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Algoma Central
(TSX:ALC)
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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)
Market Cap
C$951.32M
Dividend Yield3.67%
Average Volume (3M)6.00K
Price to Earnings (P/E)5.4
Beta (1Y)0.59
Revenue Growth13.11%
EPS Growth69.49%
CountryCA
Employees1,705
SectorIndustrials
Sector Strength72
IndustryMarine Shipping
Share Statistics
EPS (TTM)4.22
Shares Outstanding40,567,818
10 Day Avg. Volume5,913
30 Day Avg. Volume6,005
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.76
Price to Sales (P/S)1.01
P/FCF Ratio-6.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.97
Revenue Forecast (FY)C$761.90M
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
74
Positive
Balance Sheet
63
Positive
Cash Flow
44
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 828.19M | 761.06M | 703.44M | 721.22M | 677.94M | 598.87M |
| Gross Profit | 328.69M | 132.09M | 632.09M | 655.17M | 612.51M | 531.02M |
| EBITDA | 204.27M | 163.11M | 147.21M | 154.06M | 186.26M | 162.72M |
| Net Income | 171.23M | 143.03M | 91.64M | 82.87M | 84.47M | 63.77M |
Balance Sheet | ||||||
| Total Assets | 2.07B | 1.77B | 1.52B | 1.34B | 1.37B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 30.05M | 37.16M | 3.54M | 32.83M | 141.97M | 108.94M |
| Total Debt | 770.79M | 536.44M | 412.59M | 377.37M | 402.79M | 392.22M |
| Total Liabilities | 1.01B | 762.36M | 624.11M | 565.85M | 639.67M | 559.80M |
| Stockholders Equity | 1.05B | 1.01B | 899.85M | 778.31M | 726.02M | 640.28M |
Cash Flow | ||||||
| Free Cash Flow | -36.48M | -123.83M | -10.22M | 4.96M | 62.26M | 130.50M |
| Operating Cash Flow | 126.74M | 135.37M | 155.39M | 124.21M | 133.13M | 162.38M |
| Investing Cash Flow | -236.81M | -212.68M | -183.75M | -127.78M | -65.87M | -16.23M |
| Financing Cash Flow | 96.97M | 112.82M | -5.55M | -105.76M | -42.37M | -141.02M |
Algoma Central Technical Analysis
Negative
22.79
Price Trends
23.21
Negative
22.47
Positive
21.15
Positive
Market Momentum
-0.04
Positive
41.85
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$631.52M | 13.95 | 9.32% | 1.36% | -3.60% | ― | |
76 Outperform | C$2.48B | 22.85 | 9.35% | 3.25% | 8.87% | -1.05% | |
71 Outperform | C$3.89B | 67.85 | 13.41% | 1.15% | 7.38% | -39.80% | |
69 Neutral | C$951.32M | 5.35 | 17.13% | 3.67% | 13.11% | 69.49% | |
64 Neutral | C$656.88M | 10.02 | 12.07% | 4.63% | -4.10% | 82.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | C$1.17B | 24.68 | 6.30% | 1.93% | 0.80% | -66.47% |
* Industrials Sector Average
TSE:ALC
Algoma Central
22.61
6.41
39.53%
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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.