0.13%
3.11%
-0.20%
4.63%
-1.84%
-14.45%
15.93%
AI Spotlight on ALC
Company Description
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 self-unloading bulk carriers; and owns and manages tankers for the transportation of liquid petroleum products throughout the Great Lakes, the St. Lawrence waterway, and the Atlantic Canada regions.
The company also owns eight ocean-going self-unloading vessels that carry coal for power generation, crushed aggregates for construction, gypsum for wallboard manufacturing, iron ore for the steel industry, and salt for winter road safety.In addition, it provides management services to third parties, as well as owns a shopping center.It serves iron and steel, aggregate, cement and building material, and salt producers; agricultural product distributors; and oil refiners, wholesale distributors, and large consumers of petroleum products.
The company was formerly known as Algoma Central Railway and changed its name to Algoma Central Corporation in 1990.Algoma Central Corporation was incorporated in 1899 and is headquartered in St. Catharines, Canada.
Market Data
| Last Price | 14.92 |
| Change Percentage | 0.13% |
| Open | 14.9 |
| Previous Close | 14.9 |
| Market Cap ( Millions) | 605 |
| Volume | 10430 |
| Year High | 15.6 |
| Year Low | 14.03 |
| M A 50 | 14.79 |
| M A 200 | 14.62 |
Financial Ratios
| FCF Yield | -5.89% |
| Dividend Yield | 5.09% |
| ROE | 9.26% |
| Debt / Equity | 50.70% |
| Net Debt / EBIDTA | 277.53% |
| Price To Book | 0.73 |
| Price Earnings Ratio | 8.21 |
| Price To FCF | -16.99 |
| Price To sales | 0.87 |
| EV / EBITDA | 7.06 |
News
- Jan -17 - Algoma Central Corporation Announces a 5% Increase in Quarterly Dividend
- Nov -05 - Algoma Central Third Quarter 2024 Earnings: EPS: CA$0.98 (vs CA$0.93 in 3Q 2023)
- Nov -04 - Algoma Central Q3 Earnings Increase Despite Slightly Lower Revenue
- Nov -04 - Algoma Central Corporation Reports Financial Results for the 2024 Third Quarter
- Oct -21 - Algoma Central Corporation to Issue Third Quarter Financial Results on November 4, 2024
- Sep -05 - Algoma Central Corporation Announces Retirement of CFO and Appointment of New CFO
- Aug -10 - Why Algoma Central's (TSE:ALC) Shaky Earnings Are Just The Beginning Of Its Problems
- Aug -04 - Algoma Central Second Quarter 2024 Earnings: EPS: CA$0.44 (vs CA$0.86 in 2Q 2023)
- Aug -02 - Algoma Central Corporation Reports Financial Results for the 2024 Second Quarter
- Jul -19 - Algoma Central Corporation to Issue Second Quarter Financial Results on August 2, 2024
- Jul -01 - Algoma Central Corporation's (TSE:ALC) largest shareholders are retail investors with 33% ownership, private companies own 29%
- Jun -11 - Calculating The Fair Value Of Algoma Central Corporation (TSE:ALC)
- May -23 - Algoma Central Corporation Announces Convertible Debenture Conversion Price
- May -02 - Algoma Central Corporation Announces Results of 2024 Annual General and Special Meeting of Shareholders
- May -01 - Algoma Central Corporation Reports Financial Results for the 2024 First Quarter
- Apr -25 - Increases to CEO Compensation Might Be Put On Hold For Now at Algoma Central Corporation (TSE:ALC)
- Apr -17 - Algoma Central Corporation to Hold 2024 Annual General and Special Meeting of Shareholders on May 1, 2024
- Mar -19 - Algoma Central Corporation Announces Renewal of Normal Course Issue Bid
- Mar -13 - Returns On Capital Are Showing Encouraging Signs At Akzo Nobel (AMS:AKZA)
- Feb -28 - Algoma Central Full Year 2023 Earnings: EPS: CA$2.15 (vs CA$3.17 in FY 2022)
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Domestic Dry-Bulk
Expected Growth : 4 %
What the company do ?
Algoma Central Corporation's Domestic Dry-Bulk segment provides bulk cargo transportation services in the Great Lakes-St. Lawrence Seaway region.
Why we expect these perspectives ?
Algoma Central Corporation's Domestic Dry-Bulk segment growth is driven by increasing demand for iron ore and coal transportation in the Great Lakes region, supported by infrastructure investments and a strong Canadian economy. Additionally, the company's modern fleet and operational efficiencies contribute to its growth, along with a favorable regulatory environment and growing demand for raw materials.
Segment n°2 -> Ocean Self-Unloaders
Expected Growth : 3 %
What the company do ?
