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CASCADES INC (CAS.CA) Stock Fundamental Analysis

TSX:CAS - Toronto Stock Exchange - CA1469001053 - Common Stock - Currency: CAD

12.9  +0.05 (+0.39%)

Fundamental Rating

3

Taking everything into account, CAS scores 3 out of 10 in our fundamental rating. CAS was compared to 9 industry peers in the Containers & Packaging industry. CAS has a medium profitability rating, but doesn't score so well on its financial health evaluation. CAS is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

CAS had positive earnings in the past year.
CAS had a positive operating cash flow in the past year.
In multiple years CAS reported negative net income over the last 5 years.
In the past 5 years CAS always reported a positive cash flow from operatings.
CAS.CA Yearly Net Income VS EBIT VS OCF VS FCFCAS.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

With a Return On Assets value of -1.54%, CAS is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
With a Return On Equity value of -4.39%, CAS is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
CAS's Return On Invested Capital of 3.66% is on the low side compared to the rest of the industry. CAS is outperformed by 77.78% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CAS is significantly below the industry average of 8.97%.
The 3 year average ROIC (3.08%) for CAS is below the current ROIC(3.66%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -1.54%
ROE -4.39%
ROIC 3.66%
ROA(3y)0.43%
ROA(5y)1.27%
ROE(3y)0.81%
ROE(5y)3.71%
ROIC(3y)3.08%
ROIC(5y)4.11%
CAS.CA Yearly ROA, ROE, ROICCAS.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

With a Operating Margin value of 4.28%, CAS is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
CAS's Operating Margin has been stable in the last couple of years.
CAS's Gross Margin of 37.86% is amongst the best of the industry. CAS outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of CAS has grown nicely.
Industry RankSector Rank
OM 4.28%
PM (TTM) N/A
GM 37.86%
OM growth 3Y-8.35%
OM growth 5Y0.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y35.97%
GM growth 5Y23.42%
CAS.CA Yearly Profit, Operating, Gross MarginsCAS.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40

1

2. Health

2.1 Basic Checks

CAS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CAS has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CAS has more shares outstanding
CAS has a better debt/assets ratio than last year.
CAS.CA Yearly Shares OutstandingCAS.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
CAS.CA Yearly Total Debt VS Total AssetsCAS.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 1.69, we must say that CAS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.69, CAS is doing worse than 88.89% of the companies in the same industry.
The Debt to FCF ratio of CAS is 10.63, which is on the high side as it means it would take CAS, 10.63 years of fcf income to pay off all of its debts.
CAS's Debt to FCF ratio of 10.63 is on the low side compared to the rest of the industry. CAS is outperformed by 77.78% of its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that CAS has dependencies on debt financing.
CAS has a worse Debt to Equity ratio (1.07) than 88.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 10.63
Altman-Z 1.69
ROIC/WACC0.65
WACC5.62%
CAS.CA Yearly LT Debt VS Equity VS FCFCAS.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

CAS has a Current Ratio of 1.22. This is a normal value and indicates that CAS is financially healthy and should not expect problems in meeting its short term obligations.
CAS has a worse Current ratio (1.22) than 88.89% of its industry peers.
CAS has a Quick Ratio of 1.22. This is a bad value and indicates that CAS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.56, CAS is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 0.56
CAS.CA Yearly Current Assets VS Current LiabilitesCAS.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

3

3. Growth

3.1 Past

The earnings per share for CAS have decreased strongly by -68.00% in the last year.
The Earnings Per Share has been growing slightly by 5.41% on average over the past years.
The Revenue has decreased by -0.15% in the past year.
The Revenue has been decreasing by -0.05% on average over the past years.
EPS 1Y (TTM)-68%
EPS 3Y-17.88%
EPS 5Y5.41%
EPS Q2Q%-38.64%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-3.47%
Revenue growth 5Y-0.05%
Sales Q2Q%0.25%

3.2 Future

Based on estimates for the next years, CAS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.91% on average per year.
CAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.05% yearly.
EPS Next Y-39.99%
EPS Next 2Y21.17%
EPS Next 3Y11.88%
EPS Next 5Y10.91%
Revenue Next Year-0.55%
Revenue Next 2Y2.16%
Revenue Next 3Y2.05%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CAS.CA Yearly Revenue VS EstimatesCAS.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
CAS.CA Yearly EPS VS EstimatesCAS.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 32.25, the valuation of CAS can be described as expensive.
77.78% of the companies in the same industry are cheaper than CAS, based on the Price/Earnings ratio.
CAS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.35.
The Price/Forward Earnings ratio is 8.14, which indicates a very decent valuation of CAS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAS indicates a somewhat cheap valuation: CAS is cheaper than 77.78% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 95.00. CAS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 32.25
Fwd PE 8.14
CAS.CA Price Earnings VS Forward Price EarningsCAS.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CAS is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.68
EV/EBITDA 6.98
CAS.CA Per share dataCAS.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)5.96
EPS Next 2Y21.17%
EPS Next 3Y11.88%

6

5. Dividend

5.1 Amount

CAS has a Yearly Dividend Yield of 3.72%.
Compared to an average industry Dividend Yield of 2.92, CAS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, CAS pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.72%

