ALGOMA CENTRAL CORP (ALC.CA) Stock Fundamental Analysis
TSX:ALC - Toronto Stock Exchange - CA0156441077 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to ALC. ALC was compared to 1 industry peers in the Marine Transportation industry. While ALC has a great profitability rating, there are quite some concerns on its financial health. ALC has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years ALC had a positive operating cash flow.
1.2 Ratios
ALC has a better Return On Assets (5.01%) than 100.00% of its industry peers.
ALC has a better Return On Equity (9.76%) than 100.00% of its industry peers.
ALC has a better Return On Invested Capital (3.15%) 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
The Profit Margin of ALC (12.21%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of ALC has grown nicely.
ALC's Operating Margin of 9.70% is amongst the best of the industry. ALC outperforms 100.00% of its industry peers.
ALC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 25.53%, 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 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
ALC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ALC has been increased compared to 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
ALC has an Altman-Z score of 1.56. This is a bad value and indicates that ALC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.56, ALC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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
ALC has a Current Ratio of 0.52. This is a bad value and indicates that ALC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of ALC (0.52) is better than 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%.
The Earnings Per Share has been growing by 31.03% on average over the past years. This is a very strong growth
ALC shows a decrease in Revenue. In the last year, the revenue decreased by -2.42%.
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.
ALC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.09% 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 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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.64, the valuation of ALC can be described as very cheap.
Based on the Price/Earnings ratio, ALC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. ALC is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.64, which indicates a rather cheap valuation of ALC.
Based on the Price/Forward Earnings ratio, ALC is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, ALC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.64 | ||
| Fwd PE | 7.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALC is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.51 |
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)0.25
EPS Next 2Y-2.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.00%, ALC is a good candidate for dividend investing.
ALC's Dividend Yield is rather good when compared to the industry average which is at 5.00. ALC pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, ALC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
5.2 History
The dividend of ALC decreases each year by -8.00%.
ALC has paid a dividend for at least 10 years, which is 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 (6/6/2025, 7:00:00 PM)
16.12
+0.12 (+0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryMarine Transportation
Earnings (Last)
Earnings (Next)
Inst Owners16.61%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap653.99M
Analysts80
Price Target19.38 (20.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5% |
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)-8.54%
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 | 7.64 | ||
| Fwd PE | 7.64 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 4.02 | ||
| P/B | 0.75 | ||
| P/tB | 0.75 | ||
| EV/EBITDA | 7.51 |
EPS(TTM)2.11
EY13.09%
EPS(NY)2.11
Fwd EY13.09%
FCF(TTM)-0.15
FCFYN/A
OCF(TTM)4.01
OCFY24.87%
SpS17.29
BVpS21.61
TBVpS21.42
PEG (NY)N/A
PEG (5Y)0.25
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%