The average target price of PAL is 14 and suggests 105% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 15.0. This translates into 117% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 12.0. This suggests 74% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Proficient Auto Logistics, Inc. focuses on providing auto transportation and logistics services in North America. The company operates approximately 1,130 auto transport vehicles and trailers, including 615 company-owned transport vehicles and trailers. It serves auto companies, electric vehicle producers, auto dealers, auto auctions, rental car companies, and auto leasing companies. The company was formerly known as AH Acquisition Corp. and changed its name to Proficient Auto Logistics, Inc. in October 2023. The company was incorporated in 2023 and is based in Jacksonville, Florida.

Proficient Auto Logistics, Inc.

Industrials

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 30ppts over six months and grown 0ppts faster in the past month. At the same time, the stock's performance relative to its the peers from the same country and sector is different. It underperformed these peers by 26ppts over six months and grew 0ppts slower in the past month. With respect to the stock's valuation against its peers, its overall price performance is 'fair'.

Historically, PAL has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -0.5%, down from 4.8% in FY23. 

Proficient Auto Logistics, Inc. reported a return on equity (RoE) of -0.6% in the last 12 months, down from 2.8% in FY23. The market consensus projects an RoE of -2.2% in FY24, again behind its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -0.4%, below the peers. The consensus estimate for FY24 for RoCE is -2.4%, again behind the peers. 

Another important profitability metric, return on assets (RoA), amounted to -0.4% in the last 12 months, a decrease from 1.9% in FY23. The market analysts predict that RoA will be -1.4% in FY24, again weaker than its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.1 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

PAL has below average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is relatively stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is minimal. We note resilient historical revenue growth, robust profitability, strong debt servicing capacity, and adequate interest coverage, among the positive credit factors. Among the negative credit factors, we point to negligible return on capital, excessive margin volatility, poor working capital management, and an unfavourable capital structure.

In highly turbulent market conditions, PAL is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, PAL is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is overpriced on P/E, 'cheap' on EV/EBITDA, trading at neutral levels on P/FCF. 

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Proficient Auto Logistics, Inc.

$ 7.19

3

Proficient Auto Logistics, Inc.

$ 7.19

3

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Profitability factor

$ 7.19

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