Alaris Royalty (AD.UN) AI Stock Analysis

• Market Cap: C$972.52M
• Dividend Yield: 6.43%
• Average Volume (3M): 72.61K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.08
• Revenue Growth: 11.16%
• EPS Growth: -14.26%
• Country: CA
• Employees: 25
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management - Income
• EPS (TTM): 1.76
• Shares Outstanding: 45,338,810
• 10 Day Avg. Volume: 76,803
• 30 Day Avg. Volume: 72,608
• PEG Ratio: 0.05
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 5.62
• P/FCF Ratio: 14.68
• 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$24.75
• Price Target Upside: 15.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$23.00 ▲(7.23% Upside)

The score is primarily constrained by weak recent cash generation (negative TTM operating/free cash flow), despite strong profitability metrics and improved leverage. Valuation is a notable positive (low P/E and high yield), and technicals plus the latest earnings narrative support a moderately constructive outlook, tempered by distributable cash flow variability and partner-specific risks.

Positive Factors

Strategic Investments

Significant investments in partners indicate Alaris's commitment to growth and diversification, enhancing long-term revenue potential and market position.

Consistent Distributions

Regular distributions demonstrate Alaris's stable cash flow and commitment to shareholder returns, bolstering investor confidence and financial stability.

Strong Financial Performance

The increase in net distributable cash flow highlights Alaris's effective cash management and operational efficiency, supporting sustainable growth and profitability.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining sales growth, which could impact long-term financial performance and market competitiveness.

Fluctuating Free Cash Flow

Volatile free cash flow growth may hinder Alaris's ability to invest consistently in growth opportunities, affecting long-term strategic initiatives.

Negative Investing Cash Flow

Persistent negative investing cash flow could indicate inefficient capital allocation, potentially limiting future growth and financial flexibility.

Alaris Royalty Business Overview & Revenue Model

Company Description

Alaris Equity Partners Income Trust is a private equity firm specializing in management buyouts, growth capital, lower & middle market, later stage, industry consolidation, growth capital, and mature investments. The firm does not invest in turnarounds and start-ups. It prefers to invest in the companies based in all industries except for those with a declining asset base, such as oil and gas resource companies, or any industry that carry the risk of obsolescence such as high tech and focuses on business services, professional services, information services, healthcare services, distribution & logistics, industrials, consumer products. The firm seeks to invest in companies raising capital for a partial liquidity, generational transfer, recapitalization, and growth and who do not want to give up control or chance the added risk that comes with high leverage levels. It prefers to invest in companies that are mostly individual or family controlled. The firm typically provides alternative financing for a diversified group of private businesses ("Private Company Partners") in exchange for royalties or distributions from the Private Company Partners, with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. It seeks to invest in the companies based in Europe, North America with the focus on Canada, and United States. It typically invests between $5 million and $100 million in companies with an enterprise values between $10 million and $400 million and EBITDA between $5 million and $50 million, historical EBITDA in excess of $10 million, and Low levels of debt and capital expenditure. The firm also makes small cap investments upto $20 million in private companies that have historical EBITDA in excess of $2 million. However, for larger companies, transactions can be structured to include additional investments. The firm seeks to invest in industries that do not experience large cyclical swings. It does not own any shares and does not require board representation. The firm invests through balance sheet and seeks equity dividend distribution from portfolios. It prefers to make non control equity, minority and majority investments in its portfolio companies. Alaris Royalty Corp. was founded in 2008 and is based in Calgary, Canada.

How the Company Makes Money

Alaris Royalty Corp makes money by providing long-term capital to private companies in exchange for monthly distributions, which are typically linked to the company's top-line performance. The company generates revenue through these distributions as well as potential capital gains from equity investments. Alaris structures its investments to receive preferred distributions, ensuring a steady income stream. Additionally, the company's earnings are influenced by its ability to identify and partner with financially stable private businesses that can sustain and grow their distributions over time.

