CHAMPION IRON LTD (CIA.CA) Stock Fundamental Analysis
TSX:CIA - Toronto Stock Exchange - AU000000CIA2 - Common Stock - Currency: CAD
Taking everything into account, CIA scores 5 out of 10 in our fundamental rating. CIA was compared to 805 industry peers in the Metals & Mining industry. CIA scores excellent on profitability, but there are concerns on its financial health. CIA is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CIA had positive earnings in the past year.
In the past year CIA had a positive cash flow from operations.
In the past 5 years CIA has always been profitable.
Each year in the past 5 years CIA had a positive operating cash flow.
1.2 Ratios
CIA's Return On Assets of 4.69% is amongst the best of the industry. CIA outperforms 89.07% of its industry peers.
Looking at the Return On Equity, with a value of 9.90%, CIA belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.79%, CIA belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CIA is below the industry average of 12.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 9.9% | ||
| ROIC | 6.79% |
ROA(3y)7.35%
ROA(5y)15.87%
ROE(3y)14.19%
ROE(5y)28.4%
ROIC(3y)9.37%
ROIC(5y)19%
1.3 Margins
With an excellent Profit Margin value of 8.84%, CIA belongs to the best of the industry, outperforming 92.55% of the companies in the same industry.
CIA's Profit Margin has declined in the last couple of years.
The Operating Margin of CIA (19.95%) is better than 92.30% of its industry peers.
In the last couple of years the Operating Margin of CIA has declined.
CIA has a Gross Margin of 25.01%. This is amongst the best in the industry. CIA outperforms 90.19% of its industry peers.
In the last couple of years the Gross Margin of CIA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.95% | ||
| PM (TTM) | 8.84% | ||
| GM | 25.01% |
OM growth 3Y-31.3%
OM growth 5Y-13.67%
PM growth 3Y-37.24%
PM growth 5Y-4.94%
GM growth 3Y-27.69%
GM growth 5Y-11.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CIA is creating some value.
CIA has about the same amout of shares outstanding than it did 1 year ago.
CIA has more shares outstanding than it did 5 years ago.
CIA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.31 indicates that CIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
CIA has a Altman-Z score (2.31) which is in line with its industry peers.
CIA has a Debt/Equity ratio of 0.52. This is a neutral value indicating CIA is somewhat dependend on debt financing.
CIA's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. CIA is outperformed by 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.31 |
ROIC/WACC0.75
WACC9.11%
2.3 Liquidity
CIA has a Current Ratio of 2.04. This indicates that CIA is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of CIA (2.04) is comparable to the rest of the industry.
A Quick Ratio of 1.04 indicates that CIA should not have too much problems paying its short term obligations.
CIA has a Quick ratio (1.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
CIA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.78%.
The Earnings Per Share has been decreasing by -0.70% on average over the past years.
Looking at the last year, CIA shows a small growth in Revenue. The Revenue has grown by 5.40% in the last year.
Measured over the past years, CIA shows a quite strong growth in Revenue. The Revenue has been growing by 15.40% on average per year.
EPS 1Y (TTM)-37.78%
EPS 3Y-35.43%
EPS 5Y-0.7%
EPS Q2Q%60%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y3.22%
Revenue growth 5Y15.4%
Sales Q2Q%27.73%
3.2 Future
Based on estimates for the next years, CIA will show a decrease in Earnings Per Share. The EPS will decrease by -2.64% on average per year.
CIA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.31% yearly.
EPS Next Y100.34%
EPS Next 2Y46.03%
EPS Next 3Y26.63%
EPS Next 5Y-2.64%
Revenue Next Year17.45%
Revenue Next 2Y10.54%
Revenue Next 3Y6.45%
Revenue Next 5Y0.31%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.57, the valuation of CIA can be described as correct.
CIA's Price/Earnings ratio is rather cheap when compared to the industry. CIA is cheaper than 92.55% of the companies in the same industry.
CIA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.27 indicates a rather cheap valuation of CIA.
CIA's Price/Forward Earnings ratio is rather cheap when compared to the industry. CIA is cheaper than 94.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, CIA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIA is valued cheaper than 95.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
CIA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CIA may justify a higher PE ratio.
A more expensive valuation may be justified as CIA's earnings are expected to grow with 26.63% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y46.03%
EPS Next 3Y26.63%
5. Dividend
5.1 Amount
CIA has a Yearly Dividend Yield of 4.98%, which is a nice return.
CIA's Dividend Yield is rather good when compared to the industry average which is at 14.98. CIA pays more dividend than 99.01% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, CIA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
5.2 History
CIA has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
72.96% of the earnings are spent on dividend by CIA. This is not a sustainable payout ratio.
