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ALC

Algoma CentralTSX:ALC Stock Report

Market Cap

CA$683.4m

7D

0.2%

1Y

69.0%

Updated

25 Oct, 2021

Data

Company Financials +
ALC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends5/6

ALC Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Algoma Central
Historical stock prices
Current Share PriceCA$18.08
52 Week HighCA$10.50
52 Week LowCA$18.93
Beta1.15
1 Month Change5.98%
3 Month Change16.65%
1 Year Change68.97%
3 Year Change50.79%
5 Year Change59.29%
Change since IPO1,146.90%

Recent News & Updates

Jun 10
Algoma Central (TSE:ALC) Has A Somewhat Strained Balance Sheet

Algoma Central (TSE:ALC) Has A Somewhat Strained Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

ALCCA ShippingCA Market
7D0.2%2.3%1.7%
1Y69.0%111.9%36.5%

Return vs Industry: ALC underperformed the Canadian Shipping industry which returned 103.1% over the past year.

Return vs Market: ALC exceeded the Canadian Market which returned 33.6% over the past year.

Price Volatility

Is ALC's price volatile compared to industry and market?
ALC volatility
ALC Beta1.15
Industry Beta1.33
Market Beta1

Stable Share Price: ALC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ALC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18991,600Gregg Ruhlhttps://www.algonet.com

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 Tankers, Ocean Self-Unloaders, Global Short Sea Shipping, Investment Properties, and Corporate. It operates 12 self-unloading bulk carriers and 8 gearless bulk carriers; and owns and manages eight double-hull product tankers for the transportation of liquid petroleum products throughout the Great Lakes, the St. Lawrence waterway, and the Atlantic Canada regions.

Algoma Central Fundamentals Summary

How do Algoma Central's earnings and revenue compare to its market cap?
ALC fundamental statistics
Market CapCA$683.44m
Earnings (TTM)CA$61.63m
Revenue (TTM)CA$554.58m

11.1x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALC income statement (TTM)
RevenueCA$554.58m
Cost of RevenueCA$367.32m
Gross ProfitCA$187.26m
ExpensesCA$125.63m
EarningsCA$61.63m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)1.63
Gross Margin33.77%
Net Profit Margin11.11%
Debt/Equity Ratio78.6%

How did ALC perform over the long term?

See historical performance and comparison

Dividends

18.4%

Current Dividend Yield

37%

Payout Ratio

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$18.08) is trading below our estimate of fair value (CA$54)

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 (11.1x) compared to the North American Shipping industry average (10.6x).

PE vs Market: ALC is good value based on its PE Ratio (11.1x) compared to the Canadian market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: ALC is poor value based on its PEG Ratio (10.8x)


Price to Book Ratio

PB vs Industry: ALC is overvalued based on its PB Ratio (1.2x) compared to the XN Shipping industry average (1x).


Future Growth

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

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALC's forecast earnings growth (1% per year) is below the savings rate (1.6%).

Earnings vs Market: ALC's earnings (1% per year) are forecast to grow slower than the Canadian market (12.1% per year).

High Growth Earnings: ALC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALC's revenue (2.9% per year) is forecast to grow slower than the Canadian market (6.7% per year).

High Growth Revenue: ALC's revenue (2.9% 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


Past Performance

How has Algoma Central performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALC has high quality earnings.

Growing Profit Margin: ALC's current net profit margins (11.1%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: ALC's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: ALC's earnings growth over the past year (225%) exceeds its 5-year average (16.8% per year).

Earnings vs Industry: ALC earnings growth over the past year (225%) underperformed the Shipping industry 305.6%.


Return on Equity

High ROE: ALC's Return on Equity (10.9%) is considered low.


Financial Health

How is Algoma Central's financial position?


Financial Position Analysis

Short Term Liabilities: ALC's short term assets (CA$143.7M) exceed its short term liabilities (CA$73.7M).

Long Term Liabilities: ALC's short term assets (CA$143.7M) do not cover its long term liabilities (CA$524.8M).


Debt to Equity History and Analysis

Debt Level: ALC's debt to equity ratio (78.6%) is considered high.

Reducing Debt: ALC's debt to equity ratio has increased from 40.5% to 78.6% over the past 5 years.

Debt Coverage: ALC's debt is well covered by operating cash flow (32.9%).

Interest Coverage: ALC's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

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

18.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALC's dividend (18.42%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).

High Dividend: ALC's dividend (18.42%) is in the top 25% of dividend payers in the Canadian market (4.5%)


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 reasonably low payout ratio (36.8%), ALC's dividend payments are 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?

3.8yrs

Average management tenure


CEO

Gregg Ruhl

2.67yrs

Tenure

CA$1,367,948

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 ($USD1.11M) is above average for companies of similar size in the Canadian market ($USD827.18K).

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


Leadership Team

Experienced Management: ALC's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: ALC's board of directors are seasoned and experienced ( 11.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Algoma Central Corporation's 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$683.441m
  • Shares outstanding: 37.80m
  • Website: https://www.algonet.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:14
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
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.