AutoCanada (TSX:ACQ) is an Edmonton-based company that operates franchised automobile dealerships. Shares of this auto dealership stock have climbed 18% month-over-month as of close on November 15. The stock is still down 36% in the year-to-date period.
Automobile sales were hit hard to start this decade due to the impacts of the COVID-19 pandemic. However, this dealership has managed to put together an impressive performance as it has executed on its recovery plan that it laid out late last decade. That has given it a leg up in the face of historic headwinds.
This company released its third quarter fiscal 2022 earnings on November 10. AutoCanada reported total revenues of $1.62 billion – up from $1.20 billion in the third quarter of fiscal 2021. Meanwhile, the company saw net income fall to $32.9 million compared to $38.8 million in the prior year. Adjusted EBITDA rose to $76.4 million which was up 11% from $68.3 million in Q3 2021.
Paul Antony, Executive Chairman at AutoCanada, had significant praise for the company’s recent earnings report. It credited the strength of its business model and its ability to wade through “a range of industry challenges”.
Shares of this TSX stock currently possess a very attractive price-to-earnings ratio of 5.2. It is not too late to snatch up this auto dealer stock after we have seen its impressive third quarter fiscal 2022 report.
