Alaris Royalty (AD.UN) AI Stock Analysis

• Market Cap: C$900.62M
• Dividend Yield: 6.86%
• Average Volume (3M): 75.16K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 1.15
• Revenue Growth: 57.02%
• EPS Growth: 69.18%
• Country: CA
• Employees: 25
• Sector: Financial
• Sector Strength: 87
• Industry: Asset Management - Income
• EPS (TTM): 5.15
• Shares Outstanding: 45,417,126
• 10 Day Avg. Volume: 47,736
• 30 Day Avg. Volume: 75,162
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$25.67
• Price Target Upside: 29.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Alaris Royalty's strong financial performance, characterized by robust profitability and a healthy balance sheet, is a key strength. The stock appears undervalued with a high dividend yield, appealing to income investors. Despite limited technical momentum, recent strategic investments and consistent distributions bolster confidence in future growth. Overall, the stock presents a stable investment opportunity with potential upside from strategic initiatives.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
154.99M	241.25M	190.88M	143.46M	109.57M
	Gross Profit
154.99M	179.08M	190.88M	143.46M	109.57M
	EBIT
128.97M	202.43M	168.43M	122.21M	93.72M
	EBITDA
240.59M	202.66M	168.65M	122.42M	45.51M
	Net Income Common Stockholders
234.41M	138.45M	130.68M	144.24M	20.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.20M	15.18M	60.19M	18.45M	16.50M
	Total Assets
1.20B	1.47B	1.37B	1.28B	956.43M
	Total Debt
64.64M	403.39M	372.49M	416.66M	316.17M
	Net Debt
60.44M	388.20M	312.30M	398.21M	299.67M
	Total Liabilities
97.72M	514.07M	471.85M	486.35M	351.42M
	Stockholders Equity
1.10B	960.82M	898.25M	788.86M	605.01M
Cash Flow		Free Cash Flow
59.37M	82.96M	-9.42M	-15.44M	-45.84M
	Operating Cash Flow
59.37M	82.96M	152.42M	104.16M	71.86M
	Investing Cash Flow
0.00	-98.32M	14.85M	-228.99M	-16.60M
	Financing Cash Flow
-62.12M	-29.91M	-125.16M	128.47M	-52.87M

Alaris Royalty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 19.83 is above the 20-day moving average (MA) of 18.46, above the 50-day MA of 18.81, and above the 200-day MA of 17.89, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 63.24 is Neutral, neither overbought nor oversold. The STOCH value of 95.65 is Negative, 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	80 Outperform	C$683.83M	6.91	8.68%	4.49%	20.65%	-2.36%
AD.UN	75 Outperform	C$900.62M	3.85	22.73%	6.86%	57.02%	69.18%
MKP	75 Outperform	C$740.68M	9.24	13.72%	8.30%	26.81%	-6.49%
TF	73 Outperform	C$581.07M	12.59	6.65%	9.86%	-10.87%	-30.08%
AI	68 Neutral	C$514.36M	10.19	9.58%	8.38%	-1.56%	-9.70%
FC	67 Neutral	C$432.74M	11.83	8.57%	7.95%	-4.56%	0.77%
Sector *	64 Neutral	$12.61B	9.78	8.01%	16985.69%	12.73%	-4.58%

Alaris Royalty Corporate Events

Alaris Equity Partners to Release Q1 2025 Financial Results

Alaris Equity Partners announced the release of its Q1 2025 financial results on May 8, 2025, with a subsequent conference call scheduled for May 9, 2025, to discuss the results and outlook. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

Alaris Equity Partners Announces Q1 2025 Distribution

Alaris Equity Partners Income Trust has declared a distribution of $0.34 per trust unit for the first quarter of 2025, amounting to $1.36 per unit annually. The distribution will be payable on April 15, 2025, to unitholders recorded by March 31, 2025, reflecting the company’s commitment to providing consistent returns to its stakeholders.

Alaris Equity Partners Reports Strong 2024 Financial Results and Strategic Growth

Alaris Equity Partners Income Trust reported its financial results for the fourth quarter and full year of 2024, highlighting significant investments and growth in assets under management (AUM). The company invested approximately $249 million in new and existing partners, marking an increase compared to its five-year average. Alaris also completed a strategic recapitalization with Ohana Growth Partners, raising US$120 million from independent investors, which contributed to a total of over $2.2 billion in capital. The Trust saw a 12% increase in Partner Distribution revenue for Q4 2024 and a 19% increase for the year, driven by new investments and the collection of deferred distributions. Additionally, Alaris realized gains of $40.1 million on partner investments and reported a 42% increase in net distributable cash flow, reflecting strong financial performance and strategic growth initiatives.

Alaris Equity Partners Expands Portfolio with Strategic Investments in Berg and PEC

Alaris Equity Partners announced a $21 million investment in Berg Demo Holdings, LLC, and a $61.1 million investment in Professional Electric Contractors of Connecticut, Inc., marking a strong start to 2025. These investments reflect Alaris’s strategy of forming partnerships with successful entrepreneurs to drive business growth, while the redemption of its investment in Unify Consulting LLC yielded a 20% IRR, underscoring the company’s effective management and investment strategy.

Alaris Equity Partners to Release Q4 2024 Financial Results in March

Alaris Equity Partners has announced the release date of its 2024 fourth-quarter financial results, which will be available after the Toronto Stock Exchange closes on March 10, 2025. A conference call will be held the next day to discuss the results and future outlook, which can be accessed through prior registration. This announcement indicates Alaris’ commitment to transparency and engagement with its investors, potentially influencing stakeholders’ perceptions and decisions.