CASCADES INC (CAS.CA) Stock Fundamental Analysis
TSX:CAS - Toronto Stock Exchange - CA1469001053 - Common Stock - Currency: CAD
We assign a fundamental rating of 3 out of 10 to CAS. CAS was compared to 9 industry peers in the Containers & Packaging industry. CAS may be in some trouble as it scores bad on both profitability and health. CAS has a correct valuation and a medium growth rate. CAS also has an excellent dividend rating.
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.
The reported net income has been mixed in the past 5 years: CAS reported negative net income in multiple years.
Each year in the past 5 years CAS had a positive operating cash flow.
1.2 Ratios
CAS's Return On Assets of -0.62% is on the low side compared to the rest of the industry. CAS is outperformed by 77.78% of its industry peers.
The Return On Equity of CAS (-1.80%) is worse than 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.02%, CAS is doing worse than 77.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CAS is significantly below the industry average of 8.95%.
The 3 year average ROIC (3.51%) for CAS is below the current ROIC(4.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.8% | ||
| ROIC | 4.02% |
ROA(3y)-0.96%
ROA(5y)0.86%
ROE(3y)-2.66%
ROE(5y)2.39%
ROIC(3y)3.51%
ROIC(5y)3.81%
1.3 Margins
CAS's Operating Margin of 4.66% is on the low side compared to the rest of the industry. CAS is outperformed by 77.78% of its industry peers.
In the last couple of years the Operating Margin of CAS has declined.
CAS has a better Gross Margin (39.44%) than 77.78% of its industry peers.
CAS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.66% | ||
| PM (TTM) | N/A | ||
| GM | 39.44% |
OM growth 3Y9.66%
OM growth 5Y-6.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y27.9%
GM growth 5Y20.84%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAS is destroying value.
The number of shares outstanding for CAS has been increased compared to 1 year ago.
Compared to 5 years ago, CAS has more shares outstanding
CAS has a worse debt/assets ratio than last year.
2.2 Solvency
CAS has an Altman-Z score of 1.56. This is a bad value and indicates that CAS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CAS (1.56) is worse than 88.89% of its industry peers.
CAS has a debt to FCF ratio of 19.13. This is a negative value and a sign of low solvency as CAS would need 19.13 years to pay back of all of its debts.
With a Debt to FCF ratio value of 19.13, CAS is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
CAS has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.09, CAS is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 19.13 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.69
WACC5.86%
2.3 Liquidity
A Current Ratio of 1.09 indicates that CAS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.09, CAS is doing worse than 88.89% of the companies in the same industry.
A Quick Ratio of 0.46 indicates that CAS may have some problems paying its short term obligations.
CAS has a Quick ratio of 0.46. This is amonst the worse of the industry: CAS underperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for CAS have decreased strongly by -44.44% in the last year.
CAS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.07% yearly.
CAS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.36%.
Measured over the past years, CAS shows a decrease in Revenue. The Revenue has been decreasing by -1.21% on average per year.
EPS 1Y (TTM)-44.44%
EPS 3Y32.15%
EPS 5Y-10.07%
EPS Q2Q%400%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y5.92%
Revenue growth 5Y-1.21%
Sales Q2Q%6.41%
3.2 Future
The Earnings Per Share is expected to grow by 30.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, CAS will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.
EPS Next Y143.52%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
EPS Next 5Y30.13%
Revenue Next Year6.83%
Revenue Next 2Y4.48%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.72, CAS is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as CAS.
CAS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.88.
With a Price/Forward Earnings ratio of 6.04, the valuation of CAS can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CAS indicates a rather cheap valuation: CAS is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, CAS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 6.04 |
4.2 Price Multiples
CAS's Enterprise Value to EBITDA is on the same level as the industry average.
CAS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CAS is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.04 | ||
| EV/EBITDA | 5.94 |
4.3 Compensation for Growth
CAS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CAS's earnings are expected to grow with 22.05% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y54.79%
EPS Next 3Y22.05%
5. Dividend
5.1 Amount
CAS has a Yearly Dividend Yield of 5.39%, which is a nice return.
The stock price of CAS dropped by -31.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.27, CAS pays a better dividend. On top of this CAS pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, CAS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
5.2 History
The dividend of CAS is nicely growing with an annual growth rate of 14.28%!
