Is it a good company at a reasonable price? This is a small cap stock, so caution is advised. They have done well for their shareholders in the past. At the moment, the testing seems to be saying that the stock price is relatively high. The lone analyst giving it a Strong Buy also gives a 12 month stock price of $19.00 which is below today’s price. I would think a Hold is more advisable.
I do not own this stock of Algoma Central Corporation (TSX-ALC, OTC-AGMJF). I got the name from the internet. The description was that Algoma Central Corporation is a Canadian shipping company. It operates Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes. The company operates its business through six segments that are Domestic Dry-Bulk, Product Tankers, Ocean Self Unloaders, Corporate, Investment Properties, and Global Short Sea Shipping.
When I was updating my spreadsheet, I noticed it is not well followed. There are few places to get any estimates from and mainly I just got EPS estimates from WSJ. This is a small company, but it has mainly done well for its shareholders. See the Total Return section below. Yearly dividend increases occur around 40% of the time over the last 37 years and 80% of the time over the past 10 years.
If you had invested in this company in December 2015, for $1,006.51 you would have bought 91 shares at $11.06 per share. In December 2025, after 10 years you would have received $937.30 in dividends. The stock would be worth $1,719.90. Your total return would have been $2,657.20. This would be a total return of 12.25% per year with 5.50% from capital gain and 6.74% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $11.06 | $1,006.51 | 91 | 10 | $937.30 | $1,719.90 | $2,657.20 |
The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 3.81%. The 5, 10 and historical dividend yields are moderate at 4.66%, 4.16% and 2.93%. The dividend growth is moderate (8% to 14% ranges) at 9.9% per year over the past 5 years. The last dividend increase was in 2026 and it was for 5%. Dividend increases over the past 10 years have varied from 36% to 0%.
The Dividend Payout Ratios (DPR) are currently good. The DPR for 2025 for Earnings per Share (EPS) is good at 23% with 5 year coverage too high at 60%. The DPR for 2025 for Adjusted Earnings per Share (AEPS) is good at 43% with 5 year coverage at 40%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 19% with 5 year coverage at 39%. The DPR for 2025 for Free Cash Flow (FCF) is good at 34% with 5 year coverage too high at 61%.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 22.66% | 60.06% |
| AEPS | 43.24% | 39.38% |
| CFPS | 19.05% | 38.54% |
| FCF | 34.12% | 60.97% |
Debt Ratios are generally fine, but Liquidity Ratio needs improving. The Long Term Debt/Market Cap Ratio for 2025 is fine at 0.54 and currently good at 0.46. The Liquidity Ratio for 2025 is too low at 0.71 and 0.48 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.26 and currently too low at 0.81. It is only when you add back in current debt that Liquidity Raio is getting decent for 2025 at 1.27 and currently at 1.70. The Debt Ratio for 2025 is good at 2.32 and 2.19 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 1.76 and 0.76 and currently at 1.84 and 0.84. The Company was in compliance with all of its debt covenants.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.54 | 0.46 |
| Intang/GW | 0.01 | 0.01 |
| Liquidity | 0.71 | 0.48 |
| Liq. + CF | 1.26 | 0.81 |
| Liq. + CF+D | 1.27 | 1.70 |
| Debt Ratio | 2.32 | 2.19 |
| Leverage | 1.76 | 1.84 |
| D/E Ratio | 0.76 | 0.84 |
The Total Return per year is shown below for years of 5 to 37 to the end of 2025. 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. |
|---|---|---|---|---|---|
| 2020 | 5 | 9.86% | 17.23% | 6.31% | 10.92% |
| 2015 | 10 | 11.07% | 12.25% | 5.50% | 6.41% |
| 2010 | 15 | 10.46% | 11.84% | 6.46% | 5.93% |
| 2005 | 20 | 10.96% | 7.56% | 3.84% | 4.23% |
| 2000 | 25 | 8.67% | 15.16% | 9.68% | 5.15% |
| 1995 | 30 | 7.98% | 11.50% | 7.35% | 5.03% |
| 1990 | 35 | 12.03% | 14.13% | 9.50% | 4.04% |
| 1988 | 37 | 7.25% | 10.05% | 6.83% | 3.48% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.16, 6.45 and 6.74. The corresponding 10 year ratios are 6.91, 8.09 and 9.27. The corresponding historical ratios are 6.91, 8.12 and 9.60. The current ratio is 9.98 based on a stock price of $22.06 and EPS estimate for 2026 of $2.21. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. The P/E Ratios are rather low, but this is common for small cap stocks.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 7.16, 7.72 and 8.31. The corresponding 10 year ratios are 8.22, 9.66 and 10.78. The corresponding historical ratios are 7.16, 8.82 and 10.52. The current ratio is 9.98 based on a stock price of $22.06 and AEPS estimate for 2026 of $2.21. The current ratio is between the median and the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. Note that this company does not have an AEPS every year.
