ACADIAN TIMBER CORP (ADN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:ADN - CA0042721005 - Common Stock
16.67 CAD
-0.09 (-0.54%)
Overall ADN gets a fundamental rating of 4 out of 10. We evaluated ADN against 12 industry peers in the Paper & Forest Products industry. ADN scores excellent on profitability, but 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.
- In the past year ADN had a positive cash flow from operations.
- ADN had positive earnings in each of the past 5 years.
- ADN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ADN has a better Return On Assets (2.36%) than 83.33% of its industry peers.
- ADN has a better Return On Equity (4.19%) than 83.33% of its industry peers.
- ADN has a better Return On Invested Capital (1.63%) 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 in line with the industry average of 4.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 4.19% | ||
| ROIC | 1.63% |
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 16.03%, 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.
- Looking at the Operating Margin, with a value of 15.01%, 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 Operating Margin of ADN has declined.
- ADN has a Gross Margin of 30.11%. This is amongst the best in the industry. ADN outperforms 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 | 15.01% | ||
| PM (TTM) | 16.03% | ||
| GM | 30.11% |
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
- ADN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for ADN has been increased compared to 1 year ago.
- Compared to 5 years ago, ADN has more shares outstanding
- The debt/assets ratio for ADN is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.17, we must say that ADN is in the distress zone and has some risk of bankruptcy.
- ADN has a Altman-Z score (1.17) which is comparable to the rest of the industry.
- The Debt to FCF ratio of ADN is 32.89, which is on the high side as it means it would take ADN, 32.89 years of fcf income to pay off all of its debts.
- ADN has a Debt to FCF ratio of 32.89. This is comparable to the rest of the industry: ADN outperforms 58.33% of its industry peers.
- ADN has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
- ADN has a better Debt to Equity ratio (0.33) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 32.89 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.25
WACC6.47%
2.3 Liquidity
- ADN has a Current Ratio of 0.96. This is a bad value and indicates that ADN is not financially healthy enough and could expect problems in meeting its short term obligations.
- ADN's Current ratio of 0.96 is on the low side compared to the rest of the industry. ADN is outperformed by 83.33% of its industry peers.
- A Quick Ratio of 0.88 indicates that ADN may have some problems paying its short term obligations.
- The Quick ratio of ADN (0.88) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- ADN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.15%.
- ADN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.80% yearly.
- ADN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.86%.
- The Revenue has been growing slightly by 3.05% on average over the past years.
EPS 1Y (TTM)-48.15%
EPS 3Y4.63%
EPS 5Y-9.8%
EPS Q2Q%23.08%
Revenue 1Y (TTM)-28.86%
Revenue growth 3Y6.68%
Revenue growth 5Y3.05%
Sales Q2Q%-11.33%
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.
- ADN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.68% yearly.
EPS Next Y-52.71%
EPS Next 2Y-22.98%
EPS Next 3Y-10.65%
EPS Next 5Y-4.83%
Revenue Next Year-28.61%
Revenue Next 2Y-2.74%
Revenue Next 3Y-3.68%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- ADN is valuated rather expensively with a Price/Earnings ratio of 19.85.
- 83.33% of the companies in the same industry are more expensive than ADN, based on the Price/Earnings ratio.
- ADN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 22.30 indicates a rather expensive valuation of ADN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADN indicates a somewhat cheap valuation: ADN is cheaper than 66.67% of the companies listed in the same industry.
- ADN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.85 | ||
| Fwd PE | 22.3 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADN is on the same level as its industry peers.
- 66.67% of the companies in the same industry are more expensive than ADN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.55 | ||
| EV/EBITDA | 28.81 |
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 -10.65% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-22.98%
EPS Next 3Y-10.65%
5. Dividend
5.1 Amount
- ADN has a Yearly Dividend Yield of 6.90%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.47, 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.9% |
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
- 73.33% of the earnings are spent on dividend by ADN. This is not a sustainable payout ratio.
- ADN's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP73.33%
EPS Next 2Y-22.98%
EPS Next 3Y-10.65%
ACADIAN TIMBER CORP / ADN.CA FAQ
What is the ChartMill fundamental rating of ACADIAN TIMBER CORP (ADN.CA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ADN.CA.
Can you provide the valuation status for ACADIAN TIMBER CORP?
ChartMill assigns a valuation rating of 4 / 10 to ACADIAN TIMBER CORP (ADN.CA). This can be considered as Fairly Valued.
How profitable is ACADIAN TIMBER CORP (ADN.CA) stock?
ACADIAN TIMBER CORP (ADN.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of ACADIAN TIMBER CORP (ADN.CA) stock?
The Price/Earnings (PE) ratio for ACADIAN TIMBER CORP (ADN.CA) is 19.85 and the Price/Book (PB) ratio is 0.91.
What is the financial health of ACADIAN TIMBER CORP (ADN.CA) stock?
The financial health rating of ACADIAN TIMBER CORP (ADN.CA) is 2 / 10.