CASCADES INC (CAS.CA) Stock Fundamental Analysis
TSX:CAS - Toronto Stock Exchange - CA1469001053 - Common Stock - Currency: CAD
Taking everything into account, CAS scores 3 out of 10 in our fundamental rating. CAS was compared to 9 industry peers in the Containers & Packaging industry. Both the profitability and financial health of CAS have multiple concerns. CAS is valued correctly, but it does not seem to be growing. Finally CAS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAS had positive earnings in the past year.
In the past year CAS had a positive cash flow from operations.
In multiple years CAS reported negative net income over the last 5 years.
Each year in the past 5 years CAS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CAS (-1.54%) is worse than 77.78% of its industry peers.
CAS's Return On Equity of -4.39% is on the low side compared to the rest of the industry. CAS is outperformed by 77.78% of its industry peers.
CAS has a Return On Invested Capital of 3.66%. This is in the lower half of the industry: CAS underperforms 77.78% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CAS is significantly below the industry average of 8.97%.
The last Return On Invested Capital (3.66%) for CAS is above the 3 year average (3.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.54% | ||
| ROE | -4.39% | ||
| ROIC | 3.66% |
ROA(3y)0.43%
ROA(5y)1.27%
ROE(3y)0.81%
ROE(5y)3.71%
ROIC(3y)3.08%
ROIC(5y)4.11%
1.3 Margins
With a Operating Margin value of 4.28%, CAS is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of CAS has remained more or less at the same level.
CAS has a Gross Margin of 37.86%. This is in the better half of the industry: CAS outperforms 77.78% of its industry peers.
In the last couple of years the Gross Margin of CAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.28% | ||
| PM (TTM) | N/A | ||
| GM | 37.86% |
OM growth 3Y-8.35%
OM growth 5Y0.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y35.97%
GM growth 5Y23.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAS is destroying value.
Compared to 1 year ago, CAS has more shares outstanding
CAS has more shares outstanding than it did 5 years ago.
CAS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that CAS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, CAS is doing worse than 88.89% of the companies in the same industry.
The Debt to FCF ratio of CAS is 10.63, which is on the high side as it means it would take CAS, 10.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.63, CAS is doing worse than 77.78% of the companies in the same industry.
CAS has a Debt/Equity ratio of 1.07. This is a high value indicating a heavy dependency on external financing.
CAS has a worse Debt to Equity ratio (1.07) than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 10.63 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.62
WACC5.86%
2.3 Liquidity
CAS has a Current Ratio of 1.22. This is a normal value and indicates that CAS is financially healthy and should not expect problems in meeting its short term obligations.
CAS has a worse Current ratio (1.22) than 88.89% of its industry peers.
CAS has a Quick Ratio of 1.22. This is a bad value and indicates that CAS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CAS (0.56) is worse than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The earnings per share for CAS have decreased strongly by -68.00% in the last year.
CAS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.41% yearly.
The Revenue has decreased by -0.15% in the past year.
The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)-68%
EPS 3Y-17.88%
EPS 5Y5.41%
EPS Q2Q%-38.64%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-3.47%
Revenue growth 5Y-0.05%
Sales Q2Q%0.25%
3.2 Future
The Earnings Per Share is expected to grow by 10.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y-39.99%
EPS Next 2Y21.17%
EPS Next 3Y11.88%
EPS Next 5Y10.91%
Revenue Next Year-0.4%
Revenue Next 2Y3.09%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CAS is valuated quite expensively with a Price/Earnings ratio of 28.60.
77.78% of the companies in the same industry are cheaper than CAS, based on the Price/Earnings ratio.
CAS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.21, the valuation of CAS can be described as very cheap.
CAS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CAS is cheaper than 77.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CAS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 7.21 |
4.2 Price Multiples
CAS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CAS indicates a somewhat cheap valuation: CAS is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.92 | ||
| EV/EBITDA | 6.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.29
EPS Next 2Y21.17%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.09%, CAS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.07, CAS pays a bit more dividend than its industry peers.
CAS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
5.2 History
The dividend of CAS is nicely growing with an annual growth rate of 24.66%!
CAS has paid a dividend for at least 10 years, which is a reliable track record.
