Algoma Central Corp. (ALC-T)
TSE:ALC
15.35
0.05
(0.32%) 1d
Financials
Technical Analysis
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This summary was created by AI, based on 1 opinions in the last 12 months.
Algoma Central Corp. is a major player in the shipping industry, especially within the Great Lakes and trans-ocean routes, owning a significant fleet of vessels. The company's operations are highly capital intensive, demanding hundreds of millions in investment to update and maintain its fleet. The economic cycles significantly impact the company's profitability, with the first quarter typically reflecting losses, although this year showed a marginal improvement in these figures. Experts suggest a cautious outlook for 2024 as the market appears uncertain. Additionally, the liquidity of the stock is low, often trading on an 'appointment basis,' and there is concern regarding the potential negative impact from upcoming convertible shares entering the market which might depress the stock price.
Our PAST TOP PICK with ALC has triggered its stop at $14.50. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 5%, when combined with the previous recommendations.
We reiterate this marine bulk transport business as a TOP PICK. Recently reported revenues were up 10% over the year. Management expects a return to full fleet utilization for the balance of the year. It trades at 7x earnings and under book value, while supporting a 15% ROE. It pays a good dividend, backed by a payout ratio under 30% of cash flow. We recommend trailing up the stop (from $13.50) to $14.50, looking to achieve $22.00 -- upside potential over 40%. Yield 4.5%
(Analysts’ price target is $22.50)Formerly known as Algoma Central Railway, this Ontario based bulk shipping company is a TOP PICK. The company recently announced the order of two additional refined product tankers to be contracted to Irving Oil. Cash reserves are growing, while the company reduces debt and buys back shares. It trades under book value and 8x earnings, while supporting an 18% ROE. It pays a nice dividend, backed by a payout ratio under 25% of cash flow. We recommend placing a stop-loss at $13.50, looking to achieve $22.50 -- upside potential of 45%. Yield 4.5%
(Analysts’ price target is $22.75)It is a shipper. It is a tough business. You often end up with empty ships doing a ‘dry’ run. This one has been rather consistent, but their return on capital is usually 5%, and is down to 2% right now. A year ago it was down to 1%. He likes improving return on capital. If it gets back to 5%, the stock would be worth about $20. We need to see that improvement. There is a small amount of evidence that the return on capital is improving.
A very well-run company. It ships goods across the Great Lakes and owns assets in ocean shipping. This is now trading below BV. A cyclical business. It could easily recover if the Canadian economy starts to improve. If you are looking for value, he wouldn’t hesitate to Buy. The company is doing all the right things. They are keeping their costs under control and using their balance sheet to improve their ships.
(A Top Pick Dec 1/14. Down 5.23%.) A small company that runs shipping vessels in the Great Lakes and also owns a share in an ocean shipping Company. The big news on this is that they have announced they are looking to sell their real estate, and he thinks there is an embedded value of $5 a share, and doesn’t think this is reflected in the stock price. He can see upside well into the $20-$25 range.
Infrastructure is very important and these are long life assets. Shipping is never going to go away and they have ordered a bunch of new ships. Just reported their 4th quarter. Thinks normalized earnings for 2014 were about $1.20 a share and he is looking for $1.30-$1.40 a share in 2015. This is dirt cheap.
They will have spent $500 million by 2016 replacing their ship vessels and are going to have one of the youngest fleets in the world. This company is going to have better ships, more fuel efficient and will be able to load faster. He sees earnings, probably by the end of next year, getting up to a normalized $1.50 a share. You are only paying 10-11 times earnings. Also, have other assets that they can unlock, including about $100 million of real estate. Yield of 1.74%.
Algoma Central Corp.(ALC-T) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 0
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 1
Algoma Central Corp.(ALC-T) Frequently Asked Questions
What is Algoma Central Corp. stock symbol?
Algoma Central Corp. is a Canadian stock, trading under the symbol ALC-T on the Toronto Stock Exchange (ALC-CT). It is usually referred to as TSX:ALC or ALC-T
Is Algoma Central Corp. a buy or a sell?
In the last year, 1 stock analyst published opinions about ALC-T. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Algoma Central Corp..
Is Algoma Central Corp. a good investment or a top pick?
Algoma Central Corp. was recommended as a Top Pick by on . Read the latest stock experts ratings for Algoma Central Corp..
Why is Algoma Central Corp. 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 Algoma Central Corp. worth watching?
1 stock analyst on Stockchase covered Algoma Central Corp. In the last year. It is a trending stock that is worth watching.
What is Algoma Central Corp. stock price?
On 2025-05-02, Algoma Central Corp. (ALC-T) stock closed at a price of $15.35.
Owns lots of ships on the Great Lakes and trans-ocean. Very capital intensive, renewing its fleet, spending 100s of millions of dollars. Economically cyclical. In Q1, usually loses money; this year, lost less. Cautious 2024 outlook. Illiquid, trades almost by appointment.
Note that there are some convertible shares coming on the market at the end of this month, and as a result this might depress the stock price.