Omni-Lite Industries Canada, Inc.: Price momentum supported by strong fundamentals

Omni-Lite Industries Canada, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 75.

Our analysis is based on comparing Omni-Lite Industries Canada, Inc. with the following peers – Cleantech Solutions International, Inc., TechPrecision Corporation, Parker-Hannifin Corporation and EnPro Industries, Inc. (CLNT-US, TPCS-US, PH-US and NPO-US).

Omni-Lite Industries Canada, Inc. has shown excellent performance overall, both over the last one year as well as over the last month. In fact, Omni-Lite Industries Canada, Inc.’s price momentum over the last month, at 23.45% has been better than that over the last year, which was 19.33%. Also from a peer group perspective, Omni-Lite Industries Canada, Inc. has performed better, since the peer group performance was 8.65% over the last month.

Company Snapshot

  • From a peer analysis perspective, relative outperformance last month is up from a median performance last year.
  • It trades at a lower Price/Book multiple (0.76) than its peer median (4.11).
  • The market expects OML-CA to grow at about the same rate as the peers and to maintain the median returns it currently generates.
  • OML-CA‘s relatively high profit margins are burdened by relative asset inefficiency.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • Over the last five years, OML-CA‘s return on assets has declined from above median to about median among its peers, indicating declining relative operating performance.
  • The company’s margins are around the peer medians and do not suggest any benefit from a pricing or an operating cost advantage versus peers.
  • While OML-CA‘s revenues in recent years have grown faster than the peer median, the market gives the stock a P/E ratio that is around peer median suggesting that the market has some questions about the company’s long-term strategy.
  • The company’s level of capital investment seems appropriate to support the company’s growth.
  • OML-CA currently does not have any debt.
  • Our analysis rates Omni-Lite Industries Canada, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

From a peer analysis perspective, relative outperformance last month is up from a median performance last year.

While OML-CA‘s change in share price of 19.33% for the last 12 months is in line with its peer median, its more recent 30-day share price performance of 23.45% is above the peer median. This suggests the company’s performance has improved more recently relative to peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Omni-Lite Industries Canada, Inc.’s price of CAD 1.79 is lower than CapitalCube’s implied price of CAD 2.70. CapitalCube believes that at these levels, Omni-Lite Industries Canada, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between CAD 1.25 and CAD 2.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Omni-Lite Industries Canada, Inc. develops and manufactures precision components forged from advanced composite and other alloyed materials. It offers product for automotive, commercial, aerospace, engineering, sports and recreation and military markets. The company was founded by David Grant in September 1992 and is headquartered in Cerritos, CA.

Disclaimer

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