AD:CA:TSX-Alaris Royalty Corp (CAD)

COMMON STOCK | Conglomerates | TSX

Last Closing Price

CAD 7.81

Change

0.00 (0.00)%

Market Cap

CAD 0.30B

Volume

0.35M

Average Target Price

CAD 18.50 (+136.88%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Alaris Royalty Corp. is a private equity firm specializing in management buyouts, growth capital, lower & middle market, later stage, industry consolidation, growth capital, and mature investments. The firm does not invest in turnarounds and start-ups. It prefers to invest in the companies based in all industries except for those with a declining asset base, such as oil and gas resource companies, or any industry that carry the risk of obsolescence such as high tech and focuses on business services, professional services, information services, healthcare services, distribution & logistics, industrials, consumer products. The firm seeks to invest in companies raising capital for a partial liquidity, generational transfer, recapitalization, and growth and who do not want to give up control or chance the added risk that comes with high leverage levels. It prefers to invest in companies that are mostly individual or family controlled. The firm typically provides alternative financing for a diversified group of private businesses (Private Company Partners) in exchange for royalties or distributions from the Private Company Partners, with the principal objective of generating stable and predictable cash flows for dividend payments to its shareholders. It seeks to invest in the companies based in Europe, North America with the focus on Canada, and United States. It typically invests between $5 million and $100 million in companies with an enterprise values between $10 million and $400 million and EBITDA between $5 million and $50 million, historical EBITDA in excess of $10 million, and Low levels of debt and capital expenditure. The firm also makes small cap investments upto $20 million in private companies that have historical EBITDA in excess of $2 million. However, for larger companies, transactions can be structured to include additional investments. The firm seeks to invest in industries that do not experience large cyclical swings. It does not own any shares and does not require board representation. The firm inve

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-31 )

Largest Industry Peers for Conglomerates

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
ONEX:CA Onex Corporation

+0.51 (+1.00%)

CAD4.94B 1.15 4.69
BBU-UN:CA Brookfield Business Partners L..

+0.10 (+0.28%)

CAD2.86B 115.05 10.91
DIV:CA Diversified Royalty Corp

+0.16 (+10.88%)

CAD0.18B 11.71 N/A

ETFs Containing AD:CA

Symbol Name Weight Mer Price(Change) Market Cap
CDZ:CA iShares S&P/TSX Canad.. 2.35 % 0.66 %

N/A

CAD0.88B

Market Performance

  Market Performance vs.
Industry/Classification (Conglomerates)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -64.39% 25% F 5% F
Dividend Return 0.63% 100% A+ 75% C
Total Return -63.76% 25% F 5% F
Trailing 12 Months  
Capital Gain -63.23% 25% F 12% F
Dividend Return 6.48% 100% A+ 97% A+
Total Return -56.75% 25% F 13% F
Trailing 5 Years  
Capital Gain -76.69% 33% F 16% F
Dividend Return 23.93% 67% D+ 81% B-
Total Return -52.75% 33% F 24% F
Average Annual (5 Year Horizon)  
Capital Gain -6.74% 25% F 15% F
Dividend Return 7.55% 75% C 96% A
Total Return 0.81% 25% F 21% F
Risk Return Profile  
Volatility (Standard Deviation) 16.88% 75% C 46% F
Risk Adjusted Return 4.78% 25% F 21% F
Market Capitalization 0.30B 50% F 62% D-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Conglomerates)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 8.42 75% C 74% C
Price/Book Ratio 0.50 100% A+ 70% C-
Price / Cash Flow Ratio 4.05 75% C 60% D-
EV/EBITDA 6.38 67% D+ 46% F
Management Effectiveness  
Return on Equity 5.85% 50% F 56% F
Return on Invested Capital 11.85% 100% A+ 80% B-
Return on Assets 6.49% 100% A+ 87% B+
Debt to Equity Ratio 62.23% 100% A+ 43% F
Technical Ratios  
Short Ratio 2.82 50% F 31% F
Short Percent N/A N/A N/A N/A N/A
Beta 1.01 75% C 36% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.