CHAMPION IRON LTD (CIA.CA) Stock Fundamental Analysis
TSX:CIA - Toronto Stock Exchange - AU000000CIA2 - Common Stock - Currency: CAD
CIA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 802 industry peers in the Metals & Mining industry. CIA has an excellent profitability rating, but there are some minor 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 4.36%, CIA belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.22%, CIA belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
CIA has a Return On Invested Capital of 6.50%. This is amongst the best in the industry. CIA outperforms 92.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIA is significantly below the industry average of 24.51%.
The last Return On Invested Capital (6.50%) for CIA is well below the 3 year average (17.72%), which needs to be investigated, but indicates that CIA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 9.22% | ||
| ROIC | 6.5% |
ROA(3y)14.55%
ROA(5y)16.96%
ROE(3y)25.88%
ROE(5y)31.17%
ROIC(3y)17.72%
ROIC(5y)23.3%
1.3 Margins
CIA has a better Profit Margin (8.50%) than 92.52% of its industry peers.
CIA's Profit Margin has improved in the last couple of years.
CIA has a Operating Margin of 19.23%. This is amongst the best in the industry. CIA outperforms 92.77% of its industry peers.
In the last couple of years the Operating Margin of CIA has declined.
CIA's Gross Margin of 24.64% is amongst the best of the industry. CIA outperforms 90.27% of its industry peers.
In the last couple of years the Gross Margin of CIA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.23% | ||
| PM (TTM) | 8.5% | ||
| GM | 24.64% |
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%
2. Health
2.1 Basic Checks
CIA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CIA remains at a similar level compared to 1 year ago.
CIA has more shares outstanding than it did 5 years ago.
CIA has a better debt/assets ratio than last year.
2.2 Solvency
CIA has an Altman-Z score of 2.28. 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.
Looking at the Altman-Z score, with a value of 2.28, CIA is in line with its industry, outperforming 58.10% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that CIA is somewhat dependend on debt financing.
CIA's Debt to Equity ratio of 0.54 is on the low side compared to the rest of the industry. CIA is outperformed by 72.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.28 |
ROIC/WACC0.67
WACC9.63%
2.3 Liquidity
A Current Ratio of 2.28 indicates that CIA has no problem at all paying its short term obligations.
CIA has a Current ratio (2.28) which is in line with its industry peers.
A Quick Ratio of 1.14 indicates that CIA should not have too much problems paying its short term obligations.
CIA has a Quick ratio of 1.14. This is comparable to the rest of the industry: CIA outperforms 47.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The earnings per share for CIA have decreased strongly by -56.14% in the last 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.
CIA shows a decrease in Revenue. In the last year, the revenue decreased by -8.55%.
Measured over the past years, CIA shows a quite strong growth in Revenue. The Revenue has been growing by 18.40% on average per year.
EPS 1Y (TTM)-56.14%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-100%
Revenue 1Y (TTM)-8.55%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-28.35%
3.2 Future
Based on estimates for the next years, CIA will show a small growth in Earnings Per Share. The EPS will grow by 1.24% on average per year.
Based on estimates for the next years, CIA will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y-31.44%
EPS Next 2Y11.65%
EPS Next 3Y9.89%
EPS Next 5Y1.24%
Revenue Next Year3.83%
Revenue Next 2Y10.22%
Revenue Next 3Y8.35%
Revenue Next 5Y3.11%
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 decreasing.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.32, the valuation of CIA can be described as correct.
Based on the Price/Earnings ratio, CIA is valued cheaper than 91.40% of the companies in the same industry.
CIA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.10.
Based on the Price/Forward Earnings ratio of 7.27, the valuation of CIA can be described as very cheap.
Based on the Price/Forward Earnings ratio, CIA is valued cheaper than 95.39% of the companies in the same industry.
CIA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIA is valued cheaper than 93.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.61 |
4.3 Compensation for Growth
CIA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y11.65%
EPS Next 3Y9.89%
5. Dividend
5.1 Amount
CIA has a Yearly Dividend Yield of 4.80%, which is a nice return.
