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

Fundamentals

Fair value with acceptable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

AFCC

0.4%

CA Diversified Financial

0.2%

CA Market


1 Year Return

-2.9%

AFCC

25.7%

CA Diversified Financial

1.2%

CA Market

Return vs Industry: AFCC underperformed the Canadian Diversified Financial industry which returned 25.7% over the past year.

Return vs Market: AFCC underperformed the Canadian Market which returned 1.2% over the past year.


Shareholder returns

AFCCIndustryMarket
7 Day0%0.4%0.2%
30 Day-2.9%-1.4%-2.5%
90 Day1.2%1.3%-1.5%
1 Year11.1%-2.9%28.6%25.7%4.7%1.2%
3 Year24.2%-5.6%-7.7%-15.8%14.0%3.8%
5 Year49.0%13.3%11.6%-20.5%26.4%8.1%

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?

9.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate AFCC's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate AFCC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AFCC is good value based on its PE Ratio (9.5x) compared to the Diversified Financial industry average (11x).

PE vs Market: AFCC is good value based on its PE Ratio (9.5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low 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?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFCC's forecast earnings growth (12.3% per year) is above the savings rate (1.9%).

Earnings vs Market: AFCC's earnings (12.3% per year) are forecast to grow slower than the Canadian market (13.3% per year).

High Growth Earnings: AFCC's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if AFCC's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if AFCC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if AFCC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Automotive Finco performed over the past 5 years?

62.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AFCC has become profitable over the past 5 years, growing earnings by 62.8% per year.

Accelerating Growth: AFCC's earnings growth over the past year (132.8%) exceeds its 5-year average (62.8% per year).

Earnings vs Industry: AFCC earnings growth over the past year (132.8%) underperformed the Diversified Financial industry 132.8%.


Return on Equity

High ROE: AFCC's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: AFCC has a higher Return on Assets than the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: AFCC's Return on Capital Employed has declined over the past 3 years.


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 not covered by short term assets (assets are 0.1x debt).


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?

12.07%

Current Dividend Yield


Dividend Yield vs Market

company12.1%marketbottom25%2.0%markettop25%5.9%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AFCC's dividend (12.07%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: AFCC's dividend (12.07%) is in the top 25% of dividend payers in the Canadian market (5.94%)

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 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (115%), 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

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

7.0yrs

Average management tenure


CEO

Kuldeep Billan (39yo)

5.5yrs

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 ($USD309.37K) is about average for companies of similar size in the Canadian market ($USD121.38K).

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


Management Age and Tenure

7.0yrs

Average Tenure

Experienced Management: AFCC's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

39yo

Average Age

Experienced Board: AFCC's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Abdelhay Belkabir

    Consulting Geologist

    • Tenure: 12.7yrs
  • Kuldeep Billan (39yo)

    Chief Executive Officer

    • Tenure: 5.5yrs
    • Compensation: CA$408.05k
  • Simon Britt

    Independent Consultant

    • Tenure: 0yrs
    • Compensation: CA$122.70k
  • M. Lacroix

    Independent Consultant

    • Tenure: 0yrs
  • Shannon Penney (47yo)

    Chief Financial Officer

    • Tenure: 7yrs
    • Compensation: CA$100.00k

Board Members

  • Curtis Johansson (39yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: CA$10.30k
  • Farhad Abasov (47yo)

    Independent Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: CA$12.30k
  • Kail Ross (39yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: CA$10.30k

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$39.310m
  • Shares outstanding: 23.12m
  • 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 t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:41
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.