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AutoCanada

TSX:ACQ
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ACQ
TSX
CA$296M
Market Cap
  1. Home
  2. CA
  3. Retail
Company description

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick. The last earnings update was 6 days ago. More info.


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  • AutoCanada has significant price volatility in the past 3 months.
ACQ Share Price and Events
7 Day Returns
29.4%
TSX:ACQ
-0.7%
CA Specialty Retail
1.1%
CA Market
1 Year Returns
-2.7%
TSX:ACQ
-20.7%
CA Specialty Retail
6.9%
CA Market
ACQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AutoCanada (ACQ) 29.4% 31.7% 15% -2.7% -48.8% -81.5%
CA Specialty Retail -0.7% -2.9% -6.6% -20.7% -28.7% -39.4%
CA Market 1.1% 2.6% 4.6% 6.9% 8% 8.6%
1 Year Return vs Industry and Market
  • ACQ outperformed the Specialty Retail industry which returned -20.7% over the past year.
  • ACQ underperformed the Market in Canada which returned 6.9% over the past year.
Price Volatility
ACQ
Industry
5yr Volatility vs Market

ACQ Value

 Is AutoCanada undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AutoCanada to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AutoCanada.

TSX:ACQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.9%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:ACQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.855 (1 + (1- 26.5%) (465.39%))
2.862
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (2 * 5.96%)
13.87%

Discounted Cash Flow Calculation for TSX:ACQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AutoCanada is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:ACQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 13.87%)
2020 36.54 Analyst x4 32.09
2021 37.04 Est @ 1.36% 28.57
2022 37.61 Est @ 1.54% 25.47
2023 38.23 Est @ 1.66% 22.74
2024 38.90 Est @ 1.75% 20.32
2025 39.60 Est @ 1.81% 18.17
2026 40.33 Est @ 1.85% 16.25
2027 41.09 Est @ 1.88% 14.54
2028 41.87 Est @ 1.9% 13.01
2029 42.67 Est @ 1.91% 11.65
Present value of next 10 years cash flows CA$202.00
TSX:ACQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$42.67 × (1 + 1.95%) ÷ (13.87% – 1.95%)
CA$364.95
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$364.95 ÷ (1 + 13.87%)10
CA$99.60
TSX:ACQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$202.00 + CA$99.60
CA$301.60
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$301.60 / 27.42
CA$11
TSX:ACQ Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$11.00
Current discount Discount to share price of CA$10.79
= -1 x (CA$10.79 - CA$11.00) / CA$11.00
1.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AutoCanada is available for.
Intrinsic value
2%
Share price is CA$10.79 vs Future cash flow value of CA$11
Current Discount Checks
For AutoCanada to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AutoCanada's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • AutoCanada's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AutoCanada's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AutoCanada's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:ACQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CAD CA$-1.41
TSX:ACQ Share Price ** TSX (2019-11-13) in CAD CA$10.79
Canada Specialty Retail Industry PE Ratio Median Figure of 6 Publicly-Listed Specialty Retail Companies 12.94x
Canada Market PE Ratio Median Figure of 517 Publicly-Listed Companies 14.43x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AutoCanada.

TSX:ACQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ACQ Share Price ÷ EPS (both in CAD)

= 10.79 ÷ -1.41

-7.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AutoCanada is loss making, we can't compare its value to the CA Specialty Retail industry average.
  • AutoCanada is loss making, we can't compare the value of its earnings to the Canada market.
Price based on expected Growth
Does AutoCanada's expected growth come at a high price?
Raw Data
TSX:ACQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -7.64x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
187.7%per year
North America Specialty Retail Industry PEG Ratio Median Figure of 49 Publicly-Listed Specialty Retail Companies 2.17x
Canada Market PEG Ratio Median Figure of 234 Publicly-Listed Companies 1.04x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for AutoCanada, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on AutoCanada's assets?
Raw Data
TSX:ACQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CAD CA$13.80
TSX:ACQ Share Price * TSX (2019-11-13) in CAD CA$10.79
Canada Specialty Retail Industry PB Ratio Median Figure of 13 Publicly-Listed Specialty Retail Companies 1.31x
Canada Market PB Ratio Median Figure of 2,288 Publicly-Listed Companies 1.28x
TSX:ACQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ACQ Share Price ÷ Book Value per Share (both in CAD)

