ADENTRA INC (ADEN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ADEN - CA00686A1084 - Common Stock
39.23 CAD
+0.38 (+0.98%)
ADEN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Trading Companies & Distributors industry. ADEN has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADEN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- ADEN had positive earnings in the past year.
- ADEN had a positive operating cash flow in the past year.
- ADEN had positive earnings in each of the past 5 years.
- ADEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of ADEN (3.01%) is comparable to the rest of the industry.
- ADEN has a Return On Equity (6.88%) which is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 8.17%, ADEN is in line with its industry, outperforming 50.00% of the companies in the same industry.
- ADEN had an Average Return On Invested Capital over the past 3 years of 9.38%. This is in line with the industry average of 8.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.01% | ||
| ROE | 6.88% | ||
| ROIC | 8.17% |
ROA(3y)5.09%
ROA(5y)6.12%
ROE(3y)13.18%
ROE(5y)15.22%
ROIC(3y)9.38%
ROIC(5y)10.19%
1.3 Margins
- ADEN's Profit Margin of 1.98% is on the low side compared to the rest of the industry. ADEN is outperformed by 75.00% of its industry peers.
- ADEN's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 4.61%, ADEN is doing worse than 66.67% of the companies in the same industry.
- In the last couple of years the Operating Margin of ADEN has remained more or less at the same level.
- ADEN has a Gross Margin (21.60%) which is in line with its industry peers.
- ADEN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 1.98% | ||
| GM | 21.6% |
OM growth 3Y-22.23%
OM growth 5Y1.47%
PM growth 3Y-30.65%
PM growth 5Y-3.36%
GM growth 3Y-2.02%
GM growth 5Y3.71%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADEN is creating some value.
- ADEN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for ADEN has been increased compared to 5 years ago.
- The debt/assets ratio for ADEN has been reduced compared to a year ago.
2.2 Solvency
- ADEN has an Altman-Z score of 2.83. This is not the best score and indicates that ADEN is in the grey zone with still only limited risk for bankruptcy at the moment.
- The Altman-Z score of ADEN (2.83) is worse than 66.67% of its industry peers.
- The Debt to FCF ratio of ADEN is 6.95, which is on the high side as it means it would take ADEN, 6.95 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 6.95, ADEN is doing worse than 66.67% of the companies in the same industry.
- ADEN has a Debt/Equity ratio of 0.63. This is a neutral value indicating ADEN is somewhat dependend on debt financing.
- ADEN has a Debt to Equity ratio (0.63) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.95 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.89
WACC9.17%
2.3 Liquidity
- A Current Ratio of 1.72 indicates that ADEN should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.72, ADEN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- ADEN has a Quick Ratio of 1.72. This is a bad value and indicates that ADEN is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.68, ADEN is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- ADEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.33%.
- The Earnings Per Share has been growing by 22.20% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 4.35% in the past year.
- Measured over the past years, ADEN shows a quite strong growth in Revenue. The Revenue has been growing by 19.84% on average per year.
EPS 1Y (TTM)-17.33%
EPS 3Y-16.17%
EPS 5Y22.2%
EPS Q2Q%-5.48%
Revenue 1Y (TTM)4.35%
Revenue growth 3Y10.56%
Revenue growth 5Y19.84%
Sales Q2Q%4.09%
3.2 Future
- ADEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.32% yearly.
- Based on estimates for the next years, ADEN will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y-18.93%
EPS Next 2Y-4.21%
EPS Next 3Y2.15%
EPS Next 5Y4.32%
Revenue Next Year3.31%
Revenue Next 2Y2.78%
Revenue Next 3Y3.01%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- A Price/Earnings ratio of 11.50 indicates a reasonable valuation of ADEN.
- 83.33% of the companies in the same industry are more expensive than ADEN, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of ADEN to the average of the S&P500 Index (27.21), we can say ADEN is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.22 indicates a reasonable valuation of ADEN.
- Based on the Price/Forward Earnings ratio, ADEN is valued cheaper than 91.67% of the companies in the same industry.
- ADEN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
- ADEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ADEN is cheaper than 75.00% of the companies in the same industry.
- 75.00% of the companies in the same industry are more expensive than ADEN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.35 | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-4.21%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
- ADEN has a Yearly Dividend Yield of 1.65%.
- ADEN's Dividend Yield is comparable with the industry average which is at 5.97.
- ADEN's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
- The dividend of ADEN is nicely growing with an annual growth rate of 11.08%!
- ADEN has paid a dividend for at least 10 years, which is a reliable track record.
- ADEN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.08%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
- 23.29% of the earnings are spent on dividend by ADEN. This is a low number and sustainable payout ratio.
- The dividend of ADEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.29%
EPS Next 2Y-4.21%
EPS Next 3Y2.15%
ADENTRA INC / ADEN.CA FAQ
What is the fundamental rating for ADEN stock?
ChartMill assigns a fundamental rating of 4 / 10 to ADEN.CA.
What is the valuation status for ADEN stock?
ChartMill assigns a valuation rating of 6 / 10 to ADENTRA INC (ADEN.CA). This can be considered as Fairly Valued.
What is the profitability of ADEN stock?
ADENTRA INC (ADEN.CA) has a profitability rating of 4 / 10.
What is the valuation of ADENTRA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADENTRA INC (ADEN.CA) is 11.5 and the Price/Book (PB) ratio is 1.06.
How sustainable is the dividend of ADENTRA INC (ADEN.CA) stock?
The dividend rating of ADENTRA INC (ADEN.CA) is 6 / 10 and the dividend payout ratio is 23.29%.