AUTOCANADA INC (ACQ.CA) Stock Fundamental Analysis

Canada - Toronto Stock Exchange - TSX:ACQ - CA05277B2093 - Common Stock

26.83 CAD

+0.08 (+0.3%)

Last: 1/23/2026, 7:00:00 PM

Fundamental Rating

ACQ gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 19 industry peers in the Specialty Retail industry. ACQ may be in some trouble as it scores bad on both profitability and health. ACQ has a correct valuation and a medium growth rate.

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1. Profitability

1.1 Basic Checks

ACQ had positive earnings in the past year.
In the past year ACQ had a positive cash flow from operations.
In multiple years ACQ reported negative net income over the last 5 years.
ACQ had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

The Return On Assets of ACQ (-0.29%) is worse than 78.95% of its industry peers.
The Return On Equity of ACQ (-1.63%) is worse than 78.95% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.84%, ACQ is in line with its industry, outperforming 47.37% of the companies in the same industry.
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

ACQ has a Operating Margin (3.42%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ACQ has grown nicely.
The Gross Margin of ACQ (16.71%) is worse than 78.95% of its industry peers.
In the last couple of years the Gross Margin of ACQ has remained more or less at the same level.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
ACQ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ACQ has been reduced compared to 5 years ago.
The debt/assets ratio for ACQ has been reduced compared to a year ago.

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.
ACQ has a Altman-Z score (2.10) which is comparable to the rest of the industry.
ACQ has a debt to FCF ratio of 109.26. This is a negative value and a sign of low solvency as ACQ would need 109.26 years to pay back of all of its debts.
ACQ has a worse Debt to FCF ratio (109.26) than 73.68% of its industry peers.
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

WACC7.36%

2.3 Liquidity

A Current Ratio of 1.09 indicates that ACQ should not have too much problems paying 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.
ACQ has a Quick Ratio of 1.09. This is a bad value and indicates that ACQ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.42, ACQ is not doing good in the industry: 73.68% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.09
Quick Ratio	0.42

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
Looking at the last year, ACQ shows a very negative growth in Revenue. The Revenue has decreased by -26.93% in the last year.
ACQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.01% yearly.

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.
Based on estimates for the next years, ACQ will show a decrease in Revenue. The Revenue will decrease by -0.28% on average per year.

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

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

ACQ is valuated quite expensively with a Price/Earnings ratio of 34.84.
Compared to the rest of the industry, the Price/Earnings ratio of ACQ is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.21, ACQ is valued a bit more expensive.
The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of ACQ.
89.47% of the companies in the same industry are more expensive than ACQ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.98. ACQ is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	34.84
Fwd PE	8.07

4.2 Price Multiples

ACQ's Enterprise Value to EBITDA ratio is in line with the industry average.
ACQ's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	37.17
EV/EBITDA	6.91

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.
A more expensive valuation may be justified as ACQ's earnings are expected to grow with 74.21% in the coming years.