Acadian Timber
Market Cap
US$174.0m
Last Updated
2020/06/04 04:23 UTC
Data Sources
Company Financials +
Executive Summary
Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States.
Rewards
Risk Analysis
Dividend of 8.24% is not well covered by earnings or forecast to be in the next 3 years
Snowflake Analysis
Moderate growth potential with mediocre balance sheet.
Similar Companies
Share Price & News
How has Acadian Timber's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ACAZ.F's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.8%
ACAZ.F
8.5%
US Forestry
2.9%
US Market
1 Year Return
-15.7%
ACAZ.F
-8.8%
US Forestry
8.9%
US Market
Return vs Industry: ACAZ.F underperformed the US Forestry industry which returned -12.2% over the past year.
Return vs Market: ACAZ.F underperformed the US Market which returned 9.2% over the past year.
Shareholder returns
| ACAZ.F | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.8% | 8.5% | 2.9% |
| 30 Day | 9.0% | 19.3% | 10.6% |
| 90 Day | -16.9% | -2.0% | 5.1% |
| 1 Year | -9.1%-15.7% | -5.6%-8.8% | 11.4%8.9% |
| 3 Year | -5.4%-22.5% | -1.9%-10.2% | 34.3%25.4% |
| 5 Year | -5.3%-30.2% | -8.9%-20.4% | 60.7%42.7% |
Price Volatility Vs. Market
How volatile is Acadian Timber's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Acadian Timber undervalued compared to its fair value and its price relative to the market?
31.59x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ACAZ.F ($10.4) is trading above our estimate of fair value ($8.43)
Significantly Below Fair Value: ACAZ.F is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ACAZ.F is poor value based on its PE Ratio (31.6x) compared to the Forestry industry average (15.7x).
PE vs Market: ACAZ.F is poor value based on its PE Ratio (31.6x) compared to the US market (16.1x).
Price to Earnings Growth Ratio
PEG Ratio: ACAZ.F is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: ACAZ.F is good value based on its PB Ratio (0.8x) compared to the US Forestry industry average (1.2x).
Next Steps
Future Growth
How is Acadian Timber forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
30.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ACAZ.F's forecast earnings growth (30.9% per year) is above the savings rate (2.2%).
Earnings vs Market: ACAZ.F's earnings (30.9% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ACAZ.F's revenue (2.8% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: ACAZ.F's revenue (2.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ACAZ.F's Return on Equity is forecast to be low in 3 years time (6.5%).
Next Steps
Past Performance
How has Acadian Timber performed over the past 5 years?
-8.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ACAZ.F has high quality earnings.
Growing Profit Margin: ACAZ.F's current net profit margins (7.4%) are lower than last year (31.1%).
Past Earnings Growth Analysis
Earnings Trend: ACAZ.F's earnings have declined by -8.9% per year over the past 5 years.
Accelerating Growth: ACAZ.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ACAZ.F had negative earnings growth (-75.6%) over the past year, making it difficult to compare to the Forestry industry average (-27.7%).
Return on Equity
High ROE: ACAZ.F's Return on Equity (2.6%) is considered low.
Next Steps
Financial Health
How is Acadian Timber's financial position?
Financial Position Analysis
Short Term Liabilities: ACAZ.F's short term assets (CA$28.1M) exceed its short term liabilities (CA$15.0M).
Long Term Liabilities: ACAZ.F's short term assets (CA$28.1M) do not cover its long term liabilities (CA$211.3M).
Debt to Equity History and Analysis
Debt Level: ACAZ.F's debt to equity ratio (38.7%) is considered satisfactory.
Reducing Debt: ACAZ.F's debt to equity ratio has increased from 36.2% to 38.7% over the past 5 years.
Debt Coverage: ACAZ.F's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: ACAZ.F's interest payments on its debt are well covered by EBIT (4.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Acadian Timber's current dividend yield, its reliability and sustainability?
8.24%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ACAZ.F's dividend (8.24%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: ACAZ.F's dividend (8.24%) is in the top 25% of dividend payers in the US market (4.39%)
Stability and Growth of Payments
Stable Dividend: ACAZ.F's dividend payments have been volatile in the past 10 years.
Growing Dividend: ACAZ.F's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (260.5%), ACAZ.F's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ACAZ.F's dividends in 3 years are not forecast to be well covered by earnings (91% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Erika Reilly
0.75
Tenure
CA$250,998
Compensation
Ms. Erika Nicole Reilly serves as Interim President and Chief Executive Officer of Acadian Timber Corp. since September 2019. Ms. Reilly serves as Senior Vice President at Brookfield Asset Management Inc. ...
CEO Compensation Analysis
Compensation vs Market: Erika's total compensation ($USD186.02K) is below average for companies of similar size in the US market ($USD1.35M).
Compensation vs Earnings: Erika's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Interim President & CEO | 0.75yr | CA$251.00k | 0.012% CA$20.9k | |
| Chief Financial Officer | 0.33yr | no data | no data | |
| Senior Vice President of Marketing & Operations | no data | no data | no data | |
| Chief Forester | no data | no data | no data | |
| Corporate Secretary and Manager of Business & Corporate Services | 10.42yrs | no data | no data | |
| Controller | no data | no data | no data |
0.8yrs
Average Tenure
Experienced Management: ACAZ.F's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 2.33yrs | CA$68.00k | 0.012% CA$20.9k | |
| Director | 10.42yrs | CA$50.00k | 0.17% CA$295.1k | |
| Director | 1.08yrs | CA$47.14k | no data | |
| Independent Chairman of the Board | 0.83yr | CA$31.79k | 0.60% CA$1.0m | |
| Independent Director | 0.83yr | CA$18.21k | no data |
1.1yrs
Average Tenure
Experienced Board: ACAZ.F's board of directors are not considered experienced ( 1.1 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: ACAZ.F 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
Acadian Timber Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Acadian Timber Corp.
- Ticker: ACAZ.F
- Exchange: OTCPK
- Founded:
- Industry: Forest Products
- Sector: Materials
- Market Cap: CA$234.785m
- Listing Market Cap: CA$174.008m
- Shares outstanding: 16.69m
- Website: https://www.acadiantimber.com
Number of Employees
Location
- Acadian Timber Corp.
- 1055 West Georgia Street
- Suite 2408
- Vancouver
- British Columbia
- V6E 3R5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ADN | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 2006 |
| ACAZ.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jan 2006 |
| 779 | BST (Boerse-Stuttgart) | Yes | Common Shares | DE | EUR | Jan 2006 |
Biography
Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates in two segments, NB Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine; and provides managements services relating to approximately 1.3 million acres of Crown licensed timberlands. Acadian Timber Corp. is headquartered in Vancouver, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 04:23 |
| End of Day Share Price | 2020/06/03 00:00 |
| Earnings | 2020/03/28 |
| Annual Earnings | 2019/12/31 |
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.