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Acadian Timber (TSE:ADN)
TSX:ADN
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Acadian Timber
(TSX:ADN)70Outperform
Acadian Timber (ADN) vs. S&P 500 (SPY)
Market Cap
C$308.68M
Dividend Yield6.72%
Average Volume (3M)8.15K
Price to Earnings (P/E)14.0
Beta (1Y)0.26
Revenue Growth24.29%
EPS Growth-27.59%
CountryCA
Employees38
SectorBasic Materials
Sector Strength56
IndustryForestry
Share Statistics
EPS (TTM)1.25
Shares Outstanding17,822,449
10 Day Avg. Volume7,111
30 Day Avg. Volume8,155
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.61
Price to Cash Flow (P/CF)31.30
P/FCF Ratio29.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$21.00Price Target Upside21.25% Upside
Rating ConsensusHold
Number of Analyst Covering1
Acadian Timber Business Overview & Revenue Model
Company DescriptionAcadian Timber Corp is a Canada-based supplier of primary forest products in Eastern Canada and the Northeastern United States. The firm has approximately 2.4 million acres of land under management, Acadian timberland is the operators in New Brunswick and Maine. It generates a majority of its revenue from New Brunswick. The company's product includes softwood and hardwood sawlogs, pulpwood and biomass by-products.
How the Company Makes MoneyAcadian Timber generates revenue primarily through the sale of timber and wood products harvested from its forests. The company's key revenue streams include the sale of softwood and hardwood sawlogs, pulpwood, and biomass to regional mills and other wood product manufacturers. Additionally, Acadian Timber benefits from long-term supply agreements and partnerships with major forestry companies, ensuring a steady demand for its products. The company also engages in land management services, which provide additional income through sustainable forestry practices and conservation efforts. Market prices for timber, operational efficiency, and strategic land management are significant factors contributing to Acadian Timber's earnings.
Acadian Timber Financial Statement Overview
Summary
Acadian Timber exhibits solid financial health, with robust revenue and profit margins, a strong equity position, and good cash flow management. However, the company faces challenges in maintaining consistent net income growth and free cash flow, which could impact future financial flexibility.Income Statement
Acadian Timber has shown steady revenue growth, with a notable increase from 2023 to 2024. The gross profit margin remains strong, but net income has seen fluctuations, indicating some volatility in profitability. The EBIT and EBITDA margins are healthy, highlighting efficient operations.70
Positive
Balance Sheet
The company maintains a solid equity base with a stable equity ratio. The debt-to-equity ratio is manageable, reflecting a balanced approach to leveraging. Return on equity is strong, suggesting effective use of shareholder funds.75
Positive
Cash Flow
While operating cash flow has improved significantly in the recent year, free cash flow growth is inconsistent, primarily due to variations in capital expenditure. The cash flow ratios indicate a strong ability to convert income into cash, supporting operational stability.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 116.19M | 93.48M | 90.47M | 95.73M | 91.03M | Gross Profit |
| 38.27M | 29.58M | 27.58M | 30.80M | 30.13M | EBIT |
| 23.66M | 19.57M | 17.86M | 21.76M | 32.83M | EBITDA |
| 34.63M | 43.56M | 52.51M | 29.69M | 35.86M | Net Income Common Stockholders |
| 21.74M | 29.43M | 35.51M | 18.68M | 22.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.25M | 1.83M | 6.23M | 7.32M | 10.26M | Total Assets |
| 608.02M | 567.95M | 547.84M | 516.64M | 513.40M | Total Debt |
| 114.94M | 105.52M | 107.94M | 100.89M | 101.19M | Net Debt |
| 99.69M | 103.68M | 101.71M | 93.57M | 90.93M | Total Liabilities |
| 268.99M | 248.97M | 244.11M | 225.16M | 220.16M | Stockholders Equity |
| 339.03M | 318.98M | 303.72M | 291.49M | 293.24M |
| Cash Flow | Free Cash Flow | |||
| 34.05M | 9.79M | 14.86M | 15.90M | 20.27M | Operating Cash Flow |
| 34.05M | 10.41M | 15.23M | 16.23M | 20.62M | Investing Cash Flow |
| -9.14M | 56.00K | -319.00K | 186.00K | 32.00K | Financing Cash Flow |
| -11.49M | -14.87M | -16.00M | -19.36M | -17.99M |
Acadian Timber Technical Analysis
Negative
17.32
Price Trends
17.44
Negative
17.54
Negative
17.18
Positive
Market Momentum
-0.03
Positive
46.59
Neutral
18.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADN, the sentiment is Negative. The current price of 17.32 is below the 20-day moving average (MA) of 17.51, below the 50-day MA of 17.44, and above the 200-day MA of 17.18, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.59 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ADN.
