AutoCanada Inc. (TSE:ACQ)
TSX:ACQ
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AutoCanada
(TSX:ACQ)
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Rating:43Neutral
Price Target:
C$18.50
▼(-12.90% Downside)
Action:ReiteratedDate:03/25/26
The score is held down primarily by weak financial quality (high leverage and inconsistent profitability) and bearish technicals (price below all key moving averages with negative MACD). Valuation offers limited support with a high P/E and no dividend yield provided, while the earnings call adds a modest positive from cost savings, Collision growth, and planned asset-sale proceeds to reduce debt.
Positive Factors
Cost transformation savings
Securing ~$100M of a $115M annual cost-savings target materially reduces fixed and structural expenses, improving operating leverage. These savings make margins less sensitive to volume swings, free cash for debt reduction or reinvestment, and strengthen profitability resilience over coming quarters.
Negative Factors
High persistent leverage
Debt-to-equity near 4x and net funded debt/EBITDA elevated leave little financial cushion in a cyclical retail sector. Persistent high leverage raises refinancing and interest-rate risk, constrains strategic choices, and heightens sensitivity to any margin or volume setbacks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost transformation savings
Securing ~$100M of a $115M annual cost-savings target materially reduces fixed and structural expenses, improving operating leverage. These savings make margins less sensitive to volume swings, free cash for debt reduction or reinvestment, and strengthen profitability resilience over coming quarters.
Read all positive factors
AutoCanada (ACQ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$491.71M
Dividend YieldN/A
Average Volume (3M)41.14K
Price to Earnings (P/E)34.1
Beta (1Y)1.71
Revenue Growth-26.93%
EPS Growth84.17%
CountryCA
Employees2,550
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)-0.06
Shares Outstanding23,150,232
10 Day Avg. Volume43,249
30 Day Avg. Volume41,142
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)1.19
Price to Sales (P/S)0.11
P/FCF Ratio9.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$24.18Price Target Upside13.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)3.31
Revenue Forecast (FY)C$5.01B
AutoCanada Business Overview & Revenue Model
Company Description
AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships. The company offers a range of automotive products and services, including new and used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collisi...
How the Company Makes Money
AutoCanada generates revenue primarily through (1) new vehicle sales at franchised dealerships, where it earns retail margin on vehicle transactions; (2) used vehicle sales, capturing margin on pre-owned inventory and trade-ins and, in some cases,...
AutoCanada Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The earnings call reflected both progress and challenges. The cost transformation and growth in the Collision business were notable achievements. However, the revenue decline, adjusted EBITDA decrease, and delays in U.S. dealership sales closure presented significant challenges.Positive Updates
Cost Transformation Achievements
As of September 30, AutoCanada achieved approximately $100 million of the $115 million 2025 annual run rate savings target through headcount optimization, tighter expense and inventory management, and process improvements.
Negative Updates
Revenue Decline
Revenue from continuing operations was $1.2 billion compared to $1.4 billion in the prior year, reflecting softer performance across new and used vehicle sales, parts and service, and F&I.
Read all updates
Q3-2025 Updates
Positive
Negative
Cost Transformation Achievements
As of September 30, AutoCanada achieved approximately $100 million of the $115 million 2025 annual run rate savings target through headcount optimization, tighter expense and inventory management, and process improvements.
Read all positive updates
Company Guidance
During AutoCanada's third-quarter 2025 conference call, Interim CEO Samuel Cochrane outlined key financial metrics and strategic guidance. The company reported revenue from continuing operations of $1.2 billion, a decline from $1.4 billion in the prior year, primarily due to softer performance in new and used vehicle sales and ongoing store restructuring. Adjusted EBITDA was $58.1 million, down from $63.1 million, although margins improved to 4.8%. AutoCanada achieved $100 million of its $115 million annual cost-saving target, attributed to headcount optimization and tighter expense management. The Collision business was a bright spot, with revenue growing 19% year-over-year. The company is progressing with the sale of U.S. dealerships, expecting total proceeds of $130 million to reduce debt. As of the quarter's end, the net funded debt-to-EBITDA ratio was 3.4x, trending toward a long-term target of 2 to 3x. Looking ahead, AutoCanada is focused on operational excellence, cost reductions, and profitable growth, with plans to expand both dealership and Collision operations.AutoCanada Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
32
Negative
Cash Flow
48
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.90B | 5.35B | 6.44B | 6.04B | 4.65B |
| Gross Profit | 330.10M | 882.28M | 479.23M | 1.04B | 834.18M |
| EBITDA | 178.34M | 164.34M | 217.30M | 235.04M | 309.87M |
| Net Income | 16.03M | -68.23M | 50.49M | 85.44M | 164.21M |
Balance Sheet | |||||
| Total Assets | 2.75B | 3.01B | 3.16B | 2.86B | 2.26B |
| Cash, Cash Equivalents and Short-Term Investments | 87.96M | 67.34M | 103.15M | 108.30M | 102.48M |
| Total Debt | 1.89B | 2.01B | 2.23B | 2.03B | 1.45B |
| Total Liabilities | 2.26B | 2.51B | 2.59B | 2.37B | 1.74B |
| Stockholders Equity | 460.48M | 468.03M | 534.85M | 457.90M | 493.41M |
Cash Flow | |||||
| Free Cash Flow | 54.89M | -2.45M | 40.02M | 95.31M | 78.37M |
| Operating Cash Flow | 81.12M | 31.63M | 119.53M | 147.97M | 112.94M |
| Investing Cash Flow | 47.99M | 67.86M | -125.43M | -228.02M | -215.37M |
| Financing Cash Flow | -120.19M | -93.92M | 183.60M | 83.21M | 97.00M |
AutoCanada Technical Analysis
Neutral
21.24
Price Trends
24.39
Negative
23.49
Negative
25.99
Negative
Market Momentum
-1.11
Negative
49.79
Neutral
90.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACQ, the sentiment is Neutral. The current price of 21.24 is above the 20-day moving average (MA) of 19.83, below the 50-day MA of 24.39, and below the 200-day MA of 25.99, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 90.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ACQ.
