ITAFOS INC (IFOS.CA) Stock Fundamental Analysis
TSX-V:IFOS - TSX Venture Exchange - KYG497151087 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to IFOS. IFOS was compared to 28 industry peers in the Chemicals industry. IFOS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. IFOS is cheap, but on the other hand it scores bad on growth. This makes IFOS very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year IFOS was profitable.
In the past year IFOS had a positive cash flow from operations.
Of the past 5 years IFOS 4 years were profitable.
IFOS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
IFOS has a Return On Assets of 13.53%. This is amongst the best in the industry. IFOS outperforms 100.00% of its industry peers.
IFOS's Return On Equity of 26.45% is amongst the best of the industry. IFOS outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.69%, IFOS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IFOS is significantly above the industry average of 7.51%.
The 3 year average ROIC (19.10%) for IFOS is well above the current ROIC(13.69%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 26.45% | ||
| ROIC | 13.69% |
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
With an excellent Profit Margin value of 20.03%, IFOS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
IFOS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 23.05%, IFOS belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
In the last couple of years the Operating Margin of IFOS has declined.
Looking at the Gross Margin, with a value of 28.74%, IFOS belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
IFOS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.05% | ||
| PM (TTM) | 20.03% | ||
| GM | 28.74% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), IFOS is creating value.
Compared to 1 year ago, IFOS has more shares outstanding
Compared to 5 years ago, IFOS has more shares outstanding
Compared to 1 year ago, IFOS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.43, we must say that IFOS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.43, IFOS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of IFOS is 1.63, which is an excellent value as it means it would take IFOS, only 1.63 years of fcf income to pay off all of its debts.
IFOS has a better Debt to FCF ratio (1.63) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that IFOS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, IFOS is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.63 | ||
| Altman-Z | 1.43 |
ROIC/WACC1.51
WACC9.06%
2.3 Liquidity
IFOS has a Current Ratio of 3.20. This indicates that IFOS is financially healthy and has no problem in meeting its short term obligations.
IFOS has a Current ratio of 3.20. This is amongst the best in the industry. IFOS outperforms 89.29% of its industry peers.
A Quick Ratio of 1.72 indicates that IFOS should not have too much problems paying its short term obligations.
IFOS has a better Quick ratio (1.72) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
IFOS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.42%.
The Earnings Per Share has been growing by 16.06% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.52% in the past year.
IFOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.67% yearly.
EPS 1Y (TTM)-1.42%
EPS 3Y16.06%
EPS 5YN/A
EPS Q2Q%-66.47%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y5.93%
Revenue growth 5Y7.67%
Sales Q2Q%52.17%
3.2 Future
The Earnings Per Share is expected to decrease by -25.66% on average over the next years. This is quite bad
IFOS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.04% yearly.
EPS Next Y-50.45%
EPS Next 2Y-25.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.06%
Revenue Next 2Y-1.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 5.40, the valuation of IFOS can be described as very cheap.
Based on the Price/Earnings ratio, IFOS is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. IFOS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.74, which indicates a rather cheap valuation of IFOS.
Based on the Price/Forward Earnings ratio, IFOS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. IFOS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.4 | ||
| Fwd PE | 7.74 |
4.2 Price Multiples
IFOS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. IFOS is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, IFOS is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.19 | ||
| EV/EBITDA | 2.78 |
4.3 Compensation for Growth
The excellent profitability rating of IFOS may justify a higher PE ratio.
A cheap valuation may be justified as IFOS's earnings are expected to decrease with -25.66% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IFOS has a Yearly Dividend Yield of 2.21%. Purely for dividend investing, there may be better candidates out there.
IFOS's Dividend Yield is a higher than the industry average which is at 5.99.
Compared to an average S&P500 Dividend Yield of 2.42, IFOS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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-25.66%
EPS Next 3YN/A
TSX-V:IFOS (7/4/2025, 7:00:00 PM)
3.08
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners0.4%
Inst Owner ChangeN/A
Ins Owners1.43%
Ins Owner ChangeN/A
Market Cap575.37M
Analysts84
Price Target4.34 (40.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.78%
Min EPS beat(2)-29.46%
Max EPS beat(2)35.01%
EPS beat(4)3
Avg EPS beat(4)38.02%
Min EPS beat(4)-29.46%
Max EPS beat(4)98.02%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)23.91%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)50.02%
Revenue beat(4)3
Avg Revenue beat(4)30.41%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)68.54%
Revenue beat(8)7
Avg Revenue beat(8)23.42%
Revenue beat(12)9
Avg Revenue beat(12)15.03%
Revenue beat(16)11
Avg Revenue beat(16)11.9%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-16.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.4 | ||
| Fwd PE | 7.74 | ||
| P/S | 0.85 | ||
| P/FCF | 7.19 | ||
| P/OCF | 3.26 | ||
| P/B | 1.12 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 2.78 |
EPS(TTM)0.57
EY18.51%
EPS(NY)0.4
Fwd EY12.92%
FCF(TTM)0.43
FCFY13.9%
OCF(TTM)0.95
OCFY30.71%
SpS3.63
BVpS2.75
TBVpS2.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.53% | ||
| ROE | 26.45% | ||
| ROCE | 17.75% | ||
| ROIC | 13.69% | ||
| ROICexc | 16.2% | ||
| ROICexgc | 16.2% | ||
| OM | 23.05% | ||
| PM (TTM) | 20.03% | ||
| GM | 28.74% | ||
| FCFM | 11.8% |
ROA(3y)10.67%
ROA(5y)5.37%
ROE(3y)24.11%
ROE(5y)6.67%
ROIC(3y)19.1%
ROIC(5y)N/A
ROICexc(3y)20.96%
ROICexc(5y)N/A
ROICexgc(3y)20.96%
ROICexgc(5y)N/A
ROCE(3y)24.77%
ROCE(5y)N/A
ROICexcg growth 3Y-1.19%
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.19%
ROICexc growth 5YN/A
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
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.63 | ||
| Debt/EBITDA | 0.56 | ||
| Cap/Depr | 198.75% | ||
| Cap/Sales | 14.26% | ||
| Interest Coverage | 13.13 | ||
| Cash Conversion | 86.22% | ||
| Profit Quality | 58.91% | ||
| Current Ratio | 3.2 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 1.43 |
F-Score6
WACC9.06%
ROIC/WACC1.51
Cap/Depr(3y)154.24%
Cap/Depr(5y)126.08%
Cap/Sales(3y)10.69%
Cap/Sales(5y)9.14%
Profit Quality(3y)413.99%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.42%
EPS 3Y16.06%
EPS 5YN/A
EPS Q2Q%-66.47%
EPS Next Y-50.45%
EPS Next 2Y-25.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.52%
Revenue growth 3Y5.93%
Revenue growth 5Y7.67%
Sales Q2Q%52.17%
Revenue Next Year1.06%
Revenue Next 2Y-1.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y33.01%
EBIT growth 3Y2.77%
EBIT growth 5YN/A
EBIT Next Year-15.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-57.29%
FCF growth 3Y-4.54%
FCF growth 5YN/A
OCF growth 1Y-25.33%
OCF growth 3Y8.3%
OCF growth 5Y27.93%