Acadian Timber Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
TSE:ADN
Acadian Timber
17.24
1.26
7.88%
STLJF
Stella-Jones
47.84
-7.32
-13.27%
IFSPF
Interfor
11.16
-4.26
-27.63%
CFPZF
Canfor
10.34
-2.22
-17.68%
Acadian Timber Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -1.09% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlights several positive developments such as record free cash flow, sales growth, and success in carbon credit sales. However, there are notable challenges including decreased net income, sales declines, and operational issues in Maine. The positive aspects are significant, but the lowlights indicate ongoing challenges, suggesting a balanced perspective.Highlights
Record Free Cash Flow
Acadian generated a record free cash flow of $29.7 million in 2024, compared to $15 million in 2023.
Strong Sales Growth
Total sales for 2024 were $116.2 million compared to $93.5 million in 2023, marking a significant increase.
Carbon Credit Success
Sold approximately 752,000 voluntary carbon credits at an average price of US$24, contributing $24.6 million to total sales.
New Brunswick Operations Improvement
New Brunswick operations showed a 7% increase in sales volume excluding biomass, and contractor availability improved significantly in 2024.
Acquisition of Timberland
Acquired approximately 16,000 acres of timberland in New Brunswick, enhancing operational scale and opportunities.
Lowlights
Decreased Net Income
Net income for Q4 2024 was $5.6 million, a decrease from $11.6 million in the same period of 2023.
Decreased Sales and Pricing
Q4 2024 sales were $20.3 million compared to $23.8 million in 2023, with a 5% decrease in weighted average selling price excluding biomass.
Challenges in Maine Operations
Maine operations faced contractor availability issues, unfavorable weather, and decreased sales volume, which was down 29% compared to Q4 2023.
Softwood and Hardwood Pricing Pressures
Softwood sawlog pricing decreased 5%, hardwood sawlog pricing decreased 10%, and softwood pulpwood pricing decreased 11% compared to the prior year.
Company Guidance
During the Acadian Timber Fourth Quarter 2024 Analyst Conference Call, the company provided detailed guidance on its financial performance and operational activities. Sales for Q4 2024 were reported at $20.3 million, a decline from $23.8 million in the same period of 2023, primarily due to weaker end-use markets and changes in product mix. The company's adjusted EBITDA was $3.7 million, down from $4.4 million in Q4 2023, with an adjusted EBITDA margin of 18%. The weighted average selling price excluding biomass decreased by 5% year-over-year but showed a 6% increase from Q3 2024. Operational highlights included a 7% increase in sales volume excluding biomass in New Brunswick, while Maine faced a 29% decrease due to contractor availability issues and unfavorable weather conditions. Acadian's net income for Q4 2024 was $5.6 million, or $0.32 per share, down from $11.6 million, or $0.68 per share, in the same period of the previous year. The company also completed the sale of 1,800 acres of timberlands, contributing to a net gain of $300,000 and generated $3.1 million in free cash flow. Looking ahead to 2025, Acadian expects stable demand for hardwood and softwood sawlogs, with continued pressure on pricing until market conditions improve, and anticipates an increase in production in Maine through newly established internal harvesting operations.Acadian Timber Corporate Events
Business Operations and StrategyFinancial Disclosures
Acadian Timber Corp. Boosts Sales and Expands Operations in Maine
Positive
Feb 12, 2025
Acadian Timber Corp. reported strong financial results for the fourth quarter and the full fiscal year 2024, with sales increasing to $116.2 million from $93.5 million the previous year. The company’s performance was bolstered by the sale of 752,100 voluntary carbon credits, contributing $24.6 million to total sales. In response to challenges in contractor availability, Acadian has begun its own internal harvesting operations in Maine, acquiring assets from A & A Brochu, LLC to expand its capacity. This move is expected to enhance operational efficiency and reduce costs.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.