AUTOCANADA INC (ACQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACQ - CA05277B2093 - Common Stock
26.83 CAD
+0.08 (+0.3%)
We assign a fundamental rating of 3 out of 10 to ACQ. ACQ was compared to 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.
1. Profitability
1.1 Basic Checks
- In the past year ACQ was profitable.
- In the past year ACQ had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: ACQ reported negative net income in multiple years.
- In the past 5 years ACQ always reported a positive cash flow from operatings.
1.2 Ratios
- ACQ's Return On Assets of -0.29% is on the low side compared to the rest of the industry. ACQ is outperformed by 78.95% of its industry peers.
- ACQ has a worse Return On Equity (-1.63%) than 78.95% of its industry peers.
- ACQ has a Return On Invested Capital (4.84%) which is in line with its industry peers.
- ACQ had an Average Return On Invested Capital over the past 3 years of 5.74%. This 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.
- 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.
- 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%
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.
- ACQ has a better debt/assets ratio than last year.
2.2 Solvency
- ACQ has an Altman-Z score of 2.10. This is not the best score and indicates that ACQ is in the grey zone with still 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.
- The Debt to FCF ratio of ACQ (109.26) is worse 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.
- With a Debt to Equity ratio value of 3.71, ACQ is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.71 | ||
| Debt/FCF | 109.26 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.66
WACC7.36%
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 worse Current ratio (1.09) than 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.
- 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.
- Looking at the last year, ACQ shows a very negative growth in Revenue. The Revenue has decreased by -26.93% in the last year.
- The Revenue has been growing by 9.01% on average over the past years. This is quite good.
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
- 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
- ACQ is valuated quite expensively with a Price/Earnings ratio of 34.84.
- ACQ's Price/Earnings is on the same level as the industry average.
- ACQ's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 8.07, the valuation of ACQ can be described as very reasonable.
- 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.84 | ||
| Fwd PE | 8.07 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as ACQ.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ACQ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.17 | ||
| EV/EBITDA | 6.91 |
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)0.14
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 34.84 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.