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Aimia Inc. (TSE:AIM)
TSX:AIM

Aimia Inc. (AIM) AI Stock Analysis

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Aimia Inc.

(TSX:AIM)

58Neutral
Aimia Inc. shows resilience with strong strategic initiatives and a robust equity position. However, significant challenges remain in profitability and liquidity. The technical indicators suggest moderate positive momentum, and recent corporate events are promising. Yet, the negative P/E ratio and lack of dividends weigh down the valuation.
Positive Factors
Company Fundamentals
Fundamentals of the company are improving, which supports the positive sentiment towards the stock.
Stock Rating
The rating for Aimia Inc. is set at 'BUY', indicating confidence in the stock's potential.
Negative Factors
Earnings Growth
Slowing year-over-year EPS growth is a concern and affects the sentiment negatively.
Economic Uncertainty
There is an uncertainty over tariffs that could impact base metals, affecting sentiment negatively.

Aimia Inc. (AIM) vs. S&P 500 (SPY)

Aimia Inc. Business Overview & Revenue Model

Company DescriptionAimia Inc. is a holding company primarily engaged in investment management. The company focuses on long-term investments in public and private companies across various industries. It aims to diversify its portfolio through strategic acquisitions and partnerships, leveraging its expertise to drive value creation and growth.
How the Company Makes MoneyAimia Inc. generates revenue through its investment portfolio, which includes stakes in publicly traded companies and private enterprises. The company earns money from dividends, interest, and capital gains on its investments. Additionally, Aimia may engage in strategic partnerships or joint ventures that contribute to its income. The performance of its investment portfolio and market conditions significantly influence the company's earnings.

Aimia Inc. Financial Statement Overview

Summary
Aimia Inc. faces significant financial challenges, with persistent losses impacting profitability and cash flows. Despite a strong equity position and no debt, the company struggles with negative cash flows and operational inefficiencies.
Income Statement
35
Negative
Aimia Inc. shows a volatile revenue pattern with significant fluctuations over the years. The TTM (Trailing-Twelve-Months) revenue increased compared to the previous annual report, but the company is still operating at a net loss. The gross profit margin for the TTM is 46.23%, which is an improvement from the previous periods. However, the negative EBIT and EBITDA margins highlight ongoing operational challenges.
Balance Sheet
60
Neutral
The company's balance sheet reflects a strong equity position with zero debt in the TTM, resulting in a favorable debt-to-equity ratio. The equity ratio of 55.62% indicates a solid financial structure. However, the declining stockholders' equity over the periods suggests potential risks if losses continue.
Cash Flow
40
Negative
Aimia Inc.'s cash flow statement reveals negative operating and free cash flows in the TTM, indicating liquidity challenges. The fluctuating free cash flow growth rate and negative operating cash flow to net income ratio signal instability in cash generation. Despite this, the company has maintained liquidity through cash reserves.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
207.70M479.40M13.40M14.30M134.00M
Gross Profit
-17.60M467.40M-3.00M3.00M-32.20M
EBIT
-107.10M445.30M-11.40M800.00K-73.20M
EBITDA
-126.40M462.00M-11.70M0.0038.00M
Net Income Common Stockholders
-188.00M440.10M-17.10M-15.10M42.90M
Balance SheetCash, Cash Equivalents and Short-Term Investments
137.30M505.30M34.80M146.10M185.20M
Total Assets
963.60M804.00M431.00M444.20M571.80M
Total Debt
177.90M0.000.000.006.00M
Net Debt
-109.10M-505.30M-34.80M-146.10M-92.60M
Total Liabilities
380.50M27.10M27.00M3.50M136.20M
Stockholders Equity
568.60M776.90M404.00M431.30M435.60M
Cash FlowFree Cash Flow
-23.20M-17.70M21.40M-32.00M-117.90M
Operating Cash Flow
-12.00M-17.70M21.40M-32.00M-117.90M
Investing Cash Flow
-460.10M526.00M-118.90M108.80M600.30M
Financing Cash Flow
85.10M-49.10M-12.60M-28.20M-693.80M

Aimia Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.59
Price Trends
50DMA
2.46
Positive
100DMA
2.51
Positive
200DMA
2.55
Positive
Market Momentum
MACD
0.03
Negative
RSI
58.79
Neutral
STOCH
74.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AIM, the sentiment is Positive. The current price of 2.59 is above the 20-day moving average (MA) of 2.50, above the 50-day MA of 2.46, and above the 200-day MA of 2.55, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AIM.

Aimia Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$683.83M6.918.68%4.49%20.65%-2.36%
TSCVG
77
Outperform
C$999.00M7.9210.69%0.14%120.44%―
TSGCG
77
Outperform
C$994.98M9.817.82%3.55%36.20%―
TSSEC
69
Neutral
C$779.69M3.0414.18%―-8.45%211.31%
64
Neutral
$12.64B9.748.05%17044.60%12.66%-4.62%
TSAIM
58
Neutral
C$245.43M―-10.56%―67.83%68.03%
TSFSZ
58
Neutral
C$715.68M28.368.22%13.02%5.64%-57.76%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AIM
Aimia Inc.
2.59
0.27
11.64%
TSE:SEC
Senvest Capital
320.00
31.75
11.01%
TSE:CVG
Clairvest
69.64
-1.59
-2.23%
TSE:FSZ
Fiera Capital A
6.62
0.25
3.92%
TSE:GCG
Guardian Capital
42.20
-0.52
-1.22%
TSE:AGF.B
AGF Management B NV
10.46
2.73
35.32%

Aimia Inc. Earnings Call Summary

Earnings Call Date:Mar 28, 2025
(Q4-2024)
|
% Change Since: 3.19%|
Next Earnings Date:May 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of Aimia's performance. The company showed significant revenue growth, improved profitability, and cost savings. However, challenges included a substantial net loss with impairments and a decrease in liquidity. The strategic initiatives have set the stage for future improvements, but existing challenges remain.
Q4-2024 Updates
Positive Updates
Significant Revenue Growth
Consolidated revenue grew by 27% to $127.2 million in Q4 2024, demonstrating strong performance despite geopolitical and macroeconomic headwinds.
Improved Profitability
Gross profit increased by 31% to $31.1 million, and adjusted EBITDA rose to $17.3 million from a loss of $1.1 million, driven by strong performance from core holdings and reduced SG&A expenses.
Cost Reduction Achievements
Board changes resulted in approximately $1.3 million in annual savings, with $350,000 in cash savings at the Holdco level.
Positive Performance at Bozzetto and Cortland
Bozzetto generated $85.8 million in revenue, up 22% year-over-year. Cortland's revenue grew by 39% to $41.4 million, with adjusted EBITDA increasing by 168%.
Successful Strategic Initiatives
Completion of strategic initiatives like the substantial issuer bid (SIB) led to a $5 million annual cash savings and a $4 million gain on the transaction.
Negative Updates
Net Loss and Impairments
Net loss improved but remained high at $42.1 million, with $55 million in non-cash write-downs, including a $28.7 million impairment charge at Cortland.
Liquidity Decrease
Consolidated cash decreased by $25.2 million from Q3 2024 to $95.4 million, primarily due to debt paydowns and other financial activities.
Challenges in Textile and Geopolitical Markets
Potential pressures on Bozzetto's textile segment due to geopolitical challenges and increased local competition.
Company Guidance
In the Aimia Inc. Fourth Quarter 2024 Results Conference Call, the company provided guidance for 2025, projecting adjusted EBITDA for Bozzetto and Cortland to be in the range of $88 million to $95 million combined, with Holdco costs expected to remain below $11 million. The company emphasized its commitment to reducing holding company costs, estimating annual savings of approximately $1.3 million, including $350,000 in cash savings. Aimia reported a 27% increase in consolidated revenue to $127.2 million and a 31% rise in gross profit to $31.1 million for Q4 2024. Adjusted EBITDA improved to $17.3 million from a loss of $1.1 million the previous year. The net loss for the period improved by $17.8 million to $42.1 million, reflecting strong core holdings performance and reduced investor activism costs, despite $55 million in non-cash write-downs. The company ended Q4 with $95.4 million in consolidated cash, focusing on operational performance and strategic initiatives to enhance shareholder value in 2025.