Ocean Self-Unloaders from Algoma Central Corporation are bulk cargo ships that can unload cargo without shore-based equipment, increasing efficiency and reducing costs.
Why we expect these perspectives ?
Algoma Central Corporation's Ocean Self-Unloaders segment growth is driven by increasing demand for dry bulk commodities, strategic fleet modernization, and expansion into new markets. Additionally, the company's focus on operational efficiency, cost savings, and customer relationships contribute to its growth. Furthermore, the rising global trade and infrastructure development also support the segment's growth.
Segment n°3 -> Product Tankers
Expected Growth : 4 %
What the company do ?
Product Tankers from Algoma Central Corporation are a type of vessel that transport refined petroleum products, such as gasoline, diesel, and jet fuel, across the Great Lakes and coastal waters.
Why we expect these perspectives ?
Algoma Central Corporation's Product Tankers segment growth is driven by increasing demand for refined petroleum products, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on operational efficiency, modernization of its fleet, and strong relationships with customers contribute to its growth.
Segment n°4 -> Corporate Segment
Expected Growth : 2 %
What the company do ?
Algoma Central Corporation's Corporate Segment provides various support services, including finance, accounting, and human resources, to its subsidiaries.
Why we expect these perspectives ?
Algoma Central Corporation's Corporate Segment growth is driven by increasing demand for marine transportation services, strategic acquisitions, and cost savings initiatives. The company's diversified revenue streams, including domestic dry bulk and product tanker operations, contribute to its growth. Additionally, investments in fleet modernization and digitalization enhance operational efficiency, further supporting growth.
Algoma Central Corporation Products
| Product Range | What is it ? |
|---|---|
| Rail Freight Services | Algoma Central Corporation provides rail freight services, offering a safe and efficient way to transport goods across Canada and the United States. |
| Tourist Train Journeys | The company operates tourist train journeys, offering passengers a unique travel experience through scenic routes in Ontario and Quebec. |
| Railcar Leasing | Algoma Central Corporation offers railcar leasing services, providing customers with access to a diverse fleet of railcars for transporting goods. |
| Port and Terminal Services | The company operates port and terminal facilities, offering cargo handling, storage, and transportation services. |
| Real Estate Development | Algoma Central Corporation engages in real estate development, managing and leasing commercial and industrial properties. |
Algoma Central Corporation's Porter Forces
Threat Of Substitutes
Algoma Central Corporation operates in the railroad industry, which has a moderate threat of substitutes. While there are alternative modes of transportation, such as trucks and ships, rail transportation remains a dominant player in the industry.
Bargaining Power Of Customers
Algoma Central Corporation's customers, primarily comprised of industrial and commercial entities, have limited bargaining power due to the company's dominant market position and limited alternatives.
Bargaining Power Of Suppliers
Algoma Central Corporation's suppliers, primarily consisting of equipment and service providers, have moderate bargaining power due to the company's dependence on these suppliers for its operations.
Threat Of New Entrants
The threat of new entrants in the railroad industry is low due to the significant barriers to entry, including high capital requirements and regulatory hurdles.
Intensity Of Rivalry
The railroad industry is highly competitive, with several established players competing for market share. Algoma Central Corporation faces intense rivalry from its competitors, which can lead to pricing pressures and reduced market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 32.64% |
| Debt Cost | 6.32% |
| Equity Weight | 67.36% |
| Equity Cost | 7.57% |
| WACC | 7.16% |
| Leverage | 48.46% |
Algoma Central Corporation : Quality Control
Algoma Central Corporation passed 2 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| SFL | SFL Corporation Ltd., a maritime and offshore asset owning and chartering company, engages in the ownership, operation, and chartering out of vessels and offshore related assets on medium and long-term … |
| PANL | Pangaea Logistics Solutions, Ltd., together with its subsidiaries, provides seaborne dry bulk logistics and transportation services to industrial customers worldwide. The company offers various dry bulk cargoes, such as grains, … |
| GNK | Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide. The company owns and operates dry bulk carrier vessels to transports … |
| ASC | Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide. As of February 15, 2022, the company operated a fleet of 25 double-hulled product and chemical … |
| CLCO | Cool Company Ltd. engages in the ownership, operation, and management of liquefied natural gas carriers (LNGCs) that provides supply chain support solutions for energy industry. The company owns and operates … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Genco Shipping & Trading
A-Score
1-Year Total Return ->
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Algoma Central
A-Score
1-Year Total Return ->
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Ardmore Shipping
A-Score
1-Year Total Return ->
4
SFL Corporation
A-Score
1-Year Total Return ->
5
Pangaea Logistics Solutions
A-Score
1-Year Total Return ->
6
