Algoma Central (ALC) AI Stock Analysis

• Market Cap: C$699.79M
• Dividend Yield: 4.52%
• Average Volume (3M): 8.39K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.44
• Revenue Growth: 4.99%
• EPS Growth: 38.70%
• Country: CA
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 83
• Industry: Marine Shipping
• EPS (TTM): 0.81
• Shares Outstanding: 40,567,818
• 10 Day Avg. Volume: 13,236
• 30 Day Avg. Volume: 8,392
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: C$18.00
• Price Target Upside: 4.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: C$18.00 ▲(4.35% Upside)

Algoma Central's strong corporate events and undervalued valuation are key strengths, supported by solid technical indicators. However, concerns about negative revenue growth and free cash flow impact the financial performance score.

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 primarily through the transportation services it offers via its fleet of vessels. The company's key revenue streams include freight charges for the movement of dry bulk and liquid bulk cargoes across the Great Lakes and beyond. Significant partnerships with industrial clients in sectors like steel, agriculture, and energy ensure a steady demand for Algoma's shipping services. Additionally, the company may engage in long-term contracts and spot market opportunities, which contribute to its earnings. Algoma's ability to maintain a modern and efficient fleet further enhances its profitability by optimizing fuel efficiency and operational costs.

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: 17.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 17.25 is above the 20-day moving average (MA) of 16.50, above the 50-day MA of 16.28, and above the 200-day MA of 15.16, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 72.43 is Negative, neither overbought nor oversold. The STOCH value of 99.02 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$1.50B	27.03	9.45%	2.57%	3.06%	19.32%
MTL	75 Outperform	C$1.18B	11.84	9.99%	6.19%	5.52%	-18.01%
ALC	73 Outperform	C$699.79M	6.93	12.00%	4.52%	4.99%	38.70%
WJX	73 Outperform	C$494.39M	13.80	6.93%	6.13%	2.19%	-48.80%
WTE	67 Neutral	C$1.62B	15.82	14.38%	5.71%	4.19%	-1.65%
GDI	66 Neutral	C$621.79M	17.73	7.32%	―	-0.87%	117.78%
Sector *	63 Neutral	$10.80B	16.80	6.58%	2.06%	2.47%	-15.79%

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.