ALGOMA CENTRAL CORP (ALC.CA) Stock Fundamental Analysis
TSX:ALC - Toronto Stock Exchange - CA0156441077 - Common Stock - Currency: CAD
ALC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 1 industry peers in the Marine Transportation industry. ALC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ALC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make ALC suitable for value investing!
1. Profitability
1.1 Basic Checks
ALC had positive earnings in the past year.
In the past year ALC had a positive cash flow from operations.
ALC had positive earnings in each of the past 5 years.
ALC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ALC has a better Return On Assets (6.01%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 10.18%, ALC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALC has a Return On Invested Capital of 3.83%. This is amongst the best in the industry. ALC outperforms 100.00% of its industry peers.
ALC had an Average Return On Invested Capital over the past 3 years of 4.50%. This is in line with the industry average of 3.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 10.18% | ||
| ROIC | 3.83% |
ROA(3y)6.99%
ROA(5y)6.31%
ROE(3y)12.45%
ROE(5y)11.68%
ROIC(3y)4.5%
ROIC(5y)4.89%
1.3 Margins
The Profit Margin of ALC (13.03%) is better than 100.00% of its industry peers.
ALC's Profit Margin has improved in the last couple of years.
ALC has a better Operating Margin (10.68%) than 100.00% of its industry peers.
ALC's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 26.35%, ALC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
ALC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.68% | ||
| PM (TTM) | 13.03% | ||
| GM | 26.35% |
OM growth 3Y-10.92%
OM growth 5Y0.76%
PM growth 3Y-1.71%
PM growth 5Y25.04%
GM growth 3Y-6.96%
GM growth 5Y-1.29%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALC is destroying value.
The number of shares outstanding for ALC has been increased compared to 1 year ago.
The number of shares outstanding for ALC has been increased compared to 5 years ago.
Compared to 1 year ago, ALC has an improved debt to assets ratio.
2.2 Solvency
ALC has an Altman-Z score of 1.94. This is not the best score and indicates that ALC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ALC (1.94) is better than 100.00% of its industry peers.
ALC has a debt to FCF ratio of 7.69. This is a slightly negative value and a sign of low solvency as ALC would need 7.69 years to pay back of all of its debts.
The Debt to FCF ratio of ALC (7.69) is better than 100.00% of its industry peers.
ALC has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
ALC has a better Debt to Equity ratio (0.46) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 7.69 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.57
WACC6.69%
2.3 Liquidity
ALC has a Current Ratio of 0.73. This is a bad value and indicates that ALC is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Current ratio value of 0.73, ALC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.65 indicates that ALC may have some problems paying its short term obligations.
ALC has a better Quick ratio (0.65) than 100.00% of its industry peers.
ALC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.07% over the past year.
The Earnings Per Share has been growing by 32.03% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.46% in the past year.
The Revenue has been growing slightly by 4.37% on average over the past years.
EPS 1Y (TTM)20.07%
EPS 3Y6.07%
EPS 5Y32.03%
EPS Q2Q%62.17%
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y5.51%
Revenue growth 5Y4.37%
Sales Q2Q%3.62%
3.2 Future
Based on estimates for the next years, ALC will show a small growth in Earnings Per Share. The EPS will grow by 7.46% on average per year.
Based on estimates for the next years, ALC will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y7.73%
EPS Next 2Y7.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.94%
Revenue Next 2Y5.09%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.67, the valuation of ALC can be described as very cheap.
Based on the Price/Earnings ratio, ALC is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, ALC is valued rather cheaply.
A Price/Forward Earnings ratio of 7.62 indicates a rather cheap valuation of ALC.
Based on the Price/Forward Earnings ratio, ALC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ALC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than ALC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.34 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
ALC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.86
PEG (5Y)0.21
EPS Next 2Y7.46%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.42%, ALC is a good candidate for dividend investing.
ALC's Dividend Yield is rather good when compared to the industry average which is at 5.42. ALC pays more dividend than 100.00% of the companies in the same industry.
ALC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
5.2 History
The dividend of ALC decreases each year by -8.00%.
ALC has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of ALC decreased in the last 3 years.
Dividend Growth(5Y)-8%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
ALC pays out 32.45% of its income as dividend. This is a sustainable payout ratio.
DP32.45%
EPS Next 2Y7.46%
EPS Next 3YN/A
TSX:ALC (3/7/2025, 7:00:00 PM)
15
+0.25 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners16.61%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap608.55M
Analysts80
Price Target18.87 (25.8%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.42% |
Yearly Dividend0.75
Dividend Growth(5Y)-8%
DP32.45%
Div Incr Years1
Div Non Decr Years2
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 7.62 | ||
| P/S | 0.87 | ||
| P/FCF | 11.34 | ||
| P/OCF | 3.92 | ||
| P/B | 0.68 | ||
| P/tB | 0.68 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)2.25
EY15%
EPS(NY)1.97
Fwd EY13.13%
FCF(TTM)1.32
FCFY8.82%
OCF(TTM)3.83
OCFY25.53%
SpS17.34
BVpS22.18
TBVpS21.99
PEG (NY)0.86
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 10.18% | ||
| ROCE | 5.63% | ||
| ROIC | 3.83% | ||
| ROICexc | 3.84% | ||
| ROICexgc | 3.86% | ||
| OM | 10.68% | ||
| PM (TTM) | 13.03% | ||
| GM | 26.35% | ||
| FCFM | 7.63% |
ROA(3y)6.99%
ROA(5y)6.31%
ROE(3y)12.45%
ROE(5y)11.68%
ROIC(3y)4.5%
ROIC(5y)4.89%
ROICexc(3y)4.77%
ROICexc(5y)5.29%
ROICexgc(3y)4.81%
ROICexgc(5y)5.33%
ROCE(3y)6.35%
ROCE(5y)6.86%
ROICexcg growth 3Y-16.04%
ROICexcg growth 5Y-2.48%
ROICexc growth 3Y-15.98%
ROICexc growth 5Y-2.36%
OM growth 3Y-10.92%
OM growth 5Y0.76%
PM growth 3Y-1.71%
PM growth 5Y25.04%
GM growth 3Y-6.96%
GM growth 5Y-1.29%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 7.69 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 142.55% | ||
| Cap/Sales | 14.46% | ||
| Interest Coverage | 3.55 | ||
| Cash Conversion | 106.07% | ||
| Profit Quality | 58.56% | ||
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 1.94 |
F-Score6
WACC6.69%
ROIC/WACC0.57
Cap/Depr(3y)105.16%
Cap/Depr(5y)92.49%
Cap/Sales(3y)10.27%
Cap/Sales(5y)9.98%
Profit Quality(3y)69.38%
Profit Quality(5y)109.08%
High Growth Momentum
Growth
EPS 1Y (TTM)20.07%
EPS 3Y6.07%
EPS 5Y32.03%
EPS Q2Q%62.17%
EPS Next Y7.73%
EPS Next 2Y7.46%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.46%
Revenue growth 3Y5.51%
Revenue growth 5Y4.37%
Sales Q2Q%3.62%
Revenue Next Year6.94%
Revenue Next 2Y5.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.82%
EBIT growth 3Y-6.01%
EBIT growth 5Y5.17%
EBIT Next Year90.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.66%
FCF growth 3Y-25.64%
FCF growth 5YN/A
OCF growth 1Y25.1%
OCF growth 3Y-1.46%
OCF growth 5Y2.43%