TSX:ADN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet 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

0.6%

ADN

1.0%

CA Forestry

1.0%

CA Market


1 Year Return

-11.4%

ADN

-32.4%

CA Forestry

-0.4%

CA Market

ADN outperformed the Forestry industry which returned -32.6% over the past year.

ADN underperformed the Market in Canada which returned -0.4% over the past year.


Share holder returns

ADNIndustryMarket
7 Day0.6%1.0%1.0%
30 Day-1.0%5.3%3.7%
90 Day-2.5%-4.5%1.3%
1 Year-5.1%-11.4%-30.4%-32.4%3.1%-0.4%
3 Year7.9%-10.1%5.4%-1.7%18.7%8.1%
5 Year63.4%24.4%3.5%-4.3%22.8%5.4%

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

8.05x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Acadian Timber's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Acadian Timber's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Acadian Timber is good value based on earnings compared to the CA Forestry industry average.

Acadian Timber is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Acadian Timber earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Acadian Timber is good value based on assets compared to the CA Forestry industry average.


Next Steps

Future Growth

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

-21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Acadian Timber's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Acadian Timber's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Acadian Timber's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.

Acadian Timber's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Acadian Timber's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Acadian Timber is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Acadian Timber's year on year earnings growth rate has been positive over the past 5 years.

Acadian Timber's 1-year earnings growth exceeds its 5-year average (32.4% vs 1.5%)

Acadian Timber's earnings growth has exceeded the CA Forestry industry average in the past year (32.4% vs -57.6%).


Return on Equity

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


Return on Assets

Acadian Timber used its assets more efficiently than the CA Forestry industry average last year based on Return on Assets.


Return on Capital Employed

Acadian Timber's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Acadian Timber's financial position?


Financial Position Analysis

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

Acadian Timber's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Acadian Timber's level of debt (32.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (42.6% vs 32.6% today).

Debt is not well covered by operating cash flow (17.5%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

7.00%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Acadian Timber before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Acadian Timber's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.96%).

Acadian Timber's dividend is above the markets top 25% of dividend payers in Canada (5.76%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.9x coverage).


Next Steps

Management

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

0.3yrs

Average board tenure


CEO

Erika Reilly 0

0yrs

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

Erika's remuneration is lower than average for companies of similar size in Canada.

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


Board Age and Tenure

0.3yrs

Average Tenure

62yo

Average Age

The average tenure for the Acadian Timber board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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: 0yrs
    • Compensation: CA$25.89k
  • Luc Ouellet

    Senior Vice President of Operations

    • Tenure: 1.3yrs
  • Leigh Tang

    Corporate Secretary and Manager of Business & Corporate Services

    • Tenure: 9.7yrs
  • Erika Reilly

    Interim President & CEO

    • Tenure: 0yrs
    • Compensation: CA$87.10k
  • Kevin Topolniski

    Chief Forester

    • Tenure: 0yrs
  • Helen Mui

    Controller

    • Tenure: 0yrs

Board Members

  • Phil Brown (63yo)

    Lead Director

    • Tenure: 2.3yrs
    • Compensation: CA$48.71k
  • Bruce Robertson (52yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: CA$45.38k
  • Reid Carter (62yo)

    Director

    • Tenure: 9.7yrs
  • Karen Oldfield

    Director

    • Tenure: 0.3yrs
  • Malcolm Cockwell

    Chairman of the Board

    • Tenure: 0.08yrs
    • Compensation: CA$27.27k
  • Peter Schleifenbaum

    Director

    • Tenure: 0.08yrs
  • Heather Fitzpatrick

    Director

    • Tenure: 0.08yrs

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$276.168m
  • 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 Analysis2019/09/20 00:52
End of Day Share Price2019/09/19 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.