ALGOMA CENTRAL CORP (ALC.CA) Stock Fundamental Analysis
TSX:ALC - Toronto Stock Exchange - CA0156441077 - Common Stock - Currency: CAD
ALC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 1 industry peers in the Marine Transportation industry. While ALC belongs to the best of the industry regarding profitability, there are concerns on its financial health. ALC has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ALC had positive earnings in the past year.
ALC had a positive operating cash flow in the past year.
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's Return On Assets of 5.01% is amongst the best of the industry. ALC outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 9.76%, ALC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of ALC (3.15%) is better than 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 3.15%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 9.76% | ||
| ROIC | 3.15% |
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
Looking at the Profit Margin, with a value of 12.21%, ALC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALC's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 9.70%, ALC 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 ALC has remained more or less at the same level.
ALC has a Gross Margin of 25.53%. This is amongst the best in the industry. ALC outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of ALC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.7% | ||
| PM (TTM) | 12.21% | ||
| GM | 25.53% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALC is destroying value.
ALC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALC has been increased compared to 5 years ago.
ALC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that ALC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALC (1.56) is better than 100.00% of its industry peers.
ALC has a Debt/Equity ratio of 0.68. This is a neutral value indicating ALC is somewhat dependend on debt financing.
ALC's Debt to Equity ratio of 0.68 is amongst the best of the industry. ALC outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.56 |
ROIC/WACC0.5
WACC6.28%
2.3 Liquidity
A Current Ratio of 0.52 indicates that ALC may have some problems paying its short term obligations.
ALC's Current ratio of 0.52 is amongst the best of the industry. ALC outperforms 100.00% of its industry peers.
A Quick Ratio of 0.48 indicates that ALC may have some problems paying its short term obligations.
ALC has a better Quick ratio (0.48) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
ALC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.65%.
ALC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.03% yearly.
The Revenue has decreased by -2.42% in the past year.
Measured over the past years, ALC shows a small growth in Revenue. The Revenue has been growing by 4.37% on average per year.
EPS 1Y (TTM)-3.65%
EPS 3Y6.07%
EPS 5Y31.03%
EPS Q2Q%-29.55%
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y5.51%
Revenue growth 5Y4.37%
Sales Q2Q%-1.84%
3.2 Future
Based on estimates for the next years, ALC will show a decrease in Earnings Per Share. The EPS will decrease by -2.92% on average per year.
The Revenue is expected to grow by 5.09% on average over the next years.
EPS Next Y-11.17%
EPS Next 2Y-2.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.18%
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
The Price/Earnings ratio is 7.58, which indicates a rather cheap valuation of ALC.
100.00% of the companies in the same industry are more expensive than ALC, based on the Price/Earnings ratio.
ALC is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.58, the valuation of ALC can be described as very cheap.
Based on the Price/Forward Earnings ratio, ALC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
ALC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
ALC has an outstanding profitability rating, which may justify a higher PE ratio.
ALC's earnings are expected to decrease with -2.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-2.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ALC has a Yearly Dividend Yield of 4.95%, which is a nice return.
Compared to an average industry Dividend Yield of 4.95, ALC pays a better dividend. On top of this ALC pays more dividend than 100.00% of the companies listed in the same industry.
ALC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
The dividend of ALC decreases each year by -8.00%.
ALC has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
35.43% of the earnings are spent on dividend by ALC. This is a low number and sustainable payout ratio.
The Dividend Rate of ALC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP35.43%
EPS Next 2Y-2.92%
EPS Next 3YN/A
TSX:ALC (6/13/2025, 7:00:00 PM)
16
-0.16 (-0.99%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners7.46%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap649.12M
Analysts80
Price Target19.38 (21.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
Yearly Dividend0.75
Dividend Growth(5Y)-8%
DP35.43%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)35.88%
Min EPS beat(2)11.82%
Max EPS beat(2)59.94%
EPS beat(4)3
Avg EPS beat(4)6.92%
Min EPS beat(4)-46.22%
Max EPS beat(4)59.94%
EPS beat(8)6
Avg EPS beat(8)15.75%
EPS beat(12)9
Avg EPS beat(12)12.22%
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)2.7%
EPS NQ rev (1m)-9.64%
EPS NQ rev (3m)-9.64%
EPS NY rev (1m)0%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.58 | ||
| Fwd PE | 7.58 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 3.99 | ||
| P/B | 0.74 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)2.11
EY13.19%
EPS(NY)2.11
Fwd EY13.19%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)4.01
OCFY25.06%
SpS17.29
BVpS21.61
TBVpS21.42
PEG (NY)N/A
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.01% | ||
| ROE | 9.76% | ||
| ROCE | 4.88% | ||
| ROIC | 3.15% | ||
| ROICexc | 3.22% | ||
| ROICexgc | 3.24% | ||
| OM | 9.7% | ||
| PM (TTM) | 12.21% | ||
| GM | 25.53% | ||
| FCFM | N/A |
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-Score3
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 231.4% | ||
| Cap/Sales | 24.04% | ||
| Interest Coverage | 2.57 | ||
| Cash Conversion | 115.47% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.56 |
F-Score3
WACC6.28%
ROIC/WACC0.5
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)-3.65%
EPS 3Y6.07%
EPS 5Y31.03%
EPS Q2Q%-29.55%
EPS Next Y-11.17%
EPS Next 2Y-2.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.42%
Revenue growth 3Y5.51%
Revenue growth 5Y4.37%
Sales Q2Q%-1.84%
Revenue Next Year4.18%
Revenue Next 2Y5.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-13.15%
EBIT growth 3Y-6.01%
EBIT growth 5Y5.17%
EBIT Next Year89.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-108.48%
FCF growth 3Y-25.64%
FCF growth 5YN/A
OCF growth 1Y13.42%
OCF growth 3Y-1.46%
OCF growth 5Y2.43%