# AutoCanada Inc. (ACQ.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Automobiles. Price C$22.90, market value C$526 million.

## Valuation
- **P/E (trailing): 190.8×** (5-yr avg 15.6×, 3-yr avg 23.5×). AutoCanada Inc. trades at 190.8× trailing earnings, well above its own five-year average of 15.6×: investors are paying up relative to the company's past. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 8.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.07**. A PEG of 0.07 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.1×**. The shares trade at 1.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 16.8×**. Enterprise value is 16.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -28.2%** (5-yr avg 7.4%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 0.5%**. The inverse of the P/E: 0.5% of the price is earned each year.

## Profitability
- **Gross margin: 10.9%**. AutoCanada Inc. keeps 10.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 2.2%**. 2.2% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 0.3%**. 0.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 3.5%**. 3.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 2.4%**. Return on all capital, debt included, is 2.4%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 1.1%**. Each dollar of assets produces 1.1% of profit.

## Growth
- **Revenue growth (1 yr): -8.5%** (3-yr -6.8%/yr, 5-yr 8.0%/yr). Revenue fell 8.5% over the last year, against 8.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 122.4%** (3-yr -39.8%/yr). Earnings per share rose 122.4%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -16.8%/yr**. Free cash flow has compounded at -16.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 4.10**. Debt is 4.10 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 13.0×**. It would take 13.0 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 1.3×**. Operating profit covers interest only 1.3×: fragile.
- **Current ratio: 1.07** (quick 0.37). Current assets cover the next year's liabilities 1.07 times.
- **Altman Z-score: 2.34**. A Z-score of 2.34 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. AutoCanada Inc. does not currently pay a dividend, but it returned 3.3% of its market value through buybacks over the last year.

## Analyst view
- **Analyst consensus: hold** (8 analysts). 8 analysts cover AutoCanada Inc.; the consensus is hold, with an average price target of C$24.81 (+8% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -34.0%** (YTD -3.2%, 3-mo 7.2%). The shares are down 34.0% over twelve months including dividends.
- **From 52-week high: -35.3%** (63.6% above the low). Trading 35% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 1.02** (volatility 45%). Beta of 1.02 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ACQ.TO · Page: https://foliofundamentals.com/stocks/acq.to

Not investment advice.