AutoCanada Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$5.15B | 8.51 | 9.92% | 1.32% | -5.33% | -57.58% | |
69 Neutral | C$284.56M | 13.48 | 6.05% | 6.21% | -3.53% | -17.19% | |
66 Neutral | C$21.39B | 17.79 | 6.73% | 3.69% | 0.66% | -0.61% | |
63 Neutral | C$674.01M | 7.04 | 7.13% | 1.93% | -7.25% | -143.07% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | C$4.78B | 262.01 | 1.66% | 0.28% | 4.24% | -60.60% | |
43 Neutral | C$491.71M | 34.08 | 18.07% | ― | -26.93% | 84.17% |
* Consumer Cyclical Sector Average
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AutoCanada Corporate Events
Business Operations and Strategy
AutoCanada Strikes National Digital Advertising Deal With AutoTrader.ca
Positive
Apr 1, 2026
AutoCanada has finalized a national advertising partnership with AutoTrader.ca, Canada’s largest automotive marketplace, creating a unified marketplace strategy across its dealership network. The agreement is designed to deliver consistent i...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
AutoCanada Sells Kia of Lincolnwood as It Accelerates Exit From U.S. Market
Neutral
Mar 26, 2026
AutoCanada has completed the sale of its Kia of Lincolnwood dealership in Illinois, which generated $53 million in sales but a net loss of $1.6 million in 2025. The $13.4 million in cash proceeds, including $6.3 million for real estate, will be us...
Business Operations and StrategyFinancial Disclosures
AutoCanada Q4 Profitability Squeezed as Market Softens and Transformation Weighs
Negative
Mar 19, 2026
AutoCanada reported fourth-quarter 2025 revenue from continuing operations of $1.12 billion, down 11.8% year over year, with gross profit, adjusted EBITDA and per-unit margins all declining amid softer demand and normalizing vehicle pricing. The c...
Business Operations and StrategyFinancial Disclosures
AutoCanada Sets March 18 Date to Unveil Q4 2025 Financial Results
Neutral
Feb 27, 2026
AutoCanada plans to release its financial results for the quarter ended December 31, 2025 on March 18, 2026 after markets close. Management will host a same-day conference call and webcast at 4:00 p.m. Mountain Time to present prepared remarks and...
Business Operations and StrategyExecutive/Board Changes
AutoCanada Confirms Samuel Cochrane as CEO to Drive Operational Overhaul
Positive
Feb 18, 2026
AutoCanada has appointed Samuel Cochrane as its Chief Executive Officer, confirming the leadership role he had held on an interim basis since late 2025 while also continuing as Interim Chief Financial Officer during the search for a permanent fina...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
AutoCanada Sells Chicago Toyota Dealership as Part of U.S. Exit Strategy
Positive
Jan 27, 2026
AutoCanada has completed the sale of Toyota of Lincoln Park in Chicago, one of the U.S. dealerships it has designated as discontinued operations, as part of its strategic exit from its U.S. Operations segment. The store generated approximately $64...
Business Operations and StrategyM&A Transactions
AutoCanada Expands Edmonton Collision Network with Acquisition of Modern Autobody
Positive
Jan 20, 2026
AutoCanada has acquired Modern Autobody, a long-established Edmonton collision and refinish repair facility, in a move that expands its collision repair footprint and strengthens its luxury and electric vehicle certification coverage in the region...
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.