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 8 industry peers in the Containers & Packaging industry. CAS has a bad profitability rating. Also its financial health evaluation is rather negative. CAS has a correct valuation and a medium growth rate. Finally CAS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAS had positive earnings in the past year.
CAS had a positive operating cash flow in the past year.
In multiple years CAS reported negative net income over the last 5 years.
CAS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CAS has a Return On Assets of -0.62%. This is in the lower half of the industry: CAS underperforms 75.00% of its industry peers.
With a Return On Equity value of -1.80%, CAS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 4.02%, CAS is doing worse than 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAS is significantly below the industry average of 8.86%.
The last Return On Invested Capital (4.02%) for CAS is above the 3 year average (3.51%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.8% | ||
| ROIC | 4.02% |
ROA(3y)-0.96%
ROA(5y)0.86%
ROE(3y)-2.66%
ROE(5y)2.39%
ROIC(3y)3.51%
ROIC(5y)3.81%
1.3 Margins
The Operating Margin of CAS (4.66%) is worse than 75.00% of its industry peers.
CAS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 39.44%, CAS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CAS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.66% | ||
| PM (TTM) | N/A | ||
| GM | 39.44% |
OM growth 3Y9.66%
OM growth 5Y-6.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y27.9%
GM growth 5Y20.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.56, we must say that CAS is in the distress zone and has some risk of bankruptcy.
CAS has a worse Altman-Z score (1.56) than 87.50% of its industry peers.
The Debt to FCF ratio of CAS is 19.13, which is on the high side as it means it would take CAS, 19.13 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.13, CAS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CAS has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
CAS has a Debt to Equity ratio of 1.09. This is amonst the worse of the industry: CAS underperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 19.13 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.68
WACC5.89%
2.3 Liquidity
A Current Ratio of 1.09 indicates that CAS should not have too much problems paying its short term obligations.
CAS has a worse Current ratio (1.09) than 87.50% of its industry peers.
A Quick Ratio of 0.46 indicates that CAS may have some problems paying its short term obligations.
CAS has a Quick ratio of 0.46. This is amonst the worse of the industry: CAS underperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
CAS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.44%.
Measured over the past years, CAS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.07% on average per year.
The Revenue has been growing slightly by 1.36% in the past year.
The Revenue has been decreasing by -1.21% on average over the past years.
EPS 1Y (TTM)-44.44%
EPS 3Y32.15%
EPS 5Y-10.07%
EPS Q2Q%400%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y5.92%
Revenue growth 5Y-1.21%
Sales Q2Q%6.41%
3.2 Future
Based on estimates for the next years, CAS will show a very strong growth in Earnings Per Share. The EPS will grow by 30.13% on average per year.
The Revenue is expected to grow by 4.58% on average over the next years.
EPS Next Y143.52%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
EPS Next 5Y30.13%
Revenue Next Year7.17%
Revenue Next 2Y4.58%
Revenue Next 3YN/A
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.73 indicates a correct valuation of CAS.
75.00% of the companies in the same industry are cheaper than CAS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CAS to the average of the S&P500 Index (28.79), we can say CAS is valued slightly cheaper.
The Price/Forward Earnings ratio is 6.05, which indicates a rather cheap valuation of CAS.
Based on the Price/Forward Earnings ratio, CAS is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. CAS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
62.50% of the companies in the same industry are cheaper than CAS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CAS is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 5.96 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CAS's earnings are expected to grow with 22.05% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y54.79%
EPS Next 3Y22.05%
5. Dividend
5.1 Amount
CAS has a Yearly Dividend Yield of 5.39%, which is a nice return.
In the last 3 months the price of CAS has falen by -32.78%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CAS's Dividend Yield is rather good when compared to the industry average which is at 3.56. CAS pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, CAS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
On average, the dividend of CAS grows each year by 14.28%, which is quite nice.
CAS has paid a dividend for at least 10 years, which is a reliable track record.
CAS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.28%
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 earnings are growing more, so the dividend growth is sustainable.
DP-154.84%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
TSX:CAS (4/25/2025, 7:00:00 PM)
8.84
-0.06 (-0.67%)
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 Cap893.90M
Analysts72
Price Target12.92 (46.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend0.48
Dividend Growth(5Y)14.28%
DP-154.84%
Div Incr Years0
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.97%
Min EPS beat(2)-15.14%
Max EPS beat(2)67.08%
EPS beat(4)3
Avg EPS beat(4)46.93%
Min EPS beat(4)-15.14%
Max EPS beat(4)100%
EPS beat(8)6
Avg EPS beat(8)24.79%
EPS beat(12)9
Avg EPS beat(12)-9.48%
EPS beat(16)10
Avg EPS beat(16)-19.03%
Revenue beat(2)2
Avg Revenue beat(2)0.63%
Min Revenue beat(2)0.5%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)0.75%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)6
Avg Revenue beat(12)-0.59%
Revenue beat(16)8
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)12.67%
EPS NQ rev (1m)-12.35%
EPS NQ rev (3m)-20.53%
EPS NY rev (1m)-7.86%
EPS NY rev (3m)7.56%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 6.05 | ||
| P/S | 0.19 | ||
| P/FCF | 8.05 | ||
| P/OCF | 3.29 | ||
| P/B | 0.52 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 5.96 |
EPS(TTM)0.6
EY6.79%
EPS(NY)1.46
Fwd EY16.53%
FCF(TTM)1.1
FCFY12.42%
OCF(TTM)2.69
OCFY30.43%
SpS46.49
BVpS17.05
TBVpS11.66
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.8% | ||
| ROCE | 5.6% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.05% | ||
| ROICexgc | 4.71% | ||
| OM | 4.66% | ||
| PM (TTM) | N/A | ||
| GM | 39.44% | ||
| FCFM | 2.36% |
ROA(3y)-0.96%
ROA(5y)0.86%
ROE(3y)-2.66%
ROE(5y)2.39%
ROIC(3y)3.51%
ROIC(5y)3.81%
ROICexc(3y)3.56%
ROICexc(5y)3.99%
ROICexgc(3y)4.13%
ROICexgc(5y)4.7%
ROCE(3y)4.88%
ROCE(5y)5.31%
ROICexcg growth 3Y12.07%
ROICexcg growth 5Y-7.78%
ROICexc growth 3Y12.83%
ROICexc growth 5Y-6.94%
OM growth 3Y9.66%
OM growth 5Y-6.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y27.9%
GM growth 5Y20.84%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 19.13 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 57.09% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.56 |
F-Score5
WACC5.89%
ROIC/WACC0.68
Cap/Depr(3y)128.19%
Cap/Depr(5y)116.34%
Cap/Sales(3y)7.4%
Cap/Sales(5y)6.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.44%
EPS 3Y32.15%
EPS 5Y-10.07%
EPS Q2Q%400%
EPS Next Y143.52%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
EPS Next 5Y30.13%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y5.92%
Revenue growth 5Y-1.21%
Sales Q2Q%6.41%
Revenue Next Year7.17%
Revenue Next 2Y4.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.43%
EBIT growth 3Y16.16%
EBIT growth 5Y-7.37%
EBIT Next Year250.07%
EBIT Next 3Y44.27%
EBIT Next 5Y36.5%
FCF growth 1Y-30.62%
FCF growth 3Y-26.63%
FCF growth 5Y-11.29%
OCF growth 1Y-46.67%
OCF growth 3Y-21.72%
OCF growth 5Y-9.98%