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Algoma Central
(TSX:ALC)
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Rating:67Neutral
Price Target:
C$29.00
▲(27.25% Upside)
Action:Reiterated
Date:10/08/26
The score is driven primarily by mixed fundamentals: strong profitability and improving earnings are weighed down by weak cash conversion, negative free cash flow, and rising leverage. Valuation is a clear positive (low P/E and decent yield), while technicals show an uptrend but with overbought signals that increase near-term volatility risk.
Positive Factors
Revenue and Profitability Growth
Revenue growth alongside rising net income and healthy net and EBITDA margins indicates stronger earnings power across the shipping platform. If maintained, this profitability provides resources to support vessel operations, reinvestment, and resilience through normal industry cycles over the coming quarters.
Negative Factors
Rising Leverage
The sharp increase in debt raises Algoma’s sensitivity to shipping-cycle weakness, interest costs, and refinancing requirements. Greater leverage can constrain capital allocation and reduce the company’s ability to absorb weaker utilization or rates without relying more heavily on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Profitability Growth
Revenue growth alongside rising net income and healthy net and EBITDA margins indicates stronger earnings power across the shipping platform. If maintained, this profitability provides resources to support vessel operations, reinvestment, and resilience through normal industry cycles over the coming quarters.
Read all positive factors
Algoma Central (ALC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$969.57M
Dividend Yield3.15%
Average Volume (3M)5.84K
Price to Earnings (P/E)6.2
Beta (1Y)0.62
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. Volume6,258
30 Day Avg. Volume5,844
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 by operating vessels for customers that need bulk commodities moved by water, earning revenue primarily from freight and charter arrangements. Its key revenue streams are (1) dry-bulk shipping: transporting cargoes such ...
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
Positive
22.79
Price Trends
23.31
Positive
22.79
Positive
21.63
Positive
Market Momentum
0.42
Negative
76.12
Negative
94.85
Negative
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 22.79 is below the 20-day moving average (MA) of 23.03, below the 50-day MA of 23.31, and above the 200-day MA of 21.63, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 76.12 is Negative, neither overbought nor oversold. The STOCH value of 94.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$673.50M | 14.65 | 9.32% | 1.40% | -3.60% | ― | |
71 Outperform | C$4.61B | 76.08 | 13.41% | 1.02% | 7.38% | -39.80% | |
68 Neutral | C$857.65M | 11.91 | 12.07% | 3.89% | -4.10% | 82.03% | |
67 Neutral | C$969.57M | 6.23 | 17.13% | 3.15% | 13.11% | 69.49% | |
63 Neutral | C$2.60B | 23.65 | 9.35% | 3.14% | 8.87% | -1.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | C$1.30B | 27.92 | 6.30% | 1.74% | 0.80% | -66.47% |
* Industrials Sector Average
TSE:ALC
Algoma Central
26.33
9.59
57.26%
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Algoma Central Corporate Events
Business Operations and StrategyDividends
Algoma Central Boosts Quarterly Dividend and Declares $1 Special Payout
Positive
Oct 7, 2026
Algoma Central Corporation’s board has approved a 48% increase in its regular quarterly dividend, raising it to $0.31 per common share, and has declared a special dividend of $1.00 per common share, both designated as eligible dividends for ...
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.