ACADIAN TIMBER CORP (ADN.CA) Stock Fundamental Analysis
TSX:ADN - Toronto Stock Exchange - CA0042721005 - Common Stock - Currency: CAD
ADN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 11 industry peers in the Paper & Forest Products industry. ADN has an excellent profitability rating, but there are concerns on its financial health. ADN is valued correctly, but it does not seem to be growing.
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.
ADN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADN's Return On Assets of 3.19% is amongst the best of the industry. ADN outperforms 90.91% of its industry peers.
The Return On Equity of ADN (5.70%) is better than 90.91% of its industry peers.
ADN's Return On Invested Capital of 2.48% is fine compared to the rest of the industry. ADN outperforms 72.73% 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 4.67%.
| 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
ADN's Profit Margin of 17.26% is amongst the best of the industry. ADN outperforms 100.00% of its industry peers.
ADN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 18.25%, 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.
ADN has a better Gross Margin (31.36%) 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
ADN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that ADN is in the distress zone and has some risk of bankruptcy.
ADN has a worse Altman-Z score (1.28) than 63.64% 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.
ADN's Debt to FCF ratio of 4.85 is amongst the best of the industry. ADN outperforms 81.82% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that ADN is not too dependend on debt financing.
ADN's Debt to Equity ratio of 0.34 is fine compared to the rest of the industry. ADN outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.39
WACC6.32%
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 81.82% 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's Quick ratio of 0.94 is in line compared to the rest of the industry. ADN outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
ADN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -35.63%.
The Earnings Per Share has been decreasing by -9.80% on average over the past years.
ADN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.30%.
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)-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
The Earnings Per Share is expected to decrease by -4.83% on average over the next years.
The Revenue is expected to decrease by -3.01% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 correctly with a Price/Earnings ratio of 16.00.
ADN's Price/Earnings ratio is rather cheap when compared to the industry. ADN is cheaper than 81.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.17. ADN is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.14, the valuation of ADN can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ADN.
ADN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 17.14 |
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.
ADN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADN is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.48 | ||
| EV/EBITDA | 20.52 |
4.3 Compensation for Growth
The excellent profitability rating of ADN may justify a higher PE ratio.
ADN's earnings are expected to decrease with -5.48% in the coming years. This may justify a cheaper valuation.
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 6.48%, which is a nice return.
Compared to an average industry Dividend Yield of 3.80, ADN pays a better dividend. On top of this ADN pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ADN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
5.2 History
The dividend of ADN decreases each year by -10.56%.
ADN has paid a dividend for at least 10 years, which is 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
ADN pays out 53.45% of its income as dividend. 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 (5/28/2025, 7:00:00 PM)
17.92
+0.02 (+0.11%)
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 Cap322.20M
Analysts76.67
Price Target19.89 (10.99%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.48% |
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)-4.88%
PT rev (3m)-4.88%
EPS NQ rev (1m)-35.9%
EPS NQ rev (3m)5.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-17.67%
Revenue NQ rev (3m)12.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 17.14 | ||
| P/S | 2.87 | ||
| P/FCF | 13.48 | ||
| P/OCF | 11.55 | ||
| P/B | 0.95 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 20.52 |
EPS(TTM)1.12
EY6.25%
EPS(NY)1.05
Fwd EY5.83%
FCF(TTM)1.33
FCFY7.42%
OCF(TTM)1.55
OCFY8.65%
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 | 1.28 |
F-Score5
WACC6.32%
ROIC/WACC0.39
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