Accord Financial (ACD) AI Stock Analysis

• Market Cap: C$28.24M
• Dividend Yield: N/A
• Average Volume (3M): 3.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -4.92%
• EPS Growth: 68.05%
• Country: CA
• Employees: 82
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): N/A
• Shares Outstanding: 8,558,913
• 10 Day Avg. Volume: 5,108
• 30 Day Avg. Volume: 3,697
• PEG Ratio: -0.13
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: C$3.50 ▼(-1.41%Downside)

Accord Financial's overall stock score reflects significant financial challenges, with declining profitability and high debt levels. Technical analysis and valuation further highlight market uncertainties. However, strategic initiatives and improved operating cash flow provide a potential path for recovery.

Accord Financial Business Overview & Revenue Model

Company Description

Accord Financial Corp (ACD) is a leading finance company that provides a broad range of asset-based financial solutions primarily to small and medium-sized businesses across North America. The company specializes in providing tailored financing solutions including factoring, equipment financing, inventory financing, and trade finance. Accord Financial is dedicated to helping businesses improve their cash flow, optimize their working capital, and achieve their growth objectives by offering flexible and rapid financial solutions.

How the Company Makes Money

Accord Financial generates revenue primarily through the interest and fees charged on its financing products. The company’s key revenue streams include interest income from loans and advances, factoring fees, and other service fees associated with their financial products. By providing asset-based lending and financing solutions, Accord Financial earns interest on the outstanding balances of loans to its clients. Additionally, the company benefits from transaction fees when businesses utilize its factoring services, which involve purchasing invoices at a discount and collecting payments directly from customers. The company's earnings are bolstered by strategic partnerships with financial institutions and a deep understanding of various industries, allowing them to structure competitive financial products that meet the specific needs of their clients.

Accord Financial Financial Statement Overview

Summary

Accord Financial faces challenges in revenue and profit generation, as reflected by its declining income statement metrics. The balance sheet shows a high Debt-to-Equity ratio, indicating financial risk, though there are improvements in operating cash flow.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
47.05M	79.70M	43.40M	47.59M	33.90M
	Gross Profit
47.05M	79.00M	42.57M	46.66M	32.89M
	EBIT
32.91M	34.60M	26.52M	13.61M	-4.25M
	EBITDA
33.58M	20.68M	29.60M	0.00	0.00
	Net Income Common Stockholders
-3.14M	-14.63M	1.43M	11.89M	607.77K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.67M	5.91M	11.63M	13.84M	5.55M
	Total Assets
413.88M	513.48M	491.76M	520.11M	384.91M
	Total Debt
313.52M	414.05M	368.06M	397.94M	274.47M
	Net Debt
296.85M	408.13M	356.43M	384.10M	268.92M
	Total Liabilities
327.20M	424.82M	385.15M	416.15M	291.15M
	Stockholders Equity
80.83M	83.90M	100.97M	99.97M	89.85M
Cash Flow		Free Cash Flow
60.17M	-51.35M	31.33M	-101.73M	23.33M
	Operating Cash Flow
60.56M	-51.12M	31.51M	-101.65M	23.37M
	Investing Cash Flow
60.25M	-236.00K	-175.22K	-83.25K	-43.47K
	Financing Cash Flow
-108.17M	43.19M	-37.27M	120.37M	-21.91M

Accord Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.55 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 3.29, and below the 200-day MA of 3.78, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.27 is Negative, 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
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
ACD	50 Neutral	C$28.24M	―	-6.23%	―	-4.92%	68.05%
WCM.A	49 Neutral	C$30.63M	69.13	-2.84%	―	-52.69%	-125.43%

Accord Financial Corporate Events

Accord Financial Reports First Quarter Loss Amid Economic Challenges

Accord Financial Corp. reported a challenging first quarter of 2025, with a net loss attributable to shareholders of $1.3 million, compared to a net gain in the previous year. Despite a 7.6% growth in finance receivables and loans, revenue declined due to lower average funds employed and yields. The company implemented cost-control measures, reducing overhead expenses, but faced a $2.6 million provision for credit losses. CEO Simon Hitzig highlighted strategic initiatives aimed at further streamlining operations and refinancing efforts, reflecting the company’s focus on navigating economic uncertainties and positioning for future growth.

Accord Financial Unveils New Initiative to Boost Market Position

Accord Financial has announced a significant development that could impact its operational capabilities and market positioning. The company has introduced a new initiative aimed at enhancing its service offerings, which is expected to strengthen its competitive stance and provide greater value to stakeholders.

Accord Financial Reports Improved Fiscal 2024 Results Amid Strategic Restructuring

Accord Financial reported its financial results for the fourth quarter and fiscal year 2024, highlighting a net loss of $3.1 million, an improvement from the previous year’s $14.6 million loss. Despite a challenging credit environment, the company successfully executed strategic initiatives, including the sale of its AEF lease financing portfolio, which helped streamline operations and improve revenue. The company aims to further strengthen its balance sheet through refinancing and potential non-core asset sales.

Accord Financial Delays Annual Financial Statement Filing, Seeks Temporary MCTO

Accord Financial Corp. has announced a delay in filing its annual financial statements for the year ended December 31, 2024, due to the auditor’s inability to complete audit procedures on time. The company has applied for a temporary management cease trade order (MCTO) to restrict trading by its directors and officers until the required filings are completed, which is expected by April 11, 2025. This delay does not affect the general public’s ability to trade in Accord’s securities, and the company is committed to providing regular updates on the situation.