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ACQ

AutoCanada TSX:ACQ Stock Report

Last Price

CA$22.64

Market Cap

CA$598.0m

7D

-7.4%

1Y

-52.2%

Updated

01 Oct, 2022

Data

Company Financials +
ACQ fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance3/6
Financial Health2/6
Dividends0/6

ACQ Stock Overview

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

AutoCanada Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AutoCanada
Historical stock prices
Current Share PriceCA$22.64
52 Week HighCA$48.94
52 Week LowCA$21.19
Beta2.66
1 Month Change-21.90%
3 Month Change-7.82%
1 Year Change-52.21%
3 Year Change200.27%
5 Year Change-2.62%
Change since IPO115.62%

Recent News & Updates

Aug 26
Do AutoCanada's (TSE:ACQ) Earnings Warrant Your Attention?

Do AutoCanada's (TSE:ACQ) Earnings Warrant Your Attention?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

ACQCA Specialty RetailCA Market
7D-7.4%1.3%-0.008%
1Y-52.2%-15.6%-6.6%

Return vs Industry: ACQ underperformed the Canadian Specialty Retail industry which returned -15.6% over the past year.

Return vs Market: ACQ underperformed the Canadian Market which returned -6.6% over the past year.

Price Volatility

Is ACQ's price volatile compared to industry and market?
ACQ volatility
ACQ Average Weekly Movement6.3%
Specialty Retail Industry Average Movement6.6%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.1%
10% least volatile stocks in CA Market3.8%

Stable Share Price: ACQ is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ACQ's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2009n/an/ahttps://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$598.05m
Earnings (TTM)CA$147.49m
Revenue (TTM)CA$5.43b

4.1x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ACQ income statement (TTM)
RevenueCA$5.43b
Cost of RevenueCA$4.45b
Gross ProfitCA$983.93m
Other ExpensesCA$836.44m
EarningsCA$147.49m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.58
Gross Margin18.12%
Net Profit Margin2.72%
Debt/Equity Ratio344.2%

How did ACQ perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is ACQ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ACQ?

Other financial metrics that can be useful for relative valuation.

ACQ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA8.7x
PEG Ratio0.1x

Price to Earnings Ratio vs Peers

How does ACQ's PE Ratio compare to its peers?

ACQ PE Ratio vs Peers
The above table shows the PE ratio for ACQ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.6x
DIV Diversified Royalty
12.6xn/aCA$346.2m
ZZZ Sleep Country Canada Holdings
8.6x8.6%CA$898.8m
GBT BMTC Group
7.9xn/aCA$457.5m
LNF Leon's Furniture
5.5xn/aCA$1.1b
ACQ AutoCanada
4.1x33.8%CA$598.0m

Price-To-Earnings vs Peers: ACQ is good value based on its Price-To-Earnings Ratio (4.1x) compared to the peer average (8.6x).


Price to Earnings Ratio vs Industry

How does ACQ's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

Price-To-Earnings vs Industry: ACQ is good value based on its Price-To-Earnings Ratio (4.1x) compared to the North American Specialty Retail industry average (6.1x)


Price to Earnings Ratio vs Fair Ratio

What is ACQ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ACQ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.1x
Fair PE Ratio22.2x

Price-To-Earnings vs Fair Ratio: ACQ is good value based on its Price-To-Earnings Ratio (4.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).


Share Price vs Fair Value

What is the Fair Price of ACQ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ACQ (CA$22.64) is trading below our estimate of fair value (CA$42.28)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is AutoCanada forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


33.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACQ's forecast earnings growth (33.8% per year) is above the savings rate (1.6%).

Earnings vs Market: ACQ's earnings (33.8% per year) are forecast to grow faster than the Canadian market (7.4% per year).

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

Revenue vs Market: ACQ's revenue (3.9% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: ACQ's revenue (3.9% 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 very high in 3 years time (48.6%).


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Past Performance

How has AutoCanada performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ACQ has high quality earnings.

Growing Profit Margin: ACQ's current net profit margins (2.7%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: ACQ's earnings have grown significantly by 36.6% per year over the past 5 years.

Accelerating Growth: ACQ's earnings growth over the past year (27.4%) is below its 5-year average (36.6% per year).

Earnings vs Industry: ACQ earnings growth over the past year (27.4%) exceeded the Specialty Retail industry 23.5%.


Return on Equity

High ROE: Whilst ACQ's Return on Equity (36.75%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is AutoCanada's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ACQ's short term assets (CA$1.3B) do not cover its short term liabilities (CA$1.4B).