I get a Graham Price of $35.16. The 10-year low, median, and high median Price/Graham Price Ratios are 0.47, 0.52 and 0.58. The current P/GP Ratio is 0.63 based on a stock price of $22.06. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. The P/GP Ratios are rather low, but this is common for small cap stocks.
I get a 10-year median Price/Book Value per Share Ratio of 0.67. The current P/B Ratio is 0.89 based on a Book Value of $1,008.5M, Book Value per Share of $24.86 and a stock price of $22.06. The current ratio is 32% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 4.11. The current P/CF Ratio is 5.77 based on Cash Flow for the last 12 months of $155.2M, Cash Flow per Share of $3.83 and a stock price of $22.06. The current ratio is 40% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 2.93%. The current dividend yield is 3.81% based on dividends of $0.84 and a stock price of $22.06. The current dividend yield is 30% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 4.16%. The current dividend yield is 3.81% based on dividends of $0.84 and a stock price of $22.06. The current dividend yield is 8% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
The 10-year median Price/Sales (Revenue) Ratio is 0.88. The current ratio is 1.14 based on Revenue for the last 12 months of $781.6M, Revenue per Share of $19.27 and a stock price of $22.06. The current ratio is 31% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is probably on the expensive side. The 10 year dividend yield test says that the stock price is reasonable, but above the median. This is not confirmed by the P/S Ratio test that says that the stock price is relatively expensive. Most of my testing is saying that the stock price is relatively expensive.
When I look at analysts’ recommendations, I find Strong Buy (1). The consensus would be a Strong Buy. The 12 months stock price consensus is $19.00. The 12 months stock price of $19.00 implies a total loss of 10.06% with 13.87% from a capital loss and 3.81% from dividends based on a current stock price of $22.06. However, a Strong Buy and a 12 month stock price lower than the current stock price does not make much sense.
There are few entries on Stock Chase for 2025. One analyst says it is cyclical, which is true. Another says there are balance sheet issues. Brian Paradza on Motley Fool says that since the turnaround of 2022, the company has increased dividends and DPR is good. Christopher Liew on Motley Fool says this is a stock to buy and hold forever. The company put out a Press Release about their fourth quarter results for 2025. The company put out a press release via Morningstar about their first quarter of 2026.
Simply Wall Street via Yahoo Finance reviews this stock. It says maybe to dive deeper into reviewing because it lately has some real business momentum. Simply Wall Street has two warnings of has a high level of debt; and dividend of 3.73% is not well covered by free cash flows.
Algoma Central Corp owns and operates a fleet of dry and liquid bulk carriers on the Great Lakes, St. Lawrence Waterway. Its web site is here Algoma Central Corporation.
The last stock I wrote about was about was Barclays PLC ADR (LSE-BARC, NYSE-BCS) ... learn more. The next stock I will write about will be Thomson Reuters Corp (TSX-TRI, NASDAQ-TRI) ... learn more on Wednesday, May 13, 2026 around 5 pm. Tomorrow on my other blog I will write about TransAlta Corp.... learn more on Tuesday, May 12, 2026 around 5 pm.
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