CIA's Dividend Yield is rather good when compared to the industry average which is at 2.90. CIA pays more dividend than 99.00% of the companies in the same industry.
CIA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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
5.3 Sustainability
80.53% of the earnings are spent on dividend by CIA. This is not a sustainable payout ratio.
DP80.53%
EPS Next 2Y11.65%
EPS Next 3Y9.89%
TSX:CIA (5/2/2025, 7:00:00 PM)
4.08
+0.06 (+1.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners39.36%
Inst Owner ChangeN/A
Ins Owners9.03%
Ins Owner ChangeN/A
Market Cap2.11B
Analysts83.08
Price Target5.75 (40.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
Yearly Dividend0.2
Dividend Growth(5Y)N/A
DP80.53%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-83.67%
Min EPS beat(2)-100%
Max EPS beat(2)-67.33%
EPS beat(4)0
Avg EPS beat(4)-51.86%
Min EPS beat(4)-100%
Max EPS beat(4)-1.63%
EPS beat(8)1
Avg EPS beat(8)-36.47%
EPS beat(12)2
Avg EPS beat(12)-26.84%
EPS beat(16)4
Avg EPS beat(16)-19.53%
Revenue beat(2)0
Avg Revenue beat(2)-14.15%
Min Revenue beat(2)-26.14%
Max Revenue beat(2)-2.17%
Revenue beat(4)1
Avg Revenue beat(4)-10.87%
Min Revenue beat(4)-26.14%
Max Revenue beat(4)4.53%
Revenue beat(8)3
Avg Revenue beat(8)-5.75%
Revenue beat(12)4
Avg Revenue beat(12)-4.63%
Revenue beat(16)5
Avg Revenue beat(16)-1.7%
PT rev (1m)-13.33%
PT rev (3m)-18.76%
EPS NQ rev (1m)-23.79%
EPS NQ rev (3m)-33.5%
EPS NY rev (1m)-12.29%
EPS NY rev (3m)-24.96%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-1.78%
Revenue NY rev (3m)-4.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 7.27 | ||
| P/S | 1.4 | ||
| P/FCF | N/A | ||
| P/OCF | 8.13 | ||
| P/B | 1.51 | ||
| P/tB | 1.52 | ||
| EV/EBITDA | 6.61 |
EPS(TTM)0.25
EY6.13%
EPS(NY)0.56
Fwd EY13.75%
FCF(TTM)-0.62
FCFYN/A
OCF(TTM)0.5
OCFY12.3%
SpS2.92
BVpS2.69
TBVpS2.68
PEG (NY)N/A
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 9.22% | ||
| ROCE | 11.06% | ||
| ROIC | 6.5% | ||
| ROICexc | 6.74% | ||
| ROICexgc | 6.75% | ||
| OM | 19.23% | ||
| PM (TTM) | 8.5% | ||
| GM | 24.64% | ||
| 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-Score3
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 425.75% | ||
| Cap/Sales | 38.45% | ||
| Interest Coverage | 6.4 | ||
| Cash Conversion | 60.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.28 |
F-Score3
WACC9.63%
ROIC/WACC0.67
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)-56.14%
EPS 3Y-20.92%
EPS 5Y10.76%
EPS Q2Q%-100%
EPS Next Y-31.44%
EPS Next 2Y11.65%
EPS Next 3Y9.89%
EPS Next 5Y1.24%
Revenue 1Y (TTM)-8.55%
Revenue growth 3Y5.95%
Revenue growth 5Y18.4%
Sales Q2Q%-28.35%
Revenue Next Year3.83%
Revenue Next 2Y10.22%
Revenue Next 3Y8.35%
Revenue Next 5Y3.11%
EBIT growth 1Y-44.8%
EBIT growth 3Y-18.29%
EBIT growth 5Y9.87%
EBIT Next Year5.04%
EBIT Next 3Y16.71%
EBIT Next 5Y5.21%
FCF growth 1Y-3.16%
FCF growth 3Y-33.55%
FCF growth 5Y4.7%
OCF growth 1Y258.56%
OCF growth 3Y-8.74%
OCF growth 5Y21.85%