= 10.79 ÷ 13.80

0.78x

* Primary Listing of AutoCanada.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AutoCanada is good value based on assets compared to the CA Specialty Retail industry average.
X
Value checks
We assess AutoCanada's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. AutoCanada has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ACQ Future Performance

 How is AutoCanada expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
187.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AutoCanada expected to grow at an attractive rate?
  • AutoCanada's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • AutoCanada's earnings growth is expected to exceed the Canada market average.
  • AutoCanada's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:ACQ Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:ACQ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 187.7%
TSX:ACQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 3.5%
Canada Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 27.8%
Canada Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 10.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:ACQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:ACQ Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 3,614 66 38 6
2019-12-31 3,494 27 -14 6
2019-11-13
TSX:ACQ Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-09-30 3,450 35 -39
2019-06-30 3,335 -12 -50
2019-03-31 3,270 -1 -87
2018-12-31 3,151 -17 -78
2018-09-30 3,101 11 -33
2018-06-30 3,069 34 -6
2018-03-31 3,083 56 59
2017-12-31 3,102 72 58
2017-09-30 2,998 72 55
2017-06-30 2,916 73 10
2017-03-31 2,864 101 -1
2016-12-31 2,892 105 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AutoCanada's earnings are expected to grow significantly at over 20% yearly.
  • AutoCanada's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:ACQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from AutoCanada Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ACQ Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.39 1.56 1.22 2.00
2019-12-31 -0.54 -0.30 -0.78 2.00
2019-11-13
TSX:ACQ Past Financials Data
Date (Data in CAD Millions) EPS *
2019-09-30 -1.41
2019-06-30 -1.82
2019-03-31 -3.18
2018-12-31 -2.85
2018-09-30 -1.22
2018-06-30 -0.22
2018-03-31 2.15
2017-12-31 2.11
2017-09-30 1.99
2017-06-30 0.36
2017-03-31 -0.04
2016-12-31 0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if AutoCanada will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess AutoCanada's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AutoCanada has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ACQ Past Performance

  How has AutoCanada performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AutoCanada's growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AutoCanada does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare AutoCanada's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare AutoCanada's 1-year growth to the CA Specialty Retail industry average as it is not currently profitable.
Earnings and Revenue History
AutoCanada's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AutoCanada Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:ACQ Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 3,449.80 -38.71 458.50
2019-06-30 3,334.85 -49.80 461.77
2019-03-31 3,269.67 -87.04 462.68
2018-12-31 3,150.78 -78.08 443.34
2018-09-30 3,101.05 -33.46 425.93
2018-06-30 3,068.70 -6.12 413.74
2018-03-31 3,083.02 59.00 403.23
2017-12-31 3,101.56 57.84 404.13
2017-09-30 2,997.78 54.54 397.19
2017-06-30 2,916.38 9.82 388.81
2017-03-31 2,863.74 -1.00 381.40
2016-12-31 2,891.58 2.60 380.86
2016-09-30 2,934.62 -18.55 384.52
2016-06-30 2,962.65 25.76 383.40
2016-03-31 2,937.27 25.12 379.10
2015-12-31 2,903.80 22.82 377.02
2015-09-30 2,886.74 44.42 365.11
2015-06-30 2,836.07 50.50 355.91
2015-03-31 2,484.26 49.81 316.48
2014-12-31 2,214.78 53.13 275.65
2014-09-30 1,893.30 48.44 237.35
2014-06-30 1,565.59 41.65 200.27
2014-03-31 1,488.92 39.64 190.74
2013-12-31 1,409.04 38.17 181.72
2013-09-30 1,335.13 35.22 172.42
2013-06-30 1,230.94 31.06 160.16
2013-03-31 1,137.48 26.95 149.64
2012-12-31 1,101.90 24.24 144.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if AutoCanada has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • AutoCanada used its assets less efficiently than the CA Specialty Retail industry average last year based on Return on Assets.
  • It is difficult to establish if AutoCanada improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess AutoCanada's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AutoCanada has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ACQ Health

 How is AutoCanada's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AutoCanada's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AutoCanada is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AutoCanada's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AutoCanada's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AutoCanada Company Filings, last reported 1 month ago.

