Risk factor
Significant default risk
Profitability factor
Very low or no dividends
About
AutoCanada Inc., operating through its subsidiaries, manages a network of franchised automotive dealerships. The company provides an extensive array of products and services, encompassing the sale of new and pre-owned vehicles, vehicle leasing, auto parts, comprehensive maintenance and collision repair services, as well as extended service contracts and various vehicle protection and aftermarket accessories. Furthermore, it assists customers in securing financing and insurance options for their vehicle acquisitions by partnering with external financial and insurance providers. AutoCanada distributes vehicles from numerous prominent brands, including Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Porsche, and Honda. As of March 2, 2022, the firm's operations included 78 franchised dealerships located across several Canadian provinces—namely British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick—and also in Illinois, United States. Additionally, AutoCanada Inc. makes pre-owned vehicles available for online purchase. Established in 2009, the company's corporate headquarters are situated in Edmonton, Canada.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E, overvalued on EV/EBITD.
Target Price
The average target price of ACQ.TO is 24.4 and suggests 8.88% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendat