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CHAMPION IRON LTD (CIA.CA) Stock Fundamental Analysis

TSX:CIA - Toronto Stock Exchange - AU000000CIA2 - Common Stock - Currency: CAD

4.93  -0.04 (-0.8%)

Fundamental Rating

6

Overall CIA gets a fundamental rating of 6 out of 10. We evaluated CIA against 832 industry peers in the Metals & Mining industry. CIA has an excellent profitability rating, but there are some minor concerns on its financial health. CIA is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year CIA was profitable.
In the past year CIA had a positive cash flow from operations.
In the past 5 years CIA has always been profitable.
CIA had a positive operating cash flow in each of the past 5 years.
CIA.CA Yearly Net Income VS EBIT VS OCF VS FCFCIA.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 2024 0 200M -200M 400M 600M 800M

1.2 Ratios

CIA has a Return On Assets of 9.05%. This is amongst the best in the industry. CIA outperforms 93.31% of its industry peers.
CIA has a Return On Equity of 17.52%. This is amongst the best in the industry. CIA outperforms 94.78% of its industry peers.
CIA has a Return On Invested Capital of 10.87%. This is amongst the best in the industry. CIA outperforms 95.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIA is significantly above the industry average of 11.94%.
The 3 year average ROIC (17.72%) for CIA is well above the current ROIC(10.87%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 9.05%
ROE 17.52%
ROIC 10.87%
ROA(3y)14.55%
ROA(5y)16.96%
ROE(3y)25.88%
ROE(5y)31.17%
ROIC(3y)17.72%
ROIC(5y)23.3%
CIA.CA Yearly ROA, ROE, ROICCIA.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 -100

1.3 Margins

CIA has a better Profit Margin (15.29%) than 95.18% of its industry peers.
In the last couple of years the Profit Margin of CIA has grown nicely.
CIA has a better Operating Margin (27.24%) than 95.45% of its industry peers.
CIA's Operating Margin has declined in the last couple of years.
CIA has a better Gross Margin (32.79%) than 92.50% of its industry peers.
CIA's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 27.24%
PM (TTM) 15.29%
GM 32.79%
OM growth 3Y-22.87%
OM growth 5Y-7.21%
PM growth 3Y-24.87%
PM growth 5Y3.92%
GM growth 3Y-19.42%
GM growth 5Y-5.11%
CIA.CA Yearly Profit, Operating, Gross MarginsCIA.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CIA is creating some value.
Compared to 1 year ago, CIA has about the same amount of shares outstanding.
The number of shares outstanding for CIA has been increased compared to 5 years ago.
The debt/assets ratio for CIA has been reduced compared to a year ago.
CIA.CA Yearly Shares OutstandingCIA.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
CIA.CA Yearly Total Debt VS Total AssetsCIA.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

CIA has an Altman-Z score of 2.95. This is not the best score and indicates that CIA is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of CIA (2.95) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.39 indicates that CIA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, CIA is doing worse than 77.78% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 2.95
ROIC/WACC1.06
WACC10.21%
CIA.CA Yearly LT Debt VS Equity VS FCFCIA.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

CIA has a Current Ratio of 2.20. This indicates that CIA is financially healthy and has no problem in meeting its short term obligations.
CIA has a Current ratio (2.20) which is in line with its industry peers.
A Quick Ratio of 1.25 indicates that CIA should not have too much problems paying its short term obligations.
CIA has a Quick ratio (1.25) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.2
Quick Ratio 1.25
CIA.CA Yearly Current Assets VS Current LiabilitesCIA.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.95% over the past year.
CIA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.76% yearly.
Looking at the last year, CIA shows a quite strong growth in Revenue. The Revenue has grown by 10.52% in the last year.
The Revenue has been growing by 18.40% on average over the past years. This is quite good.
EPS 1Y (TTM)13.95%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-9.44%

3.2 Future

CIA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
Based on estimates for the next years, CIA will show a small growth in Revenue. The Revenue will grow by 4.23% on average per year.
EPS Next Y-8.64%
EPS Next 2Y16.54%
EPS Next 3Y13.25%
EPS Next 5Y6.36%
Revenue Next Year9.05%
Revenue Next 2Y10.93%
Revenue Next 3Y9.2%
Revenue Next 5Y4.23%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
CIA.CA Yearly Revenue VS EstimatesCIA.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 500M 1B 1.5B 2B
CIA.CA Yearly EPS VS EstimatesCIA.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0 0.2 0.4 0.6 0.8 1

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.06, the valuation of CIA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CIA indicates a rather cheap valuation: CIA is cheaper than 93.44% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.35, CIA is valued rather cheaply.
The Price/Forward Earnings ratio is 8.07, which indicates a very decent valuation of CIA.
Based on the Price/Forward Earnings ratio, CIA is valued cheaper than 94.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 95.00, CIA is valued rather cheaply.
Industry RankSector Rank
PE 10.06
Fwd PE 8.07
CIA.CA Price Earnings VS Forward Price EarningsCIA.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CIA is valued cheaply inside the industry as 94.65% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 5.07
CIA.CA Per share dataCIA.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

CIA has an outstanding profitability rating, which may justify a higher PE ratio.
CIA's earnings are expected to grow with 13.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.94
EPS Next 2Y16.54%
EPS Next 3Y13.25%