TSX:ACQ Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 396.77 1,025.72 32.37
2019-06-30 394.46 1,045.97 18.46
2019-03-31 401.58 1,095.26 25.92
2018-12-31 447.31 1,080.77 25.32
2018-09-30 474.68 1,155.08 41.61
2018-06-30 495.46 1,206.36 43.48
2018-03-31 528.93 1,000.25 81.18
2017-12-31 537.61 968.85 94.66
2017-09-30 531.07 959.23 104.97
2017-06-30 521.35 979.71 95.42
2017-03-31 499.87 1,036.50 100.40
2016-12-31 497.59 926.21 103.22
2016-09-30 484.46 876.34 96.37
2016-06-30 521.87 838.20 77.58
2016-03-31 511.16 908.47 72.88
2015-12-31 510.03 837.41 62.27
2015-09-30 452.19 882.25 77.07
2015-06-30 443.35 910.12 77.68
2015-03-31 436.07 857.56 66.35
2014-12-31 436.46 744.95 72.46
2014-09-30 444.57 615.73 64.56
2014-06-30 208.25 610.87 91.62
2014-03-31 202.97 387.95 41.54
2013-12-31 190.24 350.62 35.11
2013-09-30 185.06 264.99 37.94
2013-06-30 178.09 258.02 35.06
2013-03-31 127.88 268.74 41.99
2012-12-31 124.50 230.46 34.47
  • AutoCanada's level of debt (258.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (138.8% vs 258.5% today).
  • Debt is not well covered by operating cash flow (3.4%, less than 20% of total debt).
  • AutoCanada is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess AutoCanada's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AutoCanada has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ACQ Dividends

 What is AutoCanada's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.71%
Current annual income from AutoCanada dividends. Estimated to be 3.71% next year.
If you bought CA$2,000 of AutoCanada shares you are expected to receive CA$74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AutoCanada's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • AutoCanada's dividend is below the markets top 25% of dividend payers in Canada (5.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:ACQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Canada Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 3.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:ACQ Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.40 2.00
2019-12-31 0.40 2.00
2019-11-13
TSX:ACQ Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-11-07 0.400 4.021
2019-08-08 0.400 4.804
2019-02-22 0.400 3.624
2018-11-08 0.400 3.595
2018-08-09 0.400 3.437
2018-05-03 0.400 2.462
2018-02-23 0.400 1.854
2017-11-10 0.400 1.736
2017-08-10 0.400 1.756
2017-02-22 0.400 1.951
2016-11-04 0.400 1.733
2016-11-03 0.400 1.930
2016-08-04 0.400 1.756
2016-05-05 0.400 1.862
2016-02-22 1.000 5.320
2015-11-06 1.000 4.491
2015-08-07 1.000 3.469
2015-05-07 1.000 2.567
2015-02-17 1.000 2.570
2014-11-06 1.000 2.210
2014-08-08 0.960 1.541
2014-08-07 0.960 1.304
2014-05-13 0.920 1.177
2014-05-08 0.920 1.309
2014-02-14 0.880 1.627
2013-11-11 0.840 1.969
2013-11-07 0.840 2.043
2013-08-08 0.800 2.209
2013-05-06 0.760 2.718
2013-02-15 0.720 3.700
2012-11-09 0.680 4.233
2012-11-08 0.680 4.793
2012-08-09 0.640 4.845
2012-05-08 0.600 4.753
2012-02-15 0.560 5.873
2011-11-04 0.480 7.802
2011-06-22 0.400 9.166
2011-05-12 0.200 4.639
2011-01-13 0.160 3.472
2010-11-04 0.160 3.729
2010-08-04 0.160 3.164
2010-05-13 0.160 3.236
2010-05-12 0.160 3.181
2010-03-23 0.000 0.000
2010-03-22 0.000 0.000
2009-11-09 0.000 0.000
2009-11-06 0.000 0.000
2009-08-10 0.000 0.000
2009-05-11 0.000 0.000
2009-05-08 0.000 0.000
2009-02-17 0.500 45.931
2009-01-15 1.000 52.148
2008-12-15 1.000 49.494
2008-11-17 1.000 48.783

