AUTOCANADA INC (ACQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACQ - CA05277B2093 - Common Stock
26.75 CAD
-0.41 (-1.51%)
Taking everything into account, ACQ scores 3 out of 10 in our fundamental rating. ACQ was compared to 19 industry peers in the Specialty Retail industry. Both the profitability and financial health of ACQ have multiple concerns. ACQ is not valued too expensively and it also shows a decent 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.
- In multiple years ACQ reported negative net income over the last 5 years.
- Each year in the past 5 years ACQ had a positive operating cash flow.
1.2 Ratios
- ACQ has a Return On Assets of -0.29%. This is in the lower half of the industry: ACQ underperforms 78.95% of its industry peers.
- ACQ has a Return On Equity of -1.63%. This is in the lower half of the industry: ACQ underperforms 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.
- Measured over the past 3 years, the Average Return On Invested Capital 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 of 3.42%. This is comparable to the rest of the industry: ACQ outperforms 42.11% of its industry peers.
- In the last couple of years the Operating Margin of ACQ has grown nicely.
- ACQ has a Gross Margin of 16.71%. This is in the lower half of the industry: ACQ underperforms 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.
- ACQ has less shares outstanding than it did 1 year ago.
- ACQ has less shares outstanding than it did 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.
- ACQ's Altman-Z score of 2.10 is in line compared to the rest of the industry. ACQ outperforms 47.37% of its industry peers.
- 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.
- ACQ's Debt to FCF ratio of 109.26 is on the low side compared to the rest of the industry. ACQ is outperformed by 73.68% of its industry peers.
- ACQ has a Debt/Equity ratio of 3.71. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 3.71, ACQ is doing worse than 78.95% of the companies in the same industry.
| 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.
- Looking at the Current ratio, with a value of 1.09, ACQ is doing worse than 68.42% of the companies in the same industry.
- 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.
- ACQ has a worse Quick ratio (0.42) than 73.68% of its industry peers.
| 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
- 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
- The Earnings Per Share is expected to grow by 74.21% on average over the next years. This is a very strong growth
- ACQ is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.28% yearly.
EPS Next Y258.61%
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 34.74, which means the current valuation is very expensive for ACQ.
- Compared to the rest of the industry, the Price/Earnings ratio of ACQ is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.32. ACQ is valued slightly more expensive when compared to this.
- A Price/Forward Earnings ratio of 8.05 indicates a reasonable valuation of ACQ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ACQ indicates a rather cheap valuation: ACQ is cheaper than 89.47% of the companies listed in the same industry.
- ACQ is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ACQ.
- ACQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.06 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
- The 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)0.13
PEG (5Y)N/A
EPS Next 2Y120.59%
EPS Next 3Y74.21%
5. Dividend
5.1 Amount
- ACQ does not give a dividend.
| 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 34.74 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.