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Andlauer Healthcare Group (TSE:AND)
TSX:AND

Andlauer Healthcare Group (AND) AI Stock Analysis

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Andlauer Healthcare Group

(TSX:AND)

64Neutral
Andlauer Healthcare Group's overall stock score is driven by its strong financial performance and positive corporate events. However, the technical analysis suggests caution due to overbought signals, and the stock appears overvalued, which tempers the overall score. The UPS acquisition provides a significant premium, enhancing shareholder value.
Positive Factors
Geographical Performance
Canada ground offsets ongoing U.S. challenges, indicating some geographical areas are performing well, potentially supporting stock value.
Strategic Positioning
Well-positioned to capitalize on a period suggests strategic opportunities could positively influence stock performance.
Negative Factors
Earnings
Q1/25 EPS miss highlights earnings underperformance, which could lead to negative sentiment around the stock.
Financial Performance
Q1/25 results miss on elevated retail bad debt expenses, indicating financial struggles that could negatively impact stock.
Seasonal Impact
Seasonally weak quarter impacted results, suggesting that seasonal factors might be a challenge for stock performance.

Andlauer Healthcare Group (AND) vs. S&P 500 (SPY)

Andlauer Healthcare Group Business Overview & Revenue Model

Company DescriptionAndlauer Healthcare Group (AND) is a leading Canadian company that specializes in providing customized third-party logistics (3PL) and specialized transportation solutions for the healthcare sector. The company operates across several sectors, including pharmaceuticals, biologics, and medical devices, offering a range of services that include transportation, warehousing, and distribution tailored to meet the stringent regulations and requirements of the healthcare industry.
How the Company Makes MoneyAndlauer Healthcare Group makes money primarily through its comprehensive suite of logistics and transportation services designed specifically for the healthcare industry. Key revenue streams include specialized transportation services, which involve the secure and compliant movement of healthcare products, and logistics and distribution services, which encompass warehousing, inventory management, and distribution solutions. The company leverages strategic partnerships and long-term contracts with healthcare manufacturers and distributors, ensuring a steady flow of revenue. Their expertise in adhering to regulatory standards and providing reliable, timely delivery services further enhances their competitive edge in the industry.

Andlauer Healthcare Group Financial Statement Overview

Summary
Andlauer Healthcare Group shows strong financial health with efficient operations and a solid cash flow position. The income statement and cash flow metrics are commendable, though the balance sheet suggests moderate leverage which should be monitored.
Income Statement
78
Positive
The company displays strong profitability with a consistently positive gross profit margin. The net profit margin shows moderate stability, but there was a slight decline in revenue growth rate recently, indicating potential challenges in sustaining top-line growth. EBIT and EBITDA margins remain healthy, suggesting efficient operational management.
Balance Sheet
70
Positive
The balance sheet reveals a solid equity base with a moderate debt-to-equity ratio, indicating manageable leverage. Return on Equity (ROE) is positive, demonstrating effective use of equity to generate profits. However, the equity ratio reflects a moderate reliance on debt financing, which could pose risks if market conditions change.
Cash Flow
82
Very Positive
The company exhibits robust cash flow management with a healthy operating cash flow to net income ratio, and significant free cash flow generation. Free cash flow to net income ratio is strong, but the growth rate of free cash flow has seen some variation, suggesting potential fluctuations in cash availability for reinvestment and debt servicing.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
650.48M647.95M648.42M440.12M314.34M
Gross Profit
147.20M147.48M158.85M110.75M79.55M
EBIT
93.96M96.05M110.34M73.70M50.94M
EBITDA
166.72M166.96M175.07M154.91M79.20M
Net Income Common Stockholders
64.47M66.14M76.28M89.95M37.71M
Balance SheetCash, Cash Equivalents and Short-Term Investments
40.48M59.74M65.86M24.99M30.15M
Total Assets
696.92M682.43M712.46M644.17M252.80M
Total Debt
181.21M127.90M163.29M187.25M129.61M
Net Debt
140.73M68.16M97.43M162.26M99.47M
Total Liabilities
265.78M212.86M271.47M292.05M158.47M
Stockholders Equity
431.13M469.57M440.99M352.12M94.33M
Cash FlowFree Cash Flow
104.02M78.83M109.17M74.42M45.56M
Operating Cash Flow
124.40M104.42M137.13M84.09M51.00M
Investing Cash Flow
-18.86M-23.85M-45.56M-183.38M-20.37M
Financing Cash Flow
-126.24M-86.18M-51.59M93.89M-19.20M

Andlauer Healthcare Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price53.50
Price Trends
50DMA
42.89
Positive
100DMA
43.76
Positive
200DMA
42.01
Positive
Market Momentum
MACD
3.46
Negative
RSI
82.04
Negative
STOCH
69.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AND, the sentiment is Positive. The current price of 53.5 is above the 20-day moving average (MA) of 48.53, above the 50-day MA of 42.89, and above the 200-day MA of 42.01, indicating a bullish trend. The MACD of 3.46 indicates Negative momentum. The RSI at 82.04 is Negative, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AND.

