ACADIAN TIMBER CORP (ADN.CA) Stock Fundamental Analysis
TSX:ADN - Toronto Stock Exchange - CA0042721005 - Common Stock - Currency: CAD
Taking everything into account, ADN scores 5 out of 10 in our fundamental rating. ADN was compared to 12 industry peers in the Paper & Forest Products industry. While ADN belongs to the best of the industry regarding profitability, there are concerns on its financial health. ADN has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ADN was profitable.
ADN had a positive operating cash flow in the past year.
In the past 5 years ADN has always been profitable.
ADN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADN has a better Return On Assets (3.19%) than 91.67% of its industry peers.
ADN has a better Return On Equity (5.70%) than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.48%, ADN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADN is in line with the industry average of 3.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 5.7% | ||
| ROIC | 2.48% |
ROA(3y)5.08%
ROA(5y)4.63%
ROE(3y)9.11%
ROE(5y)8.26%
ROIC(3y)2.69%
ROIC(5y)2.83%
1.3 Margins
ADN's Profit Margin of 17.26% is amongst the best of the industry. ADN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of ADN has grown nicely.
ADN has a better Operating Margin (18.25%) than 100.00% of its industry peers.
ADN's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 31.36%, ADN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of ADN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.25% | ||
| PM (TTM) | 17.26% | ||
| GM | 31.36% |
OM growth 3Y-3.67%
OM growth 5Y-1.71%
PM growth 3Y-1.44%
PM growth 5Y1.58%
GM growth 3Y0.77%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADN is destroying value.
Compared to 1 year ago, ADN has more shares outstanding
ADN has more shares outstanding than it did 5 years ago.
ADN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that ADN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ADN (1.28) is worse than 66.67% of its industry peers.
ADN has a debt to FCF ratio of 4.85. This is a neutral value as ADN would need 4.85 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.85, ADN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that ADN is not too dependend on debt financing.
ADN has a Debt to Equity ratio (0.34) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.36
WACC6.85%
2.3 Liquidity
ADN has a Current Ratio of 1.16. This is a normal value and indicates that ADN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.16, ADN is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
ADN has a Quick Ratio of 1.16. This is a bad value and indicates that ADN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.94, ADN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The earnings per share for ADN have decreased strongly by -35.63% in the last year.
Measured over the past years, ADN shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.80% on average per year.
ADN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.30%.
Measured over the past years, ADN shows a small growth in Revenue. The Revenue has been growing by 3.05% on average per year.
EPS 1Y (TTM)-35.63%
EPS 3Y4.63%
EPS 5Y-9.8%
EPS Q2Q%-40%
Revenue 1Y (TTM)12.3%
Revenue growth 3Y6.68%
Revenue growth 5Y3.05%
Sales Q2Q%-13.8%
3.2 Future
Based on estimates for the next years, ADN will show a decrease in Earnings Per Share. The EPS will decrease by -4.83% on average per year.
Based on estimates for the next years, ADN will show a decrease in Revenue. The Revenue will decrease by -3.01% on average per year.
EPS Next Y-15.83%
EPS Next 2Y-8.92%
EPS Next 3Y-5.48%
EPS Next 5Y-4.83%
Revenue Next Year-4.47%
Revenue Next 2Y-3.01%
Revenue Next 3YN/A
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 accelerating.
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
With a Price/Earnings ratio of 16.05, ADN is valued correctly.
Based on the Price/Earnings ratio, ADN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
ADN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.15.
ADN is valuated rather expensively with a Price/Forward Earnings ratio of 17.20.
The rest of the industry has a similar Price/Forward Earnings ratio as ADN.
When comparing the Price/Forward Earnings ratio of ADN to the average of the S&P500 Index (21.60), we can say ADN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 17.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADN is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, ADN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.52 | ||
| EV/EBITDA | 20.57 |
4.3 Compensation for Growth
The excellent profitability rating of ADN may justify a higher PE ratio.
A cheap valuation may be justified as ADN's earnings are expected to decrease with -5.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.92%
EPS Next 3Y-5.48%
5. Dividend
5.1 Amount
ADN has a Yearly Dividend Yield of 6.48%, which is a nice return.
Compared to an average industry Dividend Yield of 5.89, ADN pays a better dividend. On top of this ADN pays more dividend than 91.67% of the companies listed in the same industry.
ADN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
5.2 History
The dividend of ADN decreases each year by -10.56%.
ADN has paid a dividend for at least 10 years, which is a reliable track record.
ADN has decreased its dividend recently.
