TSE:ACQ
45.89
2.05
(4.28%)
AutoCanada is one of Canada's largest multi-location and first publicly traded franchise automobile dealership group.
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Analysis and Opinions about ACQ-T
Signal
Opinion
Expert
Chart
BUY
BUY
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Up 100% this year. A leveraged recovery play. EPS should more than double this year. Debt and execution is the main risk for the company. Balance sheet is heavily levered but its inventory has value. 20x earnings but it has beat estimates by 51%. Unlock Premium - Try 5i Free
BUY
BUY
April 12, 2021
ROE is 15%. Earnings should rise and there should be 26% growth in 2022. Assuming the reopening happens, this is a buy. Meanwhile, the price of used cars is holding up extremely well.
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ROE is 15%. Earnings should rise and there should be 26% growth in 2022. Assuming the reopening happens, this is a buy. Meanwhile, the price of used cars is holding up extremely well.
COMMENT
COMMENT
April 9, 2021
Evaluates on reasonable valuation, good price trend and prefer lower volatility. For ACQ, it has good price momentum and good value characteristics. 7.5x cashflow. Debt is a bit heavy. With less debt, he would look closer at it.
Show full opinionHide full opinionEvaluates on reasonable valuation, good price trend and prefer lower volatility. For ACQ, it has good price momentum and good value characteristics. 7.5x cashflow. Debt is a bit heavy. With less debt, he would look closer at it.
DON'T BUY
DON'T BUY
September 23, 2020
A long drive ahead of it. Not the best brands in their dealership package. Overextended, so it's having a garage sale. Exposed to the west, which is struggling. Canadian consumer is one of the most indebted in the OECD. Economic cycle is still questionable. An alternative is APR.UN, with about an 8% yield. They own the dealership buildings and property and lease them. Attractive proposition.
A long drive ahead of it. Not the best brands in their dealership package. Overextended, so it's having a garage sale. Exposed to the west, which is struggling. Canadian consumer is one of the most indebted in the OECD. Economic cycle is still questionable. An alternative is APR.UN, with about an 8% yield. They own the dealership buildings and property and lease them. Attractive proposition.
HOLD
HOLD
January 6, 2020
He has recommended the stock. It has been a poor performer over the last few years. They released more positive earnings recently, rocketed to $14 and then pulled back to $12. Their acquisition in the US went quite poorly and the management team was discarded a year ago. It is a show me story for the market. Quantitative investors are looking at it now and boosting it. He may be looking to exit in the future but there is no reason to well at these levels. The dividend is well protected. (Analysts’ price target is $14.00)
Show full opinionHide full opinionHe has recommended the stock. It has been a poor performer over the last few years. They released more positive earnings recently, rocketed to $14 and then pulled back to $12. Their acquisition in the US went quite poorly and the management team was discarded a year ago. It is a show me story for the market. Quantitative investors are looking at it now and boosting it. He may be looking to exit in the future but there is no reason to well at these levels. The dividend is well protected. (Analysts’ price target is $14.00)
PARTIAL SELL
PARTIAL SELL
November 19, 2019
It peaked in 2014 and has fallen way off. Doesn't see a catalyst to move it higher and, no, he doesn't buy a stock on the way down. He would lighten up this position.
Show full opinionHide full opinionIt peaked in 2014 and has fallen way off. Doesn't see a catalyst to move it higher and, no, he doesn't buy a stock on the way down. He would lighten up this position.
BUY WEAKNESS
BUY WEAKNESS
November 18, 2019
Last year was a disaster for them. A US acquisition turned out not good and management was fired. This stock had a big run-up last week after results were released. Management is turning this company around. It is still undervalued. Average down at $10-$10.50 range. (Analysts’ price target is $23.63)
Show full opinionHide full opinionLast year was a disaster for them. A US acquisition turned out not good and management was fired. This stock had a big run-up last week after results were released. Management is turning this company around. It is still undervalued. Average down at $10-$10.50 range. (Analysts’ price target is $23.63)
DON'T BUY
DON'T BUY
July 26, 2019
He shorted this. It's fallen too far for him to short again. A beaten-up stock. They have negative ROE and EBITDA, so they'll have trouble covering their huge debt. The stock may be worthless if they re-structure. Maybe they climb out of this hole, but they could recover.
Show full opinionHide full opinionHe shorted this. It's fallen too far for him to short again. A beaten-up stock. They have negative ROE and EBITDA, so they'll have trouble covering their huge debt. The stock may be worthless if they re-structure. Maybe they climb out of this hole, but they could recover.
DON'T BUY
DON'T BUY
June 10, 2019
The economy in Edmonton is not great. Car selling is competitive. ACQ-T has a lot of management turnover. He would not be into it.