CAS has paid a dividend for at least 10 years, which is a reliable track record.
CAS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.28%
Div Incr Years0
Div Non Decr Years23
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.
CAS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-154.84%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
TSX:CAS (4/30/2025, 7:00:00 PM)
8.83
-0.11 (-1.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners27.38%
Inst Owner ChangeN/A
Ins Owners11.62%
Ins Owner ChangeN/A
Market Cap892.89M
Analysts72
Price Target12.92 (46.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.39% |
Yearly Dividend0.48
Dividend Growth(5Y)14.28%
DP-154.84%
Div Incr Years0
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)25.97%
Min EPS beat(2)-15.14%
Max EPS beat(2)67.08%
EPS beat(4)3
Avg EPS beat(4)46.93%
Min EPS beat(4)-15.14%
Max EPS beat(4)100%
EPS beat(8)6
Avg EPS beat(8)24.79%
EPS beat(12)9
Avg EPS beat(12)-9.48%
EPS beat(16)10
Avg EPS beat(16)-19.03%
Revenue beat(2)2
Avg Revenue beat(2)0.63%
Min Revenue beat(2)0.5%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-3.98%
Max Revenue beat(4)0.75%
Revenue beat(8)4
Avg Revenue beat(8)-0.97%
Revenue beat(12)6
Avg Revenue beat(12)-0.59%
Revenue beat(16)8
Avg Revenue beat(16)-1.21%
PT rev (1m)-10.06%
PT rev (3m)1.33%
EPS NQ rev (1m)-12.35%
EPS NQ rev (3m)-20.53%
EPS NY rev (1m)-5.03%
EPS NY rev (3m)7.56%
Revenue NQ rev (1m)-1.29%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 6.04 | ||
| P/S | 0.19 | ||
| P/FCF | 8.04 | ||
| P/OCF | 3.28 | ||
| P/B | 0.52 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 5.94 |
EPS(TTM)0.6
EY6.8%
EPS(NY)1.46
Fwd EY16.55%
FCF(TTM)1.1
FCFY12.43%
OCF(TTM)2.69
OCFY30.46%
SpS46.49
BVpS17.05
TBVpS11.66
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.8% | ||
| ROCE | 5.6% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.05% | ||
| ROICexgc | 4.71% | ||
| OM | 4.66% | ||
| PM (TTM) | N/A | ||
| GM | 39.44% | ||
| FCFM | 2.36% |
ROA(3y)-0.96%
ROA(5y)0.86%
ROE(3y)-2.66%
ROE(5y)2.39%
ROIC(3y)3.51%
ROIC(5y)3.81%
ROICexc(3y)3.56%
ROICexc(5y)3.99%
ROICexgc(3y)4.13%
ROICexgc(5y)4.7%
ROCE(3y)4.88%
ROCE(5y)5.31%
ROICexcg growth 3Y12.07%
ROICexcg growth 5Y-7.78%
ROICexc growth 3Y12.83%
ROICexc growth 5Y-6.94%
OM growth 3Y9.66%
OM growth 5Y-6.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y27.9%
GM growth 5Y20.84%
F-Score5
Asset Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 19.13 | ||
| Debt/EBITDA | 3.75 | ||
| Cap/Depr | 57.09% | ||
| Cap/Sales | 3.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 1.56 |
F-Score5
WACC5.86%
ROIC/WACC0.69
Cap/Depr(3y)128.19%
Cap/Depr(5y)116.34%
Cap/Sales(3y)7.4%
Cap/Sales(5y)6.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.44%
EPS 3Y32.15%
EPS 5Y-10.07%
EPS Q2Q%400%
EPS Next Y143.52%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
EPS Next 5Y30.13%
Revenue 1Y (TTM)1.36%
Revenue growth 3Y5.92%
Revenue growth 5Y-1.21%
Sales Q2Q%6.41%
Revenue Next Year6.83%
Revenue Next 2Y4.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-23.43%
EBIT growth 3Y16.16%
EBIT growth 5Y-7.37%
EBIT Next Year250.07%
EBIT Next 3Y44.27%
EBIT Next 5Y36.5%
FCF growth 1Y-30.62%
FCF growth 3Y-26.63%
FCF growth 5Y-11.29%
OCF growth 1Y-46.67%
OCF growth 3Y-21.72%
OCF growth 5Y-9.98%