussed. It needs to utilize debt in order to be able to grow its portfolio of assets which it rents out. It has also grown primarily via acquisition. The rising rate environment has created cost pressures, however we do think the outlook is positive. As Canada has already begun cutting rates, we think SVI stands to benefit from lower interest expenses (bottom-line expansion) and being able to isse more debt to finance growth (top line expansion). The industry is capital intensive so while high debt is a risk, it is somewhat unavoidable. We like the outlook for SVI.
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