Aimia Inc. Corporate Events

Stock BuybackBusiness Operations and Strategy
Aimia Inc. Advances Share Buyback Strategy
Positive
May 2, 2025

Aimia Inc. announced the repurchase of 494,300 common shares in April 2025 under its normal course issuer bid program, representing 0.52% of its common shares. This move is part of Aimia’s strategy to unlock shareholder value, as the company believes that the market price of its shares may not reflect their inherent value. The repurchase is seen as a desirable use of funds while maintaining financial flexibility for future strategic directions.

Spark’s Take on TSE:AIM Stock

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

Aimia Inc. exhibits resilience with strong strategic initiatives and a robust equity position, but faces significant challenges in profitability and liquidity. The recent corporate events and earnings call highlight potential for future improvements, yet the negative P/E ratio and lack of dividends weigh down the valuation.

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

Financial Disclosures
Aimia Inc. to Announce Q1 2025 Financial Results
Neutral
May 1, 2025

Aimia Inc. announced it will release its first quarter 2025 financial results on May 13, 2025. The results will be followed by a live presentation via webcast and teleconference call. This announcement is part of Aimia’s ongoing efforts to keep stakeholders informed and potentially enhance its market positioning by demonstrating financial transparency and performance.

Spark’s Take on TSE:AIM Stock

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

Aimia Inc. exhibits resilience with strong strategic initiatives and a robust equity position, but faces significant challenges in profitability and liquidity. The recent corporate events and earnings call highlight potential for future improvements, yet the negative P/E ratio and lack of dividends weigh down the valuation.

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

Executive/Board ChangesShareholder Meetings
Aimia Inc. Announces Board Resignation and AGM Details
Neutral
Apr 16, 2025

Aimia Inc. announced the resignation of Shahir Guindi from its Board of Directors for personal reasons. The company also confirmed that its current directors will stand for re-election at the upcoming Annual General Meeting on May 21, 2025. This update may impact the company’s governance and strategic direction as it focuses on its core businesses and shareholder value enhancement.

Spark’s Take on TSE:AIM Stock

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

Aimia Inc.’s overall score reflects its strong equity position and strategic initiatives aimed at enhancing shareholder value. However, ongoing profitability and liquidity challenges, coupled with a negative P/E ratio, weigh down the score. The mixed technical signals and positive corporate events provide some optimism for future performance improvements.

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

Executive/Board ChangesShareholder Meetings
Aimia Inc. Announces Board Resignation Ahead of AGM
Neutral
Apr 15, 2025

Aimia Inc. announced the resignation of Jordan Teramo from its Board of Directors due to other professional commitments. This change comes ahead of the company’s Annual General Meeting scheduled for May 21, 2025, in Toronto. The resignation may impact the company’s board dynamics and strategic decision-making processes.

Spark’s Take on TSE:AIM Stock

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

Aimia Inc.’s overall score reflects its strong equity position and strategic initiatives aimed at enhancing shareholder value. However, ongoing profitability and liquidity challenges, coupled with a negative P/E ratio, weigh down the score. The mixed technical signals and positive corporate events provide some optimism for future performance improvements.

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

Executive/Board ChangesBusiness Operations and Strategy
Aimia Inc. Announces Termination of Investor Rights Agreement Following Share Purchase
Neutral
Apr 14, 2025

Aimia Inc. announced that Milkwood Capital has purchased 5.9 million common shares from Eagle 1250 Investment Group Inc, leading to the termination of an Investor Rights Agreement with Eagle. This transaction, representing 6.2% of Aimia’s issued shares, results in Eagle losing its rights to nominate directors to Aimia’s Board, potentially impacting the company’s governance structure.

Spark’s Take on TSE:AIM Stock

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

Aimia Inc.’s overall score reflects its strong equity position and strategic initiatives aimed at enhancing shareholder value. However, ongoing profitability and liquidity challenges, coupled with a negative P/E ratio, weigh down the score. The mixed technical signals and positive corporate events provide some optimism for future performance improvements.

