Algoma Central Corp. (ALC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Algoma Central Corp.

Logistec Corp.

Why is Algoma Central Corp. ?

With ROE of 11.46%, it has a very attractive valuation with a 0.78 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.37%, its profits have risen by 45.2% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Algoma Central Corp. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Algoma Central Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Algoma Central Corp.

-100.0%

0.83

17.62%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.02%

EBIT Growth (5y)

8.35%

EBIT to Interest (avg)

4.16

Debt to EBITDA (avg)

2.75

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

0.57

Tax Ratio

3.16%

Dividend Payout Ratio

33.23%

Pledged Shares

Institutional Holding

ROCE (avg)

7.50%

ROE (avg)

11.61%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.81

EV to EBIT

14.66

EV to EBITDA

7.89

EV to Capital Employed

0.88

EV to Sales

1.75

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

6.01%

ROE (Latest)

11.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 32.11 MM has Grown at 190.74%

RAW MATERIAL COST(Y)

Fallen by -59.05% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 38.94%

DIVIDEND PER SHARE(HY)

Highest at CAD 6.63

NET SALES(Q)

Highest at CAD 211.72 MM

NET PROFIT(Q)

At CAD 32.88 MM has Grown at 88.29%

-9What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 64.56 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.63%

INTEREST(Q)

Highest at CAD 6.66 MM

Here's what is working for Algoma Central Corp.

Pre-Tax Profit

At CAD 32.11 MM has Grown at 190.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Sales

Highest at CAD 211.72 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Profit

At CAD 32.88 MM has Grown at 88.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 38.94%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at CAD 6.63

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Raw Material Cost

Fallen by -59.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 20.16 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Algoma Central Corp.

Interest

At CAD 6.66 MM has Grown at 43.91%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 6.66 MM

in the last five periods and Increased by 43.91% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 64.56 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 6.63%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio