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 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
ADN had positive earnings in the past year.
ADN had a positive operating cash flow in the past year.
In the past 5 years ADN has always been profitable.
In the past 5 years ADN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ADN (3.19%) is better than 91.67% of its industry peers.
ADN has a Return On Equity of 5.70%. This is amongst the best in the industry. ADN outperforms 91.67% of its industry peers.
ADN has a better Return On Invested Capital (2.48%) 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
The Profit Margin of ADN (17.26%) is better than 100.00% of its industry peers.
ADN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.25%, 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 better Gross Margin (31.36%) than 100.00% of its industry peers.
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.
ADN has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ADN has been increased compared to 5 years ago.
The debt/assets ratio for ADN is higher compared to a year ago.
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.
ADN's Altman-Z score of 1.29 is on the low side compared to the rest of the industry. ADN is outperformed by 66.67% of its industry peers.
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.
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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.29 |
ROIC/WACC0.38
WACC6.48%
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.
ADN has a Current ratio of 1.16. This is amonst the worse of the industry: ADN underperforms 83.33% of its industry peers.
A Quick Ratio of 0.94 indicates that ADN may have some problems paying its short term obligations.
ADN has a Quick ratio of 0.94. This is comparable to the rest of the industry: ADN outperforms 41.67% of its industry peers.
| 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.
Looking at the last year, ADN shows a quite strong growth in Revenue. The Revenue has grown by 12.30% in the last year.
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
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 -3.01% yearly.
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.
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 16.17, the valuation of ADN can be described as correct.
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.
When comparing the Price/Earnings ratio of ADN to the average of the S&P500 Index (27.53), we can say ADN is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.32 indicates a rather expensive valuation of ADN.
The rest of the industry has a similar Price/Forward Earnings ratio as ADN.
The average S&P500 Price/Forward Earnings ratio is at 36.71. ADN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 17.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADN indicates a slightly more expensive valuation: ADN is more expensive than 75.00% of the companies listed in the same industry.
ADN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADN is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 20.68 |
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 6.46%, which is a nice return.
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.
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 (7/22/2025, 7:00:00 PM)
18.11
+0.11 (+0.61%)
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 Cap325.62M
Analysts76.67
Price Target19.38 (7.01%)
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 | 16.17 | ||
| Fwd PE | 17.32 | ||
| P/S | 2.9 | ||
| P/FCF | 13.62 | ||
| P/OCF | 11.68 | ||
| P/B | 0.96 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 20.68 |
EPS(TTM)1.12
EY6.18%
EPS(NY)1.05
Fwd EY5.77%
FCF(TTM)1.33
FCFY7.34%
OCF(TTM)1.55
OCFY8.56%
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
WACC6.48%
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