ACADIAN TIMBER CORP (ADN.CA) Stock Fundamental Analysis
TSX:ADN - Toronto Stock Exchange - CA0042721005 - Common Stock - Currency: CAD
Taking everything into account, ADN scores 4 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ADN was profitable.
In the past year ADN had a positive cash flow from operations.
ADN had positive earnings in each of the past 5 years.
Each year in the past 5 years ADN had a positive operating cash flow.
1.2 Ratios
ADN has a Return On Assets of 3.58%. This is amongst the best in the industry. ADN outperforms 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 6.41%, ADN belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Return On Invested Capital of ADN (3.11%) is better than 75.00% of its industry peers.
ADN had an Average Return On Invested Capital over the past 3 years of 2.69%. This is below the industry average of 5.18%.
The last Return On Invested Capital (3.11%) for ADN is above the 3 year average (2.69%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 6.41% | ||
| ROIC | 3.11% |
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
Looking at the Profit Margin, with a value of 18.71%, ADN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ADN has grown nicely.
With an excellent Operating Margin value of 20.36%, 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 Operating Margin of ADN has declined.
The Gross Margin of ADN (32.93%) is better than 100.00% of its industry peers.
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 | 20.36% | ||
| PM (TTM) | 18.71% | ||
| GM | 32.93% |
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.
The debt/assets ratio for ADN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that ADN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ADN (1.19) is worse than 75.00% of its industry peers.
The Debt to FCF ratio of ADN is 4.88, which is a neutral value as it means it would take ADN, 4.88 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.88, ADN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that ADN is not too dependend on debt financing.
ADN has a better Debt to Equity ratio (0.20) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.88 | ||
| Altman-Z | 1.19 |
ROIC/WACC0.49
WACC6.4%
2.3 Liquidity
A Current Ratio of 0.42 indicates that ADN may have some problems paying its short term obligations.
The Current ratio of ADN (0.42) is worse than 91.67% of its industry peers.
ADN has a Quick Ratio of 0.42. 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 0.38, ADN is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The earnings per share for ADN have decreased strongly by -27.30% in the last year.
ADN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.54% yearly.
Looking at the last year, ADN shows a very strong growth in Revenue. The Revenue has grown by 24.30%.
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)-27.3%
EPS 3Y3.38%
EPS 5Y3.54%
EPS Q2Q%-53.52%
Revenue 1Y (TTM)24.3%
Revenue growth 3Y6.68%
Revenue growth 5Y3.05%
Sales Q2Q%-15.07%
3.2 Future
The Earnings Per Share is expected to decrease by -2.23% on average over the next years.
Based on estimates for the next years, ADN will show a decrease in Revenue. The Revenue will decrease by -2.96% on average per year.
EPS Next Y-6.25%
EPS Next 2Y-3.87%
EPS Next 3Y-2.02%
EPS Next 5Y-2.23%
Revenue Next Year-4.47%
Revenue Next 2Y-2.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 13.89, the valuation of ADN can be described as correct.
Based on the Price/Earnings ratio, ADN is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ADN is valued rather cheaply.
The Price/Forward Earnings ratio is 16.24, which indicates a correct valuation of ADN.
Based on the Price/Forward Earnings ratio, ADN is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADN to the average of the S&P500 Index (22.10), we can say ADN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
ADN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADN indicates a somewhat cheap valuation: ADN is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.03 | ||
| EV/EBITDA | 16.82 |
4.3 Compensation for Growth
ADN has an outstanding profitability rating, which may justify a higher PE ratio.
ADN's earnings are expected to decrease with -2.02% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)3.92
EPS Next 2Y-3.87%
EPS Next 3Y-2.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.78%, ADN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.93, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
5.2 History
The dividend of ADN decreases each year by -10.56%.
ADN has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of ADN decreased recently.
Dividend Growth(5Y)-10.56%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
ADN pays out 52.85% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of ADN has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP52.85%
EPS Next 2Y-3.87%
EPS Next 3Y-2.02%
TSX:ADN (3/7/2025, 7:00:00 PM)
17.22
+0.11 (+0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners9.46%
Inst Owner ChangeN/A
Ins Owners0.66%
Ins Owner ChangeN/A
Market Cap306.86M
Analysts76.67
Price Target20.91 (21.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.78% |
Yearly Dividend0.66
Dividend Growth(5Y)-10.56%
DP52.85%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.67%
Min Revenue beat(2)-9.02%
Max Revenue beat(2)-2.31%
Revenue beat(4)1
Avg Revenue beat(4)6.67%
Min Revenue beat(4)-9.02%
Max Revenue beat(4)39.67%
Revenue beat(8)2
Avg Revenue beat(8)1.97%
Revenue beat(12)3
Avg Revenue beat(12)-1.27%
Revenue beat(16)6
Avg Revenue beat(16)-0.12%
PT rev (1m)2.5%
PT rev (3m)2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)2.44%
EPS NY rev (3m)3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)2.87%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.89 | ||
| Fwd PE | 16.24 | ||
| P/S | 2.64 | ||
| P/FCF | 13.03 | ||
| P/OCF | 9.01 | ||
| P/B | 0.91 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 16.82 |
EPS(TTM)1.24
EY7.2%
EPS(NY)1.06
Fwd EY6.16%
FCF(TTM)1.32
FCFY7.67%
OCF(TTM)1.91
OCFY11.09%
SpS6.52
BVpS19.03
TBVpS18.68
PEG (NY)N/A
PEG (5Y)3.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.58% | ||
| ROE | 6.41% | ||
| ROCE | 4.34% | ||
| ROIC | 3.11% | ||
| ROICexc | 3.2% | ||
| ROICexgc | 3.24% | ||
| OM | 20.36% | ||
| PM (TTM) | 18.71% | ||
| GM | 32.93% | ||
| FCFM | 20.27% |
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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 4.88 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 2030.75% | ||
| Cap/Sales | 9.04% | ||
| Interest Coverage | 7.17 | ||
| Cash Conversion | 140.83% | ||
| Profit Quality | 108.32% | ||
| Current Ratio | 0.42 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 1.19 |
F-Score6
WACC6.4%
ROIC/WACC0.49
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)-27.3%
EPS 3Y3.38%
EPS 5Y3.54%
EPS Q2Q%-53.52%
EPS Next Y-6.25%
EPS Next 2Y-3.87%
EPS Next 3Y-2.02%
EPS Next 5Y-2.23%
Revenue 1Y (TTM)24.3%
Revenue growth 3Y6.68%
Revenue growth 5Y3.05%
Sales Q2Q%-15.07%
Revenue Next Year-4.47%
Revenue Next 2Y-2.96%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y20.94%
EBIT growth 3Y2.77%
EBIT growth 5Y1.28%
EBIT Next Year13.72%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y140.42%
FCF growth 3Y13.98%
FCF growth 5YN/A
OCF growth 1Y226.96%
OCF growth 3Y28.01%
OCF growth 5YN/A