TSX:ADN

Stock Analysis Report

Executive Summary

Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States.

Snowflake

Fundamentals

Good value with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

ADN

4.9%

CA Forestry

0.2%

CA Market


1 Year Return

-5.4%

ADN

-17.6%

CA Forestry

1.2%

CA Market

Return vs Industry: ADN exceeded the Canadian Forestry industry which returned -17.6% over the past year.

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


Shareholder returns

ADNIndustryMarket
7 Day0.8%4.9%0.2%
30 Day1.7%1.1%-2.5%
90 Day0%2.7%-1.5%
1 Year1.6%-5.4%-15.0%-17.6%4.7%1.2%
3 Year12.3%-6.8%7.4%-0.3%14.0%3.8%
5 Year64.1%22.8%0.5%-7.3%26.4%8.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ADN (CA$16.64) is trading below our estimate of fair value (CA$18.87)

Significantly Undervalued: ADN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ADN is good value based on its PE Ratio (8.1x) compared to the Forestry industry average (18x).

PE vs Market: ADN is good value based on its PE Ratio (8.1x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ADN is good value based on its PB Ratio (1x) compared to the CA Forestry industry average (1x).


Next Steps

Future Growth

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

-14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADN's earnings are forecast to decline over the next 3 years (-14.6% per year).

Earnings vs Market: ADN's earnings are forecast to decline over the next 3 years (-14.6% per year).

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

Revenue vs Market: ADN's revenue (0.06% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: ADN's revenue (0.06% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ADN's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Acadian Timber performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ADN's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: ADN's earnings growth over the past year (32.4%) exceeds its 5-year average (1.5% per year).

Earnings vs Industry: ADN earnings growth over the past year (32.4%) exceeded the Forestry industry -57.6%.


Return on Equity

High ROE: ADN's Return on Equity (12%) is considered low.


Return on Assets

ROA vs Industry: ADN has a higher Return on Assets than the Forestry industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Acadian Timber's financial position?


Financial Position Analysis

Short Term Liabilities: ADN's short term assets (CA$29.0M) exceeds its short term liabilities (CA$11.6M)

Long Term Liabilities: ADN's short term assets (29.0M) do not cover its long term liabilities (185.9M)


Debt to Equity History and Analysis

Debt Level: ADN's debt to equity ratio (32.6%) is considered satisfactory

Reducing Debt: ADN's debt to equity ratio has reduced from 42.6% to 32.6% over the past 5 years.

Debt Coverage: ADN's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: ADN's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: ADN's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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

6.97%

Current Dividend Yield


Dividend Yield vs Market

company7.0%marketbottom25%2.0%markettop25%5.9%industryaverage2.9%forecastin3Years7.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ADN's dividend (6.97%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: ADN's dividend (6.97%) is in the top 25% of dividend payers in the Canadian market (5.94%)

Stable Dividend: ADN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.7%), ADN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADN's dividends in 3 years are not forecast to be well covered by earnings (107.8% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Erika Reilly 0

0.08yrs

Tenure

CA$87,101

Compensation

Ms. Erika Nicole Reilly serves as Interim President and Chief Executive Officer of Acadian Timber Corp. since September 2019. Ms. Reilly serves as Senior Vice President at Brookfield Asset Management Inc.  ...


CEO Compensation Analysis

Compensation vs. Market: Erika's total compensation ($USD0.00) is too low to compare against companies of similar size in the Canadian market ($USD688.87K).

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


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: ADN's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

0.4yrs

Average Tenure

62yo

Average Age

Experienced Board: ADN's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCA$127,725,45722 Aug 19
Macer Forest Holdings Inc.
EntityCompany
Shares7,513,262
Max PriceCA$17.00
SellCA$127,725,45722 Aug 19
Brookfield Asset Management Inc.
EntityCompany
Shares7,513,262
Max PriceCA$17.00
BuyCA$447,45028 Dec 18
Jack Cockwell
EntityIndividual
Shares31,400
Max PriceCA$14.25
BuyCA$5,70020 Dec 18
Jack Cockwell
EntityIndividual
Shares400
Max PriceCA$14.25
BuyCA$37,05014 Dec 18
Jack Cockwell
EntityIndividual
Shares2,600
Max PriceCA$14.25
BuyCA$144,76613 Dec 18
Mark Bishop
EntityIndividual
Shares10,000
Max PriceCA$14.48
BuyCA$1,450,00012 Dec 18
Malcolm Cockwell
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares100,000
Max PriceCA$14.50
BuyCA$77,74229 Nov 18
Saul Shulman
EntityIndividual
Shares5,000
Max PriceCA$15.55
BuyCA$31,53926 Nov 18
Philip Brown
EntityIndividual
Role
Lead Director
Lead Director
Shares2,000
Max PriceCA$15.77

Ownership Breakdown


Management Team

  • Brian Banfill

    Interim Chief Financial Officer

    • Tenure: 0.08yrs
    • Compensation: CA$25.89k
  • Luc Ouellet

    Senior Vice President of Operations

    • Tenure: 1.4yrs
  • Leigh Tang

    Corporate Secretary and Manager of Business & Corporate Services

    • Tenure: 9.8yrs
  • Erika Reilly

    Interim President & CEO

    • Tenure: 0.08yrs
    • Compensation: CA$87.10k
  • Kevin Topolniski

    Chief Forester

    • Tenure: 0yrs
  • Helen Mui

    Controller

    • Tenure: 0yrs

Board Members

  • Phil Brown (63yo)

    Lead Director

    • Tenure: 2.4yrs
    • Compensation: CA$48.71k
  • Bruce Robertson (52yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: CA$45.38k
  • Reid Carter (62yo)

    Director

    • Tenure: 9.8yrs
  • Karen Oldfield

    Director

    • Tenure: 0.4yrs
  • Malcolm Cockwell

    Chairman of the Board

    • Tenure: 0.2yrs
    • Compensation: CA$27.27k
  • Peter Schleifenbaum

    Director

    • Tenure: 0.2yrs
  • Heather Fitzpatrick

    Director

    • Tenure: 0.2yrs

Company Information

Acadian Timber Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Acadian Timber Corp.
  • Ticker: ADN
  • Exchange: TSX
  • Founded:
  • Industry: Forest Products
  • Sector: Materials
  • Market Cap: CA$277.670m
  • Shares outstanding: 16.69m
  • Website: https://www.acadiantimber.com

Number of Employees


Location

  • Acadian Timber Corp.
  • 1055 West Georgia Street
  • Suite 1800
  • Vancouver
  • British Columbia
  • V6E 3R5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADNTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 2006
ACAZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2006
779BST (Boerse-Stuttgart)YesCommon SharesDEEURJan 2006

Biography

Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates in two segments, NB Timberlands and Maine Timberlands. Its products include  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:12
End of Day Share Price2019/10/16 00:00
Earnings2019/06/29
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.