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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Algoma Central Corp.

Logistec Corp.

Why is Algoma Central Corp. ?

Poor Management Efficiency with a low ROCE of 7.50%

The company has been able to generate a Return on Capital Employed (avg) of 7.50% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate 3.55% of over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 17.88%
DIVIDEND PER SHARE(HY) Highest at CAD 7.67
DIVIDEND PAYOUT RATIO(Y) Highest at 383.21%

With ROE of 16.59%, it has a fair valuation with a 0.88 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 38.59%, its profits have risen by 95.5% ; the PEG ratio of the company is 0.1

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Algoma Central Corp.

38.83%

2.39

23.75%

S&P/TSX 60

29.8%

2.35

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.75%

EBIT Growth (5y)

3.55%

EBIT to Interest (avg)

4.16

Debt to EBITDA (avg)

2.75

Net Debt to Equity (avg)

0.65

Sales to Capital Employed (avg)

0.53

Tax Ratio

3.16%

Dividend Payout Ratio

22.69%

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

0.88

EV to EBIT

17.23

EV to EBITDA

8.49

EV to Capital Employed

0.93

EV to Sales

1.89

PEG Ratio

0.06

Dividend Yield

ROCE (Latest)

5.38%

ROE (Latest)

16.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

15What is working for the Company

ROCE(HY)

Highest at 17.88%

DIVIDEND PER SHARE(HY)

Highest at CAD 7.67

DIVIDEND PAYOUT RATIO(Y)

Highest at 383.21%

RAW MATERIAL COST(Y)

Fallen by -42.86% (YoY

PRE-TAX PROFIT(Q)

At CAD -17.13 MM has Grown at 57.55%

NET PROFIT(Q)

At CAD -1.44 MM has Grown at 93.81%

-6What is not working for the Company

INTEREST(HY)

At CAD 13.77 MM has Grown at 45.65%

Here's what is working for Algoma Central Corp.

Dividend per share

Highest at CAD 7.67 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Pre-Tax Profit

At CAD -17.13 MM has Grown at 57.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -1.44 MM has Grown at 93.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Dividend Payout Ratio

Highest at 383.21%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -42.86% (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

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

Interest

At CAD 13.77 MM has Grown at 45.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)