Accord Financial (ACD) AI Stock Analysis

• Market Cap: C$28.24M
• Dividend Yield: N/A
• Average Volume (3M): 1.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 4.20%
• EPS Growth: 78.55%
• Country: CA
• Employees: 82
• Sector: Financial
• Sector Strength: 88
• Industry: Financial - Credit Services
• EPS (TTM): -0.37
• Shares Outstanding: 8,558,913
• 10 Day Avg. Volume: 850
• 30 Day Avg. Volume: 1,596
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Accord Financial's overall stock score reflects significant challenges in financial performance, with a high Debt-to-Equity ratio and declining revenues. Technical indicators point towards bearish momentum, while valuation concerns are highlighted by a negative P/E ratio. A new corporate initiative provides some positive outlook, but overall, the score reflects caution due to the prevailing financial and market challenges.

Accord Financial Business Overview & Revenue Model

Company Description

Accord Financial Corp (ACD) is a leading finance company that provides a broad range of asset-based financial solutions primarily to small and medium-sized businesses across North America. The company specializes in providing tailored financing solutions including factoring, equipment financing, inventory financing, and trade finance. Accord Financial is dedicated to helping businesses improve their cash flow, optimize their working capital, and achieve their growth objectives by offering flexible and rapid financial solutions.

How the Company Makes Money

Accord Financial generates revenue primarily through the interest and fees charged on its financing products. The company’s key revenue streams include interest income from loans and advances, factoring fees, and other service fees associated with their financial products. By providing asset-based lending and financing solutions, Accord Financial earns interest on the outstanding balances of loans to its clients. Additionally, the company benefits from transaction fees when businesses utilize its factoring services, which involve purchasing invoices at a discount and collecting payments directly from customers. The company's earnings are bolstered by strategic partnerships with financial institutions and a deep understanding of various industries, allowing them to structure competitive financial products that meet the specific needs of their clients.

Accord Financial Financial Statement Overview

Summary

Accord Financial shows strong cost management and positive cash flow generation, but it struggles with declining revenue, high leverage, and recent profitability issues. The high debt levels pose financial risks, making it crucial for the company to improve revenue and manage debt effectively.

Income Statement

Accord Financial's income statement shows mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is high, indicating strong cost management relative to revenue. However, the company is struggling with profitability as evidenced by a negative net profit margin in the TTM period. Revenue has decreased compared to the previous annual period, highlighting a growth challenge. The EBIT and EBITDA margins are positive, but the declining revenue and negative net income are concerning.

Balance Sheet

The balance sheet reflects high leverage, with a significant debt-to-equity ratio, indicating potential financial risk. The equity ratio is moderate, showing a fair amount of assets financed by equity. The return on equity is negative, due to the company's recent losses, which impacts shareholder value. The high level of debt compared to equity and assets suggests potential vulnerability to economic fluctuations.

Cash Flow

Cash flow analysis reveals some positive aspects. The company has a strong operating cash flow to net income ratio, indicating good cash generation relative to net income. Free cash flow is positive in the TTM period, showing improvement from previous periods. However, the free cash flow to net income ratio is impacted by negative net income, and cash flow volatility remains a concern.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
79.70M	43.40M	47.59M	33.90M	39.09M
	Gross Profit
79.00M	42.57M	46.66M	32.89M	38.06M
	EBIT
34.60M	26.52M	13.61M	-4.25M	8.02M
	EBITDA
20.68M	29.60M	0.00	0.00	0.00
	Net Income Common Stockholders
-14.63M	1.43M	11.89M	607.77K	6.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.91M	11.63M	13.84M	5.55M	6.78M
	Total Assets
513.48M	491.76M	520.11M	384.91M	406.21M
	Total Debt
414.05M	368.06M	397.94M	274.47M	297.47M
	Net Debt
408.13M	356.43M	384.10M	268.92M	290.70M
	Total Liabilities
424.82M	385.15M	416.15M	291.15M	309.85M
	Stockholders Equity
83.90M	100.97M	99.97M	89.85M	92.51M
Cash Flow		Free Cash Flow
-51.35M	31.33M	-101.73M	23.33M	-47.74M
	Operating Cash Flow
-51.12M	31.51M	-101.65M	23.37M	-47.56M
	Investing Cash Flow
-236.00K	-175.22K	-83.25K	-43.47K	-176.36K
	Financing Cash Flow
43.19M	-37.27M	120.37M	-21.91M	37.94M

Accord Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ACD, the sentiment is Negative. The current price of 3.3 is below the 20-day moving average (MA) of 3.36, below the 50-day MA of 3.58, and below the 200-day MA of 3.91, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 54.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ACD.

Accord Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
WCM.A	55 Neutral	C$31.21M	69.13	0.69%	―	-4.34%	-83.27%
ACD	48 Neutral	C$28.24M	―	-3.81%	―	4.20%	78.55%

Accord Financial Corporate Events

Accord Financial Unveils New Initiative to Boost Market Position

Accord Financial has announced a significant development that could impact its operational capabilities and market positioning. The company has introduced a new initiative aimed at enhancing its service offerings, which is expected to strengthen its competitive stance and provide greater value to stakeholders.

Spark’s Take on TSE:ACD Stock

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

Accord Financial faces significant challenges with high leverage, declining revenue, and profitability issues, which are reflected in its financial performance score. The technical analysis indicates bearish momentum, reinforcing caution. Valuation concerns due to negative earnings further contribute to a lower overall score. The absence of notable updates from earnings calls or corporate events leaves these factors unchanged.

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

Accord Financial Reports Improved Fiscal 2024 Results Amid Strategic Restructuring

Accord Financial reported its financial results for the fourth quarter and fiscal year 2024, highlighting a net loss of $3.1 million, an improvement from the previous year’s $14.6 million loss. Despite a challenging credit environment, the company successfully executed strategic initiatives, including the sale of its AEF lease financing portfolio, which helped streamline operations and improve revenue. The company aims to further strengthen its balance sheet through refinancing and potential non-core asset sales.

Spark’s Take on TSE:ACD Stock

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

Accord Financial faces significant challenges with high leverage, declining revenue, and profitability issues, which are reflected in its financial performance score. The technical analysis indicates bearish momentum, reinforcing caution. Valuation concerns due to negative earnings further contribute to a lower overall score. The absence of notable updates from earnings calls or corporate events leaves these factors unchanged.

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

Accord Financial Delays Annual Financial Statement Filing, Seeks Temporary MCTO

Accord Financial Corp. has announced a delay in filing its annual financial statements for the year ended December 31, 2024, due to the auditor’s inability to complete audit procedures on time. The company has applied for a temporary management cease trade order (MCTO) to restrict trading by its directors and officers until the required filings are completed, which is expected by April 11, 2025. This delay does not affect the general public’s ability to trade in Accord’s securities, and the company is committed to providing regular updates on the situation.