AUTOCANADA INC (ACQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACQ - CA05277B2093 - Common Stock
26.68 CAD
-0.15 (-0.56%)
We assign a fundamental rating of 3 out of 10 to ACQ. ACQ was compared to 19 industry peers in the Specialty Retail industry. Both the profitability and financial health of ACQ have multiple concerns. ACQ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ACQ was profitable.
- ACQ had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: ACQ reported negative net income in multiple years.
- Each year in the past 5 years ACQ had a positive operating cash flow.
1.2 Ratios
- ACQ has a worse Return On Assets (-0.29%) than 78.95% of its industry peers.
- Looking at the Return On Equity, with a value of -1.63%, ACQ is doing worse than 78.95% of the companies in the same industry.
- ACQ has a Return On Invested Capital (4.84%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for ACQ is significantly below the industry average of 11.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.29% | ||
| ROE | -1.63% | ||
| ROIC | 4.84% |
ROA(3y)0.77%
ROA(5y)1.84%
ROE(3y)4.51%
ROE(5y)8.92%
ROIC(3y)5.74%
ROIC(5y)5.59%
1.3 Margins
- With a Operating Margin value of 3.42%, ACQ perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
- ACQ's Operating Margin has improved in the last couple of years.
- ACQ's Gross Margin of 16.71% is on the low side compared to the rest of the industry. ACQ is outperformed by 78.95% of its industry peers.
- ACQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.42% | ||
| PM (TTM) | N/A | ||
| GM | 16.71% |
OM growth 3Y-16.58%
OM growth 5Y3.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.75%
GM growth 5Y0.09%
2. Health
2.1 Basic Checks
- ACQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ACQ has been reduced compared to 1 year ago.
- The number of shares outstanding for ACQ has been reduced compared to 5 years ago.
- ACQ has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.10 indicates that ACQ is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.10, ACQ is in line with its industry, outperforming 47.37% of the companies in the same industry.
- The Debt to FCF ratio of ACQ is 109.26, which is on the high side as it means it would take ACQ, 109.26 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 109.26, ACQ is doing worse than 73.68% of the companies in the same industry.
- A Debt/Equity ratio of 3.71 is on the high side and indicates that ACQ has dependencies on debt financing.
- ACQ's Debt to Equity ratio of 3.71 is on the low side compared to the rest of the industry. ACQ is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.71 | ||
| Debt/FCF | 109.26 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.66
WACC7.35%
2.3 Liquidity
- ACQ has a Current Ratio of 1.09. This is a normal value and indicates that ACQ is financially healthy and should not expect problems in meeting its short term obligations.
- ACQ has a Current ratio of 1.09. This is in the lower half of the industry: ACQ underperforms 68.42% of its industry peers.
- A Quick Ratio of 0.42 indicates that ACQ may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.42, ACQ is doing worse than 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
- ACQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 133.48%, which is quite impressive.
- The Revenue for ACQ has decreased by -26.93% in the past year. This is quite bad
- Measured over the past years, ACQ shows a quite strong growth in Revenue. The Revenue has been growing by 9.01% on average per year.
EPS 1Y (TTM)133.48%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-144%
Revenue 1Y (TTM)-26.93%
Revenue growth 3Y4.77%
Revenue growth 5Y9.01%
Sales Q2Q%-26.19%
3.2 Future
- ACQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 74.21% yearly.
- ACQ is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.28% yearly.
EPS Next Y245.23%
EPS Next 2Y120.59%
EPS Next 3Y74.21%
EPS Next 5YN/A
Revenue Next Year-18.17%
Revenue Next 2Y-8.59%
Revenue Next 3Y-5.41%
Revenue Next 5Y-0.28%
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 34.65, which means the current valuation is very expensive for ACQ.
- ACQ's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, ACQ is valued a bit more expensive.
- A Price/Forward Earnings ratio of 8.03 indicates a reasonable valuation of ACQ.
- ACQ's Price/Forward Earnings ratio is rather cheap when compared to the industry. ACQ is cheaper than 89.47% of the companies in the same industry.
- ACQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.65 | ||
| Fwd PE | 8.03 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ACQ is on the same level as its industry peers.
- ACQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.96 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
- ACQ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ACQ's earnings are expected to grow with 74.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y120.59%
EPS Next 3Y74.21%
5. Dividend
5.1 Amount
- No dividends for ACQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AUTOCANADA INC / ACQ.CA FAQ
What is the fundamental rating for ACQ stock?
ChartMill assigns a fundamental rating of 3 / 10 to ACQ.CA.
What is the valuation status for ACQ stock?
ChartMill assigns a valuation rating of 5 / 10 to AUTOCANADA INC (ACQ.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for AUTOCANADA INC?
AUTOCANADA INC (ACQ.CA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for ACQ stock?
The Price/Earnings (PE) ratio for AUTOCANADA INC (ACQ.CA) is 34.65 and the Price/Book (PB) ratio is 1.28.
How financially healthy is AUTOCANADA INC?
The financial health rating of AUTOCANADA INC (ACQ.CA) is 3 / 10.