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

Proven track record and fair value.

Risks

  • Automotive Finco has significant price volatility in the past 3 months.
  • Automotive Finco is not covered by any analysts.

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%

TSXV:AFCC

0.3%

CA Diversified Financial

1.6%

CA Market


1 Year Return

-12.5%

TSXV:AFCC

36.3%

CA Diversified Financial

-0.3%

CA Market

AFCC underperformed the Diversified Financial industry which returned 33% over the past year.

AFCC underperformed the Market in Canada which returned -0.5% over the past year.


Share holder returns

AFCCIndustryMarket
7 Day0%0.3%1.6%
30 Day-2.2%3.5%4.1%
90 Day29.6%8.2%1.1%
1 Year-0.08%-12.5%40.1%36.3%3.3%-0.3%
3 Year26.6%-2.8%-6.5%-30.9%19.3%8.6%
5 Year59.9%22.8%9.7%-21.7%21.6%4.1%

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 based on future cash flows and its price relative to the stock market?

9.8x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Automotive Finco to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Automotive Finco to establish if it is available at substantial discount.


Price Based on Earnings

Automotive Finco is good value based on earnings compared to the CA Diversified Financial industry average.

Automotive Finco is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Automotive Finco, we can't assess if its growth is good value.


Price Based on Value of Assets

Automotive Finco is good value based on assets compared to the CA Diversified Financial industry average.


Next Steps

Future Growth

How is Automotive Finco expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Automotive Finco is high growth as no revenue estimate data is available.

Automotive Finco's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).

Unable to compare Automotive Finco's revenue growth to the Canada market average as no estimate data is available.

Automotive Finco's earnings growth is expected to exceed the Canada market average.

Automotive Finco's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Automotive Finco will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Automotive Finco has delivered over 20% year on year earnings growth in the past 5 years.

Automotive Finco's 1-year earnings growth exceeds its 5-year average (132.8% vs 62.8%)

Automotive Finco's earnings growth has not exceeded the CA Diversified Financial industry average in the past year (132.8% vs 132.8%).


Return on Equity

Automotive Finco has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Automotive Finco used its assets more efficiently than the CA Diversified Financial industry average last year based on Return on Assets.


Return on Capital Employed

Automotive Finco has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Automotive Finco's financial position?


Financial Position Analysis

Automotive Finco is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Automotive Finco's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Automotive Finco's level of debt (53.3%) compared to net worth is high (greater than 40%).

Unable to establish if Automotive Finco's debt level has increased without past 5-year debt data.

Debt is not well covered by operating cash flow (18.6%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

11.73%

Current Dividend Yield


Dividend Yield and Payments Analysis

Automotive Finco's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Automotive Finco's dividend is above the markets top 25% of dividend payers in Canada (5.8%).

Whilst dividend payments have been stable, Automotive Finco has been paying a dividend for less than 10 years.

Dividend payments have increased, but Automotive Finco only paid a dividend in the past 2 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Kuldeep Billan (39yo)

5.4yrs

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

Kuldeep's remuneration is higher than average for companies of similar size in Canada.

Kuldeep's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.9yrs

Average Tenure

The average tenure for the Automotive Finco management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.7yrs

Average Tenure

39yo

Average Age

The tenure for the Automotive Finco board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Abdelhay Belkabir

    Consulting Geologist

    • Tenure: 12.6yrs
  • Kuldeep Billan (39yo)

    Chief Executive Officer

    • Tenure: 5.4yrs
    • 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: 6.9yrs
    • Compensation: CA$100.00k

Board Members

  • Curtis Johansson (39yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: CA$10.30k
  • Farhad Abasov (47yo)

    Chairman of the Board

    • Tenure: 3.7yrs
    • Compensation: CA$12.30k
  • Kail Ross (39yo)

    Independent Director

    • Tenure: 3.1yrs
    • 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$40.467m
  • 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 Analysis2019/09/17 23:53
End of Day Share Price2019/09/17 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.