4

5. Dividend

5.1 Amount

CIA has a Yearly Dividend Yield of 3.97%.
CIA's Dividend Yield is rather good when compared to the industry average which is at 7.68. CIA pays more dividend than 98.39% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, CIA pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.97%

5.2 History

CIA has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
CIA.CA Yearly Dividends per shareCIA.CA Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 0.1 0.2 0.3

5.3 Sustainability

CIA pays out 40.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.87%
EPS Next 2Y16.54%
EPS Next 3Y13.25%
CIA.CA Yearly Income VS Free CF VS DividendCIA.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M
CIA.CA Dividend Payout.CIA.CA Dividend Payout, showing the Payout Ratio.CIA.CA Dividend Payout.PayoutRetained Earnings

CHAMPION IRON LTD

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

4.93

-0.04 (-0.8%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)01-30 2025-01-30
Earnings (Next)N/A N/A
Inst Owners35.01%
Inst Owner ChangeN/A
Ins Owners9.03%
Ins Owner ChangeN/A
Market Cap2.55B
Analysts83.33
Price Target7.08 (43.61%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.97%
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP40.87%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.48%
Min EPS beat(2)-67.33%
Max EPS beat(2)-1.63%
EPS beat(4)1
Avg EPS beat(4)-23.93%
Min EPS beat(4)-67.33%
Max EPS beat(4)11.7%
EPS beat(8)1
Avg EPS beat(8)-24.37%
EPS beat(12)3
Avg EPS beat(12)-17.96%
EPS beat(16)5
Avg EPS beat(16)-10.53%
Revenue beat(2)1
Avg Revenue beat(2)-10.8%
Min Revenue beat(2)-26.14%
Max Revenue beat(2)4.53%
Revenue beat(4)2
Avg Revenue beat(4)-8.37%
Min Revenue beat(4)-26.14%
Max Revenue beat(4)7.84%
Revenue beat(8)3
Avg Revenue beat(8)-5.83%
Revenue beat(12)4
Avg Revenue beat(12)-4.45%
Revenue beat(16)6
Avg Revenue beat(16)0.94%
PT rev (1m)1.44%
PT rev (3m)-0.52%
EPS NQ rev (1m)-47.2%
EPS NQ rev (3m)-68.04%
EPS NY rev (1m)-23.29%
EPS NY rev (3m)-23.29%
Revenue NQ rev (1m)-24.17%
Revenue NQ rev (3m)-26.78%
Revenue NY rev (1m)-4.72%
Revenue NY rev (3m)-4.72%
Valuation
Industry RankSector Rank
PE 10.06
Fwd PE 8.07
P/S 1.54
P/FCF N/A
P/OCF 5.95
P/B 1.77
P/tB 1.77
EV/EBITDA 5.07
EPS(TTM)0.49
EY9.94%
EPS(NY)0.61
Fwd EY12.4%
FCF(TTM)-0.12
FCFYN/A
OCF(TTM)0.83
OCFY16.8%
SpS3.2
BVpS2.79
TBVpS2.78
PEG (NY)N/A
PEG (5Y)0.94
Profitability
Industry RankSector Rank
ROA 9.05%
ROE 17.52%
ROCE 18.5%
ROIC 10.87%
ROICexc 11.76%
ROICexgc 11.78%
OM 27.24%
PM (TTM) 15.29%
GM 32.79%
FCFM N/A
ROA(3y)14.55%
ROA(5y)16.96%
ROE(3y)25.88%
ROE(5y)31.17%
ROIC(3y)17.72%
ROIC(5y)23.3%
ROICexc(3y)21.55%
ROICexc(5y)36.36%
ROICexgc(3y)21.67%
ROICexgc(5y)36.59%
ROCE(3y)30.15%
ROCE(5y)39.65%
ROICexcg growth 3Y-45.32%
ROICexcg growth 5Y-19.9%
ROICexc growth 3Y-45.18%
ROICexc growth 5Y-19.94%
OM growth 3Y-22.87%
OM growth 5Y-7.21%
PM growth 3Y-24.87%
PM growth 5Y3.92%
GM growth 3Y-19.42%
GM growth 5Y-5.11%
F-Score4
Asset Turnover0.59
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Debt/EBITDA 0.96
Cap/Depr 369.19%
Cap/Sales 29.68%
Interest Coverage 10.38
Cash Conversion 73.38%
Profit Quality N/A
Current Ratio 2.2
Quick Ratio 1.25
Altman-Z 2.95
F-Score4
WACC10.21%
ROIC/WACC1.06
Cap/Depr(3y)571.64%
Cap/Depr(5y)583.13%
Cap/Sales(3y)26.51%
Cap/Sales(5y)22.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)13.95%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-66.67%
EPS Next Y-8.64%
EPS Next 2Y16.54%
EPS Next 3Y13.25%
EPS Next 5Y6.36%
Revenue 1Y (TTM)10.52%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-9.44%
Revenue Next Year9.05%
Revenue Next 2Y10.93%
Revenue Next 3Y9.2%
Revenue Next 5Y4.23%
EBIT growth 1Y10.71%
EBIT growth 3Y-18.29%
EBIT growth 5Y9.87%
EBIT Next Year13.56%
EBIT Next 3Y15.19%
EBIT Next 5Y8.19%
FCF growth 1Y79.01%
FCF growth 3Y-33.55%
FCF growth 5Y4.7%
OCF growth 1Y162.1%
OCF growth 3Y-8.74%
OCF growth 5Y21.85%