The report on AutoCanada is updated and rated (higher) Buy at $20.62. Its profits were down in Q4 despite higher revenues. Margins on new and used vehicles had been unusually high during much of 2021 and 2022 due to shortages of vehicles. But that has now normalized.
The share price has reacted very negatively to the lower profits in Q4 and is perhaps also reacting to fears that higher interest rates will severely impact sales of new and used vehicles.
While profits certainly could be lower in 2023 it appears that the share price has more than priced in that bad news.
While there are always risks the share price appears to be quite attractive.
This company has a history of very strong cash flows under the current management which took over in 2018. The company continues to project strong growth.