Algoma Central (ALC) AI Stock Analysis

• Market Cap: C$622.72M
• Dividend Yield: 5.02%
• Average Volume (3M): 9.01K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.36
• Revenue Growth: -2.46%
• EPS Growth: 4.75%
• Country: CA
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 79
• Industry: Marine Shipping
• EPS (TTM): 2.25
• Shares Outstanding: 40,567,818
• 10 Day Avg. Volume: 7,839
• 30 Day Avg. Volume: 9,006
• PEG Ratio: 1.41
• 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

Algoma Central's overall score reflects robust valuation and strategic growth initiatives, highlighted by fleet expansion and strong fiscal results. Although revenue growth and cash flow challenges exist, the company's solid financial foundation and market positioning support its positive outlook.

Algoma Central Business Overview & Revenue Model

Company Description

Algoma Central Corporation owns and operates a fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway in Canada. The company operates in six segments: Domestic Dry-Bulk, Product Tankers, Ocean Self-Unloaders, Global Short Sea Shipping, Investment Properties, and Corporate. It operates self-unloading bulk carriers; and owns and manages tankers for the transportation of liquid petroleum products throughout the Great Lakes, the St. Lawrence waterway, and the Atlantic Canada regions. The company also owns eight ocean-going self-unloading vessels that carry coal for power generation, crushed aggregates for construction, gypsum for wallboard manufacturing, iron ore for the steel industry, and salt for winter road safety. In addition, it provides management services to third parties, as well as owns a shopping center. It serves iron and steel, aggregate, cement and building material, and salt producers; agricultural product distributors; and oil refiners, wholesale distributors, and large consumers of petroleum products. The company was formerly known as Algoma Central Railway and changed its name to Algoma Central Corporation in 1990. Algoma Central Corporation was incorporated in 1899 and is headquartered in St. Catharines, Canada.

How the Company Makes Money

Algoma Central Corporation generates revenue through its marine transportation services. The primary revenue streams include freight rates charged for the transportation of dry-bulk commodities across its network of routes in the Great Lakes and St. Lawrence Waterway. The company also engages in long-term contracts and spot market opportunities to optimize fleet utilization and maximize earnings. Strategic partnerships with major industrial and agricultural clients, as well as investments in fleet modernization and efficiency, contribute significantly to its profitability. Algoma Central's financial performance is influenced by factors such as commodity demand, fuel prices, and regulatory changes impacting the shipping industry.

Algoma Central Financial Statement Overview

Summary

Algoma Central demonstrates a solid financial structure with strong profit margins and reasonable leverage. However, challenges such as declining revenue and negative free cash flow need attention to enhance financial stability.

Income Statement

Algoma Central shows a mixed income statement performance. The gross profit margin is strong at 89.85% for 2024, indicating efficient cost management. However, the net profit margin has slightly decreased to 13.02% from 11.49% in 2023. Revenue growth is negative, down by 2.46% from the previous year, signaling a decline that could be concerning. Despite this, EBIT and EBITDA margins remain stable, demonstrating operational resilience.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio stands at 0.46, signifying a reasonable leverage level. Return on Equity (ROE) is healthy at 10.18%, showing good returns on shareholder investments. However, the equity ratio is 59.04%, slightly down from previous years, suggesting a gradual increase in liabilities relative to assets. The company maintains a stable equity position but should monitor debt levels closely.

Cash Flow

The cash flow statement indicates challenges in cash generation. Free cash flow has turned negative in 2024 at -10.22 million, raising concerns over cash reserves. The operating cash flow to net income ratio is 1.70, reflecting robust cash flow generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting potential issues in covering capital expenditures from operational cash. Improving free cash flow is essential for long-term sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
703.44M	721.22M	677.94M	598.87M	545.66M
	Gross Profit
632.09M	116.08M	612.51M	531.02M	470.51M
	EBIT
75.14M	74.53M	102.30M	93.31M	74.09M
	EBITDA
147.21M	155.51M	186.26M	162.72M	154.53M
	Net Income Common Stockholders
91.64M	82.87M	84.47M	63.77M	45.85M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.54M	32.83M	141.97M	108.94M	103.91M
	Total Assets
1.52B	1.34B	1.37B	1.20B	1.22B
	Total Debt
412.59M	377.37M	402.79M	392.22M	391.15M
	Net Debt
409.04M	344.54M	260.82M	283.27M	287.25M
	Total Liabilities
624.11M	565.85M	639.67M	559.80M	662.48M
	Stockholders Equity
899.85M	778.31M	726.02M	640.28M	560.62M
Cash Flow		Free Cash Flow
-10.22M	4.96M	62.26M	130.50M	81.87M
	Operating Cash Flow
155.39M	124.21M	133.13M	162.38M	157.06M
	Investing Cash Flow
-183.75M	-127.78M	-65.87M	-16.23M	-87.19M
	Financing Cash Flow
-5.55M	-105.76M	-42.37M	-141.02M	16.32M

Algoma Central Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALC, the sentiment is Positive. The current price of 15.35 is above the 20-day moving average (MA) of 15.02, above the 50-day MA of 15.04, and above the 200-day MA of 14.59, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 56.42 is Neutral, neither overbought nor oversold. The STOCH value of 75.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ALC.

