TSX:AD

Stock Analysis Report

Executive Summary

Alaris Royalty Corp. is a private equity firm specializing in management buyouts, growth capital, lower & middle market, later stage, industry consolidation, growth capital, and mature investments.

Rewards


Snowflake Analysis


Similar Companies

Share Price & News

How has Alaris Royalty's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

AD

0.9%

CA Capital Markets

-0.3%

CA Market


1 Year Return

21.6%

AD

19.2%

CA Capital Markets

10.7%

CA Market

Return vs Industry: AD exceeded the Canadian Capital Markets industry which returned 19.2% over the past year.

Return vs Market: AD exceeded the Canadian Market which returned 10.7% over the past year.


Shareholder returns

ADIndustryMarket
7 Day0.9%0.9%-0.3%
30 Day2.6%-2.5%0.1%
90 Day13.4%-2.0%1.7%
1 Year32.4%21.6%24.7%19.2%14.4%10.7%
3 Year20.1%-6.5%28.1%12.6%16.0%5.6%
5 Year-7.5%-35.9%43.0%13.1%41.5%20.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Alaris Royalty undervalued compared to its fair value and its price relative to the market?

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AD (CA$21.99) is trading below our estimate of fair value (CA$27.18)

Significantly Below Fair Value: AD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AD is good value based on its PE Ratio (11.1x) compared to the Capital Markets industry average (12.7x).

PE vs Market: AD is good value based on its PE Ratio (11.1x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: AD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AD is overvalued based on its PB Ratio (1.3x) compared to the CA Capital Markets industry average (0.9x).

Future Growth

How is Alaris Royalty forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AD's earnings are forecast to decline over the next 3 years (-3.3% per year).

Earnings vs Market: AD's earnings are forecast to decline over the next 3 years (-3.3% per year).

High Growth Earnings: AD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AD's revenue (6.9% per year) is forecast to grow faster than the Canadian market (4.9% per year).

High Growth Revenue: AD's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AD's Return on Equity is forecast to be low in 3 years time (9.3%).

Past Performance

How has Alaris Royalty performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AD has high quality earnings.

Growing Profit Margin: AD's current net profit margins (62.7%) are higher than last year (46.9%).


Past Earnings Growth Analysis

Earnings Trend: AD's earnings have grown by 0.7% per year over the past 5 years.

Accelerating Growth: AD's earnings growth over the past year (32.9%) exceeds its 5-year average (0.7% per year).

Earnings vs Industry: AD earnings growth over the past year (32.9%) exceeded the Capital Markets industry 5.4%.


Return on Equity

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


Return on Assets


Return on Capital Employed

Financial Health

How is Alaris Royalty'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: AD has a low level of unsold assets or inventory.

Debt Coverage by Assets: AD's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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

Dividend

What is Alaris Royalty's current dividend yield, its reliability and sustainability?

7.50%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.0%markettop25%5.7%industryaverage4.5%forecastin3Years7.6%

Current dividend yield vs market & industry

Notable Dividend: AD's dividend (7.5%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: AD's dividend (7.5%) is in the top 25% of dividend payers in the Canadian market (5.68%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.5%), AD's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AD's dividends in 3 years are forecast to be covered by earnings (77.5% payout ratio).

Management

What is the CEO of Alaris Royalty's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Steve King 0

15.7yrs

Tenure

CA$976,481

Compensation

Mr. Stephen Walter King, also known as Steve, CFA, has been the Chief Executive Officer and President at Alaris Royalty Corp. since co-founding in April 2004 and its Director since July 31, 2008. In additi ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD738.64K) is below average for companies of similar size in the Canadian market ($USD1.07M).

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


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: AD's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

11.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AD's board of directors are seasoned and experienced ( 11.4 years average tenure).


Insider Trading

Insider Buying: AD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$54,96825 Nov 19
E. Shier
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceCA$21.99
SellCA$13,56603 Sep 19
Elizabeth McCarthy
EntityIndividual
Role
Other Key Executive
Vice President of Legal
Shares700
Max PriceCA$19.38
BuyCA$9,62227 Aug 19
Darren Driscoll
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares500
Max PriceCA$19.27
SellCA$98,74419 Aug 19
Amanda Frazer
EntityIndividual
Role
Co-Chief Investment Officer
Vice President of Investments
Shares5,000
Max PriceCA$19.75
BuyCA$991,74012 Aug 19
John Ripley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceCA$19.83
SellCA$88,28030 Jul 19
Amanda Frazer
EntityIndividual
Role
Co-Chief Investment Officer
Vice President of Investments
Shares4,172
Max PriceCA$21.16
SellCA$75,80917 May 19
Gary Patterson
EntityIndividual
Shares4,000
Max PriceCA$18.98

Ownership Breakdown

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


Management Team

  • Steve King

    CEO, President & Director

    • Tenure: 15.7yrs
    • Compensation: CA$976.48k
  • Darren Driscoll

    Chief Financial Officer

    • Tenure: 15.1yrs
    • Compensation: CA$607.85k
  • Curtis Krawetz

    Vice President of Investments & Investor Relations

    • Tenure: 0yrs
    • Compensation: CA$464.29k
  • Mike Ervin

    Chief Legal Officer & Corporate Secretary

    • Tenure: 3.1yrs
    • Compensation: CA$508.97k
  • Amanda Frazer

    Vice President of Investments

    • Tenure: 6.1yrs
    • Compensation: CA$410.00k
  • Gregg Delcourt

    Senior Vice President of Small Cap Investments

    • Tenure: 4.4yrs
    • Compensation: CA$427.12k
  • Devin Timberlake

    Vice-President of Business Development

    • Tenure: 4.4yrs
  • Elizabeth McCarthy

    Vice President of Legal

    • Tenure: 0yrs
  • Shawn Ostrow

    Vice President of Business Development

    • Tenure: 0.6yrs
  • Dan MacEachern

    Vice President of Investments

    • Tenure: 0.6yrs

Board Members

  • Bob Bertram (74yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$24.30k
  • Jack Lee (70yo)

    Independent Chairman of the Board

    • Tenure: 11.4yrs
    • Compensation: CA$30.38k
  • Mitch Shier (61yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: CA$24.30k
  • Peter Grosskopf (54yo)

    Director

    • Tenure: 0.3yrs
  • Jay Ripley (61yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: CA$11.81k
  • Mary Ritchie (62yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: CA$24.30k
  • Steve King

    CEO, President & Director

    • Tenure: 15.7yrs
    • Compensation: CA$976.48k

Company Information

Alaris Royalty Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alaris Royalty Corp.
  • Ticker: AD
  • Exchange: TSX
  • Founded: 2008
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$790.874m
  • Shares outstanding: 36.67m
  • Website: https://www.alarisroyalty.com

Number of Employees


Location

  • Alaris Royalty Corp.
  • 333 4th Avenue SW
  • Suite 250
  • Calgary
  • Alberta
  • T2S 3E6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADTSX (The Toronto Stock Exchange)YesVoting Common SharesCACADNov 2008
ALAR.FOTCPK (Pink Sheets LLC)YesVoting Common SharesUSUSDNov 2008
84ADB (Deutsche Boerse AG)YesVoting Common SharesDEEURNov 2008

Biography

Alaris Royalty Corp. is a private equity firm specializing in management buyouts, growth capital, lower & middle market, later stage, industry consolidation, growth capital, and mature investments. The fir ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 00:14
End of Day Share Price2019/12/06 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.