CHAMPION IRON LTD (CIA.CA) Stock Fundamental Analysis
Canada - TSX:CIA - AU000000CIA2 - Common Stock
4.46 CAD
+0.05 (+1.13%)
We assign a fundamental rating of 4 out of 10 to CIA. CIA was compared to 822 industry peers in the Metals & Mining industry. CIA has an excellent profitability rating, but there are concerns on its financial health. CIA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CIA was profitable.
CIA had a positive operating cash flow in the past year.
In the past 5 years CIA has always been profitable.
Each year in the past 5 years CIA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 2.76%, CIA belongs to the best of the industry, outperforming 87.35% of the companies in the same industry.
CIA has a better Return On Equity (5.86%) than 89.29% of its industry peers.
With an excellent Return On Invested Capital value of 3.90%, CIA belongs to the best of the industry, outperforming 90.75% of the companies in the same industry.
CIA had an Average Return On Invested Capital over the past 3 years of 9.37%. This is below the industry average of 12.13%.
The 3 year average ROIC (9.37%) for CIA is well above the current ROIC(3.90%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.86% | ||
| ROIC | 3.9% |
ROA(3y)7.35%
ROA(5y)15.87%
ROE(3y)14.19%
ROE(5y)28.4%
ROIC(3y)9.37%
ROIC(5y)19%
1.3 Margins
Looking at the Profit Margin, with a value of 5.52%, CIA belongs to the top of the industry, outperforming 91.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CIA has declined.
CIA has a Operating Margin of 12.14%. This is amongst the best in the industry. CIA outperforms 90.39% of its industry peers.
In the last couple of years the Operating Margin of CIA has declined.
CIA has a better Gross Margin (17.29%) than 87.71% of its industry peers.
CIA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.14% | ||
| PM (TTM) | 5.52% | ||
| GM | 17.29% |
OM growth 3Y-31.3%
OM growth 5Y-13.67%
PM growth 3Y-37.24%
PM growth 5Y-4.94%
GM growth 3Y-27.69%
GM growth 5Y-11.6%
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.
CIA has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for CIA has been increased compared to 5 years ago.
CIA has a worse debt/assets ratio than last year.
2.2 Solvency
CIA has an Altman-Z score of 2.14. 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.
With a Altman-Z score value of 2.14, CIA perfoms like the industry average, outperforming 49.88% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that CIA is somewhat dependend on debt financing.
The Debt to Equity ratio of CIA (0.54) is worse than 72.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.14 |
ROIC/WACC0.44
WACC8.84%
2.3 Liquidity
CIA has a Current Ratio of 1.83. This is a normal value and indicates that CIA is financially healthy and should not expect problems in meeting its short term obligations.
CIA has a Current ratio of 1.83. This is comparable to the rest of the industry: CIA outperforms 50.49% of its industry peers.
A Quick Ratio of 0.99 indicates that CIA may have some problems paying its short term obligations.
The Quick ratio of CIA (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The earnings per share for CIA have decreased strongly by -70.18% in the last year.
The Earnings Per Share has been decreasing by -0.70% on average over the past years.
CIA shows a decrease in Revenue. In the last year, the revenue decreased by -9.72%.
Measured over the past years, CIA shows a quite strong growth in Revenue. The Revenue has been growing by 15.40% on average per year.
EPS 1Y (TTM)-70.18%
EPS 3Y-35.43%
EPS 5Y-0.7%
EPS Q2Q%-68.75%
Revenue 1Y (TTM)-9.72%
Revenue growth 3Y3.22%
Revenue growth 5Y15.4%
Sales Q2Q%-16.5%
3.2 Future
CIA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.43% yearly.
CIA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.56% yearly.
EPS Next Y-12.82%
EPS Next 2Y18.2%
EPS Next 3Y14.32%
EPS Next 5Y5.43%
Revenue Next Year4.68%
Revenue Next 2Y7.24%
Revenue Next 3Y5.45%
Revenue Next 5Y0.56%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.24, which means the current valuation is very expensive for CIA.
90.27% of the companies in the same industry are more expensive than CIA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.86, CIA is valued at the same level.
A Price/Forward Earnings ratio of 11.40 indicates a reasonable valuation of CIA.
CIA's Price/Forward Earnings ratio is rather cheap when compared to the industry. CIA is cheaper than 93.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. CIA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 11.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIA indicates a rather cheap valuation: CIA is cheaper than 95.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
CIA has a very decent profitability rating, which may justify a higher PE ratio.
CIA's earnings are expected to grow with 14.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y18.2%
EPS Next 3Y14.32%
5. Dividend
5.1 Amount
CIA has a Yearly Dividend Yield of 4.60%, which is a nice return.
