AutoCanada, Inc. (ACQ) 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

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Alimentation Couche-Tard, Inc.

High Tide, Inc.

Pet Valu Holdings Ltd.

AutoCanada, Inc.

Canadian Tire Corp. Ltd.

Indigo Books & Music, Inc.

MedMen Enterprises, Inc.

Why is AutoCanada, Inc. ?

Healthy long term growth as Net Sales has grown by an annual rate of 8.75% and Operating profit at 66.97%

The company has declared positive results in Dec'2024 after 5 consecutive negative quarters

PRE-TAX PROFIT(Q) At CAD 28.51 MM has Grown at 266.39%
NET PROFIT(Q) At CAD 18.29 MM has Grown at 512.81%
OPERATING CASH FLOW(Y) Highest at CAD 336.42 MM

With ROE of 19.56%, it has a attractive valuation with a 1.66 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 104.28%, its profits have risen by 605.1% ; the PEG ratio of the company is 0

Market Beating Performance

The stock has generated a return of 104.28% in the last 1 year, much higher than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to AutoCanada, Inc. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is AutoCanada, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

AutoCanada, Inc.

9.58%

1.23

49.38%

S&P/TSX 60

21.87%

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)

6.56%

EBIT Growth (5y)

33.53%

EBIT to Interest (avg)

1.89

Debt to EBITDA (avg)

6.53

Net Debt to Equity (avg)

3.10

Sales to Capital Employed (avg)

2.68

Tax Ratio

18.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

9.16%

ROE (avg)

16.47%

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

0.99

EV to EBIT

12.49

EV to EBITDA

9.25

EV to Capital Employed

1.00

EV to Sales

0.41

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

7.99%

ROE (Latest)

17.85%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

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

13What is working for the Company

NET PROFIT(HY)

At CAD 20.12 MM has Grown at 240.73%

OPERATING CASH FLOW(Y)

Highest at CAD 187.62 MM

ROCE(HY)

Highest at 18.07%

DEBT-EQUITY RATIO (HY)

Lowest at 357.48 %

-16What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.34 times

RAW MATERIAL COST(Y)

Grown by 31.55% (YoY

CASH AND EQV(HY)

Lowest at CAD 154.3 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 19.43 times

NET SALES(Q)

Fallen at -26.19%

PRE-TAX PROFIT(Q)

Lowest at CAD 1.28 MM

NET PROFIT(Q)

Lowest at CAD 1.82 MM

Here's what is working for AutoCanada, Inc.

Operating Cash Flow

Highest at CAD 187.62 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio

Lowest at 357.48 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for AutoCanada, Inc.

Pre-Tax Profit

At CAD 1.28 MM has Fallen at -91.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 1.82 MM has Fallen at -77.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Inventory Turnover Ratio

Lowest at 4.34 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Fallen at -26.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Pre-Tax Profit

Lowest at CAD 1.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 1.82 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Cash and Eqv

Lowest at CAD 154.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 19.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 31.55% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales