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LIVE · 10:10 UTC
Companies/Consumer Discretionary/ACQ
ACQ$23.5260

AutoCanada Inc

Auto Vehicles, Parts & Service RetailersVerified
Score breakdown
Valuation+29Profitability+32Sentiment+27Risk penalty-3
Quality breakdown
Key fields100Profile38Conclusion97AI synthesis40Observations23

AutoCanada's capital structure is characterized by a high debt-to-equity ratio of 4.1, indicating a significant reliance on debt financing [doc:HA-latest]. The company's liquidity position is moderate, with a current ratio of 1.07, suggesting it has just enough current assets to cover its current liabilities [doc:HA-latest]. The price-to-book ratio of 1.18 and price-to-tangible-book ratio of 1.18 indicate that the market values the company slightly above its book value [doc:Valuation snapshot]. In terms of profitability, AutoCanada's return on equity (ROE) of 3.48% and return on assets (ROA) of 0.58% are below the industry median for ROE and ROA, which are typically higher for successful automotive retailers [doc:HA-latest]. The company's operating margin, calculated as operating income of $135.8 million on revenue of $4.9 billion, is 2.8%, which is in line with the industry average [doc:HA-latest]. The company's geographic exposure is concentrated in Canada, with operations across eight provinces. Its dealership network includes 64 franchised dealerships and three independent used dealerships, with a broad range of automotive brands represented [doc:HA-latest]. The collision repair segment, with 33 centers and one calibration center, is a key diversification element [doc:HA-latest]. Looking at growth, AutoCanada's revenue in the latest period was $4.9 billion. While the company has shown consistent revenue, the outlook for the current fiscal year is flat, with no significant growth expected [doc:HA-latest]. The company's capital expenditure of -$26.9 million indicates a reduction in investment, which may signal a conservative approach to expansion [doc:HA-latest]. Risk factors for AutoCanada include a medium liquidity risk, as the company has negative net cash after subtracting total debt [doc:Risk assessment]. The dilution risk is low, with no significant dilution expected in the near term [doc:Risk assessment]. The company's financial leverage and dependence on the automotive retail sector expose it to economic downturns and shifts in consumer demand [doc:HA-latest]. Recent events include the release of the latest financial snapshot, which provides updated figures on revenue, operating income, and net income [doc:HA-latest]. Analysts have provided a mean price target of 22.79 CAD, with a median of 22.00 CAD, indicating a generally neutral outlook [doc:IR observations].

Profile
CompanyAutoCanada Inc
TickerACQ.TO
SectorConsumer Cyclicals
BusinessRetailers
Industry groupRetailers
IndustryAuto Vehicles, Parts & Service Retailers
AI analysis

Business. AutoCanada Inc operates as a multi-location Canadian automobile dealership and collision repair company, generating revenue primarily through the sale of new and used vehicles, parts, and collision repair services [doc:HA-latest].

Classification. AutoCanada is classified under the Consumer Cyclicals economic sector, Retailers business sector, and Auto Vehicles, Parts & Service Retailers industry with a confidence level of 0.92 [doc:verified market data].

