ALGOMA CENTRAL CORP (ALC.CA) Stock Fundamental Analysis
Canada - TSX:ALC - CA0156441077 - Common Stock
17.5 CAD
-0.08 (-0.46%)
We assign a fundamental rating of 5 out of 10 to ALC. ALC was compared to 1 industry peers in the Marine Transportation industry. ALC has an excellent profitability rating, but there are concerns on its financial health. ALC has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years ALC has been profitable.
Each year in the past 5 years ALC had a positive operating cash flow.
1.2 Ratios
ALC has a better Return On Assets (5.87%) than 100.00% of its industry peers.
The Return On Equity of ALC (11.46%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 3.98%, ALC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALC is in line with the industry average of 3.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.46% | ||
| ROIC | 3.98% |
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
ALC has a Profit Margin of 13.80%. This is amongst the best in the industry. ALC outperforms 100.00% of its industry peers.
ALC's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 11.92%, ALC 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 ALC has remained more or less at the same level.
ALC has a Gross Margin of 27.64%. This is amongst the best in the industry. ALC outperforms 100.00% of its industry peers.
ALC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.92% | ||
| PM (TTM) | 13.8% | ||
| GM | 27.64% |
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.
The number of shares outstanding for ALC has been increased compared to 1 year ago.
Compared to 5 years ago, ALC has more shares outstanding
The debt/assets ratio for ALC has been reduced compared to a year ago.
2.2 Solvency
ALC has an Altman-Z score of 1.68. This is a bad value and indicates that ALC is not financially healthy and even has some risk of bankruptcy.
ALC has a better Altman-Z score (1.68) than 100.00% of its industry peers.
ALC has a Debt/Equity ratio of 0.69. This is a neutral value indicating ALC is somewhat dependend on debt financing.
The Debt to Equity ratio of ALC (0.69) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC0.61
WACC6.56%
2.3 Liquidity
ALC has a Current Ratio of 0.59. This is a bad value and indicates that ALC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.59, ALC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
ALC has a Quick Ratio of 0.59. This is a bad value and indicates that ALC is not financially healthy enough and could expect problems in meeting its short term obligations.
ALC has a better Quick ratio (0.55) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.78% over the past year.
Measured over the past years, ALC shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.03% on average per year.
The Revenue has been growing slightly by 4.99% 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)34.78%
EPS 3Y6.07%
EPS 5Y31.03%
EPS Q2Q%84.09%
Revenue 1Y (TTM)4.99%
Revenue growth 3Y5.51%
Revenue growth 5Y4.37%
Sales Q2Q%16.99%
3.2 Future
ALC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.92% yearly.
ALC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y-11.17%
EPS Next 2Y-2.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.18%
Revenue Next 2Y3.85%
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 decreasing.
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
ALC is valuated cheaply with a Price/Earnings ratio of 7.06.
Based on the Price/Earnings ratio, ALC is valued cheaper than 100.00% of the companies in the same industry.
ALC is valuated cheaply when we compare the Price/Earnings ratio to 27.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.29, which indicates a very decent valuation of ALC.
100.00% of the companies in the same industry are more expensive than ALC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, ALC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
ALC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ALC is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
ALC has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as ALC's earnings are expected to decrease with -2.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-2.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.60%, ALC is a good candidate for dividend investing.
ALC's Dividend Yield is rather good when compared to the industry average which is at 4.60. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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
ALC pays out 30.59% of its income as dividend. This is a sustainable payout ratio.
ALC's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP30.59%
EPS Next 2Y-2.92%
EPS Next 3YN/A
TSX:ALC (10/15/2025, 7:00:00 PM)
17.5
-0.08 (-0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners7.43%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap709.98M
Analysts80
Price Target19.38 (10.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
Yearly Dividend0.75
Dividend Growth(5Y)-8%
DP30.59%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.38%
Min EPS beat(2)6.93%
Max EPS beat(2)11.82%
EPS beat(4)4
Avg EPS beat(4)20.21%
Min EPS beat(4)2.14%
Max EPS beat(4)59.94%
EPS beat(8)6
Avg EPS beat(8)16.25%
EPS beat(12)9
Avg EPS beat(12)9.13%
EPS beat(16)13
Avg EPS beat(16)12.06%
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%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 8.29 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 4.64 | ||
| P/B | 0.81 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)2.48
EY14.17%
EPS(NY)2.11
Fwd EY12.06%
FCF(TTM)-0.53
FCFYN/A
OCF(TTM)3.77
OCFY21.55%
SpS18.05
BVpS21.73
TBVpS21.54
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 11.46% | ||
| ROCE | 6.28% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 4.11% | ||
| OM | 11.92% | ||
| PM (TTM) | 13.8% | ||
| GM | 27.64% | ||
| 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-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 233.12% | ||
| Cap/Sales | 23.85% | ||
| Interest Coverage | 2.93 | ||
| Cash Conversion | 94.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 1.68 |
F-Score5
WACC6.56%
ROIC/WACC0.61
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)34.78%
EPS 3Y6.07%
EPS 5Y31.03%
EPS Q2Q%84.09%
EPS Next Y-11.17%
EPS Next 2Y-2.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)4.99%
Revenue growth 3Y5.51%
Revenue growth 5Y4.37%
Sales Q2Q%16.99%
Revenue Next Year4.18%
Revenue Next 2Y3.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y50.34%
EBIT growth 3Y-6.01%
EBIT growth 5Y5.17%
EBIT Next Year89.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-129.1%
FCF growth 3Y-25.64%
FCF growth 5YN/A
OCF growth 1Y-1.43%
OCF growth 3Y-1.46%
OCF growth 5Y2.43%