TSX:ACQSpecialty Retail
AutoCanada (TSX:ACQ) Stock Revenue Growth Runs Into A Margin Squeeze
AutoCanada came into this earnings week trading at about CA$24, with the stock already up double digits over the past three months. Investors who bought the recovery story just met the fine print of a very tight profit equation. Q2 revenue from continuing operations landed at about CA$1.4b, yet net income from continuing operations sat near CA$12m, which keeps the trailing net margin around 0.06%.
The market is reacting to a dealer group that still looks cheap on sales multiples, while...