CAS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)24.66%
Div Incr Years0
Div Non Decr Years23
5.3 Sustainability
The earnings of CAS are negative and hence is the payout ratio. CAS will probably not be able to sustain this dividend level.
The dividend of CAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-64%
EPS Next 2Y21.17%
EPS Next 3Y11.88%
TSX:CAS (2/21/2025, 7:00:00 PM)
11.44
-0.29 (-2.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners27.38%
Inst Owner ChangeN/A
Ins Owners11.62%
Ins Owner ChangeN/A
Market Cap1.16B
Analysts72
Price Target14.37 (25.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend0.48
Dividend Growth(5Y)24.66%
DP-64%
Div Incr Years0
Div Non Decr Years23
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.44%
Min EPS beat(2)35.79%
Max EPS beat(2)67.08%
EPS beat(4)3
Avg EPS beat(4)29.61%
Min EPS beat(4)-84.43%
Max EPS beat(4)100%
EPS beat(8)7
Avg EPS beat(8)30.05%
EPS beat(12)10
Avg EPS beat(12)-7.64%
EPS beat(16)11
Avg EPS beat(16)-14.91%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)0.5%
Revenue beat(4)1
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-6.18%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.17%
Revenue beat(12)6
Avg Revenue beat(12)-0.5%
Revenue beat(16)8
Avg Revenue beat(16)-1.06%
PT rev (1m)12.67%
PT rev (3m)12.67%
EPS NQ rev (1m)13.64%
EPS NQ rev (3m)13.64%
EPS NY rev (1m)6.35%
EPS NY rev (3m)33.68%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 7.21 | ||
| P/S | 0.25 | ||
| P/FCF | 5.92 | ||
| P/OCF | 3.23 | ||
| P/B | 0.68 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)0.4
EY3.5%
EPS(NY)1.59
Fwd EY13.86%
FCF(TTM)1.93
FCFY16.88%
OCF(TTM)3.54
OCFY30.99%
SpS45.83
BVpS16.91
TBVpS11.64
PEG (NY)N/A
PEG (5Y)5.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.54% | ||
| ROE | -4.39% | ||
| ROCE | 5.09% | ||
| ROIC | 3.66% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 4.28% | ||
| OM | 4.28% | ||
| PM (TTM) | N/A | ||
| GM | 37.86% | ||
| FCFM | 4.21% |
ROA(3y)0.43%
ROA(5y)1.27%
ROE(3y)0.81%
ROE(5y)3.71%
ROIC(3y)3.08%
ROIC(5y)4.11%
ROICexc(3y)3.17%
ROICexc(5y)4.32%
ROICexgc(3y)3.7%
ROICexgc(5y)5.15%
ROCE(3y)4.29%
ROCE(5y)5.72%
ROICexcg growth 3Y-11.88%
ROICexcg growth 5Y-0.89%
ROICexc growth 3Y-10.74%
ROICexc growth 5Y0.54%
OM growth 3Y-8.35%
OM growth 5Y0.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y35.97%
GM growth 5Y23.42%
F-Score5
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | 10.63 | ||
| Debt/EBITDA | 3.85 | ||
| Cap/Depr | 58.42% | ||
| Cap/Sales | 3.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.66 |
F-Score5
WACC5.86%
ROIC/WACC0.62
Cap/Depr(3y)146.99%
Cap/Depr(5y)122.77%
Cap/Sales(3y)8.66%
Cap/Sales(5y)7.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68%
EPS 3Y-17.88%
EPS 5Y5.41%
EPS Q2Q%-38.64%
EPS Next Y-39.99%
EPS Next 2Y21.17%
EPS Next 3Y11.88%
EPS Next 5Y10.91%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-3.47%
Revenue growth 5Y-0.05%
Sales Q2Q%0.25%
Revenue Next Year-0.4%
Revenue Next 2Y3.09%
Revenue Next 3Y2.41%
Revenue Next 5YN/A
EBIT growth 1Y-32.42%
EBIT growth 3Y-11.54%
EBIT growth 5Y0.81%
EBIT Next Year243.58%
EBIT Next 3Y60.33%
EBIT Next 5Y35.27%
FCF growth 1Y529.03%
FCF growth 3Y-21.99%
FCF growth 5Y35.52%
OCF growth 1Y-23.34%
OCF growth 3Y-4.58%
OCF growth 5Y6.46%