Algoma Central (ALC) AI Stock Analysis

• Market Cap: C$710.75M
• Dividend Yield: 4.3%
• Average Volume (3M): 8.47K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.45
• 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: 77 Outperform
• Price Target: C$21.00 ▲(11.23% Upside)

Algoma Central's stock is supported by strong technical indicators and attractive valuation, making it appealing for growth and income investors. However, financial performance is mixed due to leverage and cash flow concerns, which slightly temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Algoma Central's services, enhancing its market position and long-term profitability.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, providing stability and potential for growth in various economic conditions.

Stable Margins

Stable profit margins indicate effective cost management and pricing power, supporting sustainable profitability over the long term.

Negative Factors

Rising Debt Levels

Rising debt levels can increase financial risk and limit flexibility, potentially impacting future investment and growth opportunities.

Negative Free Cash Flow

Negative free cash flow suggests cash management issues, which could hinder the company's ability to fund operations and growth initiatives.

Decline in Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect long-term profitability if not addressed.

Algoma Central Business Overview & Revenue Model

Company Description

Algoma Central Corporation owns and operates a fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway in Canada. The company operates in six segments: Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, Global Short Sea Shipping, Investment Properties, and Corporate. It operates self-unloading bulk carriers; and owns and manages tankers for the transportation of liquid petroleum products throughout the Great Lakes, the St. Lawrence waterway, and the Atlantic Canada regions. The company also owns eight ocean-going self-unloading vessels that carry coal for power generation, crushed aggregates for construction, gypsum for wallboard manufacturing, iron ore for the steel industry, and salt for winter road safety. In addition, it provides management services to third parties, as well as owns a shopping center. It serves iron and steel, aggregate, cement and building material, and salt producers; agricultural product distributors; and oil refiners, wholesale distributors, and large consumers of petroleum products. The company was formerly known as Algoma Central Railway and changed its name to Algoma Central Corporation in 1990. Algoma Central Corporation was incorporated in 1899 and is headquartered in St. Catharines, Canada.

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 shows strong revenue growth and profitability, but increasing leverage and negative free cash flow in TTM are areas of concern. The company needs to focus on managing its debt levels and improving cash flow to ensure long-term financial stability.

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	732.18M	703.44M	721.22M	677.94M	598.87M	545.66M
Gross Profit	523.63M	632.09M	655.17M	612.51M	531.02M	470.51M
EBITDA	165.04M	147.21M	154.06M	186.26M	162.72M	154.53M
Net Income	101.03M	91.64M	82.87M	84.47M	63.77M	45.85M
Balance Sheet
Total Assets	1.72B	1.52B	1.34B	1.37B	1.20B	1.22B
Cash, Cash Equivalents and Short-Term Investments	43.04M	3.54M	32.83M	141.97M	108.94M	103.91M
Total Debt	612.21M	412.59M	377.37M	402.79M	392.22M	391.15M
Total Liabilities	840.89M	624.11M	565.85M	639.67M	559.80M	662.48M
Stockholders Equity	881.63M	899.85M	778.31M	726.02M	640.28M	560.62M
Cash Flow
Free Cash Flow	-88.23M	-10.22M	4.96M	62.26M	130.50M	81.87M
Operating Cash Flow	154.02M	155.39M	124.21M	133.13M	162.38M	157.06M
Investing Cash Flow	-256.03M	-183.75M	-127.78M	-65.87M	-16.23M	-87.19M
Financing Cash Flow	114.68M	-5.55M	-105.76M	-42.37M	-141.02M	16.32M

Algoma Central Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 18.88 is above the 20-day moving average (MA) of 18.28, above the 50-day MA of 17.66, and above the 200-day MA of 16.17, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 64.93 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 is Negative, 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
SIS	78 Outperform	C$1.55B	27.89	10.22%	2.61%	3.93%	33.44%
MTL	78 Outperform	C$1.22B	12.83	9.33%	5.76%	5.53%	-21.87%
ALC	77 Outperform	C$710.75M	7.04	11.43%	4.30%	8.54%	33.89%
WJX	73 Outperform	C$541.89M	11.76	8.84%	5.11%	3.71%	-12.70%
WTE	69 Neutral	C$1.56B	15.19	11.46%	5.85%	-4.67%	-22.54%
GDI	67 Neutral	C$700.56M	20.01	8.55%	―	-2.83%	179.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Algoma Central Corporate Events

Algoma Central Reports Strong Q2 2025 Financial Results and Strategic Expansion

Algoma Central Corporation reported strong financial results for the second quarter of 2025, with revenues increasing to $211.7 million and net earnings rising to $32.9 million compared to the previous year. The company expanded its fleet with four new vessels, reinforcing its market position and resilience amid global uncertainties. A strategic transaction involving the sale of a controlling interest in its cement assets is expected to enhance its global reach. The company’s diverse operations, including domestic dry-bulk and product tankers, showed improved performance due to higher volumes, increased freight rates, and fewer dry-dockings.

Algoma Central to Announce Q2 2025 Financial Results

Algoma Central Corporation announced it will release its financial results for the second quarter of 2025 on August 6, 2025. This announcement highlights the company’s ongoing commitment to transparency and could impact its market positioning by providing stakeholders with insights into its operational performance.

NovaAlgoma Cement Carriers Partners with DP World for Strategic Expansion

NovaAlgoma Cement Carriers, a joint venture between Algoma Central Corporation and Nova Marine Holdings, has entered into an agreement with DP World’s subsidiary P&O Maritime Logistics, allowing the latter to acquire a 51% controlling stake in NovaAlgoma’s cement assets. This strategic partnership is expected to expand NovaAlgoma’s geographic reach and enhance its ability to serve global logistics demands, particularly in the construction industry, while maintaining current operational management.