Algoma Central (ALC) AI Stock Analysis

• Market Cap: C$602.84M
• Dividend Yield: 5.18%
• Average Volume (3M): 8.97K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.32
• Revenue Growth: -2.46%
• EPS Growth: 4.75%
• Country: CA
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 69
• Industry: Transportation
• EPS (TTM): 2.25
• Shares Outstanding: 40,567,818
• 10 Day Avg. Volume: 13,027
• 30 Day Avg. Volume: 8,969
• PEG Ratio: 1.37
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.83
• Price to Cash Flow (P/CF): 2.40
• P/FCF Ratio: 7.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Algoma Central's overall score reflects a robust valuation and solid financial foundation, mitigated by revenue growth challenges and neutral technical indicators. The outlook is positive due to strategic fleet expansion and market segment growth, though market volatility remains a concern.

Algoma Central Business Overview & Revenue Model

Company Description

Algoma Central Corporation (ALC) is a leading Canadian shipping company specializing in the transportation of bulk cargo across the Great Lakes and St. Lawrence Seaway. The company operates a diverse fleet of dry-bulk carriers, product tankers, and self-unloading vessels, providing essential marine transportation services to industries such as agriculture, construction, and energy. Algoma Central is committed to delivering reliable and efficient shipping solutions, leveraging its extensive experience and robust infrastructure to meet the evolving needs of its clients.

How the Company Makes Money

Algoma Central Corporation generates revenue primarily through its marine transportation services. The company earns money by transporting bulk commodities such as iron ore, coal, grain, and petroleum products across the Great Lakes and St. Lawrence Seaway. Key revenue streams include freight fees charged to clients for transporting their goods, charter services where vessels are leased to customers, and long-term contracts with major industrial clients that provide stable and predictable income. Algoma Central's earnings are bolstered by its strategic partnerships with key clients in the mining, agriculture, and energy sectors, as well as its ability to optimize fleet efficiency and reduce operating costs through technology and innovation.

Algoma Central Financial Statement Overview

Summary

Algoma Central demonstrates a solid financial structure with strong profit margins and reasonable leverage. However, challenges such as declining revenue and negative free cash flow need attention to enhance financial stability.

Income Statement

Algoma Central shows a mixed income statement performance. The gross profit margin is strong at 89.85% for 2024, indicating efficient cost management. However, the net profit margin has slightly decreased to 13.02% from 11.49% in 2023. Revenue growth is negative, down by 2.46% from the previous year, signaling a decline that could be concerning. Despite this, EBIT and EBITDA margins remain stable, demonstrating operational resilience.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio stands at 0.46, signifying a reasonable leverage level. Return on Equity (ROE) is healthy at 10.18%, showing good returns on shareholder investments. However, the equity ratio is 59.04%, slightly down from previous years, suggesting a gradual increase in liabilities relative to assets. The company maintains a stable equity position but should monitor debt levels closely.

Cash Flow

The cash flow statement indicates challenges in cash generation. Free cash flow has turned negative in 2024 at -10.22 million, raising concerns over cash reserves. The operating cash flow to net income ratio is 1.70, reflecting robust cash flow generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting potential issues in covering capital expenditures from operational cash. Improving free cash flow is essential for long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
703.44M	721.22M	677.94M	598.87M	545.66M
	Gross Profit
632.09M	116.08M	612.51M	531.02M	470.51M
	EBIT
75.14M	74.53M	102.30M	93.31M	74.09M
	EBITDA
147.21M	155.51M	186.26M	162.72M	154.53M
	Net Income Common Stockholders
91.64M	82.87M	84.47M	63.77M	45.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.54M	32.83M	141.97M	108.94M	103.91M
	Total Assets
1.52B	1.34B	1.37B	1.20B	1.22B
	Total Debt
412.59M	377.37M	402.79M	392.22M	391.15M
	Net Debt
409.04M	344.54M	260.82M	283.27M	287.25M
	Total Liabilities
624.11M	565.85M	639.67M	559.80M	662.48M
	Stockholders Equity
899.85M	778.31M	726.02M	640.28M	560.62M
Cash Flow		Free Cash Flow
-10.22M	4.96M	62.26M	130.50M	81.87M
	Operating Cash Flow
155.39M	124.21M	133.13M	162.38M	157.06M
	Investing Cash Flow
-183.75M	-127.78M	-65.87M	-16.23M	-87.19M
	Financing Cash Flow
-5.55M	-105.76M	-42.37M	-141.02M	16.32M

Algoma Central Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.99
• 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:ALC, the sentiment is Positive. The current price of 14.99 is above the 20-day moving average (MA) of 14.93, above the 50-day MA of 14.72, and above the 200-day MA of 14.33, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 54.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ALC.

Algoma Central Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CP	78 Outperform	$98.39B	26.98	8.36%	0.76%	15.86%	-5.49%
WTE	74 Outperform	C$1.52B	14.42	14.67%	6.09%	12.35%	11.77%
ALC	73 Outperform	C$602.84M	6.50	10.92%	5.18%	-2.46%	4.75%
CNR	71 Outperform	$86.25B	20.22	21.72%	2.55%	1.30%	-18.15%
TFII	66 Neutral	$9.95B	17.22	16.05%	2.03%	13.32%	-13.75%
Sector *	62 Neutral	$8.17B	12.83	0.26%	3.07%	3.83%	-16.44%
NFI	59 Neutral	C$1.29B	―	-3.46%	―	20.56%	94.32%

Algoma Central Corporate Events

Algoma Central Corporation Reports Strong Fiscal 2024 Results and Optimistic Outlook for 2025

Algoma Central Corporation reported strong financial results for fiscal 2024, with net earnings increasing to $91,638 from $82,870 in 2023, despite a slight decline in overall revenue. The company experienced growth in its Ocean Self-Unloaders and Product Tankers segments, driven by increased fleet utilization and expanded capacity. Looking ahead to 2025, Algoma plans to introduce nine new vessels and anticipates stability and growth, although it remains cautious of potential market disruptions.

Algoma Central Reports Strong Fiscal 2024 Results Amid Market Growth

Algoma Central Corporation reported strong financial results for fiscal 2024, driven by renewed market demand and expanded capacity. The company achieved higher net earnings and EBITDA compared to the previous year, despite a slight decrease in overall revenue. The Ocean Self-Unloaders and Product Tankers segments showed significant growth, with increased operating earnings and fleet utilization. Looking forward to 2025, Algoma remains optimistic yet cautious, anticipating stability and growth with the introduction of nine new vessels, while being mindful of potential market disruptions.

Algoma Central to Announce Fiscal 2024 Financial Results

Algoma Central Corporation has announced its plan to issue its fiscal 2024 financial results on February 27, 2025. The release of these results is significant for stakeholders as it will provide insights into the company’s performance and progress toward its emissions reduction targets, reflecting its commitment to sustainability and its potential impact on industry positioning.

Algoma Central Boosts Quarterly Dividend by 5%

Algoma Central Corporation announced a 5% increase in its quarterly dividend to $0.20 per common share, payable on March 3, 2025. This increase reflects the company’s strong financial performance and commitment to returning value to shareholders, with dividends having more than doubled since 2018. This move further solidifies Algoma’s position in the marine transportation industry and demonstrates its continued financial growth and investor confidence.