Algoma Central Corp (TSE:ALC)
TSX:ALC
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Algoma Central
(TSX:ALC)
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Rating:56Neutral
Price Target:
C$22.50
▲(18.48% Upside)
Action:DowngradedDate:05/09/26
The score is driven primarily by mixed fundamentals: strong profitability and improving earnings are offset by persistently negative free cash flow and rising debt. Technicals are moderately supportive with price above key moving averages and neutral momentum. Valuation is the largest drag due to the very high P/E, only partly cushioned by the dividend yield.
Positive Factors
Improving profitability & ROE
Algoma’s net income and profitability have trended higher since 2023 and ROE moved into the mid‑to‑high teens. That sustained earnings improvement strengthens internal funding for vessel upkeep and selective growth, supporting long‑term shareholder returns and resilience across shipping cycles.
Negative Factors
Persistent negative free cash flow
Despite positive operating cash generation, free cash flow has been negative across recent periods including the TTM, driven by heavy capex or working-capital use. Continued negative FCF erodes liquidity, limits debt reduction and may force external financing or cutbacks in maintenance/dividend policy over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability & ROE
Algoma’s net income and profitability have trended higher since 2023 and ROE moved into the mid‑to‑high teens. That sustained earnings improvement strengthens internal funding for vessel upkeep and selective growth, supporting long‑term shareholder returns and resilience across shipping cycles.
Read all positive factors
Algoma Central (ALC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$894.93M
Dividend Yield4.27%
Average Volume (3M)8.47K
Price to Earnings (P/E)96.2
Beta (1Y)0.58
Revenue Growth11.43%
EPS Growth96.22%
CountryCA
Employees1,600
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)4.15
Shares Outstanding40,567,818
10 Day Avg. Volume9,142
30 Day Avg. Volume8,473
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.76
Price to Sales (P/S)1.01
P/FCF Ratio-6.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.97
Revenue Forecast (FY)C$761.90M
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...
How the Company Makes Money
Algoma Central makes money primarily by earning freight and charter revenue from operating its vessels for customers that need cargo moved by water. Its key revenue streams typically include: (1) Time-charter and contract-of-affreightment style ar...
Algoma Central Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 781.64M | 761.06M | 703.44M | 721.22M | 677.94M | 598.87M |
| Gross Profit | 284.71M | 132.09M | 632.09M | 655.17M | 612.51M | 531.02M |
| EBITDA | 175.90M | 166.13M | 147.21M | 154.06M | 186.26M | 162.72M |
| Net Income | 168.53M | 143.03M | 91.64M | 82.87M | 84.47M | 63.77M |
Balance Sheet | ||||||
| Total Assets | 1.86B | 1.77B | 1.52B | 1.34B | 1.37B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 30.49M | 37.16M | 3.54M | 32.83M | 141.97M | 108.94M |
| Total Debt | 617.43M | 536.44M | 412.59M | 377.37M | 402.79M | 392.22M |
| Total Liabilities | 848.24M | 762.36M | 624.11M | 565.85M | 639.67M | 559.80M |
| Stockholders Equity | 1.01B | 1.01B | 899.85M | 778.31M | 726.02M | 640.28M |
Cash Flow | ||||||
| Free Cash Flow | -43.21M | -123.83M | -10.22M | 4.96M | 62.26M | 130.50M |
| Operating Cash Flow | 123.89M | 135.37M | 155.39M | 124.21M | 133.13M | 162.38M |
| Investing Cash Flow | -110.02M | -212.68M | -183.75M | -127.78M | -65.87M | -16.23M |
| Financing Cash Flow | -18.71M | 112.82M | -5.55M | -105.76M | -42.37M | -141.02M |
Algoma Central Technical Analysis
Positive
18.99
Price Trends
21.51
Negative
20.25
Positive
18.46
Positive
Market Momentum
0.12
Negative
50.99
Neutral
45.44
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 18.99 is below the 20-day moving average (MA) of 21.33, below the 50-day MA of 21.51, and above the 200-day MA of 18.46, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 45.44 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$543.00M | 18.72 | 14.89% | 0.76% | -7.22% | ― | |
65 Neutral | C$2.03B | 19.45 | 8.72% | 5.21% | 7.92% | -14.19% | |
65 Neutral | C$646.50M | 9.90 | 11.63% | 5.09% | -3.59% | 50.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$2.96B | -28.29 | 10.81% | 2.88% | -0.02% | -53.20% | |
56 Neutral | C$894.93M | 96.22 | 15.49% | 4.27% | 11.43% | 96.22% | |
52 Neutral | C$1.23B | 72.99 | 4.92% | 1.67% | -2.16% | -69.46% |
* Industrials Sector Average
TSE:ALC
Algoma Central
22.06
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47.41%
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Algoma Central Corporate Events
Business Operations and StrategyFinancial Disclosures
Algoma Central Lifts 2025 Earnings on Fleet Growth and One-Time Joint Venture Gain
Positive
Mar 5, 2026
Algoma Central Corporation reported stronger financial results for 2025, with revenue rising to $761.1 million and net earnings increasing 56% to $143.0 million, boosted by a one-time gain from the sale of an interest in a cement carrier joint ven...
Business Operations and StrategyM&A Transactions
Algoma Central to Acquire Lower Lakes Fleet, Expanding Great Lakes Dry-Bulk Operations
Positive
Feb 27, 2026
Algoma Central Corporation has signed a definitive agreement to acquire Mainstay Maritime Inc.’s three Canadian operating companies, including Lower Lakes Towing Ltd., along with six Canadian-flagged vessels serving the Great Lakes dry bulk ...
Financial DisclosuresRegulatory Filings and Compliance
Algoma Central Sets March 5 Date for Fiscal 2025 Results
Neutral
Feb 19, 2026
Algoma Central Corporation will release its financial results for the fiscal year ended December 31, 2025, before markets open on March 5, 2026. The full earnings report will be made available on the company’s website and through SEDAR for i...
Financial DisclosuresRegulatory Filings and Compliance
Algoma Central Sets March 5, 2026 Date for Fiscal 2025 Results
Neutral
Feb 19, 2026
Algoma Central Corporation will release its financial results for the year ended December 31, 2025, before markets open on March 5, 2026, with the full earnings report to be made available on its website and through SEDAR. The scheduled disclosure...
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.