Acadian Timber (ADN) AI Stock Analysis

• Market Cap: C$299.95M
• Dividend Yield: 6.89%
• Average Volume (3M): 6.58K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.34
• Revenue Growth: 24.29%
• EPS Growth: -27.59%
• Country: CA
• Employees: 195
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 1.25
• Shares Outstanding: 17,822,449
• 10 Day Avg. Volume: 8,146
• 30 Day Avg. Volume: 6,577
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.64
• Price to Cash Flow (P/CF): 31.70
• P/FCF Ratio: 29.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$21.00
• Price Target Upside: 24.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Acadian Timber's overall stock score is bolstered by its solid financial performance and attractive valuation, underpinned by a strong dividend yield. However, challenges in maintaining consistent income growth and operational issues in Maine, as highlighted in the earnings call, temper the outlook. Technical indicators suggest a stable but cautious trading environment.

Acadian Timber Business Overview & Revenue Model

Company Description

Acadian Timber (ADN) is one of the leading timberland businesses in Canada, operating primarily in the forestry and wood products sector. The company owns and manages timberland in New Brunswick and Maine, encompassing approximately 2.4 million acres of forest. Acadian Timber focuses on sustainable forest management, harvesting a mix of hardwood and softwood species for use in a variety of applications, including lumber, pulp, and paper production.

How the Company Makes Money

Acadian Timber generates revenue primarily through the sale of timber and wood products harvested from its forests. The company's key revenue streams include the sale of softwood and hardwood sawlogs, pulpwood, and biomass to regional mills and other wood product manufacturers. Additionally, Acadian Timber benefits from long-term supply agreements and partnerships with major forestry companies, ensuring a steady demand for its products. The company also engages in land management services, which provide additional income through sustainable forestry practices and conservation efforts. Market prices for timber, operational efficiency, and strategic land management are significant factors contributing to Acadian Timber's earnings.

Acadian Timber Financial Statement Overview

Summary

Acadian Timber exhibits solid financial health, with robust revenue and profit margins, a strong equity position, and good cash flow management. However, the company faces challenges in maintaining consistent net income growth and free cash flow, which could impact future financial flexibility.

Income Statement

Acadian Timber has shown steady revenue growth, with a notable increase from 2023 to 2024. The gross profit margin remains strong, but net income has seen fluctuations, indicating some volatility in profitability. The EBIT and EBITDA margins are healthy, highlighting efficient operations.

Balance Sheet

The company maintains a solid equity base with a stable equity ratio. The debt-to-equity ratio is manageable, reflecting a balanced approach to leveraging. Return on equity is strong, suggesting effective use of shareholder funds.

Cash Flow

While operating cash flow has improved significantly in the recent year, free cash flow growth is inconsistent, primarily due to variations in capital expenditure. The cash flow ratios indicate a strong ability to convert income into cash, supporting operational stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
116.19M	93.48M	90.47M	95.73M	91.03M
	Gross Profit
38.27M	29.58M	27.58M	30.80M	30.13M
	EBIT
23.66M	19.57M	17.86M	21.76M	32.83M
	EBITDA
34.63M	43.56M	52.51M	29.69M	35.86M
	Net Income Common Stockholders
21.74M	29.43M	35.51M	18.68M	22.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.25M	1.83M	6.23M	7.32M	10.26M
	Total Assets
608.02M	567.95M	547.84M	516.64M	513.40M
	Total Debt
114.94M	105.52M	107.94M	100.89M	101.19M
	Net Debt
99.69M	103.68M	101.71M	93.57M	90.93M
	Total Liabilities
268.99M	248.97M	244.11M	225.16M	220.16M
	Stockholders Equity
339.03M	318.98M	303.72M	291.49M	293.24M
Cash Flow		Free Cash Flow
34.05M	9.79M	14.86M	15.90M	20.27M
	Operating Cash Flow
34.05M	10.41M	15.23M	16.23M	20.62M
	Investing Cash Flow
-9.14M	56.00K	-319.00K	186.00K	32.00K
	Financing Cash Flow
-11.49M	-14.87M	-16.00M	-19.36M	-17.99M

Acadian Timber Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ADN, the sentiment is Negative. The current price of 16.83 is below the 20-day moving average (MA) of 17.18, below the 50-day MA of 17.15, and below the 200-day MA of 17.01, indicating a bearish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 56.22 is Neutral, neither overbought nor oversold. The STOCH value of 15.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ADN.

Acadian Timber Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SJ	76 Outperform	C$3.67B	11.64	17.93%	1.79%	4.52%	0.51%
ADN	68 Neutral	C$299.95M	13.60	6.61%	6.89%	24.29%	-27.59%
CFP	58 Neutral	C$1.65B	―	-18.83%	―	-3.20%	-107.88%
IFP	50 Neutral	$742.48M	―	-18.73%	―	-8.81%	-13.99%
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%

Acadian Timber Corporate Events

Acadian Timber Corp. Boosts Sales and Expands Operations in Maine

Acadian Timber Corp. reported strong financial results for the fourth quarter and the full fiscal year 2024, with sales increasing to $116.2 million from $93.5 million the previous year. The company’s performance was bolstered by the sale of 752,100 voluntary carbon credits, contributing $24.6 million to total sales. In response to challenges in contractor availability, Acadian has begun its own internal harvesting operations in Maine, acquiring assets from A & A Brochu, LLC to expand its capacity. This move is expected to enhance operational efficiency and reduce costs.