Alaris Royalty Financial Statement Overview

Summary

Alaris Royalty demonstrates strong financial health with robust profitability and prudent balance sheet management. Despite a decline in revenue, the company maintains solid margins and generates healthy cash flows. The overall financial position is stable, but attention to revenue growth and cash management strategies could enhance future performance.

Income Statement

The income statement shows a solid gross profit margin and consistent profitability, with a significant increase in net income in the latest year. However, the revenue has decreased compared to the previous year, indicating potential challenges in maintaining sales growth. The EBIT and EBITDA margins are strong, reflecting efficient operations.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is high, reflecting financial stability. Stockholders' equity has grown steadily over the years, enhancing investor confidence. However, a decrease in total assets and cash reserves may warrant attention.

Cash Flow

The cash flow statement reveals a positive free cash flow and a robust operating cash flow to net income ratio, indicating healthy cash generation. However, fluctuations in free cash flow growth suggest potential volatility in cash management. The negative investing cash flow over multiple years may raise concerns about capital allocation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.63M	154.99M	241.25M	227.99M	157.59M	82.70M
Gross Profit	156.05M	154.99M	179.08M	227.99M	157.59M	82.70M
EBITDA	186.82M	240.59M	202.66M	183.36M	191.24M	53.37M
Net Income	169.00M	234.41M	138.45M	130.68M	144.24M	20.29M
Balance Sheet
Total Assets	1.32B	1.20B	1.47B	1.37B	1.28B	956.43M
Cash, Cash Equivalents and Short-Term Investments	5.99M	4.20M	15.18M	60.19M	18.45M	16.50M
Total Debt	151.98M	64.64M	403.39M	372.49M	416.66M	316.17M
Total Liabilities	182.72M	97.72M	514.07M	471.85M	486.35M	351.42M
Stockholders Equity	1.14B	1.10B	960.82M	898.25M	788.86M	605.01M
Cash Flow
Free Cash Flow	-20.29M	59.37M	82.96M	152.42M	-15.44M	71.86M
Operating Cash Flow	-20.29M	59.37M	82.96M	152.42M	104.16M	71.86M
Investing Cash Flow	0.00	0.00	-98.32M	14.85M	-228.99M	-16.60M
Financing Cash Flow	16.73M	-62.12M	-29.91M	-125.16M	128.47M	-52.87M

Alaris Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AD.UN, the sentiment is Positive. The current price of 21.45 is above the 20-day moving average (MA) of 20.94, above the 50-day MA of 20.18, and above the 200-day MA of 18.82, indicating a bullish trend. The MACD of 0.29 indicates Positive momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 62.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AD.UN.

Alaris Royalty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	78 Outperform	C$1.06B	9.42	9.85%	3.01%	11.23%	30.44%
AD.UN	70 Outperform	C$972.52M	5.77	15.52%	6.43%	11.16%	-14.26%
MKP	69 Neutral	C$902.10M	13.46	10.50%	7.33%	7.74%	-31.96%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CVG	57 Neutral	C$1.02B	304.80	0.32%	0.14%	-44.78%	-95.84%
ECN	56 Neutral	C$856.47M	144.76	5.73%	1.32%	27.37%	―
DLCG	50 Neutral	C$721.03M	-3.98	-137.87%	1.51%	36.52%	-1243.96%

Alaris Royalty Corporate Events

Alaris Equity Partners Declares Q4 Distribution of $0.37 per Unit

Alaris Equity Partners Income Trust has declared a fourth-quarter 2025 distribution of $0.37 per trust unit, equivalent to $1.48 per unit on an annualized basis, payable on January 15, 2026 to unitholders of record as of December 31, 2025. The announcement underscores the trust’s ongoing commitment to delivering consistent income to its investors, reflecting the cash-generating capacity of its structured equity portfolio and reinforcing its positioning as a provider of stable, yield-oriented exposure to private company investments.

The most recent analyst rating on ($TSE:AD.UN) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.

