Algoma Central (ALC) AI Stock Analysis

• Market Cap: C$660.04M
• Dividend Yield: 4.79%
• Average Volume (3M): 5.91K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.42
• Revenue Growth: -2.42%
• EPS Growth: -4.60%
• Country: CA
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 94
• Industry: Marine Shipping
• EPS (TTM): -0.57
• Shares Outstanding: 40,567,818
• 10 Day Avg. Volume: 5,712
• 30 Day Avg. Volume: 5,913
• PEG Ratio: -1.33
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.15
• 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

• Rating: 75 Outperform
• Price Target: C$18.00 ▲(10.63%Upside)

Algoma Central's strong corporate events and valuation metrics significantly contribute to the stock's attractiveness. The company's strategic expansions and low P/E ratio provide growth potential and value. However, concerns about declining revenue and negative free cash flow slightly offset the positive outlook.

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 Corporation generates revenue through its marine transportation services. The primary revenue streams include freight rates charged for the transportation of dry-bulk commodities across its network of routes in the Great Lakes and St. Lawrence Waterway. The company also engages in long-term contracts and spot market opportunities to optimize fleet utilization and maximize earnings. Strategic partnerships with major industrial and agricultural clients, as well as investments in fleet modernization and efficiency, contribute significantly to its profitability. Algoma Central's financial performance is influenced by factors such as commodity demand, fuel prices, and regulatory changes impacting the shipping industry.

Algoma Central Financial Statement Overview

Summary

Algoma Central demonstrates solid profitability and a stable financial position, with strong cash generation capabilities and a balanced capital structure. However, recent declines in revenue and negative free cash flow are areas of concern that need addressing.

Income Statement

Algoma Central's income statement shows stable revenue with a slight decline in recent periods. The TTM data indicates a gross profit margin of 51.05% and a net profit margin of 12.21%, reflecting healthy profitability. However, the revenue growth rate is negative due to a slight decline from the previous year, which is a concern. EBIT and EBITDA margins are strong, indicating efficient operational performance.

Balance Sheet

The balance sheet indicates a solid equity base with a debt-to-equity ratio of 0.69, suggesting manageable leverage levels. The return on equity is 9.76%, which is reasonable but could be improved. The equity ratio of 51.28% shows a healthy capital structure. However, the increase in total debt over the period is a potential risk if not managed properly.

Cash Flow

Cash flow analysis highlights negative free cash flow in the TTM period, primarily due to high capital expenditures. The operating cash flow to net income ratio is 1.86, indicating strong cash generation relative to net income. However, the free cash flow trajectory and investment in capital expenditures might need careful monitoring to ensure future liquidity.

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	655.17M	612.51M	531.02M	470.51M
EBITDA	147.21M	140.15M	186.26M	162.72M	154.53M
Net Income	91.64M	82.87M	84.47M	63.77M	45.85M
Balance Sheet
Total Assets	1.52B	1.34B	1.37B	1.20B	1.22B
Cash, Cash Equivalents and Short-Term Investments	3.54M	32.83M	141.97M	108.94M	103.91M
Total Debt	412.59M	377.37M	402.79M	392.22M	391.15M
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: 16.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 16.27 is above the 20-day moving average (MA) of 16.23, above the 50-day MA of 16.09, and above the 200-day MA of 15.01, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.17 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
SIS	78 Outperform	C$1.43B	28.52	8.74%	2.68%	5.24%	11.02%
ALC	75 Outperform	C$660.04M	7.68	10.37%	4.79%	-2.42%	-4.60%
GDI	74 Outperform	C$771.65M	20.27	7.93%	―	1.49%	152.09%
MTL	74 Outperform	C$1.22B	11.40	10.81%	6.25%	3.28%	-14.21%
WJX	73 Outperform	C$505.43M	12.33	8.09%	5.99%	-2.65%	-47.65%
Sector *	71 Outperform	¥263.98B	13.78	8.47%	2.91%	6.34%	13.00%
WTE	69 Neutral	C$1.77B	15.89	15.75%	5.24%	11.00%	13.78%

Algoma Central Corporate Events

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.

Algoma Central Unveils New Strategic Initiative

Algoma Central has announced a significant development in its operations, which is expected to impact its industry positioning and stakeholder interests. The company has introduced a new initiative aimed at enhancing its operational efficiency and market competitiveness, signaling a strategic move to strengthen its presence in the industry.

Algoma Central Corporation Reports First Quarter 2025 Financial Results Amid Fleet Expansion

Algoma Central Corporation reported a net loss of $23,280 for the first quarter of 2025, compared to a net loss of $17,253 in the same period in 2024, amid global economic uncertainties. The company emphasized its commitment to fleet improvements and strategic growth, highlighted by the delivery of four new vessels within the quarter. Despite a decline in revenues across several segments due to increased dry-docking, Algoma’s core performance remained strong, with stable equity earnings in the Global Short Sea Shipping segment. The company’s diversified portfolio and ongoing investments in fleet enhancements are expected to support its long-term vision and operational resilience.

Algoma Central and Irving Oil Expand Fleet with New Tanker Vessels

Algoma Central Corporation and Irving Oil have introduced the first of two new product tankers, the Algoma East Coast, into Saint John Harbour, with the Algoma Acadian to follow later this spring. These vessels, representing a $127 million investment, will enhance Algoma’s operational capabilities and expand its market reach, while supporting Irving Oil’s energy distribution in Atlantic Canada and the U.S. East Coast. This strategic collaboration underscores both companies’ commitment to energy security and operational excellence, with the vessels designed to meet unique operational requirements and optimize energy product distribution.