TSXV:AFCC

Stock Analysis Report

Executive Summary

Automotive Finco Corp., a specialty finance company, focuses on the auto retail sector in Canada and internationally.


Snowflake Analysis

Acceptable track record and slightly overvalued.

Share Price & News

How has Automotive Finco's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.1%

AFCC

-1.0%

CA Diversified Financial

-1.5%

CA Market


1 Year Return

-4.9%

AFCC

57.0%

CA Diversified Financial

2.5%

CA Market

Return vs Industry: AFCC underperformed the Canadian Diversified Financial industry which returned 57% over the past year.

Return vs Market: AFCC exceeded the Canadian Market which returned 2.5% over the past year.


Shareholder returns

AFCCIndustryMarket
7 Day-3.1%-1.0%-1.5%
30 Day-7.7%3.7%-0.7%
90 Day-10.9%14.2%1.8%
1 Year7.1%-4.9%60.4%57.0%5.7%2.5%
3 Year-41.1%-56.9%7.8%-1.8%16.8%6.2%
5 Year41.5%3.3%10.5%-20.8%32.0%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Automotive Finco undervalued compared to its fair value and its price relative to the market?

5.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFCC (CA$1.65) is trading above our estimate of fair value (CA$1.64)

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


Price To Earnings Ratio

PE vs Industry: AFCC is poor value based on its PE Ratio (11.7x) compared to the Diversified Financial industry average (11.4x).

PE vs Market: AFCC is good value based on its PE Ratio (11.7x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AFCC 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 Automotive Finco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-71.1%

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 Automotive Finco 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 Automotive Finco performed over the past 5 years?

64.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFCC has high quality earnings.

Growing Profit Margin: AFCC's current net profit margins (48.8%) are higher than last year (27.8%).


Past Earnings Growth Analysis

Earnings Trend: AFCC has become profitable over the past 5 years, growing earnings by 64.5% per year.

Accelerating Growth: AFCC's earnings growth over the past year (29.8%) is below its 5-year average (64.5% per year).

Earnings vs Industry: AFCC earnings growth over the past year (29.8%) underperformed the Diversified Financial industry 30.2%.


Return on Equity

High ROE: AFCC's Return on Equity (6.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Automotive Finco'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: AFCC has a low level of unsold assets or inventory.

Debt Coverage by Assets: AFCC's debt is covered by short term assets (assets are 2.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AFCC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: AFCC is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Automotive Finco's current dividend yield, its reliability and sustainability?

13.24%

Current Dividend Yield


Dividend Yield vs Market

company13.2%marketbottom25%2.0%markettop25%5.6%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AFCC's dividend (12.44%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: AFCC's dividend (12.44%) is in the top 25% of dividend payers in the Canadian market (5.6%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AFCC has been paying a dividend for less than 10 years.

Growing Dividend: AFCC's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (145.3%), AFCC's dividend payments are not 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?

7.3yrs

Average management tenure


CEO

Kuldeep Billan (39yo)

5.8yrs

Tenure

CA$408,054

Compensation

Mr. Kuldeep Billan has been Chief Executive Officer at Automotive Finco Corp since April 11,2014 and served as its Director since August 29,2011 until August 24, 2017. Mr. Billan was an Associate at ONCAP. ...


CEO Compensation Analysis

Compensation vs Market: Kuldeep's total compensation ($USD307.43K) is above average for companies of similar size in the Canadian market ($USD154.48K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kuldeep Billan
Chief Executive Officer5.8yrsCA$408.05kno data
Shannon Penney
Chief Financial Officer7.3yrsCA$100.00k0.038% CA$11.0k
Abdelhay Belkabir
Consulting Geologist13yrsno datano data
Simon Britt
Independent Consultant0yrsCA$122.70kno data
M. Lacroix
Independent Consultant0yrsno datano data

7.3yrs

Average Tenure

Experienced Management: AFCC's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Curtis Johansson
Independent Director5.8yrsCA$10.30k0.64% CA$186.4k
Farhad Abasov
Independent Chairman of the Board4.1yrsCA$12.30k0.32% CA$93.5k
Kail Ross
Independent Director3.5yrsCA$10.30k0.52% CA$153.3k

4.1yrs

Average Tenure

39yo

Average Age

Experienced Board: AFCC's board of directors are considered experienced (4.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Automotive Finco Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Automotive Finco Corp.
  • Ticker: AFCC
  • Exchange: TSXV
  • Founded: 1986
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: CA$29.216m
  • Shares outstanding: 17.71m
  • Website: https://www.autofincocorp.com

Location

  • Automotive Finco Corp.
  • 8 King Street East
  • Suite 1800
  • Toronto
  • Ontario
  • M5C 1B5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFCCTSXV (TSX Venture Exchange)YesCommon SharesCACADAug 1988
2AYADB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1988
RMIA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1988

Biography

Automotive Finco Corp., a specialty finance company, focuses on the auto retail sector in Canada and internationally. The company, through its investment in Automotive Finance LP, intends to provide long term and debt based acquisition financing to auto dealerships. It also focuses on direct investments in the auto retail sector. The company was formerly known as Augyva Mining Resources Inc. and changed its name to Automotive Finco Corp. in March 2017. The company was incorporated in 1986 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 Analysis2020/02/26 00:20
End of Day Share Price2020/02/25 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.