AutoCanada (TSX:ACQ) is an Edmonton-based company that operates franchised automobile dealerships across Canada. It offers new and used vehicles as well as a range of automotive products and services. Shares of this TSX stock have dropped 23% in 2023 as of close on March 27. AutoCanada sank to a 52-week low of $17.58 late last week. The stock is now down 44% in the year-over-year period.
Consumers have been squeezed by higher prices in this inflationary environment. That has presented challenges for AutoCanada as it hoped to capitalize on a post-pandemic economy. The company unveiled its fourth quarter and full year fiscal 2022 results on March 2, 2023.
AutoCanada posted revenue of $1.38 billion in the fourth quarter of fiscal 2022 – up 16% from the previous year. Meanwhile, adjusted EBITDA fell $15.2 million year-over-year to $50.7 million. Total vehicles sold climbed to 23,190 – up 14% compared to the prior year.
For the full year, AutoCanada delivered revenues of $6.04 billion – up from $4.65 billion in fiscal 2021. Meanwhile, gross profit climbed to $1.04 billion over $834 million in the previous year. It reported total vehicles sold of 101,719 which was up from 86,400 for the full year in fiscal 2021.
Shares of this TSX stock currently possess a very favourable price-to-earnings ratio of 5.9. It is still geared up for strong earnings growth going forward. Now is a great time to buy-the-dip in AutoCanada.