DP72.96%
EPS Next 2Y46.03%
EPS Next 3Y26.63%
TSX:CIA (7/11/2025, 7:00:00 PM)
4.08
+0.02 (+0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners39.34%
Inst Owner ChangeN/A
Ins Owners9.04%
Ins Owner ChangeN/A
Market Cap2.18B
Analysts83.08
Price Target5.97 (46.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.98% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP72.96%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-50.67%
Min EPS beat(2)-100%
Max EPS beat(2)-1.35%
EPS beat(4)0
Avg EPS beat(4)-42.58%
Min EPS beat(4)-100%
Max EPS beat(4)-1.35%
EPS beat(8)1
Avg EPS beat(8)-33.15%
EPS beat(12)1
Avg EPS beat(12)-28.92%
EPS beat(16)4
Avg EPS beat(16)-18.86%
Revenue beat(2)0
Avg Revenue beat(2)-2.15%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-2.13%
Revenue beat(4)1
Avg Revenue beat(4)-6.48%
Min Revenue beat(4)-26.14%
Max Revenue beat(4)4.53%
Revenue beat(8)3
Avg Revenue beat(8)-4.66%
Revenue beat(12)4
Avg Revenue beat(12)-4.28%
Revenue beat(16)5
Avg Revenue beat(16)-1.63%
PT rev (1m)2.6%
PT rev (3m)-9.59%
EPS NQ rev (1m)-34.99%
EPS NQ rev (3m)-34.99%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.62%
Revenue NQ rev (1m)-13.94%
Revenue NQ rev (3m)-13.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 7.27 | ||
| P/S | 1.35 | ||
| P/FCF | N/A | ||
| P/OCF | 7.16 | ||
| P/B | 1.52 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)0.28
EY6.86%
EPS(NY)0.56
Fwd EY13.75%
FCF(TTM)-0.57
FCFYN/A
OCF(TTM)0.57
OCFY13.97%
SpS3.01
BVpS2.69
TBVpS2.68
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.69% | ||
| ROE | 9.9% | ||
| ROCE | 12% | ||
| ROIC | 6.79% | ||
| ROICexc | 7.1% | ||
| ROICexgc | 7.12% | ||
| OM | 19.95% | ||
| PM (TTM) | 8.84% | ||
| GM | 25.01% | ||
| FCFM | N/A |
ROA(3y)7.35%
ROA(5y)15.87%
ROE(3y)14.19%
ROE(5y)28.4%
ROIC(3y)9.37%
ROIC(5y)19%
ROICexc(3y)10.84%
ROICexc(5y)28.87%
ROICexgc(3y)10.88%
ROICexgc(5y)29.1%
ROCE(3y)16.55%
ROCE(5y)33.57%
ROICexcg growth 3Y-42.32%
ROICexcg growth 5Y-28.41%
ROICexc growth 3Y-42.24%
ROICexc growth 5Y-28.44%
OM growth 3Y-31.3%
OM growth 5Y-13.67%
PM growth 3Y-37.24%
PM growth 5Y-4.94%
GM growth 3Y-27.69%
GM growth 5Y-11.6%
F-Score3
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.59 | ||
| Cap/Depr | 407.52% | ||
| Cap/Sales | 37.69% | ||
| Interest Coverage | 6.67 | ||
| Cash Conversion | 64.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 2.31 |
F-Score3
WACC9.11%
ROIC/WACC0.75
Cap/Depr(3y)309.58%
Cap/Depr(5y)525.09%
Cap/Sales(3y)27.11%
Cap/Sales(5y)26.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.78%
EPS 3Y-35.43%
EPS 5Y-0.7%
EPS Q2Q%60%
EPS Next Y100.34%
EPS Next 2Y46.03%
EPS Next 3Y26.63%
EPS Next 5Y-2.64%
Revenue 1Y (TTM)5.4%
Revenue growth 3Y3.22%
Revenue growth 5Y15.4%
Sales Q2Q%27.73%
Revenue Next Year17.45%
Revenue Next 2Y10.54%
Revenue Next 3Y6.45%
Revenue Next 5Y0.31%
EBIT growth 1Y-25.32%
EBIT growth 3Y-29.09%
EBIT growth 5Y-0.37%
EBIT Next Year101.11%
EBIT Next 3Y27.24%
EBIT Next 5Y2.57%
FCF growth 1Y-329.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-35.94%
OCF growth 3Y-13.54%
OCF growth 5Y-0.36%