CASCADES INC (CAS.CA) Stock Fundamental Analysis
TSX:CAS - Toronto Stock Exchange - CA1469001053 - Common Stock - Currency: CAD
Overall CAS gets a fundamental rating of 3 out of 10. We evaluated CAS against 9 industry peers in the Containers & Packaging industry. Both the profitability and financial health of CAS have multiple concerns. CAS has a decent growth rate and is not valued too expensively. Finally CAS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CAS had positive earnings in the past year.
In the past year CAS had a positive cash flow from operations.
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
With a Return On Assets value of -0.08%, CAS is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
The Return On Equity of CAS (-0.23%) is worse than 77.78% of its industry peers.
CAS's Return On Invested Capital of 4.40% is on the low side compared to the rest of the industry. CAS is outperformed by 77.78% of its industry peers.
CAS had an Average Return On Invested Capital over the past 3 years of 3.51%. This is significantly below the industry average of 9.00%.
The last Return On Invested Capital (4.40%) for CAS is above the 3 year average (3.51%), which is a sign of increasing profitability.
| 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's Operating Margin of 5.04% 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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CAS is destroying value.
Compared to 1 year ago, CAS has more shares outstanding
CAS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CAS has a worse debt to assets ratio.
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.
CAS has a worse Altman-Z score (1.56) 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.
CAS has a Debt to FCF ratio of 22.01. This is in the lower half of the industry: CAS underperforms 77.78% of its industry peers.
CAS has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
CAS's Debt to Equity ratio of 1.09 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 | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 22.01 | ||
| Altman-Z | 1.56 |
ROIC/WACC0.73
WACC6.05%
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.
CAS has a worse Current ratio (1.09) than 88.89% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.45, CAS is doing worse than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.45 |
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 2.88%.
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%134.74%
Revenue 1Y (TTM)2.88%
Revenue growth 3Y5.92%
Revenue growth 5Y-1.21%
Sales Q2Q%4.06%
3.2 Future
CAS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.13% yearly.
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 5Y30.13%
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
Based on the Price/Earnings ratio of 14.37, the valuation of CAS can be described as correct.
CAS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of CAS to the average of the S&P500 Index (25.82), we can say CAS is valued slightly cheaper.
CAS is valuated cheaply with a Price/Forward Earnings ratio of 6.00.
100.00% of the companies in the same industry are more expensive than CAS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CAS to the average of the S&P500 Index (21.76), we can say CAS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 6 |
4.2 Price Multiples
CAS's Enterprise Value to EBITDA ratio is in line with the industry average.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 5.89 |
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)0.1
PEG (5Y)N/A
EPS Next 2Y54.79%
EPS Next 3Y22.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.49%, CAS is a good candidate for dividend investing.
The stock price of CAS dropped by -24.65% 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 3.08, 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 2.36, CAS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
5.2 History
On average, the dividend of CAS grows each year by 14.28%, which is quite nice.
CAS has been paying a dividend for at least 10 years, so it has 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.
The dividend of CAS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1200%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
TSX:CAS (5/23/2025, 7:00:00 PM)
8.62
-0.03 (-0.35%)
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 Cap871.65M
Analysts72
Price Target11.31 (31.21%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.49% |
Yearly Dividend0.48
Dividend Growth(5Y)14.28%
DP-1200%
Div Incr Years0
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-1.7%
Min Revenue beat(2)-4.15%
Max Revenue beat(2)0.75%
Revenue beat(4)2
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-4.15%
Max Revenue beat(4)0.75%
Revenue beat(8)3
Avg Revenue beat(8)-1.53%
Revenue beat(12)6
Avg Revenue beat(12)-0.79%
Revenue beat(16)8
Avg Revenue beat(16)-1.13%
PT rev (1m)-21.3%
PT rev (3m)-21.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-19.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-2.23%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.37 | ||
| Fwd PE | 6 | ||
| P/S | 0.18 | ||
| P/FCF | 8.55 | ||
| P/OCF | 3.38 | ||
| P/B | 0.51 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 5.89 |
EPS(TTM)0.6
EY6.96%
EPS(NY)1.44
Fwd EY16.68%
FCF(TTM)1.01
FCFY11.7%
OCF(TTM)2.55
OCFY29.6%
SpS46.93
BVpS16.99
TBVpS11.62
PEG (NY)0.1
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 | 1.56 |
F-Score5
WACC6.05%
ROIC/WACC0.73
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%134.74%
EPS Next Y143.52%
EPS Next 2Y54.79%
EPS Next 3Y22.05%
EPS Next 5Y30.13%
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 Year250.07%
EBIT Next 3Y44.27%
EBIT Next 5Y36.5%
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%