Acadian Timber (ADN) AI Stock Analysis

• Market Cap: C$311.36M
• Dividend Yield: 8.61%
• Average Volume (3M): 7.45K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.46
• Revenue Growth: -26.79%
• EPS Growth: -57.05%
• Country: CA
• Employees: 195
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.15
• Shares Outstanding: 18,123,201
• 10 Day Avg. Volume: 8,609
• 30 Day Avg. Volume: 7,447
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$19.00
• Price Target Upside: 10.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: C$19.00 ▲(10.59% Upside)

Acadian Timber's overall stock score reflects a challenging financial environment with declining revenue and cash flow, offset by stable profitability margins and a strong dividend yield. Technical indicators suggest bearish momentum, and the earnings call underscores operational difficulties, particularly in Maine. The company's valuation is supported by its attractive dividend yield, but strategic initiatives are needed to address the negative trends and improve financial stability.

Acadian Timber Business Overview & Revenue Model

Company Description

Acadian Timber Corp. (ADN) is a leading timberland company in North America, primarily operating in the forestry and timberland sector. The company manages approximately 2.4 million acres of timberlands in New Brunswick, Canada, and Maine, USA. Acadian Timber is involved in sustainable forest management and the production of a wide range of forest products including sawlogs, pulpwood, and biomass, serving diverse markets in North America and beyond.

How the Company Makes Money

Acadian Timber makes money by harvesting and selling timber products from its managed timberlands. Its primary revenue streams include the sale of sawlogs, which are used in the production of lumber, and pulpwood, which is utilized in the paper and pulp industry. Additionally, the company generates income from biomass, which is used as a renewable energy source. Acadian Timber's earnings are influenced by factors such as timber pricing, demand in the construction and paper industries, and sustainable forest management practices. The company may also engage in partnerships or long-term contracts with industrial and institutional customers to ensure steady revenue streams.

Acadian Timber Financial Statement Overview

Summary

Acadian Timber's financial performance is challenged by declining revenue and cash flow, though profitability margins remain reasonable. The balance sheet is stable, but the company needs to improve its return on equity and address the negative trends in revenue and cash flow.

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	88.15M	116.19M	93.48M	90.47M	95.73M	91.03M
Gross Profit	26.54M	38.27M	29.22M	27.58M	30.80M	30.13M
EBITDA	24.02M	34.63M	43.56M	52.51M	29.69M	35.86M
Net Income	14.13M	21.74M	29.43M	35.51M	18.68M	22.08M
Balance Sheet
Total Assets	598.61M	608.02M	567.95M	547.84M	516.64M	513.40M
Cash, Cash Equivalents and Short-Term Investments	2.65M	15.25M	1.83M	6.23M	7.32M	10.26M
Total Debt	110.73M	114.94M	105.52M	107.94M	100.89M	101.19M
Total Liabilities	261.84M	268.99M	248.97M	244.11M	225.16M	220.16M
Stockholders Equity	336.77M	339.03M	318.98M	303.72M	291.49M	293.24M
Cash Flow
Free Cash Flow	6.10M	23.55M	9.79M	14.86M	15.90M	20.27M
Operating Cash Flow	6.99M	34.05M	10.41M	15.23M	16.23M	20.62M
Investing Cash Flow	-8.40M	-9.14M	56.00K	-319.00K	186.00K	32.00K
Financing Cash Flow	-8.39M	-11.49M	-14.87M	-16.00M	-19.36M	-17.99M

Acadian Timber Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 17.18 is below the 20-day moving average (MA) of 17.39, below the 50-day MA of 17.74, and below the 200-day MA of 17.28, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 30.83 is Neutral, neither overbought nor oversold. The STOCH value of 15.61 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADN	60 Neutral	C$311.36M	21.65	4.24%	8.61%	-26.79%	-57.05%
IFP	55 Neutral	544.38M	-3.03	-12.43%	―	-7.60%	50.15%
CFP	52 Neutral	1.45B	-2.27	-21.29%	―	-1.38%	-64.10%
WEF	48 Neutral	130.39M	-6.04	-3.92%	―	3.89%	49.05%
GFP	44 Neutral	56.51M	-1.83	-32.33%	―	-23.09%	46.68%
CFF	39 Underperform	11.82M	-0.51	-29.72%	―	-8.76%	16.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Acadian Timber Corporate Events

Acadian Timber Reports Mixed Q2 2025 Results Amid Operational Shifts

Acadian Timber Corp. reported mixed results for the second quarter of 2025, with steady operations in New Brunswick but lower production in Maine due to ongoing development of new internal logging operations. The company’s sales decreased significantly to $17.1 million from $41.2 million the previous year, primarily due to the absence of carbon credit sales. Despite this, Acadian maintained a solid balance sheet with $15.1 million in net liquidity and declared dividends of $5.2 million, indicating confidence in its long-term operational strategy.

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