AUTOCANADA INC (ACQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ACQ - CA05277B2093 - Common Stock
26.83 CAD
+0.08 (+0.3%)
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. ACQ has a bad profitability rating. Also its financial health evaluation is rather negative. ACQ has a decent growth rate and is not valued too expensively.
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.
- 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
- Looking at the Return On Assets, with a value of -0.29%, ACQ is doing worse than 78.95% of the companies in the same industry.
- 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.
- The Return On Invested Capital of ACQ (4.84%) is comparable to the rest of the 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 (3.42%) which is comparable to the rest of the industry.
- ACQ's Operating Margin has improved in the last couple of years.
- ACQ has a worse Gross Margin (16.71%) than 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ACQ is destroying value.
- Compared to 1 year ago, ACQ has less shares outstanding
- 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
- 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.
- 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.
- 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 Debt to FCF ratio of 109.26. This is in the lower half of the industry: ACQ underperforms 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.
- ACQ has a worse Debt to Equity ratio (3.71) than 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
- 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's Quick ratio of 0.42 is on the low side compared to the rest of the industry. ACQ is outperformed by 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 133.48% over the past year.
- 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 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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 34.84, 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.
- When comparing the Price/Earnings ratio of ACQ to the average of the S&P500 Index (27.21), we can say ACQ is valued slightly more expensively.
- With a Price/Forward Earnings ratio of 8.07, the valuation of ACQ can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, ACQ is valued cheaper than 89.47% of the companies 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
- 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
- The 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.
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.