TSX:AD.UN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Alaris Equity Partners Income Trust

Executive Summary

Alaris Equity Partners Income Trust is a private equity firm specializing in management buyouts, growth capital, lower & middle market, later stage, industry consolidation, growth capital, and mature investments. More Details


Snowflake Analysis

High growth potential average dividend payer.


Similar Companies

Share Price & News

How has Alaris Equity Partners Income Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AD.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: AD.UN's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

5.9%

AD.UN

1.3%

CA Capital Markets

2.6%

CA Market


1 Year Return

-32.0%

AD.UN

4.1%

CA Capital Markets

0.5%

CA Market

Return vs Industry: AD.UN underperformed the Canadian Capital Markets industry which returned 1.9% over the past year.

Return vs Market: AD.UN underperformed the Canadian Market which returned -0.3% over the past year.


Shareholder returns

AD.UNIndustryMarket
7 Day5.9%1.3%2.6%
30 Day24.6%24.7%13.3%
90 Day23.2%12.5%6.0%
1 Year-25.8%-32.0%6.5%4.1%4.2%0.5%
3 Year5.4%-18.8%39.2%29.5%13.0%2.0%
5 Year-6.9%-37.7%72.6%50.5%49.8%26.8%

Long-Term Price Volatility Vs. Market

How volatile is Alaris Equity Partners Income Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Alaris Equity Partners Income Trust undervalued compared to its fair value and its price relative to the market?

0.96x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AD.UN (CA$15) is trading above our estimate of fair value (CA$5.12)

Significantly Below Fair Value: AD.UN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AD.UN is unprofitable, so we can't compare its PE Ratio to the CA Capital Markets industry average.

PE vs Market: AD.UN is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AD.UN is good value based on its PB Ratio (1x) compared to the CA Capital Markets industry average (1.2x).


Next Steps

Future Growth

How is Alaris Equity Partners Income Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

110.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AD.UN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AD.UN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AD.UN's is expected to become profitable in the next 3 years.

Revenue vs Market: AD.UN's revenue (26% per year) is forecast to grow faster than the Canadian market (6.1% per year).

High Growth Revenue: AD.UN's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AD.UN's Return on Equity is forecast to be low in 3 years time (11.1%).


Next Steps

Past Performance

How has Alaris Equity Partners Income Trust performed over the past 5 years?

-24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AD.UN is currently unprofitable.

Growing Profit Margin: AD.UN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AD.UN is unprofitable, and losses have increased over the past 5 years at a rate of 24.4% per year.

Accelerating Growth: Unable to compare AD.UN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AD.UN is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (15.2%).


Return on Equity

High ROE: AD.UN has a negative Return on Equity (-5.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Alaris Equity Partners Income Trust's financial position?


Financial Position Analysis

Short Term Liabilities: AD.UN's short term assets (CA$41.9M) exceed its short term liabilities (CA$19.0M).

Long Term Liabilities: AD.UN's short term assets (CA$41.9M) do not cover its long term liabilities (CA$259.6M).


Debt to Equity History and Analysis

Debt Level: AD.UN's debt to equity ratio (45.1%) is considered high.

Reducing Debt: AD.UN's debt to equity ratio has increased from 6.4% to 45.1% over the past 5 years.

Debt Coverage: AD.UN's debt is well covered by operating cash flow (27.1%).

Interest Coverage: AD.UN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Alaris Equity Partners Income Trust current dividend yield, its reliability and sustainability?

8.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AD.UN's dividend (8.27%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: AD.UN's dividend (8.27%) is in the top 25% of dividend payers in the Canadian market (5.26%)


Stability and Growth of Payments

Stable Dividend: AD.UN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: AD.UN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AD.UN's dividends in 3 years are forecast to be covered by earnings (75.7% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Steve King

16.58yrs

Tenure

CA$1,108,967

Compensation

Mr. Stephen Walter King, also known as Steve, CFA, has been the Chief Executive Officer and President at Alaris Equity Partners Income Trust (formerly known as Alaris Royalty Corp.). since co-founding in A...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD854.31K) is about average for companies of similar size in the Canadian market ($USD879.56K).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen King
CEO, President & Director16.58yrsCA$1.11m2.24%
CA$ 11.8m
Darren Driscoll
Chief Financial Officer16yrsCA$794.51k1.17%
CA$ 6.1m
Curtis Krawetz
VP of Investments & Investor Relationsno dataCA$527.73k0.13%
CA$ 698.2k
Michael Ervin
Chief Legal Officer & Corporate Secretary4yrsCA$586.06k0.078%
CA$ 411.9k
Gregg Delcourt
Senior Vice President of Small Cap Investments5.33yrsCA$557.94k0.038%
CA$ 202.1k
Amanda Frazer
Vice President of Investments7.08yrsCA$410.00k0.068%
CA$ 356.8k
Daniel MacEachern
Vice President of Investments1.5yrsno data0.018%
CA$ 94.6k
Devin Timberlake
Vice-President of Business Development5.33yrsno data0.027%
CA$ 144.0k
Shawn Ostrow
Vice President of Business Development1.5yrsno data0.023%
CA$ 118.8k
Elizabeth McCarthy
Vice President of Legalno datano data0.013%
CA$ 68.5k
Jordan Primeau
Vice President of Legalno datano data0.00087%
CA$ 4.6k

5.3yrs

Average Tenure

Experienced Management: AD.UN's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen King
CEO, President & Director16.58yrsCA$1.11m2.24%
CA$ 11.8m
Robert Bertram
Independent Director9.83yrsCA$133.39k0.16%
CA$ 861.1k
E. Shier
Independent Director12.33yrsCA$133.39k0.070%
CA$ 369.0k
John Ripley
Independent Chairman0.83yrCA$133.39k0.86%
CA$ 4.5m
Mary Ritchie
Independent Director12.33yrsCA$133.39k0.13%
CA$ 698.7k
Sophia Langlois
Director0.33yrno data0.011%
CA$ 59.5k

11.1yrs

Average Tenure

63yo

Average Age

Experienced Board: AD.UN's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AD.UN 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

Alaris Equity Partners Income Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alaris Equity Partners Income Trust
  • Ticker: AD.UN
  • Exchange: TSX
  • Founded: 2008
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$526.193m
  • Shares outstanding: 35.65m
  • Website: https://www.alarisroyalty.com

Number of Employees


Location

  • Alaris Equity Partners Income Trust
  • 333 4th Avenue SW
  • Suite 250
  • Calgary
  • Alberta
  • T2S 3E6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AD.UNTSX (The Toronto Stock Exchange)YesVoting Common SharesCACADNov 2008
5UKDB (Deutsche Boerse AG)YesVoting Common SharesDEEURNov 2008

Biography

Alaris Equity Partners Income Trust is a private equity firm specializing in management buyouts, growth capital, lower & middle market, later stage, industry consolidation, growth capital, and mature inves...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:34
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.