Algoma Central (ALC) AI Stock Analysis

• Market Cap: C$767.14M
• Dividend Yield: 4.23%
• Average Volume (3M): 8.47K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.43
• Revenue Growth: 8.54%
• EPS Growth: 33.89%
• Country: CA
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Marine Shipping
• EPS (TTM): 0.97
• Shares Outstanding: 40,567,818
• 10 Day Avg. Volume: 9,142
• 30 Day Avg. Volume: 8,473
• PEG Ratio: 2.90
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.84
• P/FCF Ratio: -58.05
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$21.50 ▲(13.76% Upside)

Algoma Central's stock is supported by strong financial performance and attractive valuation. The main risks are related to cash flow management and potential short-term technical corrections due to overbought conditions. The absence of recent earnings call data limits insights into management's outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Algoma's services and effective market positioning, supporting long-term business sustainability.

Operational Efficiency

Improved operational efficiency enhances profitability and competitiveness, allowing Algoma to better manage costs and invest in growth opportunities.

Diversified Revenue Streams

Diversification into real estate and shipbuilding reduces reliance on shipping, providing stability and additional growth avenues.

Negative Factors

Rising Leverage

Increasing leverage could limit financial flexibility and increase risk, potentially impacting future investment capacity and operational resilience.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity challenges, which could constrain Algoma's ability to fund operations and growth initiatives.

Decreasing Gross Profit Margin

A declining gross profit margin may signal rising costs or pricing pressures, potentially affecting long-term profitability and competitive positioning.

Algoma Central Business Overview & Revenue Model

Company Description

Algoma Central Corporation (ALC) is a Canadian company primarily engaged in marine transportation and logistics services. Operating in the Great Lakes and the St. Lawrence Seaway, ALC provides bulk cargo shipping services, specializing in the transportation of raw materials such as iron ore, coal, and grain. The company also has a diversified portfolio that includes real estate and shipbuilding, enhancing its operational capabilities and revenue potential.

How the Company Makes Money

Algoma Central generates revenue primarily through its shipping operations, which include the transportation of bulk commodities for various industries. The company operates a fleet of self-unloading vessels, which allows it to efficiently transport cargo and reduce operational costs. Key revenue streams include freight charges for shipping services and long-term contracts with major industrial clients. Additionally, Algoma Central benefits from partnerships with various stakeholders in the shipping and logistics sectors, including agreements with ports and terminal operators. The company's investments in real estate and shipbuilding also contribute to its earnings, providing diversified revenue sources beyond marine transportation.

Algoma Central Financial Statement Overview

Summary

Algoma Central demonstrates strong revenue growth and profitability with stable EBIT and EBITDA margins. However, increasing leverage and negative free cash flow are concerns, requiring attention to debt management and cash flow improvement.

Income Statement

Algoma Central has demonstrated consistent revenue growth, with a 4.38% increase in TTM. The company maintains healthy profit margins, with a gross profit margin of 51.06% and a net profit margin of 12.21% in TTM. However, there is a noticeable decline in gross profit margin from previous years, indicating potential cost pressures. The EBIT and EBITDA margins are stable, suggesting effective cost management.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.69 in TTM, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity is stable at 10.04%, reflecting efficient use of equity capital. The equity ratio remains strong, suggesting a solid capital structure, but the rising debt levels warrant attention.

Cash Flow

Algoma Central's cash flow situation is mixed, with a negative free cash flow in TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.51, showing moderate cash generation relative to net income. The negative free cash flow to net income ratio highlights the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	755.57M	703.44M	721.22M	677.94M	598.87M	545.66M
Gross Profit	530.69M	632.09M	655.17M	612.51M	531.02M	470.51M
EBITDA	172.98M	147.21M	154.06M	186.26M	162.72M	154.53M
Net Income	100.55M	91.64M	82.87M	84.47M	63.77M	45.85M
Balance Sheet
Total Assets	1.79B	1.52B	1.34B	1.37B	1.20B	1.22B
Cash, Cash Equivalents and Short-Term Investments	25.80M	3.54M	32.83M	141.97M	108.94M	103.91M
Total Debt	632.95M	412.59M	377.37M	402.79M	392.22M	391.15M
Total Liabilities	864.51M	624.11M	565.85M	639.67M	559.80M	662.48M
Stockholders Equity	927.35M	899.85M	778.31M	726.02M	640.28M	560.62M
Cash Flow
Free Cash Flow	-135.66M	-10.22M	4.96M	62.26M	130.50M	81.87M
Operating Cash Flow	157.27M	155.39M	124.21M	133.13M	162.38M	157.06M
Investing Cash Flow	-316.45M	-183.75M	-127.78M	-65.87M	-16.23M	-87.19M
Financing Cash Flow	155.47M	-5.55M	-105.76M	-42.37M	-141.02M	16.32M

Algoma Central Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALC, the sentiment is Neutral. The current price of 18.9 is below the 20-day moving average (MA) of 19.05, above the 50-day MA of 18.36, and above the 200-day MA of 16.52, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 11.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ALC.

Algoma Central Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTL	74 Outperform	C$1.54B	14.77	9.33%	5.21%	5.53%	-21.87%
WJX	73 Outperform	C$593.57M	12.92	8.84%	5.10%	3.71%	-12.70%
ALC	72 Outperform	C$767.14M	7.56	11.43%	4.23%	8.54%	33.89%
BDT	69 Neutral	C$1.61B	17.19	21.68%	2.89%	6.26%	0.52%
CJT	67 Neutral	$1.26B	10.58	16.75%	1.67%	7.71%	3170.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CHR	56 Neutral	C$496.41M	-13.01	2.09%	0.75%	-12.42%	69.23%

Algoma Central Corporate Events

Algoma Central Reports Strong Q3 2025 Results with Fleet Expansion

Algoma Central Corporation reported strong financial results for the third quarter of 2025, with revenues increasing to $228,035,000 from $204,644,000 in 2024, and EBITDA rising to $89,739,000 from $75,696,000. The quarter was marked by the delivery of the Algoma Legacy, the company’s 100th vessel, and investments in new mini-bulkers, reflecting fleet growth and strategic partnerships. Despite market uncertainties, all business segments performed well, with notable revenue increases in the Domestic Dry-Bulk and Product Tankers segments. However, joint venture equity earnings saw a slight decrease due to increased dry-dockings and softer market conditions.

Algoma Central Announces Strategic Operational Developments

Algoma Central has announced a significant development in its operations, which is expected to influence its market positioning and stakeholder interests. The company is making strategic moves to enhance its competitive edge and operational efficiency, signaling potential growth and increased value for its stakeholders.