Andlauer Healthcare Group (AND) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: 0.9%
• Average Volume (3M): 99.75K
• Price to Earnings (P/E): 30.4
• Beta (1Y): 0.60
• Revenue Growth: 1.72%
• EPS Growth: 13.48%
• Country: CA
• Employees: 2,380
• Sector: Healthcare
• Sector Strength: 44
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.38
• Shares Outstanding: 18,342,255
• 10 Day Avg. Volume: 67,430
• 30 Day Avg. Volume: 99,750
• PEG Ratio: 3.50
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.76
• 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: $55.99
• Price Target Upside: 4.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: C$59.00 ▲(10.49%Upside)

Andlauer Healthcare Group's strong financial performance and the positive impact of the UPS acquisition drive the stock's score. While technical indicators suggest a neutral trend, the overvaluation concerns temper the overall outlook.

Positive Factors

Geographical Performance

Strong performance in Canada is helping to offset ongoing challenges in the U.S. market.

Strategic Positioning

The company is well-positioned to capitalize on a period of favorable market conditions.

Negative Factors

Earnings

The company reported a Q1/25 EPS miss, impacted by a seasonally weak quarter.

Financial Performance

Q1/25 results missed expectations due to elevated retail bad debt expenses.

Market Challenges

The U.S. market presents challenges, making it a steeper hill to climb for the company.

Andlauer Healthcare Group Business Overview & Revenue Model

Company Description

Andlauer Healthcare Group Inc., a supply chain management company, provides a platform of customized third-party logistics (3PL) and specialized transportation solutions for the healthcare sector in Canada and the United States. The company operates in two segments, Specialized Transportation and Healthcare Logistics. It provides logistics and distribution services, including client and customer integration, transportation and inventory management, distribution and fulfillment, and warehousing solutions; and packaging services, such as co-packing and re-packing, assembly, and custom work services. The company also offers temperature-controlled services; air freight forwarding services; dedicated and last mile delivery services; and ground transportation services, including less-than-truckload, pick-up and delivery, and courier services, as well as carrier options. It provides services to healthcare manufacturers, wholesalers, distributors, 3PL providers, and others through a platform of technology-enabled supply chain solutions for a range of products, including pharmaceuticals, vaccines, biologics, narcotics, precursors, active pharmaceutical ingredients, over-the-counter, cosmetics, health and beauty aids, and medical devices, as well as natural, animal, and consumer health. The company was founded in 1991 and is headquartered in Vaughan, Canada. Andlauer Healthcare Group Inc. opeates as a subsidiary of Andlauer Management Group Inc.

How the Company Makes Money

Andlauer 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 demonstrates strong financial health with consistent revenue growth, robust profitability, and a sound balance sheet. Despite an increase in debt levels, the company efficiently converts income into cash, supporting its operations and growth.

Income Statement

The company has shown consistent revenue growth with the TTM revenue at CAD 655.43 million, up from CAD 650.48 million in the previous year. Gross profit margin remains stable at approximately 22.9% in the TTM. The net profit margin has improved to 10.64% in the TTM, reflecting stronger profitability. EBIT and EBITDA margins are robust at 14.38% and 26.06% respectively, indicating efficient operational management. The overall trajectory is positive with healthy profitability metrics.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41 in the TTM, indicating moderate leverage. Return on Equity (ROE) is healthy at 15.72%, showcasing effective utilization of equity. The equity ratio stands at 62.31%, suggesting a strong capital structure with adequate equity to cover liabilities. The company's balance sheet is solid, although the increasing debt levels in the TTM warrant monitoring.

Cash Flow

The company exhibits strong cash flow generation with TTM operating cash flow of CAD 124.24 million and free cash flow of CAD 105.79 million. Free cash flow growth is modest at 1.7% compared to the previous year, but the operating cash flow to net income ratio is a robust 1.78, indicating excellent cash conversion efficiency. The cash flow position is solid, providing flexibility for future investments or debt repayment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	650.48M	647.95M	648.42M	440.12M	314.34M
Gross Profit	147.20M	147.48M	158.85M	110.75M	79.55M
EBITDA	166.72M	166.96M	175.07M	154.91M	79.20M
Net Income	64.47M	66.14M	76.28M	89.95M	37.71M
Balance Sheet
Total Assets	696.92M	682.43M	712.46M	644.17M	252.80M
Cash, Cash Equivalents and Short-Term Investments	40.48M	59.74M	65.86M	24.99M	30.15M
Total Debt	181.21M	127.90M	163.29M	187.25M	129.61M
Total Liabilities	265.78M	212.86M	271.47M	292.05M	158.47M
Stockholders Equity	431.13M	469.57M	440.99M	352.12M	94.33M
Cash Flow
Free Cash Flow	104.02M	78.83M	109.17M	74.42M	45.56M
Operating Cash Flow	124.40M	104.42M	137.13M	84.09M	51.00M
Investing Cash Flow	-18.86M	-23.85M	-45.56M	-183.38M	-20.37M
Financing Cash Flow	-126.24M	-86.18M	-51.59M	93.89M	-19.20M

