TSX:ACQ

Stock Analysis Report

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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. More Details


Snowflake Analysis

High growth potential and slightly overvalued.

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 is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ACQ's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

3.0%

ACQ

3.7%

CA Specialty Retail

0.8%

CA Market


1 Year Return

124.3%

ACQ

25.0%

CA Specialty Retail

2.0%

CA Market

Return vs Industry: ACQ exceeded the Canadian Specialty Retail industry which returned 24.5% over the past year.

Return vs Market: ACQ exceeded the Canadian Market which returned 1.8% over the past year.


Shareholder returns

ACQIndustryMarket
7 Day3.0%3.7%0.8%
30 Day28.4%18.1%10.5%
90 Day85.2%28.1%9.7%
1 Year126.2%124.3%27.7%25.0%5.7%2.0%
3 Year35.3%25.8%10.2%3.1%13.9%2.9%
5 Year54.2%36.7%37.2%19.6%58.5%34.3%

Long-Term 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

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$29.96) is trading below our estimate of fair value (CA$107.61)

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 CA 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 overvalued based on its PB Ratio (2.6x) compared to the CA Specialty Retail industry average (2.1x).


Next Steps

Future Growth

How is AutoCanada forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

59.0%

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 (8.3% per year) is forecast to grow faster than the Canadian market (6.9% per year).

High Growth Revenue: ACQ's revenue (8.3% 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 (29.5%)


Next Steps

Past Performance

How has AutoCanada performed over the past 5 years?

-55.0%

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 55% 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 (-33.9%).


Return on Equity

High ROE: ACQ has a negative Return on Equity (-14.8%), 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$816.8M) do not cover its short term liabilities (CA$834.1M).

Long Term Liabilities: ACQ's short term assets (CA$816.8M) exceed its long term liabilities (CA$580.6M).


Debt to Equity History and Analysis

Debt Level: ACQ's debt to equity ratio (263.3%) is considered high.

Reducing Debt: ACQ's debt to equity ratio has increased from 192.2% to 263.3% over the past 5 years.

Debt Coverage: ACQ's debt is well covered by operating cash flow (21.8%).

Interest Coverage: ACQ is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.63%

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?

2.3yrs

Average management tenure


CEO

Michael Rawluk (46 yo)

2.5yrs

Tenure

CA$3,201,098

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 ($USD2.50M) is above average for companies of similar size in the Canadian market ($USD1.35M).

Compensation vs Earnings: Michael's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Antony
Executive Chairman2.5yrsCA$428.11kno data
Michael Rawluk
President & Director2.5yrsCA$3.20m0.28%
CA$ 2.3m
Michael Borys
Chief Financial Officer1.33yrsCA$1.02m0.055%
CA$ 448.2k
Peter Hong
Chief Strategy Officer & General Counsel2.25yrsCA$1.66mno data
Tamara Darvish
President of U.S. Operations1.75yrsCA$954.04kno data
Erin Oor
VP of Corporate Development & Administration and Corporate Secretary5.92yrsCA$566.92kno data
Devon Wilson
Director of Treasuryno datano datano data
Kevin McPherson
Director of Financeno datano datano data

2.3yrs

Average Tenure

52yo

Average Age

Experienced Management: ACQ's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Antony
Executive Chairman2.5yrsCA$428.11kno data
Michael Rawluk
President & Director2.5yrsCA$3.20m0.28%
CA$ 2.3m
Maryann Keller
Lead Independent Director2.33yrsCA$167.42k0.040%
CA$ 328.7k
Stephen Green
Independent Director2.33yrsCA$150.95kno data
Dennis DesRosiers
Independent Director13.58yrsCA$117.00k0.094%
CA$ 762.0k
Barry James
Independent Director6.08yrsCA$143.50k0.066%
CA$ 533.8k
Elias Olmeta
Independent Director2.33yrsCA$123.50kno data
Lee Matheson
Director0.25yrno datano data

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: ACQ's board of directors are not considered experienced ( 2.3 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: Insufficient data to determine if 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$813.534m
  • 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

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

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 Illi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 00:48
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.