TSX:ACD

Stock Analysis Report

Executive Summary

Accord Financial Corp., through its subsidiaries, provides asset-based financial services to industrial and commercial enterprises primarily in Canada and the United States.


Snowflake Analysis

Undervalued with proven track record and pays a dividend.

Share Price & News

How has Accord Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

ACD

-0.5%

CA Diversified Financial

0.1%

CA Market


1 Year Return

-2.0%

ACD

62.2%

CA Diversified Financial

4.5%

CA Market

Return vs Industry: ACD underperformed the Canadian Diversified Financial industry which returned 62.2% over the past year.

Return vs Market: ACD underperformed the Canadian Market which returned 4.5% over the past year.


Shareholder returns

ACDIndustryMarket
7 Day-3.3%-0.5%0.1%
30 Day-4.3%5.0%0.9%
90 Day1.7%14.6%3.7%
1 Year1.8%-2.0%65.8%62.2%7.8%4.5%
3 Year15.7%2.9%9.5%-0.2%18.2%7.5%
5 Year5.5%-12.9%14.6%-17.9%33.7%14.2%

Price Volatility Vs. Market

How volatile is Accord Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Accord Financial undervalued compared to its fair value and its price relative to the market?

36.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACD (CA$9.31) is trading below our estimate of fair value (CA$14.54)

Significantly Below Fair Value: ACD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ACD is good value based on its PE Ratio (7x) compared to the Diversified Financial industry average (11.7x).

PE vs Market: ACD is good value based on its PE Ratio (7x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ACD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACD is good value based on its PB Ratio (0.8x) compared to the CA Diversified Financial industry average (1x).


Next Steps

Future Growth

How is Accord Financial forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-10.8%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Accord Financial has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Accord Financial performed over the past 5 years?

6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACD has a high level of non-cash earnings.

Growing Profit Margin: ACD's current net profit margins (28.6%) are higher than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: ACD's earnings have grown by 6% per year over the past 5 years.

Accelerating Growth: ACD's earnings growth over the past year (30.5%) exceeds its 5-year average (6% per year).

Earnings vs Industry: ACD earnings growth over the past year (30.5%) exceeded the Diversified Financial industry 20.8%.


Return on Equity

High ROE: ACD's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Accord Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ACD has a low level of unsold assets or inventory.

Debt Coverage by Assets: ACD's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: ACD's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ACD has a sufficient allowance for bad loans.

Low Risk Liabilities: ACD reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ACD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ACD has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ACD has an appropriate level of bad loans.


Next Steps

Dividend

What is Accord Financial's current dividend yield, its reliability and sustainability?

3.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACD's dividend (3.87%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: ACD's dividend (3.87%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


Stability and Growth of Payments

Stable Dividend: ACD's dividends per share have been stable in the past 10 years.

Growing Dividend: ACD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), ACD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Simon Hitzig 0

1.3yrs

Tenure

CA$428,949

Compensation

Mr. Simon Hitzig had served as Senior Vice President of Corporate Development at Accord Financial Corp. from October 1, 2016 to October 1, 2018. He has been a Senior Vice President at Accord Financial Ltd. ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD324.62K) is above average for companies of similar size in the Canadian market ($USD154.65K).

Compensation vs Earnings: Simon's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ken Hitzig
Founder & Chairman of the Board10.8yrsno datano data
Simon Hitzig
President1.3yrsCA$428.95k2.28% CA$1.8m
Thomas Henderson
Vice Chairman of the Board1.3yrsCA$394.62k1.22% CA$979.4k
Stuart Adair
Senior VP0yrsCA$392.26k0.068% CA$54.0k
Jeff Pfeffer
President of Accord CapX LLC0yrsCA$400.00k0.73% CA$585.9k
Irene Eddy
Senior Vice President0.3yrsno datano data
Jim Bates
Secretary0yrsno data0.093% CA$74.6k
James Jang
President of Accord Small Business Finance0yrsno data0.46% CA$365.2k
Matthew Helderman
President of BondIt Media Capital0yrsno datano data
Mark Perna
Vice-President0yrsCA$399.94kno data

1.3yrs

Average Tenure

Experienced Management: ACD's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ken Hitzig
Founder & Chairman of the Board10.8yrsno datano data
Simon Hitzig
President1.3yrsCA$428.95k2.28% CA$1.8m
Thomas Henderson
Vice Chairman of the Board1.3yrsCA$394.62k1.22% CA$979.4k
Robert Sandler
Independent Director9.3yrsCA$71.33k0.058% CA$46.5k
David Beutel
Independent Director5.8yrsCA$54.75kno data
Gary Prager
Independent Director4.8yrsCA$61.69k0.10% CA$82.9k
Stephen Warden
Independent Director9.6yrsCA$64.50k0.10% CA$83.8k

5.8yrs

Average Tenure

61yo

Average Age

Experienced Board: ACD's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Accord Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Accord Financial Corp.
  • Ticker: ACD
  • Exchange: TSX
  • Founded: 1978
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: CA$79.963m
  • Shares outstanding: 8.59m
  • Website: https://www.accordfinancial.com

Number of Employees


Location

  • Accord Financial Corp.
  • 40 Eglinton Avenue East
  • Suite 602
  • Toronto
  • Ontario
  • M4P 3A2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACDTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1988
ACCF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1988

Biography

Accord Financial Corp., through its subsidiaries, provides asset-based financial services to industrial and commercial enterprises primarily in Canada and the United States. The company is involved in the asset-based lending, which entails financing or purchasing receivables on a recourse basis, as well as financing other tangible assets, such as inventory and equipment; and provision of lease and equipment, working capital, and film and media production financing, as well as credit guarantees and collection services generally without financing. It also offers factoring and credit investigation services; supply chain financing for importers; and growth, buyout and acquisition, restructuring and turnaround, and flexible financing solutions. The company serves customers operating in manufacturing, retail, services, wholesale, import and export, lenders, apparel and textile, food and beverage, and construction sectors. Accord Financial Corp. was founded in 1978 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:15
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.