Andlauer Healthcare Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 53.4 is above the 20-day moving average (MA) of 52.71, above the 50-day MA of 52.94, and above the 200-day MA of 45.25, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 63.70 is Neutral, neither overbought nor oversold. The STOCH value of 80.41 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AND	76 Outperform	$2.10B	30.41	15.10%	0.90%	1.72%	13.48%
Sector *	65 Neutral	€6.37B	19.62	-1.30%	2.25%	-0.16%	-45.39%
TTNM	60 Neutral	C$65.87M	―	-25.37%	5.41%	4.74%	-478.84%
CGJTF	―	$1.17B	13.38	15.65%	1.36%	―	―

Andlauer Healthcare Group Corporate Events

Andlauer Healthcare Group’s Acquisition by UPS Affiliate Approved

Andlauer Healthcare Group has received a final order from the Ontario Superior Court of Justice approving its acquisition by a UPS affiliate for C$55.00 per share. The transaction is expected to conclude in the latter half of the year, pending approval under the Canadian Competition Act and fulfillment of customary conditions. This acquisition marks a significant development for AHG, potentially enhancing its market presence and operational capabilities within the healthcare supply chain sector.

The most recent analyst rating on (TSE:AND) stock is a Hold with a C$42.00 price target. To see the full list of analyst forecasts on Andlauer Healthcare Group stock, see the TSE:AND Stock Forecast page.

Andlauer Healthcare Group Secures Shareholder Approval for UPS Acquisition

Andlauer Healthcare Group has received shareholder approval for its acquisition by UPS at a rate of C$55.00 per share, following an overwhelmingly favorable vote at a special meeting. The transaction, which is pending final court approval and regulatory clearances, signifies a strategic move that could enhance AHG’s market positioning and operational capabilities within the healthcare logistics industry.

The most recent analyst rating on (TSE:AND) stock is a Hold with a C$45.00 price target. To see the full list of analyst forecasts on Andlauer Healthcare Group stock, see the TSE:AND Stock Forecast page.

Andlauer Healthcare Group Declares Q2 Dividend

Andlauer Healthcare Group Inc. has announced a second quarter dividend of $0.12 per share for both subordinate and multiple voting shares, payable on July 15, 2025. This announcement reflects the company’s continued commitment to providing shareholder value and may enhance its attractiveness to investors, reinforcing its position in the healthcare logistics and transportation industry.

The most recent analyst rating on (TSE:AND) stock is a Hold with a C$44.50 price target. To see the full list of analyst forecasts on Andlauer Healthcare Group stock, see the TSE:AND Stock Forecast page.

Andlauer Healthcare Group Announces Shareholder Meeting for UPS Acquisition

Andlauer Healthcare Group has announced the availability of its management information circular related to a special meeting where shareholders will vote on a resolution for UPS to acquire all outstanding shares at C$55.00 per share. The acquisition plan has strong support from major shareholders, representing approximately 82.4% of the total voting power. The Ontario Superior Court of Justice has issued an interim order authorizing the meeting, and the final arrangement is subject to court approval and regulatory clearances. A potential Canada Post labor disruption may delay the delivery of meeting materials to some Canadian shareholders, but electronic access is available.

The most recent analyst rating on (TSE:AND) stock is a Hold with a C$42.00 price target. To see the full list of analyst forecasts on Andlauer Healthcare Group stock, see the TSE:AND Stock Forecast page.

Andlauer Healthcare Group Confirms Director Elections and Auditor Appointment

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.

Andlauer Healthcare Group Announces Q1 2025 Results and UPS Acquisition

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.

UPS to Acquire Andlauer Healthcare Group in C$2.2 Billion Deal

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.