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Accord Financial (TSE:ACD)
TSX:ACD
Canadian Market
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Accord Financial (ACD) AI Stock Analysis

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TSE:ACD

Accord Financial

(TSX:ACD)

Rating:53Neutral
Price Target:
C$3.50
▼(-1.96%Downside)
Accord Financial's overall stock score reflects significant challenges in financial performance and valuation. Despite some positive technical indicators, the company faces profitability issues and economic headwinds. Shareholder support is strong, but strategic improvements are necessary for long-term recovery and growth.

Accord Financial (ACD) vs. iShares MSCI Canada ETF (EWC)

Accord Financial Business Overview & Revenue Model

Company DescriptionAccord 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 MoneyAccord 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's financial performance is challenged by declining revenue and profitability, with a negative Net Profit Margin and high Debt-to-Equity ratio. However, there is improvement in Operating Cash Flow, providing some positive outlook amid overall financial struggles.
Income Statement
45
Neutral
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue77.90M83.06M79.70M43.40M47.59M33.90M
Gross Profit67.35M82.39M79.00M42.57M46.66M32.89M
EBITDA11.80M33.58M20.68M29.60M0.000.00
Net Income-5.12M-3.14M-14.63M1.43M11.89M416.63K
Balance Sheet
Total Assets430.37M413.88M513.48M491.76M520.11M384.91M
Cash, Cash Equivalents and Short-Term Investments9.47M16.67M5.91M11.63M13.84M5.55M
Total Debt337.55M313.52M414.05M368.06M397.94M274.47M
Total Liabilities345.15M327.20M424.82M385.15M416.15M291.15M
Stockholders Equity79.50M80.83M83.90M100.97M99.97M89.85M
Cash Flow
Free Cash Flow10.24M60.17M-51.35M31.33M-101.73M23.33M
Operating Cash Flow10.61M60.56M-51.12M31.51M-101.65M23.37M
Investing Cash Flow60.28M60.25M-236.00K-175.00K-83.25K-43.47K
Financing Cash Flow-66.62M-108.17M43.19M-37.27M120.37M-21.91M

Accord Financial Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.57
Price Trends
50DMA
3.37
Positive
100DMA
3.43
Positive
200DMA
3.68
Negative
Market Momentum
MACD
0.04
Positive
RSI
51.98
Neutral
STOCH
76.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACD, the sentiment is Neutral. The current price of 3.57 is above the 20-day moving average (MA) of 3.53, above the 50-day MA of 3.37, and below the 200-day MA of 3.68, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 51.98 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ACD.

Accord Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
C$15.12B7.0623.28%5.39%33.61%-23.38%
53
Neutral
C$30.04M-6.23%-4.92%68.05%
52
Neutral
C$30.75M69.13-2.84%-52.69%-125.43%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ACD
Accord Financial
3.51
-0.59
-14.39%
TSE:WCM.A
Wilmington Cap A NV
2.11
-0.68
-24.37%

Accord Financial Corporate Events

Executive/Board ChangesShareholder Meetings
Accord Financial Announces AGM Voting Results
Positive
Jul 7, 2025

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.

Business Operations and StrategyFinancial Disclosures
Accord Financial Reports First Quarter Loss Amid Economic Challenges
Negative
May 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 15, 2025