TSX:AKU

Stock Analysis Report

Executive Summary

Akumin Inc. provides outpatient diagnostic imaging services in the United States.

Rewards

Trading at 70.9% below its fair value

Revenue is forecast to grow 17.28% per year

Earnings have grown 54.5% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (2.5%) are lower than last year (3.7%)

+ 1 more risk


Snowflake Analysis

Fair value with concerning outlook.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AKU's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.5%

AKU

7.1%

CA Healthcare

7.1%

CA Market


1 Year Return

-51.4%

AKU

-41.7%

CA Healthcare

-25.3%

CA Market

Return vs Industry: AKU underperformed the Canadian Healthcare industry which returned -41.7% over the past year.

Return vs Market: AKU underperformed the Canadian Market which returned -25.3% over the past year.


Shareholder returns

AKUIndustryMarket
7 Day5.5%7.1%7.1%
30 Day-48.2%-24.6%-24.1%
90 Day-52.4%-25.2%-26.7%
1 Year-51.4%-51.4%-40.1%-41.7%-22.9%-25.3%
3 Yearn/a-51.2%-57.0%-15.6%-23.4%
5 Yearn/a-23.0%-40.2%-3.2%-17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AKU (CA$2.3) is trading below our estimate of fair value (CA$7.9)

Significantly Below Fair Value: AKU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AKU is poor value based on its PE Ratio (19.5x) compared to the Healthcare industry average (19.3x).

PE vs Market: AKU is poor value based on its PE Ratio (19.5x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AKU is good value based on its PB Ratio (0.8x) compared to the CA Healthcare industry average (1.8x).


Next Steps

Future Growth

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

17.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AKU's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if AKU's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AKU's revenue (17.3% per year) is forecast to grow faster than the Canadian market (3.9% per year).

High Growth Revenue: AKU's revenue (17.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Akumin performed over the past 5 years?

54.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKU has a large one-off loss of $6.0M impacting its September 30 2019 financial results.

Growing Profit Margin: AKU's current net profit margins (2.5%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: AKU has become profitable over the past 5 years, growing earnings by 54.5% per year.

Accelerating Growth: AKU's earnings growth over the past year (0.6%) is below its 5-year average (54.5% per year).

Earnings vs Industry: AKU earnings growth over the past year (0.6%) underperformed the Healthcare industry 2.7%.


Return on Equity

High ROE: AKU's Return on Equity (5.4%) is considered low.


Next Steps

Financial Health

How is Akumin's financial position?


Financial Position Analysis

Short Term Liabilities: AKU's short term assets ($95.9M) exceed its short term liabilities ($38.1M).

Long Term Liabilities: AKU's short term assets ($95.9M) do not cover its long term liabilities ($461.0M).


Debt to Equity History and Analysis

Debt Level: AKU's debt to equity ratio (233.3%) is considered high.

Reducing Debt: Insufficient data to determine if AKU's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: AKU has a high level of physical assets or inventory.

Debt Coverage by Assets: AKU's debt is not covered by short term assets (assets are 0.3x 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: AKU is profitable, therefore cash runway is not a concern.

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


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AKU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AKU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AKU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AKU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AKU's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Riadh Zine Zine-El-Abidine (47yo)

no data

Tenure

US$2,444,013

Compensation

Mr. Riadh Zine-El-Abidine also known as Riadh Zine, serves as Chief Executive Officer and President at Akumin Inc. Mr. Zine serves as President and Chief Executive Officer of Elite Imaging Inc. Mr. Zine is ...


CEO Compensation Analysis

Compensation vs Market: Riadh Zine's total compensation ($USD2.44M) is above average for companies of similar size in the Canadian market ($USD157.44K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Riadh Zine-El-Abidine
Presidentno dataUS$2.44m6.37% $10.7m
Mohammad Saleem
CFO & Corporate Secretary4.5yrsUS$704.66k0.77% $1.3m
Rohit Navani
Executive VP & COO5.42yrsUS$1.15m1.16% $1.9m
Amy Adams
Senior Vice Presidentno dataUS$795.01k1.83% $3.1m
Laura Kassa
Senior Vice President3.17yrsUS$989.12k0.13% $222.5k
Matthew Cameron
Senior VP & General Counselno datano data0.072% $120.2k
Darren Speed
Chief Compliance Officerno datano datano data
Karen Moore
Vice President of Human Resourcesno datano data0.00062% $1.0k
Adam Fabian
Corporate Controllerno datano data0.043% $72.0k
Christopher Fitzgerald
Chief Revenue Officer of Akumin Corpno datano data0.015% $25.8k

4.5yrs

Average Tenure

Experienced Management: AKU's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Riadh Zine-El-Abidine
Presidentno dataUS$2.44m6.37% $10.7m
Stanley D. Dunford
Chairmanno dataUS$169.04k10.33% $17.3m
James Webb
Independent Director2.58yrsUS$177.82k2.73% $4.6m
Thomas Davies
Independent Director3yrsUS$185.32k0.024% $40.4k
Murray Lee
Lead Directorno dataUS$195.32k0.024% $40.4k

3.0yrs

Average Tenure

59yo

Average Age

Experienced Board: AKU's board of directors are considered experienced (3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.6%.


Top Shareholders

Company Information

Akumin Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Akumin Inc.
  • Ticker: AKU
  • Exchange: TSX
  • Founded:
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: CA$167.618m
  • Shares outstanding: 69.84m
  • Website: https://www.akumin.com

Number of Employees


Location

  • Akumin Inc.
  • 151 Bloor Street West
  • Suite 603
  • Toronto
  • Ontario
  • M5S 1S4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKUTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2017
AKMN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2017

Biography

Akumin Inc. provides outpatient diagnostic imaging services in the United States. As of December 31, 2018, the company operated 95 imaging centers located in Florida, Pennsylvania, Delaware, Texas, Illinois, and Kansas. Its centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders, and reduce unnecessary invasive procedures. The company provides a range of medical imaging services, including magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, digital radiography, fluoroscopy, radiology, arthrography, biopsy, and other diagnostic or interventional radiology procedures; and online medical bill payment services. Akumin Inc. 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 Analysis2020/03/28 04:46
End of Day Share Price2020/03/27 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.