Andlauer Healthcare Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSCOV
79
Outperform
C$72.11M14.2719.57%38.28%
TSDR
70
Outperform
$339.51M2.4433.87%2.39%-29.54%667.77%
TSGUD
65
Neutral
$567.85M51.491.41%12.21%
TSAND
64
Neutral
$2.10B30.4315.10%0.82%1.72%13.48%
TSBHC
54
Neutral
$2.42B3.60%11.87%91.09%
52
Neutral
$5.15B3.56-42.52%2.83%14.56%-0.50%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AND
Andlauer Healthcare Group
53.50
15.05
39.13%
TSE:DR
Medical Facilities
15.20
3.79
33.24%
TSE:BHC
Bausch Health Companies
6.38
-3.36
-34.50%
TSE:GUD
Knight Therapeutics
5.71
-0.34
-5.62%
TSE:COV
Covalon Technologies
2.63
1.56
145.79%

Andlauer Healthcare Group Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q3-2024)
|
% Change Since: 0.30%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in Canadian operations and improved EBITDA margins, although challenges in the U.S. transportation segment and a decline in packaging revenue persisted. The company remains financially strong and committed to shareholder value initiatives, signaling a cautiously optimistic outlook.
Q3-2024 Updates
Positive Updates
Strong Canadian Transportation Growth
Canadian ground transportation revenue excluding fuel increased by 8.5%, dedicated and last mile was up 10.2%, and air freight forwarding grew by 5.1% compared to Q3 last year.
Improved EBITDA Margin
Consolidated EBITDA margin reached 25.9% for the quarter, up from 24.9% in Q3 last year, marking the strongest quarterly margin in 2024.
Healthcare Logistics Revenue Growth
Healthcare Logistics segment revenue totaled $44.1 million, an increase of 4.7% compared to Q3 last year, with logistics and distribution revenue increasing by 6.7%.
Strong Financial Position
The company maintained a very conservative net leverage ratio of 0.74x with cash and cash equivalents of $36 million and working capital of $47 million at quarter end.
Continued Shareholder Value Initiatives
The company raised its quarterly dividend to $0.11 per share and continued share buyback activities.
Negative Updates
U.S. Transportation Challenges
Continued challenging operating conditions in the U.S. truckload business led to a $1.5 million lower EBITDA in the quarter compared to Q3 last year.
Decline in Packaging Revenue
Packaging revenue declined by 16.7% due to lower volumes.
Lower Contributions from U.S.-based Businesses
Lower contributions from Boyle Transportation and Skelton USA affected overall performance.
Company Guidance
During the Andlauer Healthcare Group's Q3 2024 earnings call, the company provided detailed guidance on its financial performance and strategic focus. The Canadian Grand transportation revenue, excluding fuel, experienced an increase of approximately 8.5% compared to the previous year, while dedicated and last-mile delivery grew by 10.2%, and air freight forwarding rose by 5.1%. The Logistics and Distribution segment saw a 6.8% year-over-year increase in revenue. The consolidated EBITDA margin improved to 25.9%, up from 24.9% in Q3 2023. However, the U.S.-based truckload business faced challenges, with EBITDA attributable to Boyle Transportation and Skelton USA being $1.5 million lower compared to the previous year. Despite these challenges, the company remains focused on improving its specialized U.S. truckload operations and is optimistic about growth opportunities in the Canadian healthcare sector, with plans for organic growth and potential acquisitions. The balance sheet remains strong, with a net leverage ratio of 0.74x and cash and cash equivalents of $36 million.

Andlauer Healthcare Group Corporate Events

Executive/Board ChangesShareholder Meetings
Andlauer Healthcare Group Confirms Director Elections and Auditor Appointment
Positive
May 2, 2025

At its annual shareholders’ meeting, Andlauer Healthcare Group announced the election of all nominated directors and the appointment of KPMG LLP as auditors for the 2025 fiscal year. This reinforces AHG’s governance and operational continuity, potentially strengthening its market position and stakeholder confidence.

