CHAMPION IRON LTD (CIA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CIA - AU000000CIA2 - Common Stock
6.06 CAD
+0.04 (+0.66%)
Overall CIA gets a fundamental rating of 5 out of 10. We evaluated CIA against 817 industry peers in the Metals & Mining industry. CIA scores excellent on profitability, but there are concerns on its financial health. CIA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CIA was profitable.
- In the past year CIA had a positive cash flow from operations.
- CIA had positive earnings in each of the past 5 years.
- Each year in the past 5 years CIA had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.53%, CIA belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
- CIA has a Return On Equity of 8.10%. This is amongst the best in the industry. CIA outperforms 90.09% of its industry peers.
- With an excellent Return On Invested Capital value of 5.10%, CIA belongs to the best of the industry, outperforming 91.19% 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 11.97%.
- The last Return On Invested Capital (5.10%) for CIA is well below the 3 year average (9.37%), which needs to be investigated, but indicates that CIA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 8.1% | ||
| ROIC | 5.1% |
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
- CIA has a better Profit Margin (7.27%) than 91.31% of its industry peers.
- In the last couple of years the Profit Margin of CIA has declined.
- Looking at the Operating Margin, with a value of 16.68%, CIA belongs to the top of the industry, outperforming 91.31% of the companies in the same industry.
- CIA's Operating Margin has declined in the last couple of years.
- CIA's Gross Margin of 21.30% is amongst the best of the industry. CIA outperforms 88.86% of its industry peers.
- In the last couple of years the Gross Margin of CIA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.68% | ||
| PM (TTM) | 7.27% | ||
| GM | 21.3% |
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
- CIA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, CIA has about the same amount of shares outstanding.
- Compared to 5 years ago, CIA has more shares outstanding
- Compared to 1 year ago, CIA has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.35 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 2.35, CIA is in line with its industry, outperforming 44.92% of the companies in the same industry.
- A Debt/Equity ratio of 0.68 indicates that CIA is somewhat dependend on debt financing.
- CIA's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. CIA is outperformed by 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.35 |
ROIC/WACC0.5
WACC10.28%
2.3 Liquidity
- CIA has a Current Ratio of 2.57. This indicates that CIA is financially healthy and has no problem in meeting its short term obligations.
- With a Current ratio value of 2.57, CIA perfoms like the industry average, outperforming 58.38% of the companies in the same industry.
- A Quick Ratio of 1.73 indicates that CIA should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.73, CIA is in line with its industry, outperforming 51.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
- CIA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.02%.
- Measured over the past years, CIA shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.70% on average per year.
- The Revenue has been growing slightly by 0.83% in the past 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)-51.02%
EPS 3Y-35.43%
EPS 5Y-0.7%
EPS Q2Q%175%
Revenue 1Y (TTM)0.83%
Revenue growth 3Y3.22%
Revenue growth 5Y15.4%
Sales Q2Q%40.43%
3.2 Future
- Based on estimates for the next years, CIA will show a small growth in Earnings Per Share. The EPS will grow by 3.44% on average per year.
- Based on estimates for the next years, CIA will show a small growth in Revenue. The Revenue will grow by 1.02% on average per year.
EPS Next Y25.67%
EPS Next 2Y27.31%
EPS Next 3Y16.4%
EPS Next 5Y3.44%
Revenue Next Year10.38%
Revenue Next 2Y8.45%
Revenue Next 3Y5.84%
Revenue Next 5Y1.02%
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 accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- CIA is valuated quite expensively with a Price/Earnings ratio of 25.25.
- 92.66% of the companies in the same industry are more expensive than CIA, based on the Price/Earnings ratio.
- CIA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 13.35 indicates a correct valuation of CIA.
- CIA's Price/Forward Earnings ratio is rather cheap when compared to the industry. CIA is cheaper than 92.66% of the companies in the same industry.
- CIA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CIA is valued cheaply inside the industry as 96.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.9 |
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 16.40% in the coming years.
PEG (NY)0.98
PEG (5Y)N/A
EPS Next 2Y27.31%
EPS Next 3Y16.4%
5. Dividend
5.1 Amount
- CIA has a Yearly Dividend Yield of 3.50%. Purely for dividend investing, there may be better candidates out there.
- CIA's Dividend Yield is rather good when compared to the industry average which is at 0.58. CIA pays more dividend than 99.27% of the companies in the same industry.
- CIA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
- 86.57% of the earnings are spent on dividend by CIA. This is not a sustainable payout ratio.
DP86.57%
EPS Next 2Y27.31%
EPS Next 3Y16.4%
CHAMPION IRON LTD / CIA.CA FAQ
What is the fundamental rating for CIA stock?
ChartMill assigns a fundamental rating of 5 / 10 to CIA.CA.
What is the valuation status of CHAMPION IRON LTD (CIA.CA) stock?
ChartMill assigns a valuation rating of 5 / 10 to CHAMPION IRON LTD (CIA.CA). This can be considered as Fairly Valued.
What is the profitability of CIA stock?
CHAMPION IRON LTD (CIA.CA) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for CIA stock?
The Earnings per Share (EPS) of CHAMPION IRON LTD (CIA.CA) is expected to grow by 25.67% in the next year.
Is the dividend of CHAMPION IRON LTD sustainable?
The dividend rating of CHAMPION IRON LTD (CIA.CA) is 3 / 10 and the dividend payout ratio is 86.57%.