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Algoma Central Corp (TSE:ALC)
TSX:ALC
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Algoma Central (ALC) AI Stock Analysis

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TSE:ALC

Algoma Central

(TSX:ALC)

Rating:75Outperform
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 (ALC) vs. iShares MSCI Canada ETF (EWC)

Algoma Central Business Overview & Revenue Model

Company DescriptionAlgoma 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 MoneyAlgoma 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
70
Positive
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
65
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue703.44M721.22M677.94M598.87M545.66M
Gross Profit632.09M655.17M612.51M531.02M470.51M
EBITDA147.21M140.15M186.26M162.72M154.53M
Net Income91.64M82.87M84.47M63.77M45.85M
Balance Sheet
Total Assets1.52B1.34B1.37B1.20B1.22B
Cash, Cash Equivalents and Short-Term Investments3.54M32.83M141.97M108.94M103.91M
Total Debt412.59M377.37M402.79M392.22M391.15M
Total Liabilities624.11M565.85M639.67M559.80M662.48M
Stockholders Equity899.85M778.31M726.02M640.28M560.62M
Cash Flow
Free Cash Flow-10.22M4.96M62.26M130.50M81.87M
Operating Cash Flow155.39M124.21M133.13M162.38M157.06M
Investing Cash Flow-183.75M-127.78M-65.87M-16.23M-87.19M
Financing Cash Flow-5.55M-105.76M-42.37M-141.02M16.32M

Algoma Central Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.27
Price Trends
50DMA
16.09
Positive
100DMA
15.51
Positive
200DMA
15.01
Positive
Market Momentum
MACD
0.10
Negative
RSI
53.48
Neutral
STOCH
79.17
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

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$1.43B28.528.74%2.68%5.24%11.02%
75
Outperform
C$660.04M7.6810.37%4.79%-2.42%-4.60%
74
Outperform
C$771.65M20.277.93%1.49%152.09%
74
Outperform
C$1.22B11.4010.81%6.25%3.28%-14.21%
73
Outperform
C$505.43M12.338.09%5.99%-2.65%-47.65%
71
Outperform
¥263.98B13.788.47%2.91%6.34%13.00%
69
Neutral
C$1.77B15.8915.75%5.24%11.00%13.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ALC
Algoma Central
16.45
2.43
17.33%
TSE:GDI
GDI Integrated
32.75
-2.69
-7.59%
TSE:MTL
Mullen Group
14.00
0.15
1.08%
TSE:SIS
Savaria
19.73
1.29
7.00%
TSE:WJX
Wajax Corporation
23.30
-1.75
-6.99%
TSE:WTE
Westshore Terminals
28.60
6.81
31.25%

Algoma Central Corporate Events

M&A TransactionsBusiness Operations and Strategy
NovaAlgoma Cement Carriers Partners with DP World for Strategic Expansion
Positive
Jul 3, 2025

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.

Business Operations and Strategy
Algoma Central Unveils New Strategic Initiative
Positive
May 5, 2025

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.

Business Operations and StrategyFinancial Disclosures
Algoma Central Corporation Reports First Quarter 2025 Financial Results Amid Fleet Expansion
Neutral
May 2, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
Algoma Central and Irving Oil Expand Fleet with New Tanker Vessels
Positive
Apr 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025