ACADIAN TIMBER CORP (ADN.CA) Stock Fundamental Analysis
TSX:ADN - Toronto Stock Exchange - CA0042721005 - Common Stock - Currency: CAD
Overall ADN gets a fundamental rating of 5 out of 10. We evaluated ADN against 12 industry peers in the Paper & Forest Products industry. While ADN has a great profitability rating, there are quite some 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.
In the past 5 years ADN has always been profitable.
Each year in the past 5 years ADN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.19%, ADN belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
ADN has a better Return On Equity (5.70%) than 91.67% of its industry peers.
The Return On Invested Capital of ADN (2.48%) is better than 66.67% of its industry peers.
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
Looking at the Profit Margin, with a value of 17.26%, 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.
The Operating Margin of ADN (18.25%) is better than 100.00% of its industry peers.
ADN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 31.36%, ADN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ADN's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADN is destroying value.
The number of shares outstanding for ADN has been increased compared to 1 year ago.
ADN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ADN has a worse debt to assets ratio.
2.2 Solvency
ADN has an Altman-Z score of 1.29. This is a bad value and indicates that ADN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, ADN is doing worse than 66.67% of the companies in the same industry.
The Debt to FCF ratio of ADN is 4.85, which is a neutral value as it means it would take ADN, 4.85 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.85, ADN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ADN has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
ADN has a Debt to Equity ratio of 0.34. This is comparable to the rest of the industry: ADN outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.38
WACC6.49%
2.3 Liquidity
A Current Ratio of 1.16 indicates that ADN should not have too much problems paying its short term obligations.
ADN has a Current ratio of 1.16. This is amonst the worse of the industry: ADN underperforms 83.33% of its industry peers.
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.
ADN has a Quick ratio (0.94) which is comparable to the rest of the 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.
The Revenue has grown by 12.30% in the past year. This is quite good.
ADN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.05% yearly.
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
ADN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.83% yearly.
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
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
The Price/Earnings ratio is 16.22, which indicates a correct valuation of ADN.
Compared to the rest of the industry, the Price/Earnings ratio of ADN indicates a rather cheap valuation: ADN is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, ADN is valued a bit cheaper.
The Price/Forward Earnings ratio is 17.38, which indicates a rather expensive current valuation of ADN.
ADN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.36, ADN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.22 | ||
| Fwd PE | 17.38 |
4.2 Price Multiples
ADN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ADN is more expensive than 75.00% of the companies in the same industry.
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 | 13.67 | ||
| EV/EBITDA | 20.73 |
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
With a Yearly Dividend Yield of 6.46%, ADN is a good candidate for dividend investing.
ADN's Dividend Yield is rather good when compared to the industry average which is at 5.79. ADN pays more dividend than 91.67% of the companies in the same industry.
ADN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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
53.45% of the earnings are spent on dividend by ADN. 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.
DP53.45%
EPS Next 2Y-8.92%
EPS Next 3Y-5.48%
TSX:ADN (7/23/2025, 7:00:00 PM)
18.17
+0.06 (+0.33%)
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 Cap326.70M
Analysts76.67
Price Target19.38 (6.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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)0%
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 | 16.22 | ||
| Fwd PE | 17.38 | ||
| P/S | 2.91 | ||
| P/FCF | 13.67 | ||
| P/OCF | 11.72 | ||
| P/B | 0.96 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 20.73 |
EPS(TTM)1.12
EY6.16%
EPS(NY)1.05
Fwd EY5.75%
FCF(TTM)1.33
FCFY7.32%
OCF(TTM)1.55
OCFY8.54%
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 | 1.29 |
F-Score5
WACC6.49%
ROIC/WACC0.38
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