CHAMPION IRON LTD (CIA.CA)
AU000000CIA2 - Common Stock
Taking everything into account, CIA scores 6 out of 10 in our fundamental rating. CIA was compared to 822 industry peers in the Metals & Mining industry. While CIA has a great profitability rating, there are some minor concerns on its financial health. CIA may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CIA was profitable.
CIA had a positive operating cash flow in the past year.
CIA had positive earnings in each of the past 5 years.
In the past 5 years CIA always reported a positive cash flow from operatings.
1.2 Ratios
CIA has a better Return On Assets (9.05%) than 93.24% of its industry peers.
The Return On Equity of CIA (17.52%) is better than 94.86% of its industry peers.
The Return On Invested Capital of CIA (10.87%) is better than 95.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIA is significantly above the industry average of 11.88%.
The last Return On Invested Capital (10.87%) for CIA is well below the 3 year average (17.72%), which needs to be investigated, but indicates that CIA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 17.52% | ||
| ROIC | 10.87% |
ROA(3y)14.55%
ROA(5y)16.96%
ROE(3y)25.88%
ROE(5y)31.17%
ROIC(3y)17.72%
ROIC(5y)23.3%
1.3 Margins
With an excellent Profit Margin value of 15.29%, CIA belongs to the best of the industry, outperforming 95.27% of the companies in the same industry.
In the last couple of years the Profit Margin of CIA has grown nicely.
CIA has a Operating Margin of 27.24%. This is amongst the best in the industry. CIA outperforms 95.54% of its industry peers.
In the last couple of years the Operating Margin of CIA has declined.
CIA's Gross Margin of 32.79% is amongst the best of the industry. CIA outperforms 92.70% of its industry peers.
CIA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.24% | ||
| PM (TTM) | 15.29% | ||
| GM | 32.79% |
OM growth 3Y-22.87%
OM growth 5Y-7.21%
PM growth 3Y-24.87%
PM growth 5Y3.92%
GM growth 3Y-19.42%
GM growth 5Y-5.11%
2. Health
2.1 Basic Checks
CIA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for CIA remains at a similar level compared to 1 year ago.
The number of shares outstanding for CIA has been increased compared to 5 years ago.
CIA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.98 indicates that CIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.98, CIA is in the better half of the industry, outperforming 61.08% of the companies in the same industry.
CIA has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.39, CIA is not doing good in the industry: 77.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.98 |
ROIC/WACC1.02
WACC10.69%
2.3 Liquidity
A Current Ratio of 2.20 indicates that CIA has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.20, CIA is in line with its industry, outperforming 54.59% of the companies in the same industry.
CIA has a Quick Ratio of 1.25. This is a normal value and indicates that CIA is financially healthy and should not expect problems in meeting its short term obligations.
CIA has a Quick ratio of 1.25. This is comparable to the rest of the industry: CIA outperforms 45.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
CIA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.95%, which is quite good.
Measured over the past years, CIA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.76% on average per year.
Looking at the last year, CIA shows a quite strong growth in Revenue. The Revenue has grown by 10.52% in the last year.
The Revenue has been growing by 18.40% on average over the past years. This is quite good.
EPS 1Y (TTM)13.95%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-9.44%
3.2 Future
CIA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.19% yearly.
CIA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.49% yearly.
EPS Next Y19.09%
EPS Next 2Y19.3%
EPS Next 3Y12.48%
EPS Next 5Y3.19%
Revenue Next Year11.43%
Revenue Next 2Y9.33%
Revenue Next 3Y8.33%
Revenue Next 5Y2.49%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 10.33, the valuation of CIA can be described as reasonable.
92.84% of the companies in the same industry are more expensive than CIA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CIA to the average of the S&P500 Index (27.10), we can say CIA is valued rather cheaply.
The Price/Forward Earnings ratio is 7.90, which indicates a rather cheap valuation of CIA.
Based on the Price/Forward Earnings ratio, CIA is valued cheaply inside the industry as 92.70% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.41. CIA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 7.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIA is valued cheaply inside the industry as 93.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.19 |
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.
CIA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CIA's earnings are expected to grow with 12.48% in the coming years.
PEG (NY)0.54
PEG (5Y)0.96
EPS Next 2Y19.3%
EPS Next 3Y12.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.88%, CIA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.29, CIA pays a better dividend. On top of this CIA pays more dividend than 98.38% of the companies listed in the same industry.