Algoma Central Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALC	76 Outperform	C$622.72M	6.71	10.92%	5.02%	-2.46%	4.75%
SIS	75 Outperform	C$1.27B	26.11	8.63%	2.98%	3.68%	19.78%
WTE	75 Outperform	C$1.58B	13.78	15.84%	5.86%	7.98%	-0.29%
MTL	73 Outperform	C$1.08B	9.70	10.81%	6.04%	3.28%	-14.21%
WJX	73 Outperform	C$393.60M	9.22	8.49%	7.71%	-2.65%	-47.65%
GDI	72 Outperform	C$750.05M	23.40	6.73%	―	4.84%	67.68%
Sector *	64 Neutral	$4.28B	11.80	5.33%	250.46%	4.10%	-9.26%

Algoma Central Corporate Events

Algoma Central Corporation Reports First Quarter 2025 Financial Results Amid Fleet Expansion

Algoma Central Corporation reported a net loss of $23,280 for the first quarter of 2025, compared to a net loss of $17,253 in the same period in 2024, amid global economic uncertainties. The company emphasized its commitment to fleet improvements and strategic growth, highlighted by the delivery of four new vessels within the quarter. Despite a decline in revenues across several segments due to increased dry-docking, Algoma’s core performance remained strong, with stable equity earnings in the Global Short Sea Shipping segment. The company’s diversified portfolio and ongoing investments in fleet enhancements are expected to support its long-term vision and operational resilience.

Spark’s Take on TSE:ALC Stock

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

Algoma Central’s overall score reflects robust valuation and strategic growth initiatives, highlighted by fleet expansion and strong fiscal results. Although revenue growth and cash flow challenges exist, the company’s solid financial foundation and market positioning support its positive outlook.

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

Algoma Central and Irving Oil Expand Fleet with New Tanker Vessels

Algoma Central Corporation and Irving Oil have introduced the first of two new product tankers, the Algoma East Coast, into Saint John Harbour, with the Algoma Acadian to follow later this spring. These vessels, representing a $127 million investment, will enhance Algoma’s operational capabilities and expand its market reach, while supporting Irving Oil’s energy distribution in Atlantic Canada and the U.S. East Coast. This strategic collaboration underscores both companies’ commitment to energy security and operational excellence, with the vessels designed to meet unique operational requirements and optimize energy product distribution.

Spark’s Take on TSE:ALC Stock

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

Algoma Central’s overall score reflects a robust valuation and solid financial foundation, mitigated by revenue growth challenges and neutral technical indicators. The outlook is positive due to strategic fleet expansion and market segment growth, though market volatility remains a concern.

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

Algoma Central Announces 2025 Annual General Meeting and Financial Results Release

Algoma Central Corporation has announced its 2025 Annual General Meeting of Shareholders, scheduled for May 2, 2025, in Toronto, Ontario. The meeting will also coincide with the release of the company’s financial results for the first quarter of 2025, which will be reviewed during the event. Shareholders are encouraged to vote in advance, and the meeting materials are available on the company’s website.

Spark’s Take on TSE:ALC Stock

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

Algoma Central’s overall score reflects a robust valuation and solid financial foundation, mitigated by revenue growth challenges and neutral technical indicators. The outlook is positive due to strategic fleet expansion and market segment growth, though market volatility remains a concern.

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

Algoma Central Corporation Reports Strong Fiscal 2024 Results and Optimistic Outlook for 2025

Algoma Central Corporation reported strong financial results for fiscal 2024, with net earnings increasing to $91,638 from $82,870 in 2023, despite a slight decline in overall revenue. The company experienced growth in its Ocean Self-Unloaders and Product Tankers segments, driven by increased fleet utilization and expanded capacity. Looking ahead to 2025, Algoma plans to introduce nine new vessels and anticipates stability and growth, although it remains cautious of potential market disruptions.

Algoma Central Reports Strong Fiscal 2024 Results Amid Market Growth

Algoma Central Corporation reported strong financial results for fiscal 2024, driven by renewed market demand and expanded capacity. The company achieved higher net earnings and EBITDA compared to the previous year, despite a slight decrease in overall revenue. The Ocean Self-Unloaders and Product Tankers segments showed significant growth, with increased operating earnings and fleet utilization. Looking forward to 2025, Algoma remains optimistic yet cautious, anticipating stability and growth with the introduction of nine new vessels, while being mindful of potential market disruptions.

Algoma Central to Announce Fiscal 2024 Financial Results

Algoma Central Corporation has announced its plan to issue its fiscal 2024 financial results on February 27, 2025. The release of these results is significant for stakeholders as it will provide insights into the company’s performance and progress toward its emissions reduction targets, reflecting its commitment to sustainability and its potential impact on industry positioning.