Accord Financial
Market Cap
CA$80.0m
Last Updated
2020/02/24 01:15 UTC
Data Sources
Company Financials
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.
Rewards
Risk Analysis
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
| ACD | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | -0.5% | 0.1% |
| 30 Day | -4.3% | 5.0% | 0.9% |
| 90 Day | 1.7% | 14.6% | 3.7% |
| 1 Year | 1.8%-2.0% | 65.8%62.2% | 7.8%4.5% |
| 3 Year | 15.7%2.9% | 9.5%-0.2% | 18.2%7.5% |
| 5 Year | 5.5%-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
2 weeks ago | Simply Wall St
Be Sure To Check Out Accord Financial Corp. (TSE:ACD) Before It Goes Ex-Dividend3 weeks ago | Simply Wall St
Here's Why I Think Accord Financial (TSE:ACD) Might Deserve Your Attention Today1 month ago | Simply Wall St
Before You Buy Accord Financial Corp. (TSE:ACD), Consider Its VolatilityValuation
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
- Examine whether Accord Financial is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Accord Financial competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Diversified Financials industry.
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman of the Board | 10.8yrs | no data | no data | |
| President | 1.3yrs | CA$428.95k | 2.28% CA$1.8m | |
| Vice Chairman of the Board | 1.3yrs | CA$394.62k | 1.22% CA$979.4k | |
| Senior VP | 0yrs | CA$392.26k | 0.068% CA$54.0k | |
| President of Accord CapX LLC | 0yrs | CA$400.00k | 0.73% CA$585.9k | |
| Senior Vice President | 0.3yrs | no data | no data | |
| Secretary | 0yrs | no data | 0.093% CA$74.6k | |
| President of Accord Small Business Finance | 0yrs | no data | 0.46% CA$365.2k | |
| President of BondIt Media Capital | 0yrs | no data | no data | |
| Vice-President | 0yrs | CA$399.94k | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman of the Board | 10.8yrs | no data | no data | |
| President | 1.3yrs | CA$428.95k | 2.28% CA$1.8m | |
| Vice Chairman of the Board | 1.3yrs | CA$394.62k | 1.22% CA$979.4k | |
| Independent Director | 9.3yrs | CA$71.33k | 0.058% CA$46.5k | |
| Independent Director | 5.8yrs | CA$54.75k | no data | |
| Independent Director | 4.8yrs | CA$61.69k | 0.10% CA$82.9k | |
| Independent Director | 9.6yrs | CA$64.50k | 0.10% 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ACD | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Sep 1988 |
| ACCF.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Sep 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 01:15 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.