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of AutoCanada's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess AutoCanada's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AutoCanada afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AutoCanada has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ACQ Management

 What is the CEO of AutoCanada's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • AutoCanada has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the AutoCanada management team in years:

1.2
Average Tenure
51
Average Age
  • The average tenure for the AutoCanada management team is less than 2 years, this suggests a new team.
Management Team

Paul Antony

TITLE
Executive Chairman
COMPENSATION
CA$3M
AGE
51

Michael Rawluk

TITLE
President & Director
COMPENSATION
CA$3M
AGE
45
TENURE
1.4 yrs

Peter Hong

TITLE
Chief Strategy Officer & General Counsel
COMPENSATION
CA$2M
TENURE
1.2 yrs

Mike Borys

TITLE
Chief Financial Officer
AGE
57
TENURE
0.3 yrs

Erin Oor

TITLE
VP of Corporate Development & Administration and Corporate Secretary
COMPENSATION
CA$567K
TENURE
4.8 yrs

Angela Merriott

TITLE
Vice President of Human Resources

Tamara Darvish

TITLE
President of U.S. Operations
TENURE
0.7 yrs

Devon Wilson

TITLE
Director of Treasury

Kevin McPherson

TITLE
Director of Finance
Board of Directors Tenure

Average tenure and age of the AutoCanada board of directors in years:

1.3
Average Tenure
61
Average Age
  • The average tenure for the AutoCanada board of directors is less than 3 years, this suggests a new board.
Board of Directors

Paul Antony

TITLE
Executive Chairman
COMPENSATION
CA$3M
AGE
51
TENURE
1.4 yrs

Michael Rawluk

TITLE
President & Director
COMPENSATION
CA$3M
AGE
45
TENURE
1.3 yrs

Barry James

TITLE
Independent Director
COMPENSATION
CA$150K
AGE
61
TENURE
5 yrs

Steve Green

TITLE
Director
COMPENSATION
CA$50K
AGE
66
TENURE
1.3 yrs

Maryann Keller

TITLE
Lead Independent Director
COMPENSATION
CA$127K
AGE
75
TENURE
1.3 yrs

Dennis DesRosiers

TITLE
Independent Director
COMPENSATION
CA$123K
AGE
68
TENURE
12.5 yrs

Elias Olmeta

TITLE
Director
COMPENSATION
CA$50K
AGE
51
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
16. Aug 19 Buy Dennis DesRosiers Individual 13. Aug 19 13. Aug 19 10,000 CA$9.72 CA$97,239
20. Mar 19 Sell Raj Juneja Individual 19. Mar 19 19. Mar 19 -30,000 CA$11.45 CA$-343,500
16. Nov 18 Buy Raj Juneja Individual 16. Nov 18 16. Nov 18 14,450 CA$11.05 CA$159,509
26. Nov 18 Buy Raj Juneja Individual 26. Nov 18 26. Nov 18 5,050 CA$11.40 CA$57,570
21. Nov 18 Buy Michael Rawluk Individual 21. Nov 18 21. Nov 18 859 CA$11.61 CA$9,967
20. Nov 18 Buy Raj Juneja Individual 20. Nov 18 20. Nov 18 4,000 CA$11.75 CA$47,000
X
Management checks
We assess AutoCanada's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AutoCanada has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ACQ News

Simply Wall St News

Are Investors Undervaluing AutoCanada Inc. (TSE:ACQ) By 33%?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$37.5m CA$42.1m CA$45.9m CA$49.1m CA$51.8m CA$54.1m CA$56.0m CA$57.8m CA$59.4m CA$60.9m Growth Rate Estimate Source Analyst x4 Est @ 12.17% Est @ 9.1% Est @ 6.96% Est @ 5.45% Est @ 4.4% Est @ 3.67% Est @ 3.15% Est @ 2.79% Est @ 2.54% Present Value (CA$, Millions) Discounted @ 13.87% CA$32.9 CA$32.5 CA$31.1 CA$29.2 CA$27.0 CA$24.8 CA$22.6 CA$20.5 CA$18.5 CA$16.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$255.7m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$61m × (1 + 1.9%) ÷ (13.9% – 1.9%) = CA$521m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$521m ÷ ( 1 + 13.9%)10 = CA$142.20m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$397.87m. … TSX:ACQ Intrinsic value, August 14th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

AutoCanada (TSE:ACQ) Has A Mountain Of Debt

Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. … So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. … This free cash flow puts the company in a good position to pay down debt, when appropriate.

