TSX:ADN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Second-rate dividend payer with imperfect balance sheet.


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

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


Market Performance


7 Day Return

-2.7%

ADN

-2.1%

CA Forestry

3.7%

CA Market


1 Year Return

-21.9%

ADN

-52.7%

CA Forestry

-23.7%

CA Market

Return vs Industry: ADN exceeded the Canadian Forestry industry which returned -52.7% over the past year.

Return vs Market: ADN exceeded the Canadian Market which returned -23.7% over the past year.


Shareholder returns

ADNIndustryMarket
7 Day-2.7%-2.1%3.7%
30 Day-25.2%-39.1%-19.7%
90 Day-21.7%-43.8%-24.3%
1 Year-15.9%-21.9%-51.7%-52.7%-21.2%-23.7%
3 Year-15.4%-30.6%-48.5%-52.3%-13.3%-21.4%
5 Year-5.1%-29.9%-48.3%-52.5%-0.8%-15.5%

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?

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ADN (CA$12.75) is trading below our estimate of fair value (CA$13.67)

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


Price To Earnings Ratio

PE vs Industry: ADN is poor value based on its PE Ratio (12.3x) compared to the Forestry industry average (11.6x).

PE vs Market: ADN is poor value based on its PE Ratio (12.3x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: ADN is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ADN is overvalued based on its PB Ratio (0.7x) compared to the CA Forestry industry average (0.7x).


Next Steps

Future Growth

How is Acadian Timber forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADN's forecast earnings growth (6.8% per year) is above the savings rate (1.4%).

Earnings vs Market: ADN's earnings (6.8% per year) are forecast to grow slower than the Canadian market (7.1% per year).

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

Revenue vs Market: ADN's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: ADN's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADN's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Acadian Timber performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADN has high quality earnings.

Growing Profit Margin: ADN's current net profit margins (17.3%) are lower than last year (26.3%).


Past Earnings Growth Analysis

Earnings Trend: ADN's earnings have declined by -8.4% per year over the past 5 years.

Accelerating Growth: ADN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADN had negative earnings growth (-34%) over the past year, making it difficult to compare to the Forestry industry average (4.5%).


Return on Equity

High ROE: ADN's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is Acadian Timber's financial position?


Financial Position Analysis

Short Term Liabilities: ADN's short term assets (CA$23.0M) do not cover its short term liabilities (CA$114.9M).

Long Term Liabilities: ADN's short term assets (CA$23.0M) do not cover its long term liabilities (CA$97.1M).


Debt to Equity History and Analysis

Debt Level: ADN's debt to equity ratio (35.2%) is considered satisfactory.

Reducing Debt: ADN's debt to equity ratio has increased from 33.8% to 35.2% over the past 5 years.

Debt Coverage: ADN's operating cash flow is negative, therefore debt is not well covered.

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 0.2x debt).


Next Steps

Dividend

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

9.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADN's dividend (9.1%) is higher than the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: ADN's dividend (9.1%) is in the top 25% of dividend payers in the Canadian market (8.66%)


Stability and Growth of Payments

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 high payout ratio (111.7%), ADN's dividend payments are not well 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 (101.8% payout ratio).


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Erika Reilly

0.58

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 ($USD0.00) is below average for companies of similar size in the Canadian market ($USD760.89K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Erika Reilly
Interim President & CEO0.58yrCA$87.10k0.012% CA$25.5k
Adam Sheparski
Chief Financial Officer0.17yrno datano data
Normand Haché
Senior Vice President of Marketing & Operationsno datano datano data
Kevin Topolniski
Chief Foresterno datano datano data
Leigh Tang
Corporate Secretary and Manager of Business & Corporate Services10.25yrsno datano data
Helen Mui
Controllerno datano datano data

0.6yrs

Average Tenure

Experienced Management: ADN's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Philip Brown
Lead Independent Director2.92yrsCA$48.71k0.012% CA$25.5k
Bruce Robertson
Independent Director2.17yrsCA$45.38k0.012% CA$25.5k
Reid Carter
Director10.25yrsno data0.17% CA$360.8k
Karen Oldfield
Director0.92yrno datano data
Malcolm Cockwell
Independent Chairman of the Board0.67yrCA$27.27k1.28% CA$2.7m
Peter Schleifenbaum
Independent Director0.67yrno datano data
Heather Fitzpatrick
Independent Director0.67yrno datano data

0.9yrs

Average Tenure

62yo

Average Age

Experienced Board: ADN's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ADN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$212.758m
  • Shares outstanding: 16.69m
  • Website: https://www.acadiantimber.com

Number of Employees


Location

  • Acadian Timber Corp.
  • 1055 West Georgia Street
  • Suite 2408
  • 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 softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine; and provides managements services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian Timber Corp. is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 05:31
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.