Is it a good company at a reasonable price? I just bought this stock last year, so I will keep it for now. I do not have much invested in this stock and I was using fooling around money for this investment. It is too bad that it cut its dividend just after I bought. It is not the first stock to tank after I bought it. Sometimes you lose on stock picks. You just want more winners than losers. It seems to be cheap now, but I am not tempted to buy more.
I own this stock of Accord Financial Corp (TSX-ACD, OTC-ACCFF). Fred Poulin from StockTwits recommended this stock saying it was a small cap that pay dividends. Also, the stock has a solid background and would be a good filler stock.
When I was updating my spreadsheet, I noticed that they had a long history of dividend payments. I have records going back 37 years. They paid dividends in 36 years until 2023. However, the dividends were flat from 2017 and they starred to decrease them in 2020 and cut dividends in 2023.
I have had this stock for just less than a year and I have a loss of 15% per year. Not a good showing. Analysts have lost interest in this stock. This sometime happens when a small stock is not doing well. It is never a good sign.
If you had invested in this company in December 2014, for $1,000.45 you would have bought 107 shares at $9.35 per share. In December 2024, after 10 years you would have received $294.79 in dividends, but now dividends have been suspended. The stock would be worth $413.02. Your total return would have been 707.81. This would be a total loss of 4.26% per year with 8.47% from capital loss and 4.21% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $9.35 | $1,000.45 | 107 | 10 | $294.79 | $413.02 | $707.81 |
The dividends have been suspended. Therefore, there is no Dividend Payout Ratios (DPR).
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is high at 8.65 and currently at 10.21. However, we need also to look at the Long Term Debt/Covering Assets Ratio for 2024 which is good at 0.76 and currently at 0.77 because this is a more important ratio for a financial. The Liquidity Ratio for 2024 is good at 10.17 and 11.59 currently. But these are not important ratios for financials. The Debt Ratio for 2024 is low at 1.26 and 1.24 currently, but these are good for a financial.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 8.65 | 10.21 |
| Lg Term A | 0.76 | 0.77 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 10.17 | 11.59 |
| Liq. + CF | 11.82 | 9.12 |
| Debt Ratio | 1.26 | 1.24 |
| Leverage | 5.12 | 5.46 |
| D/E Ratio | 4.05 | 4.39 |
The Total Return per year is shown below for years of 5 to 32 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | -14.81% | -17.45% | 2.65% |
| 2014 | 10 | 0.00% | -4.26% | -8.47% | 4.21% |
| 2009 | 15 | 0.00% | 4.32% | -2.03% | 6.35% |
| 2004 | 20 | 0.00% | 0.39% | -4.01% | 4.40% |
| 1999 | 25 | 0.00% | 5.13% | -1.41% | 6.54% |
| 1994 | 30 | 0.00% | 10.19% | 1.74% | 8.45% |
| 1992 | 32 | 0.00% | 10.84% | 2.41% | 8.43% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 4.75, 5.63 and 6.51. The corresponding 10 year ratios are 9.80, 10.85 and 11.91. The corresponding historical ratios are 8.55, 10.25 and 11.56. The current P/E Ratio is negative, so I cannot do any P/E Ratio testing. The P/E ratio is negative based on last 12 months earnings loss of $0.57. I cannot find anyone giving estimates for this company.
I also have Adjusted Earnings per Share (AEPS) data. However, the AEPS is also negative at $0.48 loss for last 12 months.
I get a Graham Price of $7.04. The 10-year low, median, and high median Price/Graham Price Ratios are 0.56, 0.68 and 0.73. The current P/GP Ratio is 0.50 based on a stock price of $3.50. The current ratio is below the low ratio for the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 0.79. The current P/B Ratio is 0.38 based on a stock price of $3.50, Book Value of $78.6M and Book Value per Share of $9.19. The current ratio is 52% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do a Price/Cash Flow per Share Ratio test because both 10 year P/CF Ratio is negative as is the current ratio.
I cannot do any dividend yield testing because dividends have been suspended.
The 10-year median Price/Sales (Revenue) Ratio is 1.30. The current ratio is 0.41 based on Revenue for the last 12 months of $73.4M, Revenue per Share of $8.57 and a stock price of $3.50. The current ratio is 69% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. This is based on mainly on the P/S Ratio test, but the P/GP Ratio and P/B Ratio tests also say that the stock price is cheap.
When I look at analysts’ recommendations, I find few sites have information on this company. WSJ says current analysts’ information is Strong Buy (1) only with an average target of $8.60. There is only one target price. The target price of $8.60 implies a total return of 145.71% all from capital gains based on a current stock price of $3.50.
The last entry on Stock Chase was 2014 when the analyst thought the company was well run and conservative. There are no posts on Motley Fool. On a site calledTrust Pilot there are reviews of people working with this company. In 2019 reviews said the company was good to work with. Later reviews were not good. They did reply to negative reviews. The company put out a Press Release about their annual results for 2024. . The company put out a press release about their first quarter of 2025 results. The company put out a Press Release about their second quarter of 2025 results.
A site calledFinder talks about the pros and cons of dealing with this company. Simply Wall Street has 3 warnings on this stock of earnings have declined by 51.2% per year over past 5 years; debt is not well covered by operating cash flow; and does not have a meaningful market cap (CA$30M).
Accord Financial Corp is a provider of asset-based financial services to businesses. It is engaged in providing asset-based financing services, including factoring and receivables financing, equipment and inventory financing, leasing, working capital financing, and media financing, to industrial and commercial enterprises, principally in Canada and the United States. Its web site is here Accord Financial Corp.
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