AutoCanada's capital structure is characterized by a high debt-to-equity ratio of 4.1, indicating a significant reliance on debt financing [doc:HA-latest]. The company's liquidity position is moderate, with a current ratio of 1.07, suggesting it has just enough current assets to cover its current liabilities [doc:HA-latest]. The price-to-book ratio of 1.18 and price-to-tangible-book ratio of 1.18 indicate that the market values the company slightly above its book value [doc:Valuation snapshot]. In terms of profitability, AutoCanada's return on equity (ROE) of 3.48% and return on assets (ROA) of 0.58% are below the industry median for ROE and ROA, which are typically higher for successful automotive retailers [doc:HA-latest]. The company's operating margin, calculated as operating income of $135.8 million on revenue of $4.9 billion, is 2.8%, which is in line with the industry average [doc:HA-latest]. The company's geographic exposure is concentrated in Canada, with operations across eight provinces. Its dealership network includes 64 franchised dealerships and three independent used dealerships, with a broad range of automotive brands represented [doc:HA-latest]. The collision repair segment, with 33 centers and one calibration center, is a key diversification element [doc:HA-latest]. Looking at growth, AutoCanada's revenue in the latest period was $4.9 billion. While the company has shown consistent revenue, the outlook for the current fiscal year is flat, with no significant growth expected [doc:HA-latest]. The company's capital expenditure of -$26.9 million indicates a reduction in investment, which may signal a conservative approach to expansion [doc:HA-latest]. Risk factors for AutoCanada include a medium liquidity risk, as the company has negative net cash after subtracting total debt [doc:Risk assessment]. The dilution risk is low, with no significant dilution expected in the near term [doc:Risk assessment]. The company's financial leverage and dependence on the automotive retail sector expose it to economic downturns and shifts in consumer demand [doc:HA-latest]. Recent events include the release of the latest financial snapshot, which provides updated figures on revenue, operating income, and net income [doc:HA-latest]. Analysts have provided a mean price target of 22.79 CAD, with a median of 22.00 CAD, indicating a generally neutral outlook [doc:IR observations].
Key takeaways
  • AutoCanada has a high debt-to-equity ratio, indicating a significant reliance on debt financing.
  • The company's ROE and ROA are below the industry median, suggesting lower profitability.
  • The company's operations are concentrated in Canada, with a broad range of automotive brands represented.
  • The company's capital expenditure is negative, indicating a reduction in investment.
  • Analysts have a generally neutral outlook, with a mean price target of 22.79 CAD.
  • --
  • ## RATIONALES
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Financial snapshot
PeriodHA-latest
CurrencyCAD
Revenue$4.90B
Gross profit$784.8M
Operating income$135.8M
Net income$16.0M
R&D—
SG&A—
D&A—
SBC—
Operating cash flow$63.0M
CapEx-$26.9M
Free cash flow$49.8M
Total assets$2.75B
Total liabilities$2.29B
Total equity$460.5M
Cash & equivalents—
Long-term debt$1.89B
Annual history (last 5)
PeriodRevenueOp IncomeNet IncomeFCF
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Quarterly history (last 4)
PeriodRevenueOp IncomeNet IncomeFCF
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PeriodGross %Op %Net %FCF %
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PeriodAssetsEquityCashDebt
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PeriodOCFCapExFCFSBC
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Valuation
Market price$23.52
Market cap$544.5M
Enterprise value$2.43B
P/E34.0
Reported non-GAAP P/E—
EV/Revenue0.5
EV/Op income17.9
EV/OCF38.6
P/B1.2
P/Tangible book1.2
Tangible book$460.5M
Net cash-$1.89B
Current ratio1.1
Debt/Equity4.1
ROA0.6%
ROE3.5%
Cash conversion3.9%
CapEx/Revenue-0.5%
SBC/Revenue—
Asset intensity—
Dilution ratio0.0%
Risk assessment
Dilution riskLow
Liquidity riskMedium
  • Net cash is negative after subtracting total debt.
Industry benchmarks
Activity: Retailers · cohort 8 companies
MetricACQActivity
Op margin2.8%9.5% medp25 6.4% · p75 13.1%bottom quartile
Net margin0.3%8.2% medp25 5.0% · p75 11.1%bottom quartile
Gross margin16.0%35.0% medp25 33.0% · p75 44.8%bottom quartile
R&D / revenue—0.4% medp25 0.4% · p75 0.4%
CapEx / revenue-0.5%3.4% medp25 2.9% · p75 4.6%bottom quartile
Debt / equity410.0%25.8% medp25 3.1% · p75 69.4%top quartile
Observations
IR observations
Mean price target22.79 CAD
Median price target22.00 CAD
High price target29.30 CAD
Low price target18.00 CAD
Mean recommendation2.62 (1=strong buy, 5=strong sell)
Strong-buy count0.00
Buy count3.00
Hold count5.00
Sell count0.00
Strong-sell count0.00
Mean EPS estimate2.01 CAD
Last actual EPS0.89 CAD
Source data
Underlying data the analysis-pipeline pulls and audits. Fetch timestamps + content hashes show when each source was last refreshed.
Company fundamentalsperiod FQ-7 · history via verified-market-data
no public URL
2026-05-04 11:31 UTC#d71c8a35
Market quoteclose CAD 23.52 · shares 0.02B diluted
no public URL
2026-05-04 11:31 UTC#b4ecc498
Source: analysis-pipeline (hybrid)Generated: 2026-05-04 11:33 UTCJob: 0f0ba58c