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ACQ

AutoCanadaTSX:ACQ Stock Report

Market Cap

CA$879.4m

7D

-8.8%

1Y

11.0%

Updated

28 Nov, 2021

Data

Company Financials +
ACQ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance2/6
Financial Health3/6
Dividends0/6

ACQ Stock Overview

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships.

AutoCanada Competitors

E Automotive

TSX:EINC

CA$889.2m

Price History & Performance

Summary of all time highs, changes and price drops for AutoCanada
Historical stock prices
Current Share PriceCA$32.30
52 Week HighCA$59.26
52 Week LowCA$22.49
Beta2.68
1 Month Change-27.56%
3 Month Change-32.64%
1 Year Change11.00%
3 Year Change152.94%
5 Year Change61.82%
Change since IPO207.62%

Recent News & Updates

Nov 05
A Look At The Intrinsic Value Of AutoCanada Inc. (TSE:ACQ)

A Look At The Intrinsic Value Of AutoCanada Inc. (TSE:ACQ)

In this article we are going to estimate the intrinsic value of AutoCanada Inc. ( TSE:ACQ ) by taking the expected...

Sep 22
These 4 Measures Indicate That AutoCanada (TSE:ACQ) Is Using Debt Reasonably Well

These 4 Measures Indicate That AutoCanada (TSE:ACQ) Is Using Debt Reasonably Well

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

ACQCA Specialty RetailCA Market
7D-8.8%-3.8%-1.7%
1Y11.0%58.1%21.9%

Return vs Industry: ACQ underperformed the Canadian Specialty Retail industry which returned 58.2% over the past year.

Return vs Market: ACQ underperformed the Canadian Market which returned 22.1% over the past year.

Price Volatility

Is ACQ's price volatile compared to industry and market?
ACQ volatility
ACQ Average Weekly Movement7.3%
Specialty Retail Industry Average Movement5.8%
Market Average Movement9.4%
10% most volatile stocks in CA Market17.1%
10% least volatile stocks in CA Market3.5%

Stable Share Price: ACQ is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ACQ's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20092,550Michael Rawlukhttps://www.autocan.ca

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships. 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.

AutoCanada Fundamentals Summary

How do AutoCanada's earnings and revenue compare to its market cap?
ACQ fundamental statistics
Market CapCA$879.43m
Earnings (TTM)CA$118.19m
Revenue (TTM)CA$4.33b

7.4x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACQ income statement (TTM)
RevenueCA$4.33b
Cost of RevenueCA$3.60b
Gross ProfitCA$737.52m
ExpensesCA$619.34m
EarningsCA$118.19m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.34
Gross Margin17.02%
Net Profit Margin2.73%
Debt/Equity Ratio184.9%

How did ACQ perform over the long term?

See historical performance and comparison

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$32.3) is trading below our estimate of fair value (CA$280.72)

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


Price To Earnings Ratio

PE vs Industry: ACQ is good value based on its PE Ratio (7.4x) compared to the Canadian Specialty Retail industry average (9x).

PE vs Market: ACQ is good value based on its PE Ratio (7.4x) compared to the Canadian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: ACQ is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: ACQ's PB Ratio (2.1x) is in line with the CA Specialty Retail industry average.


Future Growth

How is AutoCanada forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

27.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACQ's forecast earnings growth (27.4% per year) is above the savings rate (1.6%).

Earnings vs Market: ACQ's earnings (27.4% per year) are forecast to grow faster than the Canadian market (10.6% per year).

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

Revenue vs Market: ACQ's revenue (4.7% per year) is forecast to grow slower than the Canadian market (5.6% per year).

High Growth Revenue: ACQ's revenue (4.7% 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 high in 3 years time (36.5%)


Past Performance

How has AutoCanada performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACQ has a large one-off gain of CA$67.2M impacting its September 30 2021 financial results.

Growing Profit Margin: ACQ became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ACQ has become profitable over the past 5 years, growing earnings by 8.4% per year.

Accelerating Growth: ACQ has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ACQ has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (144.8%).


Return on Equity

High ROE: Whilst ACQ's Return on Equity (27.23%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is AutoCanada's financial position?


Financial Position Analysis

Short Term Liabilities: ACQ's short term assets (CA$900.0M) exceed its short term liabilities (CA$792.8M).

Long Term Liabilities: ACQ's short term assets (CA$900.0M) exceed its long term liabilities (CA$645.8M).


Debt to Equity History and Analysis

Debt Level: ACQ's net debt to equity ratio (135.7%) is considered high.

Reducing Debt: ACQ's debt to equity ratio has increased from 180.9% to 184.9% over the past 5 years.

Debt Coverage: ACQ's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: ACQ's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

What is AutoCanada current dividend yield, its reliability and sustainability?


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?

3.3yrs

Average management tenure


CEO

Michael Rawluk (47 yo)

3.42yrs

Tenure

CA$1,819,892

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 ($USD1.42M) is above average for companies of similar size in the Canadian market ($USD1.08M).

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


Leadership Team

Experienced Management: ACQ's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ACQ's board of directors are considered experienced (3.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

AutoCanada Inc.'s 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$879.433m
  • Shares outstanding: 27.23m
  • Website: https://www.autocan.ca

Number of Employees


Location

  • AutoCanada Inc.
  • 200-15511 123 Avenue NW
  • Edmonton
  • Alberta
  • T5V 0C3
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/28 23:01
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.