Executive Summary
AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick, Canada; and Illinois, the United States.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
Share Price & News
How has AutoCanada's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ACQ's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
4.9%
ACQ
2.0%
CA Specialty Retail
2.0%
CA Market
1 Year Return
-33.1%
ACQ
-32.8%
CA Specialty Retail
-11.4%
CA Market
Return vs Industry: ACQ matched the Canadian Specialty Retail industry which returned -32.8% over the past year.
Return vs Market: ACQ underperformed the Canadian Market which returned -11.4% over the past year.
Shareholder returns
| ACQ | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.9% | 2.0% | 2.0% |
| 30 Day | 19.8% | 5.9% | 4.1% |
| 90 Day | -30.1% | -23.0% | -8.8% |
| 1 Year | -31.2%-33.1% | -30.7%-32.8% | -8.3%-11.4% |
| 3 Year | -54.7%-58.3% | -40.4%-45.0% | -0.2%-9.5% |
| 5 Year | -78.8%-81.6% | -39.2%-47.0% | 15.9%-0.7% |
Price Volatility Vs. Market
How volatile is AutoCanada's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 months ago | Simply Wall St
Here's Why AutoCanada (TSE:ACQ) Has A Meaningful Debt Burden4 months ago | Simply Wall St
Do Directors Own AutoCanada Inc. (TSE:ACQ) Shares?5 months ago | Simply Wall St
Introducing AutoCanada (TSE:ACQ), The Stock That Tanked 70%Valuation
Is AutoCanada 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: ACQ (CA$7.5) is trading below our estimate of fair value (CA$53.33)
Significantly Below Fair Value: ACQ is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ACQ is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.
PE vs Market: ACQ is unprofitable, so we can't compare its PE Ratio to the Canadian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate ACQ's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: ACQ is good value based on its PB Ratio (0.6x) compared to the CA Specialty Retail industry average (1x).
Next Steps
Future Growth
How is AutoCanada forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
49.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACQ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).
Earnings vs Market: ACQ is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: ACQ's is expected to become profitable in the next 3 years.
Revenue vs Market: ACQ's revenue (1.4% per year) is forecast to grow slower than the Canadian market (5.9% per year).
High Growth Revenue: ACQ's revenue (1.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ACQ's Return on Equity is forecast to be low in 3 years time (14.9%).
Next Steps
Past Performance
How has AutoCanada performed over the past 5 years?
-54.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACQ is currently unprofitable.
Growing Profit Margin: ACQ is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: ACQ is unprofitable, and losses have increased over the past 5 years at a rate of -54.4% per year.
Accelerating Growth: Unable to compare ACQ's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: ACQ is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (1.2%).
Return on Equity
High ROE: ACQ has a negative Return on Equity (-7.35%), as it is currently unprofitable.
Next Steps
Financial Health
How is AutoCanada's financial position?
Financial Position Analysis
Short Term Liabilities: ACQ's short term assets (CA$1.0B) exceed its short term liabilities (CA$1.0B).
Long Term Liabilities: ACQ's short term assets (CA$1.0B) exceed its long term liabilities (CA$608.8M).
Debt to Equity History and Analysis
Debt Level: ACQ's debt to equity ratio (285.7%) is considered high.
Reducing Debt: ACQ's debt to equity ratio has increased from 170.9% to 285.7% over the past 5 years.
Debt Coverage: ACQ's debt is not well covered by operating cash flow (10.2%).
Interest Coverage: ACQ is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is AutoCanada's current dividend yield, its reliability and sustainability?
3.00%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ACQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ACQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ACQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ACQ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: ACQ is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ACQ'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?
1.8yrs
Average management tenure
CEO
Michael Rawluk (45yo)
2yrs
Tenure
CA$3,006,398
Compensation
Mr. Michael Rawluk has been President of AutoCanada Inc. since June 27, 2018 and its Director since August 9, 2018. Mr. Rawluk has full responsibility over dealership operations, as well as associated func ...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD2.18M) is above average for companies of similar size in the Canadian market ($USD164.10K).
Compensation vs Earnings: Insufficient data to compare Michael's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 2yrs | CA$3.06m | no data | |
| President & Director | 2yrs | CA$3.01m | 0.28% CA$566.3k | |
| Chief Strategy Officer & General Counsel | 1.75yrs | CA$2.38m | no data | |
| Chief Financial Officer | 0.83yr | no data | 0.055% CA$112.5k | |
| VP of Corporate Development & Administration and Corporate Secretary | 5.42yrs | CA$566.92k | no data | |
| Vice President of Human Resources | no data | no data | no data | |
| President of U.S. Operations | 1.25yrs | no data | no data | |
| Director of Treasury | no data | no data | no data | |
| Director of Finance | no data | no data | no data |
1.8yrs
Average Tenure
51yo
Average Age
Experienced Management: ACQ's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 2yrs | CA$3.06m | no data | |
| President & Director | 2yrs | CA$3.01m | 0.28% CA$566.3k | |
| Lead Independent Director | 1.83yrs | CA$127.00k | 0.040% CA$82.5k | |
| Independent Director | 1.83yrs | CA$49.90k | no data | |
| Independent Director | 13.08yrs | CA$122.50k | 0.093% CA$191.2k | |
| Independent Director | 5.58yrs | CA$149.50k | 0.065% CA$134.0k | |
| Independent Director | 1.83yrs | CA$49.90k | no data |
1.8yrs
Average Tenure
61yo
Average Age
Experienced Board: ACQ's board of directors are not considered experienced ( 1.8 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: ACQ 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
AutoCanada Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: AutoCanada Inc.
- Ticker: ACQ
- Exchange: TSX
- Founded: 2009
- Industry: Automotive Retail
- Sector: Retail
- Market Cap: CA$205.732m
- Shares outstanding: 27.43m
- Website: https://www.autocan.ca
Number of Employees
Location
- AutoCanada Inc.
- 200, 15511 123 Avenue NW
- Edmonton
- Alberta
- T5V 0C3
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ACQ | TSX (The Toronto Stock Exchange) | Yes | Class A Common Shares | CA | CAD | May 2006 |
| AOCI.F | OTCPK (Pink Sheets LLC) | Yes | Class A Common Shares | US | USD | May 2006 |
| 31K | DB (Deutsche Boerse AG) | Yes | Class A Common Shares | DE | EUR | May 2006 |
Biography
AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick, Canada; and Illinois, the United States. The company offers a range of automotive products and services, including new and used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, extended service contracts, and vehicle protection and other after-market products. It also arranges financing and insurance for vehicle purchases by its customers through third-party finance and insurance sources. The company sells its vehicles under the Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, and Honda brands. As of April 20, 2020, it operated 63 franchised dealerships in Canada, as well as in Illinois. AutoCanada Inc. was incorporated in 2009 and is headquartered in Edmonton, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/01 04:11 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.