Dividend Growth(5Y)-10.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
53.45% of the earnings are spent on dividend by ADN. This is a bit on the high side, but may be sustainable.
ADN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP53.45%
EPS Next 2Y-8.92%
EPS Next 3Y-5.48%
TSX:ADN (6/27/2025, 7:00:00 PM)
17.98
+0.08 (+0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners9.34%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap323.28M
Analysts76.67
Price Target19.38 (7.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
Yearly Dividend0.66
Dividend Growth(5Y)-10.56%
DP53.45%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)96.99%
Min EPS beat(2)29.95%
Max EPS beat(2)164.03%
EPS beat(4)2
Avg EPS beat(4)35.71%
Min EPS beat(4)-43.07%
Max EPS beat(4)164.03%
EPS beat(8)6
Avg EPS beat(8)140.24%
EPS beat(12)10
Avg EPS beat(12)184.65%
EPS beat(16)12
Avg EPS beat(16)136.59%
Revenue beat(2)1
Avg Revenue beat(2)4.73%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)11.76%
Revenue beat(4)2
Avg Revenue beat(4)10.02%
Min Revenue beat(4)-9.02%
Max Revenue beat(4)39.67%
Revenue beat(8)3
Avg Revenue beat(8)5.83%
Revenue beat(12)4
Avg Revenue beat(12)0.39%
Revenue beat(16)7
Avg Revenue beat(16)1.41%
PT rev (1m)-2.56%
PT rev (3m)-7.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.9%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 17.2 | ||
| P/S | 2.88 | ||
| P/FCF | 13.52 | ||
| P/OCF | 11.59 | ||
| P/B | 0.95 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 20.57 |
EPS(TTM)1.12
EY6.23%
EPS(NY)1.05
Fwd EY5.81%
FCF(TTM)1.33
FCFY7.39%
OCF(TTM)1.55
OCFY8.63%
SpS6.24
BVpS18.89
TBVpS18.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 5.7% | ||
| ROCE | 3.45% | ||
| ROIC | 2.48% | ||
| ROICexc | 2.5% | ||
| ROICexgc | 2.53% | ||
| OM | 18.25% | ||
| PM (TTM) | 17.26% | ||
| GM | 31.36% | ||
| FCFM | 21.3% |
ROA(3y)5.08%
ROA(5y)4.63%
ROE(3y)9.11%
ROE(5y)8.26%
ROIC(3y)2.69%
ROIC(5y)2.83%
ROICexc(3y)2.73%
ROICexc(5y)2.88%
ROICexgc(3y)2.76%
ROICexgc(5y)2.92%
ROCE(3y)3.75%
ROCE(5y)3.95%
ROICexcg growth 3Y0.45%
ROICexcg growth 5Y-5.14%
ROICexc growth 3Y0.47%
ROICexc growth 5Y-5.06%
OM growth 3Y-3.67%
OM growth 5Y-1.71%
PM growth 3Y-1.44%
PM growth 5Y1.58%
GM growth 3Y0.77%
GM growth 5Y0.08%
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.85 | ||
| Debt/EBITDA | 5.46 | ||
| Cap/Depr | 611.37% | ||
| Cap/Sales | 3.55% | ||
| Interest Coverage | 6.08 | ||
| Cash Conversion | 131.95% | ||
| Profit Quality | 123.4% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.28 |
F-Score5
WACC6.85%
ROIC/WACC0.36
Cap/Depr(3y)780.67%
Cap/Depr(5y)518.79%
Cap/Sales(3y)3.37%
Cap/Sales(5y)2.17%
Profit Quality(3y)61.15%
Profit Quality(5y)72.04%
High Growth Momentum
Growth
EPS 1Y (TTM)-35.63%
EPS 3Y4.63%
EPS 5Y-9.8%
EPS Q2Q%-40%
EPS Next Y-15.83%
EPS Next 2Y-8.92%
EPS Next 3Y-5.48%
EPS Next 5Y-4.83%
Revenue 1Y (TTM)12.3%
Revenue growth 3Y6.68%
Revenue growth 5Y3.05%
Sales Q2Q%-13.8%
Revenue Next Year-4.47%
Revenue Next 2Y-3.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-6.3%
EBIT growth 3Y2.77%
EBIT growth 5Y1.28%
EBIT Next Year14.35%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y111.36%
FCF growth 3Y13.98%
FCF growth 5YN/A
OCF growth 1Y139.15%
OCF growth 3Y28.01%
OCF growth 5YN/A