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

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Aimia Inc. Reports Strong Q4 2024 Results and Strategic Milestones
Positive
Mar 28, 2025

Aimia Inc. reported strong financial results for the fourth quarter and full year 2024, achieving its guidance for the fiscal year. The company saw a significant increase in revenue and adjusted EBITDA, driven by improved performance from its core holdings, Bozzetto and Cortland, and strategic acquisitions like StarChem. Despite a net loss due to non-cash expenses, Aimia completed several initiatives to enhance shareholder value, including a cooperation agreement with its largest shareholder, Mithaq, and a Substantial Issuer Bid. These efforts are expected to sustain momentum into 2025, with projected growth in adjusted EBITDA.

Executive/Board ChangesBusiness Operations and Strategy
Aimia Inc. Announces Leadership Transition to Enhance Shareholder Value
Positive
Mar 27, 2025

Aimia Inc. announced a leadership transition with Rhys Summerton succeeding Tom Finke as Executive Chairman, reflecting the company’s ongoing commitment to governance and shareholder value enhancement. Under Finke’s leadership, Aimia focused on improving financial results, monetizing assets, and optimizing costs, achieving significant financial milestones. Summerton aims to continue this momentum by applying disciplined capital allocation and engaging with shareholders to drive long-term returns.

DividendsBusiness Operations and Strategy
Aimia Inc. Declares Quarterly Preferred Share Dividends
Positive
Mar 17, 2025

Aimia Inc. announced the declaration of quarterly dividends on its preferred shares, with specific rates set for Series 1, Series 3, and Series 4 shares. This move reflects Aimia’s commitment to providing returns to its shareholders and maintaining its financial strategies, which include leveraging its investments and optimizing shareholder value.

Financial Disclosures
Aimia Inc. to Announce Q4 and Full-Year 2024 Financial Results
Neutral
Mar 11, 2025

Aimia Inc. announced it will release its fourth quarter and full-year 2024 financial results on March 28, 2025. The results will be shared at 7:00 am ET, followed by a live webcast and teleconference at 8:30 am ET. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and strategic direction, impacting its market positioning and shareholder value.

DividendsBusiness Operations and StrategyFinancial Disclosures
Aimia Inc. Announces New Dividend Rate and Strategic Financial Gains
Positive
Mar 3, 2025

Aimia Inc. announced a new dividend rate of 6.281% for its Series 1 Preferred Shares for the period from March 31, 2025, to March 31, 2030, following its decision not to redeem these shares. The company recently completed a substantial issuer bid, resulting in significant annual cash savings and a recorded gain of $53.7 million under IFRS. This strategic move is expected to positively impact Aimia’s financial position and enhance shareholder value.

DividendsBusiness Operations and Strategy
Aimia Inc. Announces Series 1 Preferred Shares Dividend Rate Reset
Neutral
Feb 26, 2025

Aimia Inc. announced it will not redeem its outstanding Series 1 Preferred Shares on March 31, 2025. Due to a recent Substantial Issuer Bid, there are only 606,658 Series 1 Shares remaining, preventing their conversion into Series 2 Shares. Consequently, the dividend rate for Series 1 Shares will be reset for a five-year period based on the Government of Canada bond yield plus 3.75%. This decision impacts shareholders by maintaining the current structure of preferred shares and resetting dividend rates, which reflects Aimia’s strategic financial management.

Stock BuybackBusiness Operations and Strategy
Aimia Inc. Completes Substantial Issuer Bid with Significant Savings
Positive
Feb 4, 2025

Aimia Inc. announced the completion of its substantial issuer bid to repurchase all preferred shares in exchange for 9.75% senior unsecured notes due in 2030. This transaction is expected to save the company approximately $6.4 million annually and result in a $53.7 million gain under IFRS. It is seen as accretive to common shareholders by reducing cash outflows and increasing net asset value by $0.53 per share. The initiative marks the first step in Aimia’s strategic review process aimed at enhancing company value.

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.