Algoma Central (ALC) AI Stock Analysis

• Market Cap: C$636.91M
• Dividend Yield: 4.88%
• Average Volume (3M): 6.28K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.38
• Revenue Growth: -2.42%
• EPS Growth: -4.60%
• Country: CA
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 92
• Industry: Marine Shipping
• EPS (TTM): -0.57
• Shares Outstanding: 40,567,818
• 10 Day Avg. Volume: 6,592
• 30 Day Avg. Volume: 6,280
• PEG Ratio: -1.32
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.08
• 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: 69 Neutral
• Price Target: C$17.50 ▲(10.34%Upside)

Algoma Central receives a moderately favorable score due to its robust valuation and strategic initiatives that should drive future growth. However, revenue growth challenges and cash flow issues present risks. The company's strong market position and recent corporate developments provide a positive outlook, though careful monitoring of financial metrics is needed.

Algoma Central Business Overview & Revenue Model

Company Description

Algoma Central Corporation (ALC) is a leading Canadian shipping company specializing in the transportation of bulk commodities. The company operates a fleet of vessels that traverse the Great Lakes, St. Lawrence Waterway, and coastal areas, providing essential marine transportation services. Algoma Central's core services include the transportation of dry-bulk cargoes such as iron ore, grain, and coal, catering primarily to industrial and agricultural sectors.

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 a strong equity base. However, recent declines in revenue and negative free cash flow due to high capital expenditures are concerns 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
701.43M	703.44M	721.22M	677.94M	598.87M	545.66M
	Gross Profit
358.18M	632.09M	655.17M	612.51M	531.02M	470.51M
	EBIT
68.02M	75.14M	74.53M	102.30M	93.31M	74.09M
	EBITDA
140.39M	147.21M	140.15M	186.26M	162.72M	154.53M
	Net Income Common Stockholders
85.61M	91.64M	82.87M	84.47M	63.77M	45.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.30M	3.54M	32.83M	141.97M	108.94M	103.91M
	Total Assets
1.71B	1.52B	1.34B	1.37B	1.20B	1.22B
	Total Debt
602.41M	412.59M	377.37M	402.79M	392.22M	391.15M
	Net Debt
566.11M	409.04M	344.54M	260.82M	283.27M	287.25M
	Total Liabilities
833.40M	624.11M	565.85M	639.67M	559.80M	662.48M
	Stockholders Equity
876.84M	899.85M	778.31M	726.02M	640.28M	560.62M
Cash Flow		Free Cash Flow
-80.86M	-10.22M	4.96M	62.26M	130.50M	81.87M
	Operating Cash Flow
159.52M	155.39M	124.21M	133.13M	162.38M	157.06M
	Investing Cash Flow
-265.97M	-183.75M	-127.78M	-65.87M	-16.23M	-87.19M
	Financing Cash Flow
128.68M	-5.55M	-105.76M	-42.37M	-141.02M	16.32M

Algoma Central Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.86
• 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 Positive. The current price of 15.86 is above the 20-day moving average (MA) of 15.56, above the 50-day MA of 15.16, and above the 200-day MA of 14.57, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, 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	79 Outperform	C$1.37B	27.38	8.74%	2.75%	5.24%	11.02%
MTL	77 Outperform	C$1.23B	11.44	10.81%	5.67%	3.28%	-14.21%
GDI	76 Outperform	C$774.77M	20.36	7.93%	―	1.49%	152.09%
WJX	73 Outperform	C$506.73M	12.36	8.09%	5.92%	-2.65%	-47.65%
WTE	73 Outperform	C$1.68B	15.09	15.75%	5.58%	11.00%	13.78%
ALC	69 Neutral	C$636.91M	7.42	10.37%	4.88%	-2.42%	-4.60%
Sector *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%

Algoma Central Corporate Events

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.

Algoma Central Announces 2025 Annual General Meeting and Financial Results Release

Algoma Central Corporation has announced its 2025 Annual General Meeting of Shareholders, scheduled for May 2, 2025, in Toronto, Ontario. The meeting will also coincide with the release of the company’s financial results for the first quarter of 2025, which will be reviewed during the event. Shareholders are encouraged to vote in advance, and the meeting materials are available on the company’s website.

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.