CIA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
CIA has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CIA pays out 40.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.87%
EPS Next 2Y19.3%
EPS Next 3Y12.48%
CHAMPION IRON LTD
TSX:CIA (1/13/2025, 7:00:00 PM)
5.06
+0.01 (+0.2%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners35.01%
Inst Owner ChangeN/A
Ins Owners9.03%
Ins Owner ChangeN/A
Market Cap2.62B
Analysts83.33
Price Target6.98 (37.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Dividend Growth(5Y)N/A
DP40.87%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.48%
Min EPS beat(2)-67.33%
Max EPS beat(2)-1.63%
EPS beat(4)1
Avg EPS beat(4)-23.93%
Min EPS beat(4)-67.33%
Max EPS beat(4)11.7%
EPS beat(8)1
Avg EPS beat(8)-24.37%
EPS beat(12)3
Avg EPS beat(12)-17.96%
EPS beat(16)5
Avg EPS beat(16)-10.53%
Revenue beat(2)1
Avg Revenue beat(2)-10.8%
Min Revenue beat(2)-26.14%
Max Revenue beat(2)4.53%
Revenue beat(4)2
Avg Revenue beat(4)-8.37%
Min Revenue beat(4)-26.14%
Max Revenue beat(4)7.84%
Revenue beat(8)3
Avg Revenue beat(8)-5.83%
Revenue beat(12)4
Avg Revenue beat(12)-4.45%
Revenue beat(16)6
Avg Revenue beat(16)0.94%
PT rev (1m)1.76%
PT rev (3m)-0.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.45%
Revenue NY rev (1m)-2.63%
Revenue NY rev (3m)-5.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 7.9 | ||
| P/S | 1.58 | ||
| P/FCF | N/A | ||
| P/OCF | 6.11 | ||
| P/B | 1.81 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 5.19 |
EPS(TTM)0.49
EY9.68%
EPS(NY)0.64
Fwd EY12.66%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)0.83
OCFY16.37%
SpS3.2
BVpS2.79
TBVpS2.78
PEG (NY)0.54
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.05% | ||
| ROE | 17.52% | ||
| ROCE | 18.5% | ||
| ROIC | 10.87% | ||
| ROICexc | 11.76% | ||
| ROICexgc | 11.78% | ||
| OM | 27.24% | ||
| PM (TTM) | 15.29% | ||
| GM | 32.79% | ||
| FCFM | N/A |
ROA(3y)14.55%
ROA(5y)16.96%
ROE(3y)25.88%
ROE(5y)31.17%
ROIC(3y)17.72%
ROIC(5y)23.3%
ROICexc(3y)21.55%
ROICexc(5y)36.36%
ROICexgc(3y)21.67%
ROICexgc(5y)36.59%
ROCE(3y)30.15%
ROCE(5y)39.65%
ROICexcg growth 3Y-45.32%
ROICexcg growth 5Y-19.9%
ROICexc growth 3Y-45.18%
ROICexc growth 5Y-19.94%
OM growth 3Y-22.87%
OM growth 5Y-7.21%
PM growth 3Y-24.87%
PM growth 5Y3.92%
GM growth 3Y-19.42%
GM growth 5Y-5.11%
F-Score4
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 369.19% | ||
| Cap/Sales | 29.68% | ||
| Interest Coverage | 10.38 | ||
| Cash Conversion | 73.38% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.2 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.98 |
F-Score4
WACC10.69%
ROIC/WACC1.02
Cap/Depr(3y)571.64%
Cap/Depr(5y)583.13%
Cap/Sales(3y)26.51%
Cap/Sales(5y)22.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.95%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-66.67%
EPS Next Y19.09%
EPS Next 2Y19.3%
EPS Next 3Y12.48%
EPS Next 5Y3.19%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-9.44%
Revenue Next Year11.43%
Revenue Next 2Y9.33%
Revenue Next 3Y8.33%
Revenue Next 5Y2.49%
EBIT growth 1Y10.71%
EBIT growth 3Y-18.29%
EBIT growth 5Y9.87%
EBIT Next Year13.56%
EBIT Next 3Y15.19%
EBIT Next 5Y5.1%
FCF growth 1Y79.01%
FCF growth 3Y-33.55%
FCF growth 5Y4.7%
OCF growth 1Y162.1%
OCF growth 3Y-8.74%
OCF growth 5Y21.85%