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Algoma Central Corp (TSE:ALC)
TSX:ALC
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Algoma Central (ALC) AI Stock Analysis

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TSE:ALC

Algoma Central

(TSX:ALC)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
C$28.00
▲(22.86% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily constrained by weaker cash-flow quality (low cash conversion and negative free cash flow) alongside rising leverage, despite strong profitability and improving earnings. Technicals are constructive with a clear uptrend, but overbought momentum indicators add near-term risk. Valuation is a key positive, supported by a low P/E and a solid dividend yield.
Positive Factors
Growing revenue and earnings
Revenue growth and materially higher net income indicate improving earnings power and customer demand. This strengthens the company’s ability to fund operations and absorb cyclical fluctuations in marine transportation.
Negative Factors
Persistent negative free cash flow
Negative free cash flow indicates that capital spending and working-capital needs continue to exceed internally generated cash. If sustained, this can constrain fleet investment, dividends, and debt reduction while increasing dependence on external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Growing revenue and earnings
Revenue growth and materially higher net income indicate improving earnings power and customer demand. This strengthens the company’s ability to fund operations and absorb cyclical fluctuations in marine transportation.
Read all positive factors

Algoma Central (ALC) vs. iShares MSCI Canada ETF (EWC)

Algoma Central Business Overview & Revenue Model

Company Description
Algoma Central Corporation is a Canadian enterprise specializing in marine freight transport, principally managing a diverse fleet of dry and liquid bulk vessels across the Great Lakes – St. Lawrence Waterway. Its business is structured into six k...
How the Company Makes Money
Algoma Central makes money primarily by providing marine freight transportation services and related vessel operations. Its core revenue model is service-based: customers pay freight rates (typically under contracts of affreightment, time charters...

Algoma Central Financial Statement Overview

Summary
Income statement strength (revenue +6.0% TTM vs. latest annual; solid net margin ~20.7% and EBITDA margin ~24.7%; higher net income TTM vs. prior years) is offset by weaker fundamentals in cash and leverage. Cash conversion is low (operating cash flow only ~0.37x net income) and free cash flow is negative in recent periods (TTM ~-$36M), while total debt has risen materially (to ~$771M TTM; debt/equity ~0.73).
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
44
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue828.19M761.06M703.44M721.22M677.94M598.87M
Gross Profit328.69M132.09M632.09M655.17M612.51M531.02M
EBITDA204.27M163.11M147.21M154.06M186.26M162.72M
Net Income171.23M143.03M91.64M82.87M84.47M63.77M
Balance Sheet
Total Assets2.07B1.77B1.52B1.34B1.37B1.20B
Cash, Cash Equivalents and Short-Term Investments30.05M37.16M3.54M32.83M141.97M108.94M
Total Debt770.79M536.44M412.59M377.37M402.79M392.22M
Total Liabilities1.01B762.36M624.11M565.85M639.67M559.80M
Stockholders Equity1.05B1.01B899.85M778.31M726.02M640.28M
Cash Flow
Free Cash Flow-36.48M-123.83M-10.22M4.96M62.26M130.50M
Operating Cash Flow126.74M135.37M155.39M124.21M133.13M162.38M
Investing Cash Flow-236.81M-212.68M-183.75M-127.78M-65.87M-16.23M
Financing Cash Flow96.97M112.82M-5.55M-105.76M-42.37M-141.02M

Algoma Central Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.79
Price Trends
50DMA
23.21
Negative
100DMA
22.47
Positive
200DMA
21.15
Positive
Market Momentum
MACD
-0.04
Positive
RSI
41.85
Neutral
STOCH
37.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ALC, the sentiment is Negative. The current price of 22.79 is below the 20-day moving average (MA) of 23.89, below the 50-day MA of 23.21, and above the 200-day MA of 21.15, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.85 is Neutral, neither overbought nor oversold. The STOCH value of 37.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ALC.

Algoma Central Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$631.52M13.959.32%1.36%-3.60%
76
Outperform
C$2.48B22.859.35%3.25%8.87%-1.05%
71
Outperform
C$3.89B67.8513.41%1.15%7.38%-39.80%
69
Neutral
C$951.32M5.3517.13%3.67%13.11%69.49%
64
Neutral
C$656.88M10.0212.07%4.63%-4.10%82.03%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
C$1.17B24.686.30%1.93%0.80%-66.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ALC
Algoma Central
22.61
6.41
39.53%
TSE:BDT
Bird Construction
73.28
47.99
189.77%
TSE:CHR
Chorus Aviation
27.89
8.22
41.78%
TSE:MTL
Mullen Group
25.82
12.73
97.25%
TSE:WJX
Wajax Corporation
30.26
7.98
35.80%
TSE:CJT
Cargojet
76.25
-22.63
-22.88%

Algoma Central Corporate Events

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Algoma Central Lifts Q2 Earnings and Expands Financing for Fleet Growth
Positive
Aug 7, 2026
Algoma Central reported second-quarter 2026 revenue of $258.3 million and net earnings of $35.6 million, up from $211.7 million and $32.9 million a year earlier, driven by strong performance in its domestic dry-bulk, product tanker, and ocean self...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 17, 2026