Long Term Liabilities: ACQ's short term assets (CA$1.3B) exceed its long term liabilities (CA$850.9M).


Debt to Equity History and Analysis

Debt Level: ACQ's net debt to equity ratio (324.5%) is considered high.

Reducing Debt: ACQ's debt to equity ratio has increased from 187.7% to 344.2% over the past 5 years.

Debt Coverage: ACQ's debt is not well covered by operating cash flow (6.8%).

Interest Coverage: ACQ's interest payments on its debt are well covered by EBIT (4.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

AutoCanada Dividend Yield vs Market
How does AutoCanada dividend yield compare to the market?
SegmentDividend Yield
Company (AutoCanada)0%
Market Bottom 25% (CA)2.0%
Market Top 25% (CA)6.1%
Industry Average (Specialty Retail)4.1%
Analyst forecast in 3 Years (AutoCanada)0%

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.


Earnings Payout to Shareholders

Earnings Coverage: ACQ is not paying a notable dividend for the Canadian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ACQ has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

AutoCanada has no CEO, or we have no data on them.


Leadership Team

Experienced Management: ACQ's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ACQ's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

TSX:ACQ Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
25 Mar 22BuyCA$51,063Barry JamesIndividual1,550CA$32.94
08 Mar 22BuyCA$419,049Lee MathesonIndividual15,000CA$28.31
17 Dec 21BuyCA$116,322Dennis DesRosiersIndividual3,100CA$37.52
07 Dec 21BuyCA$3,686,600Map Investco Inc.Company100,000CA$37.95
06 Dec 21BuyCA$125,860Peter HongIndividual3,500CA$35.96

Ownership Breakdown

What is the ownership structure of ACQ?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders132,0420.5%
Hedge Funds2,838,76910.7%
General Public9,721,52136.8%
Institutions13,723,27052.0%

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


Top Shareholders

Top 25 shareholders own 61.81% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
20%
EdgePoint Investment Group Inc.
5,282,747CA$119.6m0%0.55%
10.75%
BloombergSen Inc.
2,838,769CA$64.3m0%4.02%
9.34%
FMR LLC
2,467,995CA$55.9m0%no data
3.63%
Royce & Associates, LP
958,400CA$21.7m-3.33%0.16%
2.81%
CI Global Asset Management
742,026CA$16.8m0.03%0.03%
2.71%
Map Investco Inc.
714,800CA$16.2m0%100%
2.27%
Al Mehwar Commercial Investments L.L.C.
600,000CA$13.6m0%2.56%
1.96%
Dimensional Fund Advisors LP
519,046CA$11.8m0.47%no data
1.69%
BMO Asset Management Corp.
446,100CA$10.1m-10.76%no data
1.35%
Victory Capital Management Inc.
357,624CA$8.1m417.08%0.01%
0.96%
RBC Global Asset Management Inc.
253,432CA$5.7m-9.01%no data
0.76%
EdgePoint Wealth Management Inc.
201,540CA$4.6m0%43.74%
0.63%
Connor, Clark & Lunn Investment Management Ltd.
165,990CA$3.8m-9.34%0.02%
0.55%
1832 Asset Management L.P.
144,100CA$3.3m700.56%no data
0.52%
NewGen Asset Management Limited
138,500CA$3.1m754.94%1.32%
0.4%
SSQ, Life Insurance Company Inc - Asset Management Arm
105,500CA$2.4m0%0.88%
0.31%
Picton Mahoney Asset Management
81,260CA$1.8m-8.54%0.04%
0.22%
AGF Management Limited
59,400CA$1.3m-38.06%0.01%
0.21%
North Growth Management Ltd.
55,000CA$1.2m77.42%0.21%
0.18%
Charles Schwab Investment Management, Inc.
48,562CA$1.1m2.79%no data
0.13%
Tamara Darvish
33,333CA$754.7k0%no data
0.11%
BlackRock, Inc.
29,863CA$676.1k-2.75%no data
0.11%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
29,737CA$673.2k0%no data
0.1%
Dennis DesRosiers
27,600CA$624.9k0%no data
0.1%
State Street Global Advisors, Inc.
26,765CA$606.0k0.63%no data

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
  • Implied Market Cap: CA$598.049m
  • Shares outstanding: 26.42m
  • Website: https://www.autocan.ca

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACQTSX (The Toronto Stock Exchange)YesClass A Common SharesCACADMay 2006
AOCI.FOTCPK (Pink Sheets LLC)YesClass A Common SharesUSUSDMay 2006
31KDB (Deutsche Boerse AG)YesClass A Common SharesDEEURMay 2006

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.