Show full opinionHide full opinionThe economy in Edmonton is not great. Car selling is competitive. ACQ-T has a lot of management turnover. He would not be into it.
PAST TOP PICK
PAST TOP PICK
February 27, 2019
(A Top Pick Mar 12/18, Down 36%) Pretty much anything that could go wrong did go wrong. They overpaid for an acquisition that caused a lot of problems. He bought more on a pullback and has helped reduce the pain. He thinks the future still remains bright and will continue to hold on.
Show full opinionHide full opinion(A Top Pick Mar 12/18, Down 36%) Pretty much anything that could go wrong did go wrong. They overpaid for an acquisition that caused a lot of problems. He bought more on a pullback and has helped reduce the pain. He thinks the future still remains bright and will continue to hold on.
DON'T BUY
DON'T BUY
February 4, 2019
For a 1-2 year hold? No. Car sales depend on consumer confidence, interest rates and employment. ACQ bought too many dealerships, and are now selling some of them or the land. He avoids anything exposed to the Canadian consumer because we could enter a recession.
Show full opinionHide full opinionFor a 1-2 year hold? No. Car sales depend on consumer confidence, interest rates and employment. ACQ bought too many dealerships, and are now selling some of them or the land. He avoids anything exposed to the Canadian consumer because we could enter a recession.
SHORT
SHORT
September 27, 2018
She is short the stock. She doesn’t like it. It has been problematic for many years. The acquisition in the US didn’t make sense. Two months later they wrote a significant portion off.
She is short the stock. She doesn’t like it. It has been problematic for many years. The acquisition in the US didn’t make sense. Two months later they wrote a significant portion off.
PAST TOP PICK
PAST TOP PICK
August 30, 2018
(A Top Pick June 22/17 - Down 29%) Sold it a while ago. They liked the model. They made a bad deal that put him in an alert and they also bought something in the US that didn’t make sense.
(A Top Pick June 22/17 - Down 29%) Sold it a while ago. They liked the model. They made a bad deal that put him in an alert and they also bought something in the US that didn’t make sense.
DON'T BUY
DON'T BUY
August 28, 2018
He tends to short companies that show negative trends and he plans to stay short on this even though it has already dropped so much. It has had a few disastrous quarters in a row. There was chatter a year ago about them spinning out some real estate assets but apparently that failed. The balance sheet is now getting tight, with covenants that limit them to 4x debt to EBITDA. He thinks they’ll push up against that this quarter. He’ll stay short until they start improving their margins.
He tends to short companies that show negative trends and he plans to stay short on this even though it has already dropped so much. It has had a few disastrous quarters in a row. There was chatter a year ago about them spinning out some real estate assets but apparently that failed. The balance sheet is now getting tight, with covenants that limit them to 4x debt to EBITDA. He thinks they’ll push up against that this quarter. He’ll stay short until they start improving their margins.
DON'T BUY
DON'T BUY
August 15, 2018
He has looked closely at this recently, but feels the balance sheet is scary. With a debt-equity of 4:1, it is too risky in the event of any recession. They make 90% on car servicing and feels a future recession could really impact this company.
He has looked closely at this recently, but feels the balance sheet is scary. With a debt-equity of 4:1, it is too risky in the event of any recession. They make 90% on car servicing and feels a future recession could really impact this company.
AutoCanada Inc.(ACQ-T) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 2
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 3
AutoCanada Inc.(ACQ-T) Frequently Asked Questions
What is AutoCanada Inc. stock symbol?
AutoCanada Inc. is a Canadian stock, trading under the symbol ACQ-T on the Toronto Stock Exchange (ACQ-CT). It is usually referred to as TSX:ACQ or ACQ-T
Is AutoCanada Inc. a buy or a sell?
In the last year, 3 stock analysts published opinions about ACQ-T. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is BUY. Read the latest stock experts' ratings for AutoCanada Inc..
Is AutoCanada Inc. a good investment or a top pick?
AutoCanada Inc. was recommended as a Top Pick by Stockchase Insights on 2021-04-26. Read the latest stock experts ratings for AutoCanada Inc..
Why is AutoCanada Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is AutoCanada Inc. worth watching?
3 stock analysts on Stockchase covered AutoCanada Inc. In the last year. It is a trending stock that is worth watching.
What is AutoCanada Inc. stock price?
On 2021-05-12, AutoCanada Inc. (ACQ-T) stock closed at a price of $45.89.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Up 100% this year. A leveraged recovery play. EPS should more than double this year. Debt and execution is the main risk for the company. Balance sheet is heavily levered but its inventory has value. 20x earnings but it has beat estimates by 51%. Unlock Premium - Try 5i Free