Alaris Equity Partners Closes $115 Million Convertible Debentures Offering

Alaris Equity Partners has successfully closed a $115 million bought deal offering of 6.25% convertible unsecured senior debentures, which will begin trading on the Toronto Stock Exchange under the symbol ‘AD.DB.C’. The proceeds from this offering will be used to partially repay outstanding debts and support future investments, demonstrating the Trust’s strategic effort to strengthen its financial position and expand its portfolio of private business investments.

The most recent analyst rating on ($TSE:AD.UN) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.

Alaris Equity Partners Announces $100 Million Debenture Offering

Alaris Equity Partners has announced the filing of a final short form prospectus for a $100 million offering of 6.25% convertible unsecured senior debentures, with an option for underwriters to purchase an additional $15 million. This move is part of Alaris’s strategy to strengthen its financial position and provide stable returns to its investors. The closing of the offering is expected on December 17, 2025, subject to customary conditions, and marks a significant step in Alaris’s ongoing efforts to enhance its market presence and investment capabilities.

The most recent analyst rating on ($TSE:AD.UN) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.

Alaris Equity Partners Announces Strategic Investments and Distribution Increase

Alaris Equity Partners has announced new investments totaling US$52.7 million, including a significant investment in McCoy Roofing Holdings LLC, a leading residential roofing service provider. This move, along with strong performance from existing partners, has allowed Alaris to increase its distribution by 9%, reflecting confidence in its growth trajectory and the strength of its investment pipeline. The firm continues to expand its common equity portfolio, positioning itself and its unitholders to benefit from value creation within its partner companies.

The most recent analyst rating on ($TSE:AD.UN) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.

Alaris Equity Partners Upsizes Debenture Offering Amid High Demand

Alaris Equity Partners has announced an increase in its previously announced convertible unsecured senior debentures offering due to excess demand. The company will now issue 100,000 debentures at $1,000 each, raising $100 million, with an option for underwriters to purchase an additional $15 million. The offering is expected to close on December 17, 2025, subject to regulatory approvals, and aims to strengthen Alaris’ financial position and support its investment strategy.

The most recent analyst rating on ($TSE:AD.UN) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.

Alaris Equity Partners Launches $75 Million Debenture Offering and Invests in New Partner

Alaris Equity Partners has announced a $75 million bought deal offering of 6.25% convertible unsecured senior debentures, alongside a US$30 million investment into a new partner, Renovo Medical Group, LLC. The proceeds from the debenture offering will be used to repay outstanding debts and fund future investments, potentially strengthening Alaris’s financial position and expanding its investment portfolio.

The most recent analyst rating on ($TSE:AD.UN) stock is a Buy with a C$27.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.

Alaris Equity Partners Invests $115.5 Million in Optimus SBR to Boost Growth

Alaris Equity Partners has made a significant $115.5 million investment in Optimus SBR, Canada’s largest independent management consulting firm. This investment, consisting of preferred and common equity, is expected to enhance Optimus SBR’s growth in tackling complex challenges across various industries. Alaris’ involvement is anticipated to provide strong and predictable cash flows, further enhancing long-term value for its unitholders, while Optimus SBR benefits from increased flexibility to accelerate its growth and navigate evolving challenges.

The most recent analyst rating on ($TSE:AD.UN) stock is a Hold with a C$20.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.

Alaris Equity Partners Achieves Record Financial Performance in Q3 2025

Alaris Equity Partners reported strong financial results for the third quarter of 2025, with a record net book value and increased revenue and operating income. Despite a decrease in net distributable cash flow, the company demonstrated active capital deployment and increased its quarterly distribution, reflecting confidence in its partner cash flows. The results highlight the company’s robust portfolio performance and strategic capital investments, positioning it well for future success.

The most recent analyst rating on ($TSE:AD.UN) stock is a Hold with a C$20.00 price target. To see the full list of analyst forecasts on Alaris Royalty stock, see the TSE:AD.UN Stock Forecast page.