Savaria Corp (SIS-T)

Two years ago was his last meeting with the company. It was good, but not good enough. Long-term care is challenged -- government reimbursement is an issue, growth is stable but low single digits. Wouldn't buy today.

He remains a big fan of the company. They've increased margins and revenues. The tariffs have impacted shares. He isn't panicking but rather buying on weakness, including yesterday. Volatility will continue. The US makes up 33% of sales, and because SIS has a lot of manufacturing in the US so those sales should conform with the tariffs. If FDA-approved products, like elevators are exempt, that would raise the US percentage. Ultimately, SIS will navigate tariffs which won't last forever.

Good company, but not outstanding. High quality, steady eddy. Not a low multiple. You'll do well over time. More of a mature business, doesn't have the growth he likes to see.

This is how she's playing the aging demographic theme. Long-term secular trend.

Accessibility segment, plus products in the patient care segment help with the healthcare worker shortage. Margins this year have improved from 16% to 19.5%. Stock dropped due to tariff issues, and this is overdone; FDA-approved items are not subject to tariffs. US manufacturing facility can take on more production if required. Yield is 3%.

Leader in home accessibility and patient handling products. Benefits from aging demographics. Phenomenal results, increased margins. Over 18% EBITDA margins YTD. 

Stock's down on tariff threat, big overreaction. Buying opportunity. Patient handling products are all made in USA, and most home accessibility is FDA-approved (tariff exempt). Home elevator business may not be exempt, but could easily shift manufacturing to another of its 12 plants worldwide. Yield is 3%.

Benefits from the aging population that has financial flexibility. Very strong market position. Professionalizing a mom & pop industry. Really good job acquiring and integrating products. Not expensive. Well run. Has a place in a growth portfolio.

He's not avoiding companies with tariff risk, as he doesn't think tariffs will be as bad as feared.

Owns a lot. Is happy with this small-cap. The recent choppiness is due to the founder selling shares, but SIS is in a good spot. They guided margins from 15% to 20% and are already almost there. They're in a demographic sweet spot. Are expanding revenues. Will raise the dividend, which is already good.

Impressed with business. Very steady revenue lines. Elevators and stair lift demand growing. Growth not high, but is a quality company. 

Has owned this for a long time, since it was $5. Are the global leader in this space. Results this year are phenomenal with strong organic growth and increasing profit margins. Are becoming synergistic in their various businesses across US and Europe through cross-selling. Are reaching 19% EBITDA margins from supply chain optimization. Now, it's hitting all-time highs, but is a good long-term investment due to an aging population as people buy stairlifts and elevators. A lot of growth, top and bottom, ahead. Today, the chairman is selling shares, which doesn't scare him, because it doesn't change the fundamentals.

It has good fundamentals and he likes it. Management is looking to increase the dividend and is moving along faster than expected. In general you should continue to hold good companies with good fundamentals through downturns and maybe buy more.

Very well run company that has respect for shareholders. Long term tailwinds with home elevator service. Aging population will continue demand for products. Recent tour of Canadian factory very impressive. Expecting further dividend increases in 2025. Expecting further growth. 

It is the only consumer discretionary stock they own. She considers it a staple since it provides accessibility equipment to keep people in their homes longer, which they want. Also vertical housing is on the rise in a city like Toronto and there are townhouses now being built with elevator shafts which is part of their business.

It is a global leader in home accessibility equipment and patient handling. A concern in the second quarter report gave the stock a hit but he considers it a one-time event. Also it did a recent equity issue which is being used to pay down debt. It has good management, strong organic sales growth. a good backlog and improving margins. It should be able to make good acquisitions. Trades at 9X EBITDA, near historical lows.  
Buy 8  Hold 0  Sell 0

Great Q1 results. Strong organic growth, margins improved, record backlog for the rest of the year. 10x EBITDA, very reasonable. Good demographics. Targeting $1B in sales by 2025, tremendous upside if they can reach that goal. A better play than cost-intensive LTC homes. Yield is 3.1%.