Acadian Timber (ADN) AI Stock Analysis

• Market Cap: C$299.90M
• Dividend Yield: 7.35%
• Average Volume (3M): 15.10K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.50
• Revenue Growth: -28.86%
• EPS Growth: -48.20%
• Country: CA
• Employees: 195
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.16
• Shares Outstanding: 18,286,766
• 10 Day Avg. Volume: 19,335
• 30 Day Avg. Volume: 15,100
• PEG Ratio: -0.50
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 13.00
• 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$17.75
• Price Target Upside: 7.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$17.00 ▲(3.03% Upside)

Acadian Timber's overall stock score is driven by its strong profitability margins and solid equity base, despite challenges in revenue growth and cash flow. The technical indicators suggest short-term bullish momentum, but caution is advised due to potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and high dividend yield.

Positive Factors

Profitability Margins

Strong profitability margins indicate efficient operations and cost management, which can sustain earnings and shareholder value over time.

Sustainable Practices

Commitment to sustainability can attract environmentally-conscious customers and partners, enhancing long-term market positioning and compliance with regulations.

Solid Equity Base

A strong equity base provides financial stability and flexibility, supporting growth initiatives and resilience against market fluctuations.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder the company's ability to expand and compete, potentially impacting long-term profitability and market share.

Free Cash Flow Decline

Reduced free cash flow limits the company's ability to invest in growth opportunities, pay down debt, or return capital to shareholders.

Low Return on Equity

Low ROE indicates limited profitability from equity, suggesting inefficiencies in generating returns from shareholder investments.

Acadian Timber Business Overview & Revenue Model

Company Description

Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates through two segments, NB Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages approximately 1.1 million acres of freehold timberlands in New Brunswick and Maine; and provides timber services relating to approximately 1.3 million acres of Crown licensed timberlands in New Brunswick. Acadian Timber Corp. is headquartered in New Brunswick, Canada.

How the Company Makes Money

Acadian Timber generates revenue primarily through the sale of timber and forest products. Its revenue model is based on the sustainable management and harvesting of timber resources, which involves selling logs and other wood products to manufacturers and wholesalers in the construction and furniture sectors. Key revenue streams include standing timber sales, which involve selling timber rights to third parties for harvesting, and direct sales of processed timber products. The company also benefits from long-term contracts with customers, which provide stable revenue streams. Additionally, Acadian Timber's commitment to sustainable practices can attract environmentally-conscious buyers, further enhancing its market position. Partnerships with other forestry and manufacturing companies contribute to its earnings by facilitating efficient distribution and access to broader markets.

Acadian Timber Financial Statement Overview

Summary

Acadian Timber faces challenges with declining revenue and cash flow in the TTM period. While profitability margins are reasonable, the company must address revenue growth and cash flow generation issues to enhance financial stability. The balance sheet is stable, but improving return on equity should be prioritized.

Income Statement

Acadian Timber's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 21.44%, which is concerning. However, the company maintains decent profitability with a gross profit margin of 30.11% and a net profit margin of 16.03%. The EBIT and EBITDA margins are also healthy at 25.99% and 27.25%, respectively, though they have decreased compared to previous periods. The company needs to address the declining revenue trend to improve its financial health.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.33. The return on equity (ROE) is relatively low at 4.21% in the TTM period, indicating room for improvement in generating returns for shareholders. The equity ratio stands at 56.27%, suggesting a solid equity base. Overall, the balance sheet is stable, but enhancing ROE should be a focus.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth rate by 77.11% in the TTM period. The operating cash flow to net income ratio is 0.48, indicating less cash generation from operations relative to net income. The free cash flow to net income ratio is relatively strong at 87.24%, suggesting efficient cash conversion. Improving cash flow generation is crucial for future stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.21M	116.19M	93.48M	90.47M	95.73M	91.03M
Gross Profit	24.72M	38.27M	29.22M	27.58M	30.80M	30.13M
EBITDA	24.77M	34.63M	43.56M	52.51M	29.69M	35.86M
Net Income	14.84M	21.74M	29.43M	35.51M	18.68M	22.08M
Balance Sheet
Total Assets	602.66M	608.02M	567.95M	547.84M	516.64M	513.40M
Cash, Cash Equivalents and Short-Term Investments	2.43M	15.25M	1.83M	6.23M	7.32M	10.26M
Total Debt	112.75M	114.94M	105.52M	107.94M	100.89M	101.19M
Total Liabilities	264.29M	268.99M	248.97M	244.11M	225.16M	220.16M
Stockholders Equity	338.37M	339.03M	318.98M	303.72M	291.49M	293.24M
Cash Flow
Free Cash Flow	3.87M	23.55M	9.79M	14.86M	15.90M	20.27M
Operating Cash Flow	4.62M	34.05M	10.41M	15.23M	16.23M	20.62M
Investing Cash Flow	-8.24M	-9.14M	56.00K	-319.00K	186.00K	32.00K
Financing Cash Flow	-8.57M	-11.49M	-14.87M	-16.00M	-19.36M	-17.99M

Acadian Timber Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADN, the sentiment is Positive. The current price of 16.5 is above the 20-day moving average (MA) of 15.91, above the 50-day MA of 15.41, and below the 200-day MA of 16.58, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 92.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ADN.

Acadian Timber Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADN	69 Neutral	C$299.90M	19.71	4.46%	7.35%	-28.86%	-48.20%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WFG	48 Neutral	$7.59B	-22.58	-3.61%	2.21%	-6.67%	-168.27%
CFP	48 Neutral	C$1.63B	-3.59	-15.06%	―	1.76%	34.61%
WEF	47 Neutral	C$144.12M	-2.30	-12.20%	―	2.06%	-46.23%
IFP	46 Neutral	C$530.49M	-1.81	-20.72%	―	-3.63%	31.61%
CFF	43 Neutral	C$6.93M	-0.18	-45.26%	―	10.33%	-52.20%

Acadian Timber Corporate Events

Acadian Timber Corp. Reports Mixed Third Quarter Results Amid Operational Challenges

Acadian Timber Corp. reported its third-quarter results, highlighting operational stability in New Brunswick but facing challenges in Maine due to trucking constraints and lower productivity. The company generated $23.0 million in sales, a decrease from the previous year, attributed to reduced timber sales volumes and services. Despite these challenges, Acadian remains confident in strengthening its long-term performance through internal logging operations. The company declared dividends of $5.3 million, maintaining a solid balance sheet with $15.1 million in net liquidity.

The most recent analyst rating on (TSE:ADN) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Acadian Timber stock, see the TSE:ADN Stock Forecast page.