CIA's Dividend Yield is rather good when compared to the industry average which is at 9.53. CIA pays more dividend than 99.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, CIA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
5.2 History
CIA has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CIA pays out 122.69% of its income as dividend. This is not a sustainable payout ratio.
DP122.69%
EPS Next 2Y18.2%
EPS Next 3Y14.32%
TSX:CIA (10/3/2025, 7:00:00 PM)
4.46
+0.05 (+1.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners34.23%
Inst Owner ChangeN/A
Ins Owners8.85%
Ins Owner ChangeN/A
Market Cap2.38B
Analysts81.67
Price Target5.25 (17.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP122.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.81%
Min EPS beat(2)-36.28%
Max EPS beat(2)-1.35%
EPS beat(4)0
Avg EPS beat(4)-51.24%
Min EPS beat(4)-100%
Max EPS beat(4)-1.35%
EPS beat(8)1
Avg EPS beat(8)-29.89%
EPS beat(12)1
Avg EPS beat(12)-28.23%
EPS beat(16)3
Avg EPS beat(16)-22.13%
Revenue beat(2)0
Avg Revenue beat(2)-4.94%
Min Revenue beat(2)-7.75%
Max Revenue beat(2)-2.13%
Revenue beat(4)0
Avg Revenue beat(4)-9.55%
Min Revenue beat(4)-26.14%
Max Revenue beat(4)-2.13%
Revenue beat(8)2
Avg Revenue beat(8)-6.95%
Revenue beat(12)4
Avg Revenue beat(12)-4.2%
Revenue beat(16)4
Avg Revenue beat(16)-4.17%
PT rev (1m)0.44%
PT rev (3m)-12.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-66.29%
EPS NY rev (1m)-5.21%
EPS NY rev (3m)-56.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-10.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 11.4 | ||
| P/S | 1.55 | ||
| P/FCF | N/A | ||
| P/OCF | 6.72 | ||
| P/B | 1.65 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)0.17
EY3.81%
EPS(NY)0.39
Fwd EY8.77%
FCF(TTM)-0.47
FCFYN/A
OCF(TTM)0.66
OCFY14.87%
SpS2.87
BVpS2.71
TBVpS2.7
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.76% | ||
| ROE | 5.86% | ||
| ROCE | 6.89% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.17% | ||
| ROICexgc | 4.18% | ||
| OM | 12.14% | ||
| PM (TTM) | 5.52% | ||
| GM | 17.29% | ||
| FCFM | N/A |
ROA(3y)7.35%
ROA(5y)15.87%
ROE(3y)14.19%
ROE(5y)28.4%
ROIC(3y)9.37%
ROIC(5y)19%
ROICexc(3y)10.84%
ROICexc(5y)28.87%
ROICexgc(3y)10.88%
ROICexgc(5y)29.1%
ROCE(3y)16.55%
ROCE(5y)33.57%
ROICexcg growth 3Y-42.32%
ROICexcg growth 5Y-28.41%
ROICexc growth 3Y-42.24%
ROICexc growth 5Y-28.44%
OM growth 3Y-31.3%
OM growth 5Y-13.67%
PM growth 3Y-37.24%
PM growth 5Y-4.94%
GM growth 3Y-27.69%
GM growth 5Y-11.6%
F-Score3
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 376.71% | ||
| Cap/Sales | 39.38% | ||
| Interest Coverage | 3.43 | ||
| Cash Conversion | 102.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 2.14 |
F-Score3
WACC8.84%
ROIC/WACC0.44
Cap/Depr(3y)309.58%
Cap/Depr(5y)525.09%
Cap/Sales(3y)27.11%
Cap/Sales(5y)26.21%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-70.18%
EPS 3Y-35.43%
EPS 5Y-0.7%
EPS Q2Q%-68.75%
EPS Next Y-12.82%
EPS Next 2Y18.2%
EPS Next 3Y14.32%
EPS Next 5Y5.43%
Revenue 1Y (TTM)-9.72%
Revenue growth 3Y3.22%
Revenue growth 5Y15.4%
Sales Q2Q%-16.5%
Revenue Next Year4.68%
Revenue Next 2Y7.24%
Revenue Next 3Y5.45%
Revenue Next 5Y0.56%
EBIT growth 1Y-65.34%
EBIT growth 3Y-29.09%
EBIT growth 5Y-0.37%
EBIT Next Year24.77%
EBIT Next 3Y21.3%
EBIT Next 5Y9.77%
FCF growth 1Y-375.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.42%
OCF growth 3Y-13.54%
OCF growth 5Y-0.36%