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. Both the profitability and financial health of CAS have multiple concerns. CAS is valued quite cheap, while showing a decent growth score. This is a good combination! Finally 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.
In the past 5 years CAS always reported a positive cash flow from operatings.
1.2 Ratios
CAS has a worse Return On Assets (-0.08%) than 77.78% of its industry peers.
CAS has a Return On Equity of -0.23%. This is in the lower half of the industry: CAS underperforms 77.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.40%, CAS is doing worse than 77.78% of the companies in the same industry.
CAS had an Average Return On Invested Capital over the past 3 years of 3.51%. This is significantly below the industry average of 8.67%.
The 3 year average ROIC (3.51%) for CAS is below the current ROIC(4.40%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.23% | ||
| ROIC | 4.4% |
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 has a Operating Margin of 5.04%. This is in the lower half of the industry: CAS underperforms 77.78% of its industry peers.
CAS's Operating Margin has declined in the last couple of years.
The Gross Margin of CAS (39.78%) is better than 77.78% of its industry peers.
CAS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.04% | ||
| PM (TTM) | N/A | ||
| GM | 39.78% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CAS is destroying value.
The number of shares outstanding for CAS has been increased compared to 1 year ago.
The number of shares outstanding for CAS has been increased compared to 5 years ago.
CAS has a worse debt/assets ratio than last year.
2.2 Solvency
CAS has an Altman-Z score of 1.57. This is a bad value and indicates that CAS is not financially healthy and even has some risk of bankruptcy.
CAS has a worse Altman-Z score (1.57) than 88.89% of its industry peers.
The Debt to FCF ratio of CAS is 22.01, which is on the high side as it means it would take CAS, 22.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 22.01, CAS is doing worse than 77.78% of the companies in the same industry.
A Debt/Equity ratio of 1.09 is on the high side and indicates that CAS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.09, CAS is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 22.01 | ||
| Altman-Z | 1.57 |
ROIC/WACC0.64
WACC6.84%
2.3 Liquidity
CAS has a Current Ratio of 1.09. This is a normal value and indicates that CAS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.09, CAS is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
CAS has a Quick Ratio of 1.09. This is a bad value and indicates that CAS is not financially healthy enough and could expect problems in meeting its short term obligations.
CAS's Quick ratio of 0.45 is on the low side compared to the rest of the industry. CAS is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
CAS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.95%.
Measured over the past years, CAS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.07% on average per year.
CAS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.88%.
The Revenue has been decreasing by -1.21% on average over the past years.
EPS 1Y (TTM)-3.95%
EPS 3Y32.15%
EPS 5Y-10.07%
EPS Q2Q%134.74%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y5.92%
Revenue growth 5Y-1.21%
Sales Q2Q%4.06%
3.2 Future
The Earnings Per Share is expected to grow by 26.92% on average over the next years. This is a very strong growth
CAS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.82% yearly.
EPS Next Y143.52%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
EPS Next 5Y26.92%
Revenue Next Year4.78%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
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.
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
The Price/Earnings ratio is 12.70, which indicates a correct valuation of CAS.
Compared to the rest of the industry, the Price/Earnings ratio of CAS is on the same level as its industry peers.
CAS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 6.45 indicates a rather cheap valuation of CAS.
Based on the Price/Forward Earnings ratio, CAS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CAS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 6.45 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CAS indicates a somewhat cheap valuation: CAS is cheaper than 66.67% of the companies listed in the same industry.
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 | 9.19 | ||
| EV/EBITDA | 6.01 |
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.
CAS's earnings are expected to grow with 22.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y54.79%
EPS Next 3Y22.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.10%, CAS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.96, 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 2.40, CAS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
5.2 History
On average, the dividend of CAS grows each year by 14.28%, which is quite nice.
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-1200%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
TSX:CAS (6/13/2025, 7:00:00 PM)
9.27
-0.14 (-1.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners26.11%
Inst Owner ChangeN/A
Ins Owners11.61%
Ins Owner ChangeN/A
Market Cap937.38M
Analysts70
Price Target10.12 (9.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
Yearly Dividend0.48
Dividend Growth(5Y)14.28%
DP-1200%
Div Incr Years0
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.04%
Min EPS beat(2)-15.14%
Max EPS beat(2)-6.95%
EPS beat(4)2
Avg EPS beat(4)20.2%
Min EPS beat(4)-15.14%
Max EPS beat(4)67.08%
EPS beat(8)5
Avg EPS beat(8)15.21%
EPS beat(12)9
Avg EPS beat(12)21.69%
EPS beat(16)10
Avg EPS beat(16)-18.49%
Revenue beat(2)1
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-3.43%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.59%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)0.75%
Revenue beat(8)3
Avg Revenue beat(8)-1.44%
Revenue beat(12)6
Avg Revenue beat(12)-0.73%
Revenue beat(16)8
Avg Revenue beat(16)-1.09%
PT rev (1m)-10.53%
PT rev (3m)-29.59%
EPS NQ rev (1m)-54.09%
EPS NQ rev (3m)-54.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.86%
Revenue NQ rev (1m)-5.63%
Revenue NQ rev (3m)-5.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.7 | ||
| Fwd PE | 6.45 | ||
| P/S | 0.2 | ||
| P/FCF | 9.19 | ||
| P/OCF | 3.63 | ||
| P/B | 0.55 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 6.01 |
EPS(TTM)0.73
EY7.87%
EPS(NY)1.44
Fwd EY15.51%
FCF(TTM)1.01
FCFY10.88%
OCF(TTM)2.55
OCFY27.52%
SpS46.93
BVpS16.99
TBVpS11.62
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.08% | ||
| ROE | -0.23% | ||
| ROCE | 6.12% | ||
| ROIC | 4.4% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 5.16% | ||
| OM | 5.04% | ||
| PM (TTM) | N/A | ||
| GM | 39.78% | ||
| FCFM | 2.15% |
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 | 22.01 | ||
| Debt/EBITDA | 3.59 | ||
| Cap/Depr | 54.93% | ||
| Cap/Sales | 3.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 1.57 |
F-Score5
WACC6.84%
ROIC/WACC0.64
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)-3.95%
EPS 3Y32.15%
EPS 5Y-10.07%
EPS Q2Q%134.74%
EPS Next Y143.52%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
EPS Next 5Y26.92%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y5.92%
Revenue growth 5Y-1.21%
Sales Q2Q%4.06%
Revenue Next Year4.78%
Revenue Next 2Y3.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-4.4%
EBIT growth 3Y16.16%
EBIT growth 5Y-7.37%
EBIT Next Year200.31%
EBIT Next 3Y42.24%
EBIT Next 5Y35.54%
FCF growth 1Y136.56%
FCF growth 3Y-26.63%
FCF growth 5Y-11.29%
OCF growth 1Y-0.77%
OCF growth 3Y-21.72%
OCF growth 5Y-9.98%