Algoma Central Stock Return On Equity
| ALC Stock | CAD 14.94 0.19 1.29% |
Algoma Central fundamentals help investors to digest information that contributes to Algoma Central's financial success or failures. It also enables traders to predict the movement of Algoma Stock. The fundamental analysis module provides a way to measure Algoma Central's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Algoma Central stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.11 | 0.11 |
Algoma | Return On Equity |
Algoma Central Company Return On Equity Analysis
Algoma Central's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current Algoma Central Return On Equity | 0.0926 |
Most of Algoma Central's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Algoma Central is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Algoma Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Algoma Central is extremely important. It helps to project a fair market value of Algoma Stock properly, considering its historical fundamentals such as Return On Equity. Since Algoma Central's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Algoma Central's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Algoma Central's interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Algoma Total Stockholder Equity
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Based on the latest financial disclosure, Algoma Central has a Return On Equity of 0.0926. This is 78.95% lower than that of the Marine Transportation sector and 104.03% lower than that of the Industrials industry. The return on equity for all Canada stocks is 129.87% lower than that of the firm.
Algoma Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Algoma Central's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Algoma Central could also be used in its relative valuation, which is a method of valuing Algoma Central by comparing valuation metrics of similar companies.Algoma Central is currently under evaluation in return on equity category among its peers.
Algoma Central Current Valuation Drivers
We derive many important indicators used in calculating different scores of Algoma Central from analyzing Algoma Central's financial statements. These drivers represent accounts that assess Algoma Central's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Algoma Central's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 498.3M | 526.2M | 643.8M | 689.0M | 575.6M | 306.0M | |
| Enterprise Value | 814.6M | 813.5M | 927.0M | 949.9M | 920.2M | 966.2M |
Algoma Fundamentals
| Return On Equity | 0.0926 | ||||
| Return On Asset | 0.0278 | ||||
| Profit Margin | 0.11 % | ||||
| Operating Margin | 0.21 % | ||||
| Current Valuation | 990.39 M | ||||
| Shares Outstanding | 40.57 M | ||||
| Shares Owned By Insiders | 54.60 % | ||||
| Shares Owned By Institutions | 16.63 % | ||||
| Number Of Shares Shorted | 3.11 K | ||||
| Price To Earning | 11.51 X | ||||
| Price To Book | 0.72 X | ||||
| Price To Sales | 0.87 X | ||||
| Revenue | 721.22 M | ||||
| Gross Profit | 187.9 M | ||||
| EBITDA | 155.51 M | ||||
| Net Income | 82.87 M | ||||
| Cash And Equivalents | 26.67 M | ||||
| Cash Per Share | 0.70 X | ||||
| Total Debt | 377.37 M | ||||
| Debt To Equity | 64.20 % | ||||
| Current Ratio | 0.61 X | ||||
| Book Value Per Share | 20.51 X | ||||
| Cash Flow From Operations | 124.21 M | ||||
| Short Ratio | 0.35 X | ||||
| Earnings Per Share | 1.81 X | ||||
| Target Price | 21.75 | ||||
| Number Of Employees | 1.6 K | ||||
| Beta | 0.72 | ||||
| Market Capitalization | 606.08 M | ||||
| Total Asset | 1.34 B | ||||
| Retained Earnings | 769.38 M | ||||
| Working Capital | 14.2 M | ||||
| Annual Yield | 0.05 % | ||||
| Five Year Return | 2.29 % | ||||
| Net Asset | 1.34 B | ||||
| Last Dividend Paid | 0.75 |
About Algoma Central Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Algoma Central's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Algoma Central using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Algoma Central based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Algoma Central
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Algoma Central position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Algoma Central will appreciate offsetting losses from the drop in the long position's value.Moving against Algoma Stock
The ability to find closely correlated positions to Algoma Central could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Algoma Central when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Algoma Central - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Algoma Central to buy it.
The correlation of Algoma Central is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Algoma Central moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Algoma Central moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Algoma Central can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Algoma Stock
Algoma Central financial ratios help investors to determine whether Algoma Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Algoma with respect to the benefits of owning Algoma Central security.