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  5. ALC: Happy New Year All! [Algoma Central Corporation]
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Investment Q&A

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Q: Happy New Year All!

Can I please get your opinion of Algoma Central (ALC). Has anything changed since your answer in March 2022?

Thanks

Dave
Asked by David on January 16, 2024
5i Research Answer:

Since our last update ALC has continued to grow its divided, announcing a 6% increase to its quarterly dividend last week, with yield now at 4.81%. The stock saw a modest price drawdown in 2023, declining nearly ~9%. Valuation is still cheap at 9.4x forward earnings. Strikes on the St. Lawrence Seaway could impact revenues in the short term but the company stated that the full impact is unkown. The balance sheet is relatively unchanged from our last update with slightly less debt, but also slightly less cash. Outlook forecasts modest growth in revenues and EPS in 2024. Our rating stays the same, as it is a decent income play and investors should not expect too much growth here. 

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