Omni-Lite Industries Canada, Inc.: Strong price momentum but will it sustain?

Omni-Lite Industries Canada, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 53.

Our analysis is based on comparing Omni-Lite Industries Canada, Inc. with the following peers – Parker-Hannifin Corporation, TOTO LTD Unsponsored ADR, TechPrecision Corporation and Omni-Lite Industries Canada Inc. (PH-US, TOTDY-US, TPCS-US and OML-CA).

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 12.43% has been better than that over the last year, which was 2.22%. Also from a peer group perspective, Omni-Lite Industries Canada, Inc. has performed better, since the peer group performance was 2.22% over the last month.

Company Snapshot

  • Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
  • It trades at a lower Price/Book multiple (0.69) than its peer median (2.80).
  • The market expects OLNCF-US‘s earnings to grow at about the same rate as its chosen peers and also does not seem to expect much improvement in its below peer median returns.
  • OLNCF-US employs relatively high amounts of assets while generating relatively median profit margins.
  • Change in the company’s annual revenues seems to be coming at the expense of earnings.
  • Over the last five years, OLNCF-US‘s return on assets has declined from about median to less than the median among its peers suggesting that the company’s historical competitiveness in operations is slipping away.
  • 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 OLNCF-US‘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 capital investment seems appropriate for a business with peer median returns.
  • OLNCF-US currently does not have any debt.
  • Our analysis rates Omni-Lite Industries Canada, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.

OLNCF-US‘s share price performance of 2.22% over the last 12 months is below its peer median but its 30-day trend in share price performance of 12.43% is better than the peer median. This recent rising stock price may herald a change in relative share price performance.

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 USD 1.21 is lower than CapitalCube’s implied price of USD 1.94. 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 USD 0.96 and USD 1.54.

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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