ITAFOS INC (IFOS.CA) Stock Fundamental Analysis
Canada - TSX Venture Exchange - TSX-V:IFOS - KYG497151087 - Common Stock
3.09 CAD
-0.01 (-0.32%)
Taking everything into account, IFOS scores 6 out of 10 in our fundamental rating. IFOS was compared to 29 industry peers in the Chemicals industry. While IFOS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IFOS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes IFOS very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year IFOS was profitable.
- IFOS had a positive operating cash flow in the past year.
- IFOS had positive earnings in 4 of the past 5 years.
- IFOS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of IFOS (15.45%) is better than 100.00% of its industry peers.
- IFOS's Return On Equity of 28.82% is amongst the best of the industry. IFOS outperforms 100.00% of its industry peers.
- IFOS has a better Return On Invested Capital (13.54%) than 89.66% of its industry peers.
- IFOS had an Average Return On Invested Capital over the past 3 years of 19.10%. This is significantly above the industry average of 7.57%.
- The 3 year average ROIC (19.10%) for IFOS is well above the current ROIC(13.54%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.45% | ||
| ROE | 28.82% | ||
| ROIC | 13.54% |
ROA(3y)10.67%
ROA(5y)5.37%
ROE(3y)24.11%
ROE(5y)6.67%
ROIC(3y)19.1%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of IFOS (22.85%) is better than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of IFOS has grown nicely.
- The Operating Margin of IFOS (21.92%) is better than 96.55% of its industry peers.
- In the last couple of years the Operating Margin of IFOS has declined.
- The Gross Margin of IFOS (27.53%) is better than 79.31% of its industry peers.
- IFOS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.92% | ||
| PM (TTM) | 22.85% | ||
| GM | 27.53% |
OM growth 3Y-2.98%
OM growth 5YN/A
PM growth 3Y13.11%
PM growth 5YN/A
GM growth 3Y-2.94%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so IFOS is still creating some value.
- The number of shares outstanding for IFOS has been increased compared to 1 year ago.
- The number of shares outstanding for IFOS has been increased compared to 5 years ago.
- Compared to 1 year ago, IFOS has an improved debt to assets ratio.
2.2 Solvency
- IFOS has an Altman-Z score of 1.55. This is a bad value and indicates that IFOS is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of IFOS (1.55) is better than 65.52% of its industry peers.
- The Debt to FCF ratio of IFOS is 2.05, which is a good value as it means it would take IFOS, 2.05 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of IFOS (2.05) is better than 100.00% of its industry peers.
- IFOS has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
- IFOS has a Debt to Equity ratio of 0.18. This is in the better half of the industry: IFOS outperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.94
WACC14.39%
2.3 Liquidity
- IFOS has a Current Ratio of 2.72. This indicates that IFOS is financially healthy and has no problem in meeting its short term obligations.
- IFOS's Current ratio of 2.72 is fine compared to the rest of the industry. IFOS outperforms 75.86% of its industry peers.
- IFOS has a Quick Ratio of 1.33. This is a normal value and indicates that IFOS is financially healthy and should not expect problems in meeting its short term obligations.
- IFOS's Quick ratio of 1.33 is fine compared to the rest of the industry. IFOS outperforms 72.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.72 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.71% over the past year.
- IFOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.06% yearly.
- IFOS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.25%.
- The Revenue has been growing slightly by 7.67% on average over the past years.
EPS 1Y (TTM)14.71%
EPS 3Y16.06%
EPS 5YN/A
EPS Q2Q%111.11%
Revenue 1Y (TTM)17.25%
Revenue growth 3Y5.93%
Revenue growth 5Y7.67%
Sales Q2Q%-23.58%
3.2 Future
- IFOS is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -18.33% yearly.
- IFOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y16.25%
EPS Next 2Y-18.33%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.61%
Revenue Next 2Y4.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- IFOS is valuated cheaply with a Price/Earnings ratio of 3.91.
- 100.00% of the companies in the same industry are more expensive than IFOS, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of IFOS to the average of the S&P500 Index (27.25), we can say IFOS is valued rather cheaply.
- The Price/Forward Earnings ratio is 6.37, which indicates a rather cheap valuation of IFOS.
- IFOS's Price/Forward Earnings ratio is rather cheap when compared to the industry. IFOS is cheaper than 96.55% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. IFOS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.91 | ||
| Fwd PE | 6.37 |
4.2 Price Multiples
- 100.00% of the companies in the same industry are more expensive than IFOS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, IFOS is valued cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.53 | ||
| EV/EBITDA | 2.38 |
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.
- IFOS has an outstanding profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as IFOS's earnings are expected to decrease with -18.33% in the coming years.
PEG (NY)0.24
PEG (5Y)N/A
EPS Next 2Y-18.33%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- IFOS has a Yearly Dividend Yield of 9.77%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.08, IFOS pays a better dividend. On top of this IFOS pays more dividend than 96.55% of the companies listed in the same industry.
- IFOS's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.77% |
5.2 History
- IFOS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-18.33%
EPS Next 3YN/A
ITAFOS INC / IFOS.CA FAQ
What is the fundamental rating for IFOS stock?
ChartMill assigns a fundamental rating of 6 / 10 to IFOS.CA.
Can you provide the valuation status for ITAFOS INC?
ChartMill assigns a valuation rating of 9 / 10 to ITAFOS INC (IFOS.CA). This can be considered as Undervalued.
How profitable is ITAFOS INC (IFOS.CA) stock?
ITAFOS INC (IFOS.CA) has a profitability rating of 8 / 10.
How financially healthy is ITAFOS INC?
The financial health rating of ITAFOS INC (IFOS.CA) is 6 / 10.
What is the earnings growth outlook for ITAFOS INC?
The Earnings per Share (EPS) of ITAFOS INC (IFOS.CA) is expected to grow by 16.25% in the next year.