Spark’s Take on TSE:AND Stock

According to Spark, TipRanks’ AI Analyst, TSE:AND is a Neutral.

Andlauer Healthcare Group shows strong financial performance, backed by solid cash flow and operational efficiency. Significant corporate events, including the UPS acquisition, offer promising growth potential. However, technical analysis indicates caution due to overbought signals, and the stock appears overvalued, which tempers the overall score.

To see Spark’s full report on TSE:AND stock, click here.

M&A TransactionsFinancial Disclosures
Andlauer Healthcare Group Announces Q1 2025 Results and UPS Acquisition
Positive
May 1, 2025

Andlauer Healthcare Group reported a 3.1% increase in revenue for Q1 2025, driven by organic growth in its Canadian operations, despite reduced contributions from its US-based truckload businesses. The company entered a joint venture with NowPac to enhance its packaging services and announced a definitive agreement for acquisition by UPS in an all-cash transaction valued at approximately $2.2 billion, which is expected to provide immediate value to shareholders.

Spark’s Take on TSE:AND Stock

According to Spark, TipRanks’ AI Analyst, TSE:AND is a Outperform.

Andlauer Healthcare Group scores well due to strong financial performance, particularly in cash flow management and profitability. The recent corporate events further bolster its position by highlighting growth opportunities and shareholder value. However, technical analysis is moderate with no strong signals, and the valuation suggests the stock may be overvalued, which tempers the overall score.

To see Spark’s full report on TSE:AND stock, click here.

M&A Transactions
UPS to Acquire Andlauer Healthcare Group in C$2.2 Billion Deal
Positive
Apr 24, 2025

Andlauer Healthcare Group (AHG) is set to be acquired by UPS in an all-cash transaction valued at approximately C$2.2 billion, offering AHG shareholders a significant premium over recent trading prices. This acquisition will integrate AHG into the UPS Healthcare global network, enhancing UPS’s capabilities in providing complex end-to-end solutions for healthcare logistics. The transaction is supported by AHG’s leadership and is expected to strengthen UPS’s presence in Canada, while providing immediate value to AHG’s shareholders and ensuring continued growth opportunities for AHG employees.

Spark’s Take on TSE:AND Stock

According to Spark, TipRanks’ AI Analyst, TSE:AND is a Outperform.

Andlauer Healthcare Group scores well due to strong financial performance, particularly in cash flow management and profitability. The recent corporate events further bolster its position by highlighting growth opportunities and shareholder value. However, technical analysis is moderate with no strong signals, and the valuation suggests the stock may be overvalued, which tempers the overall score.

To see Spark’s full report on TSE:AND stock, click here.

Dividends
Andlauer Healthcare Group Declares First Quarter Dividend
Positive
Mar 14, 2025

Andlauer Healthcare Group Inc. announced a first quarter dividend of $0.12 per share, payable on April 15, 2025, to shareholders of record as of March 31, 2025. This announcement underscores the company’s financial health and commitment to returning value to its shareholders, reinforcing its strong position in the healthcare logistics and transportation industry.

M&A TransactionsBusiness Operations and Strategy
Andlauer Healthcare Group Forms Joint Venture with NowPac
Positive
Mar 3, 2025

Andlauer Healthcare Group has announced a joint venture between its packaging subsidiary, Nova Pack, and NowPac, a Toronto-based company specializing in contract packaging services for the healthcare sector. This collaboration aims to leverage technology, automation, and AHG’s extensive healthcare supply chain network to offer enhanced contract packaging solutions. The joint venture, equally owned by AHG’s Accuristix and NowPac’s owners, is expected to boost AHG’s cash flow and earnings per share immediately. By combining NowPac’s expertise in packaging with AHG’s logistics capabilities, the partnership is set to enhance efficiency and scalability in healthcare supply chain solutions, providing significant growth opportunities and value for customers.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Andlauer Healthcare Group Reports Stable 2024 Financial Results Amid Market Challenges
Neutral
Feb 26, 2025

Andlauer Healthcare Group reported its financial results for Q4 2024 and the full fiscal year, showing slight declines in revenue and operating income compared to the previous year. Despite facing challenges in its US-based truckload businesses, the company experienced growth in its Canadian transportation network and packaging solutions. The company’s low debt levels and strong cash generation provide financial flexibility for future growth opportunities, including share buybacks and capital allocation to enhance value for customers and shareholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.