5.2 History

On average, the dividend of CAS grows each year by 24.66%, which is quite nice.
CAS has paid a dividend for at least 10 years, which is a reliable track record.
CAS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)24.66%
Div Incr Years0
Div Non Decr Years23
CAS.CA Yearly Dividends per shareCAS.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4

5.3 Sustainability

The earnings of CAS are negative and hence is the payout ratio. CAS will probably not be able to sustain this dividend level.
The dividend of CAS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-64%
EPS Next 2Y21.17%
EPS Next 3Y11.88%
CAS.CA Yearly Income VS Free CF VS DividendCAS.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

CASCADES INC

TSX:CAS (2/5/2025, 7:00:00 PM)

12.9

+0.05 (+0.39%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-20 2025-02-20/amc
Inst Owners31.06%
Inst Owner ChangeN/A
Ins Owners11.66%
Ins Owner ChangeN/A
Market Cap1.30B
Analysts70
Price Target14.37 (11.4%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.72%
Yearly Dividend0.48
Dividend Growth(5Y)24.66%
DP-64%
Div Incr Years0
Div Non Decr Years23
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.44%
Min EPS beat(2)35.79%
Max EPS beat(2)67.08%
EPS beat(4)3
Avg EPS beat(4)29.61%
Min EPS beat(4)-84.43%
Max EPS beat(4)100%
EPS beat(8)7
Avg EPS beat(8)30.05%
EPS beat(12)10
Avg EPS beat(12)-7.64%
EPS beat(16)11
Avg EPS beat(16)-14.91%
Revenue beat(2)1
Avg Revenue beat(2)0.17%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)0.5%
Revenue beat(4)1
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-6.18%
Max Revenue beat(4)0.5%
Revenue beat(8)3
Avg Revenue beat(8)-1.17%
Revenue beat(12)6
Avg Revenue beat(12)-0.5%
Revenue beat(16)8
Avg Revenue beat(16)-1.06%
PT rev (1m)12.67%
PT rev (3m)24.26%
EPS NQ rev (1m)13.64%
EPS NQ rev (3m)16.67%
EPS NY rev (1m)6.35%
EPS NY rev (3m)33.68%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)2.12%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.15%
Valuation
Industry RankSector Rank
PE 32.25
Fwd PE 8.14
P/S 0.28
P/FCF 6.68
P/OCF 3.64
P/B 0.76
P/tB 1.11
EV/EBITDA 6.98
EPS(TTM)0.4
EY3.1%
EPS(NY)1.59
Fwd EY12.29%
FCF(TTM)1.93
FCFY14.97%
OCF(TTM)3.54
OCFY27.48%
SpS45.83
BVpS16.91
TBVpS11.64
PEG (NY)N/A
PEG (5Y)5.96
Profitability
Industry RankSector Rank
ROA -1.54%
ROE -4.39%
ROCE 5.09%
ROIC 3.66%
ROICexc 3.69%
ROICexgc 4.28%
OM 4.28%
PM (TTM) N/A
GM 37.86%
FCFM 4.21%
ROA(3y)0.43%
ROA(5y)1.27%
ROE(3y)0.81%
ROE(5y)3.71%
ROIC(3y)3.08%
ROIC(5y)4.11%
ROICexc(3y)3.17%
ROICexc(5y)4.32%
ROICexgc(3y)3.7%
ROICexgc(5y)5.15%
ROCE(3y)4.29%
ROCE(5y)5.72%
ROICexcg growth 3Y-11.88%
ROICexcg growth 5Y-0.89%
ROICexc growth 3Y-10.74%
ROICexc growth 5Y0.54%
OM growth 3Y-8.35%
OM growth 5Y0.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y35.97%
GM growth 5Y23.42%
F-Score5
Asset Turnover0.95
Health
Industry RankSector Rank
Debt/Equity 1.07
Debt/FCF 10.63
Debt/EBITDA 3.85
Cap/Depr 58.42%
Cap/Sales 3.52%
Interest Coverage 250
Cash Conversion 75.05%
Profit Quality N/A
Current Ratio 1.22
Quick Ratio 0.56
Altman-Z 1.69
F-Score5
WACC5.62%
ROIC/WACC0.65
Cap/Depr(3y)146.99%
Cap/Depr(5y)122.77%
Cap/Sales(3y)8.66%
Cap/Sales(5y)7.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-68%
EPS 3Y-17.88%
EPS 5Y5.41%
EPS Q2Q%-38.64%
EPS Next Y-39.99%
EPS Next 2Y21.17%
EPS Next 3Y11.88%
EPS Next 5Y10.91%
Revenue 1Y (TTM)-0.15%
Revenue growth 3Y-3.47%
Revenue growth 5Y-0.05%
Sales Q2Q%0.25%
Revenue Next Year-0.55%
Revenue Next 2Y2.16%
Revenue Next 3Y2.05%
Revenue Next 5YN/A
EBIT growth 1Y-32.42%
EBIT growth 3Y-11.54%
EBIT growth 5Y0.81%
EBIT Next Year243.58%
EBIT Next 3Y60.33%
EBIT Next 5Y35.27%
FCF growth 1Y529.03%
FCF growth 3Y-21.99%
FCF growth 5Y35.52%
OCF growth 1Y-23.34%
OCF growth 3Y-4.58%
OCF growth 5Y6.46%