CHAMPION IRON LTD (CIA.CA) Stock Fundamental Analysis
TSX:CIA - Toronto Stock Exchange - AU000000CIA2 - Common Stock - Currency: CAD
Overall CIA gets a fundamental rating of 6 out of 10. We evaluated CIA against 820 industry peers in the Metals & Mining industry. CIA scores excellent on profitability, but there are some minor concerns on its financial health. CIA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
CIA had positive earnings in the past year.
CIA had a positive operating cash flow in the past year.
Each year in the past 5 years CIA has been profitable.
In the past 5 years CIA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CIA (9.05%) is better than 93.11% of its industry peers.
CIA has a better Return On Equity (17.52%) than 94.46% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.87%, CIA belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CIA is significantly above the industry average of 11.94%.
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
The Profit Margin of CIA (15.29%) is better than 94.73% of its industry peers.
CIA's Profit Margin has improved in the last couple of years.
CIA has a Operating Margin of 27.24%. This is amongst the best in the industry. CIA outperforms 95.27% of its industry peers.
In the last couple of years the Operating Margin of CIA has declined.
The Gross Margin of CIA (32.79%) is better than 92.43% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CIA is still 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
CIA has an Altman-Z score of 3.04. This indicates that CIA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CIA (3.04) is comparable to the rest of the industry.
CIA has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CIA (0.39) is worse than 77.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.04 |
ROIC/WACC1.09
WACC9.96%
2.3 Liquidity
A Current Ratio of 2.20 indicates that CIA has no problem at all paying its short term obligations.
CIA's Current ratio of 2.20 is in line compared to the rest of the industry. CIA outperforms 53.92% of its industry peers.
A Quick Ratio of 1.25 indicates that CIA should not have too much problems paying its short term obligations.
CIA's Quick ratio of 1.25 is in line compared to the rest of the industry. CIA outperforms 44.19% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -56.14%.
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.
The Revenue has grown by 9.26% in the past year. This is quite good.
CIA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.40% yearly.
EPS 1Y (TTM)-56.14%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-100%
Revenue 1Y (TTM)9.26%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-28.35%
3.2 Future
CIA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
Based on estimates for the next years, CIA will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y-21.83%
EPS Next 2Y17.01%
EPS Next 3Y10.62%
EPS Next 5Y6.36%
Revenue Next Year4.46%
Revenue Next 2Y10.9%
Revenue Next 3Y8.81%
Revenue Next 5Y4.23%
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
The Price/Earnings ratio is 21.40, which indicates a rather expensive current valuation of CIA.
Compared to the rest of the industry, the Price/Earnings ratio of CIA indicates a rather cheap valuation: CIA is cheaper than 90.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CIA to the average of the S&P500 Index (29.63), we can say CIA is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.68, which indicates a very decent valuation of CIA.
93.65% of the companies in the same industry are more expensive than CIA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, CIA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 8.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIA is valued cheaply inside the industry as 93.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
The excellent profitability rating of CIA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.99
EPS Next 2Y17.01%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, CIA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.55, CIA pays a better dividend. On top of this CIA pays more dividend than 98.24% 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 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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
40.87% of the earnings are spent on dividend by CIA. This is a bit on the high side, but may be sustainable.
DP40.87%
EPS Next 2Y17.01%
EPS Next 3Y10.62%
TSX:CIA (2/21/2025, 7:00:00 PM)
5.35
+0.03 (+0.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner ChangeN/A
Ins Owners9.03%
Ins Owner ChangeN/A
Market Cap2.77B
Analysts83.08
Price Target6.64 (24.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
Yearly Dividend0.2
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)-4.93%
PT rev (3m)-6.76%
EPS NQ rev (1m)-47.2%
EPS NQ rev (3m)-44.25%
EPS NY rev (1m)-34.37%
EPS NY rev (3m)-34.37%
Revenue NQ rev (1m)-24.17%
Revenue NQ rev (3m)-22.39%
Revenue NY rev (1m)-4.21%
Revenue NY rev (3m)-8.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.4 | ||
| Fwd PE | 8.68 | ||
| P/S | 1.67 | ||
| P/FCF | N/A | ||
| P/OCF | 6.46 | ||
| P/B | 1.92 | ||
| P/tB | 1.92 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)0.25
EY4.67%
EPS(NY)0.62
Fwd EY11.52%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)0.83
OCFY15.48%
SpS3.2
BVpS2.79
TBVpS2.78
PEG (NY)N/A
PEG (5Y)1.99
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 | 3.04 |
F-Score4
WACC9.96%
ROIC/WACC1.09
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)-56.14%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-100%
EPS Next Y-21.83%
EPS Next 2Y17.01%
EPS Next 3Y10.62%
EPS Next 5Y6.36%
Revenue 1Y (TTM)9.26%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-28.35%
Revenue Next Year4.46%
Revenue Next 2Y10.9%
Revenue Next 3Y8.81%
Revenue Next 5Y4.23%
EBIT growth 1Y10.71%
EBIT growth 3Y-18.29%
EBIT growth 5Y9.87%
EBIT Next Year13.56%
EBIT Next 3Y15.19%
EBIT Next 5Y8.19%
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%