TSX:ALC

Stock Analysis Report

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Executive Summary

Algoma Central Corporation owns and operates a fleet of dry and liquid bulk carriers on the Great Lakes - St. More Details


Snowflake Analysis

Fair value with moderate growth potential.

Share Price & News

How has Algoma Central's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ALC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

ALC

3.9%

CA Shipping

1.1%

CA Market


1 Year Return

-25.6%

ALC

-35.4%

CA Shipping

-5.8%

CA Market

Return vs Industry: ALC exceeded the Canadian Shipping industry which returned -36.9% over the past year.

Return vs Market: ALC underperformed the Canadian Market which returned -5.6% over the past year.


Shareholder returns

ALCIndustryMarket
7 Day1.2%3.9%1.1%
30 Day-2.4%-1.4%-2.6%
90 Day-2.2%1.9%4.0%
1 Year-22.3%-25.6%-33.7%-35.4%-2.5%-5.8%
3 Year-1.7%-15.9%-25.7%-32.0%5.7%-4.5%
5 Year-19.9%-34.6%-55.6%-62.1%32.6%12.3%

Price Volatility Vs. Market

How volatile is Algoma Central's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Algoma Central 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: ALC (CA$10.07) is trading below our estimate of fair value (CA$126.09)

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


Price To Earnings Ratio

PE vs Industry: ALC is poor value based on its PE Ratio (20.1x) compared to the XN Shipping industry average (9.7x).

PE vs Market: ALC is poor value based on its PE Ratio (20.1x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: ALC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ALC is overvalued based on its PB Ratio (0.6x) compared to the XN Shipping industry average (0.3x).


Next Steps

Future Growth

How is Algoma Central forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

49.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALC's forecast earnings growth (49.7% per year) is above the savings rate (1.7%).

Earnings vs Market: ALC's earnings (49.7% per year) are forecast to grow faster than the Canadian market (22.7% per year).

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

Revenue vs Market: ALC's revenue (4.1% per year) is forecast to grow slower than the Canadian market (5.3% per year).

High Growth Revenue: ALC's revenue (4.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ALC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Algoma Central performed over the past 5 years?

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALC has high quality earnings.

Growing Profit Margin: ALC's current net profit margins (3.3%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: ALC's earnings have grown by 1.1% per year over the past 5 years.

Accelerating Growth: ALC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALC had negative earnings growth (-57.8%) over the past year, making it difficult to compare to the Shipping industry average (-29.8%).


Return on Equity

High ROE: ALC's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is Algoma Central's financial position?


Financial Position Analysis

Short Term Liabilities: ALC's short term assets (CA$126.1M) do not cover its short term liabilities (CA$170.2M).

Long Term Liabilities: ALC's short term assets (CA$126.1M) do not cover its long term liabilities (CA$358.3M).


Debt to Equity History and Analysis

Debt Level: ALC's debt to equity ratio (56.7%) is considered high.

Reducing Debt: ALC's debt to equity ratio has increased from 38.5% to 56.7% over the past 5 years.

Debt Coverage: ALC's debt is well covered by operating cash flow (37.3%).

Interest Coverage: ALC's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Algoma Central current dividend yield, its reliability and sustainability?

5.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALC's dividend (5.16%) is higher than the bottom 25% of dividend payers in the Canadian market (1.72%).

High Dividend: ALC's dividend (5.16%) is low compared to the top 25% of dividend payers in the Canadian market (5.93%).


Stability and Growth of Payments

Stable Dividend: ALC's dividends per share have been stable in the past 10 years.

Growing Dividend: ALC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90%), ALC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Gregg Ruhl

1.5yrs

Tenure

CA$922,746

Compensation

Mr. Gregg A. Ruhl has been President and Chief Executive Officer of Algoma Central Corporation since February 7, 2019 and served as its Chief Operating Officer since September 25, 2017 until February 7, 20 ...


CEO Compensation Analysis

Compensation vs Market: Gregg's total compensation ($USD692.57K) is about average for companies of similar size in the Canadian market ($USD680.51K).

Compensation vs Earnings: Gregg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregg Ruhl
President & CEO1.5yrsCA$922.75k0.46%
CA$ 1.7m
Peter Winkley
Chief Finance Officer10yrsCA$537.51k0.29%
CA$ 1.1m
Brad Tiffin
Senior Vice-President of Operations & Technical1.5yrsCA$597.97kno data
J. Newton
Senior VP of Corporate Developmentno dataCA$409.95k0.21%
CA$ 801.2k
Christopher A. Lazarz
Vice-President of Corporate Finance3.08yrsno data0.0042%
CA$ 16.0k
Fredrik Hanson
Vice -President of Finance & Administration1.5yrsno datano data
Jeffrey DeRosario
Assistant Vice-President of Marketing2.67yrsno datano data
Cathy Smith
Assistant Vice-President of Human Resourcesno datano datano data
Thomas Siklos
Vice President of Real Estate10.25yrsCA$737.23kno data

2.7yrs

Average Tenure

Experienced Management: ALC's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark McQueen
Independent Director5.33yrsCA$57.46k0.013%
CA$ 50.3k
Duncan Newton Jackman
Independent Chairman of the Board13.67yrsCA$274.66k0.079%
CA$ 301.5k
Clive Rowe
Independent Director21.67yrsCA$81.48k0.029%
CA$ 110.6k
Harold Stephen
Independent Director18.67yrsCA$83.99k0.053%
CA$ 201.0k
E. M. Hutcheson
Independent Director17.67yrsCA$62.62k0.015%
CA$ 55.3k
Richard Carty
Independent Director10yrsCA$95.06k0.015%
CA$ 55.3k
Eric Stevenson
Independent Director7.33yrsCA$85.45k0.019%
CA$ 70.4k
Paul Gurtler
Independent Director3.33yrsCA$64.57kno data

11.8yrs

Average Tenure

53yo

Average Age

Experienced Board: ALC's board of directors are seasoned and experienced ( 11.8 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

Ownership Breakdown

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


Top Shareholders

Company Information

Algoma Central Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Algoma Central Corporation
  • Ticker: ALC
  • Exchange: TSX
  • Founded: 1899
  • Industry: Marine
  • Sector: Transportation
  • Market Cap: CA$379.899m
  • Shares outstanding: 37.80m
  • Website: https://www.algonet.com

Number of Employees


Location

  • Algoma Central Corporation
  • 63 Church Street
  • Suite 600
  • St. Catharines
  • Ontario
  • L2R 3C4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALCTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
AGMJ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1972

Biography

Algoma Central Corporation owns and operates a fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway in Canada. The company operates in six segments: Domestic Dry-Bulk, Product T ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 23:52
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
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.