Simply Wall St -

What Kind Of Investor Owns Most Of AutoCanada Inc. (TSE:ACQ)?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … Check out our latest analysis for AutoCanada TSX:ACQ Ownership Summary, June 6th 2019 What Does The Institutional Ownership Tell Us About AutoCanada? … General Public Ownership The general public, who are mostly retail investors, collectively hold 50% of AutoCanada shares.

Simply Wall St -

Have Insiders Been Buying AutoCanada Inc. (TSE:ACQ) Shares?

In the last twelve months, the biggest single purchase by an insider was when President & Director Michael Rawluk bought CA$365k worth of shares at a price of CA$12.07 per share. … That means that an insider was happy to buy shares at above the current price of CA$10.66 … Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Simply Wall St -

A Look At The Fair Value Of AutoCanada Inc. (TSE:ACQ)

In this article we are going to estimate the intrinsic value of AutoCanada Inc. … Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model?

Simply Wall St -

Investors Who Bought AutoCanada (TSE:ACQ) Shares Five Years Ago Are Now Down 74%

Like a ship taking on water, the share price has sunk 74% in that time. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over five years AutoCanada's earnings per share dropped significantly, falling to a loss, with the share price also lower.

Simply Wall St -

Something To Consider Before Buying AutoCanada Inc. (TSE:ACQ) For The 3.7% Dividend

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … (TSE:ACQ) has been paying a dividend to shareholders. … Does AutoCanada tick all the boxes of a great dividend stock?

Simply Wall St -

Have Insiders Been Buying AutoCanada Inc (TSE:ACQ) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in AutoCanada Inc (TSE:ACQ). … The Last 12 Months Of Insider Transactions At AutoCanada.

Simply Wall St -

Investors In AutoCanada Inc (TSE:ACQ) Should Consider This Data

Historically, AutoCanada Inc (TSE:ACQ) has paid a dividend to shareholders. … Let's take a look at AutoCanada in more detail. … Here's how I find good dividend stocks

Simply Wall St -

An Intrinsic Calculation For AutoCanada Inc (TSE:ACQ) Shows It's 42.29% Undervalued

by projecting its future cash flows and then discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

ACQ Company Info

Description

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick. The company offers a range of automotive products and services, including new and used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, extended service contracts, vehicle protection products, and other after-market products. It also arranges financing and insurance for vehicle purchases by its customers through third-party finance and insurance sources. The company sells its vehicles under the Chrysler, Dodge, Jeep, Ram, Alfa Romeo, Fiat, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, and other brands. As of December 31, 2018, it operated 68 dealerships, representing 77 franchises in Canada, as well as in Illinois, the United States. AutoCanada Inc. has a strategic partnership with DealerMine Inc. AutoCanada Inc. was incorporated in 2009 and is headquartered in Edmonton, Canada.

Details
Name: AutoCanada Inc.
ACQ
Exchange: TSX
Founded: 2009
CA$295,852,056
27,419,097
Website: http://www.autocan.ca
Address: AutoCanada Inc.
200-15511 123 Avenue NW,
Edmonton,
Alberta, T5V 0C3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ACQ Class A Common Shares The Toronto Stock Exchange CA CAD 11. May 2006
OTCPK AOCI.F Class A Common Shares Pink Sheets LLC US USD 11. May 2006
DB 31K Class A Common Shares Deutsche Boerse AG DE EUR 11. May 2006
Number of employees
Current staff
Staff numbers
4,200
AutoCanada employees.
Industry
Automotive Retail
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/13 23:59
End of day share price update: 2019/11/13 00:00
Last estimates confirmation: 2019/11/11
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.