Accord Financial (ACD) AI Stock Analysis

• Market Cap: C$29.87M
• Dividend Yield: N/A
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -11.69%
• EPS Growth: 71.34%
• Country: CA
• Employees: 82
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): -0.10
• Shares Outstanding: 8,558,913
• 10 Day Avg. Volume: 1,150
• 30 Day Avg. Volume: 1,835
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.50
• Price Target Upside: 0.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: C$3.50 ▲(0.29% Upside)

Accord Financial's overall stock score is primarily influenced by its financial performance, which highlights significant challenges in revenue and profitability. The technical analysis suggests some short-term weakness, while the valuation is impacted by a negative P/E ratio and lack of dividend yield. These factors collectively indicate a need for strategic improvements to enhance financial stability and investor appeal.

Accord Financial Business Overview & Revenue Model

Company Description

Accord Financial Corp., through its subsidiaries, provides asset-based financial services to industrial and commercial enterprises primarily in Canada and the United States. The company is involved in the asset-based lending, which entails financing or purchasing receivables on a recourse basis, as well as financing other tangible assets, such as inventory and equipment; and provision of lease and equipment, working capital, and film and media production financing, as well as credit guarantees and collection services. It also offers factoring and credit investigation services; and supply chain financing for importers. The company serves customers operating in manufacturing, retail, services, wholesale, import and export, lending, apparel and textile, food and beverage, and construction sectors. Accord Financial Corp. was founded in 1978 and is based in Toronto, Canada.

How the Company Makes Money

Accord Financial generates revenue through interest and fees associated with its various financial services and products. The company's primary revenue streams include interest income from loans and credit facilities, factoring fees from purchasing accounts receivable, and rental or lease income from equipment financing agreements. Significant partnerships with banks, financial institutions, and intermediaries also contribute to its earnings by expanding its reach and customer base. Accord Financial's business model is built on providing customized financial solutions that meet the unique needs of its clients, allowing it to maintain a diversified and steady stream of income.

Accord Financial Financial Statement Overview

Summary

Accord Financial is experiencing challenges in revenue and profit generation, with a declining income statement and a high Debt-to-Equity ratio indicating financial leverage risks. However, improvements in operating cash flow provide a positive aspect.

Income Statement

Accord Financial's income statement shows declining revenue and profitability over the recent years. The Gross Profit Margin remains high as expected for the financial sector, but the Net Profit Margin has been negative for the past two years, indicating challenges in profitability. The revenue growth also shows a negative trajectory, with a significant drop from 2023 to 2024, suggesting struggles in revenue generation.

Balance Sheet

The company's balance sheet reflects a high Debt-to-Equity ratio, indicating a leveraged position which could pose risks in times of financial stress. The Return on Equity is negative due to recent losses, further emphasizing challenges in profitability. However, the Equity Ratio has remained relatively stable, indicating some level of asset backing for the equity.

Cash Flow

The cash flow statement exhibits some positive aspects, such as a significant improvement in Operating Cash Flow in 2024, which turned positive after being negative in the previous year. However, Free Cash Flow has experienced volatility, and the Free Cash Flow to Net Income ratio indicates a need for better alignment between cash flow generation and profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.90M	83.06M	79.70M	43.40M	47.59M	33.90M
Gross Profit	67.35M	82.39M	79.00M	42.57M	46.66M	32.89M
EBITDA	11.80M	33.58M	20.68M	29.60M	0.00	0.00
Net Income	-5.12M	-3.14M	-14.63M	1.43M	11.89M	416.63K
Balance Sheet
Total Assets	430.37M	413.88M	513.48M	491.76M	520.11M	384.91M
Cash, Cash Equivalents and Short-Term Investments	9.47M	16.67M	5.91M	11.63M	13.84M	5.55M
Total Debt	337.55M	313.52M	414.05M	368.06M	397.94M	274.47M
Total Liabilities	345.15M	327.20M	424.82M	385.15M	416.15M	291.15M
Stockholders Equity	79.50M	80.83M	83.90M	100.97M	99.97M	89.85M
Cash Flow
Free Cash Flow	10.24M	60.17M	-51.35M	31.33M	-101.73M	23.33M
Operating Cash Flow	10.61M	60.56M	-51.12M	31.51M	-101.65M	23.37M
Investing Cash Flow	60.28M	60.25M	-236.00K	-175.00K	-83.25K	-43.47K
Financing Cash Flow	-66.62M	-108.17M	43.19M	-37.27M	120.37M	-21.91M

Accord Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACD, the sentiment is Positive. The current price of 3.49 is above the 20-day moving average (MA) of 3.49, below the 50-day MA of 3.52, and below the 200-day MA of 3.57, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.32 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ACD.

Accord Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCM.A	55 Neutral	30.39M	-25.13	1.03%	―	-58.10%	-136.09%
ACD	51 Neutral	C$29.87M	―	-5.97%	―	-11.69%	71.34%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Accord Financial Corporate Events

Accord Financial Secures Second Extension on Credit Facility

Accord Financial Corp. has announced a second short-term extension of its main credit facility to August 15, 2025, as it continues discussions with its lending syndicate to amend the credit facility, potentially extending the maturity date to December 2025. This extension aims to provide the company with additional time to finalize the amendment, which could have implications for its liquidity and capital resources, affecting its ability to meet debt obligations.

Accord Financial Secures Short-Term Credit Facility Extension

Accord Financial Corp. has negotiated a short-term extension of its main credit facility with its lending syndicate, moving the maturity date from July 26, 2025, to August 8, 2025. This extension allows additional time for discussions on amending the credit facility to extend its maturity to December 2025, which could impact the company’s financial flexibility and stakeholder confidence.

Accord Financial Announces AGM Voting Results

Accord Financial Corp. announced the results of its Annual Meeting of Shareholders, where all proposed items were approved. The election of seven directors and the appointment of KPMG LLP as auditors for the fiscal year ending December 31, 2025, were key outcomes. The meeting saw a high shareholder participation rate, with 74.85% of total shares represented, indicating strong stakeholder engagement and support for the company’s strategic direction.