ITAFOS INC (IFOS.CA) Stock Fundamental Analysis
TSX-V:IFOS - TSX Venture Exchange - KYG497151087 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to IFOS. IFOS was compared to 31 industry peers in the Chemicals industry. While IFOS has a great profitability rating, there are some minor concerns on its financial health. IFOS is cheap, but on the other hand it scores bad on growth. With these ratings, IFOS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year IFOS was profitable.
IFOS had a positive operating cash flow in the past year.
IFOS had positive earnings in 4 of the past 5 years.
IFOS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.62%, IFOS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of IFOS (25.24%) is better than 100.00% of its industry peers.
IFOS's Return On Invested Capital of 15.11% is amongst the best of the industry. IFOS outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IFOS is significantly above the industry average of 7.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 25.24% | ||
| ROIC | 15.11% |
ROA(3y)10.67%
ROA(5y)5.37%
ROE(3y)24.11%
ROE(5y)6.67%
ROIC(3y)19.1%
ROIC(5y)N/A
1.3 Margins
IFOS has a better Profit Margin (17.87%) than 100.00% of its industry peers.
IFOS's Profit Margin has improved in the last couple of years.
IFOS has a Operating Margin of 24.52%. This is amongst the best in the industry. IFOS outperforms 96.77% of its industry peers.
IFOS's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 30.29%, IFOS belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
In the last couple of years the Gross Margin of IFOS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.52% | ||
| PM (TTM) | 17.87% | ||
| GM | 30.29% |
OM growth 3Y-2.98%
OM growth 5YN/A
PM growth 3Y13.11%
PM growth 5YN/A
GM growth 3Y-2.94%
GM growth 5YN/A
2. Health
2.1 Basic Checks
IFOS 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 IFOS has been increased compared to 1 year ago.
Compared to 5 years ago, IFOS has more shares outstanding
IFOS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.21, we must say that IFOS is in the distress zone and has some risk of bankruptcy.
IFOS's Altman-Z score of 1.21 is in line compared to the rest of the industry. IFOS outperforms 51.61% of its industry peers.
The Debt to FCF ratio of IFOS is 2.06, which is a good value as it means it would take IFOS, 2.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.06, IFOS belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that IFOS is not too dependend on debt financing.
IFOS has a Debt to Equity ratio of 0.27. This is in the better half of the industry: IFOS outperforms 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 1.21 |
ROIC/WACC1.66
WACC9.09%
2.3 Liquidity
A Current Ratio of 3.17 indicates that IFOS has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.17, IFOS belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
A Quick Ratio of 1.54 indicates that IFOS should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.54, IFOS is doing good in the industry, outperforming 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
IFOS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.51%, which is quite impressive.
The Earnings Per Share has been growing by 16.06% on average over the past years. This is quite good.
Looking at the last year, IFOS shows a small growth in Revenue. The Revenue has grown by 5.52% in the last year.
Measured over the past years, IFOS shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)31.51%
EPS 3Y16.06%
EPS 5YN/A
EPS Q2Q%21.95%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y5.93%
Revenue growth 5Y7.67%
Sales Q2Q%-14.71%
3.2 Future
The Earnings Per Share is expected to decrease by -25.66% on average over the next years. This is quite bad
The Revenue is expected to decrease by -1.04% on average over the next years.
EPS Next Y-50.45%
EPS Next 2Y-25.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.06%
Revenue Next 2Y-1.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 3.08, the valuation of IFOS can be described as very cheap.
Based on the Price/Earnings ratio, IFOS is valued cheaper than 100.00% of the companies in the same industry.
IFOS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.18.
A Price/Forward Earnings ratio of 6.20 indicates a rather cheap valuation of IFOS.
Based on the Price/Forward Earnings ratio, IFOS is valued cheaper than 96.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.81. IFOS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.08 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IFOS indicates a rather cheap valuation: IFOS is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, IFOS is valued cheaper than 96.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.79 | ||
| EV/EBITDA | 2.18 |
4.3 Compensation for Growth
IFOS has an outstanding profitability rating, which may justify a higher PE ratio.
IFOS's earnings are expected to decrease with -25.66% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-25.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
IFOS has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
IFOS's Dividend Yield is a higher than the industry average which is at 6.65.
IFOS's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
IFOS is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y-25.66%
EPS Next 3YN/A
TSX-V:IFOS (5/2/2025, 7:00:00 PM)
2.25
+0.03 (+1.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners0.55%
Inst Owner ChangeN/A
Ins Owners1.21%
Ins Owner ChangeN/A
Market Cap420.32M
Analysts84
Price Target4.34 (92.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.76%
Min EPS beat(2)35.01%
Max EPS beat(2)48.51%
EPS beat(4)4
Avg EPS beat(4)72.99%
Min EPS beat(4)35.01%
Max EPS beat(4)110.4%
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)33.17%
Min Revenue beat(2)-2.19%
Max Revenue beat(2)68.54%
Revenue beat(4)3
Avg Revenue beat(4)21.18%
Min Revenue beat(4)-2.19%
Max Revenue beat(4)68.54%
Revenue beat(8)6
Avg Revenue beat(8)17.04%
Revenue beat(12)9
Avg Revenue beat(12)11.38%
Revenue beat(16)11
Avg Revenue beat(16)8.82%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-16.13%
EPS NY rev (3m)-21.21%
Revenue NQ rev (1m)1.3%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)5.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.08 | ||
| Fwd PE | 6.2 | ||
| P/S | 0.62 | ||
| P/FCF | 5.79 | ||
| P/OCF | 2.53 | ||
| P/B | 0.87 | ||
| P/tB | 0.87 | ||
| EV/EBITDA | 2.18 |
EPS(TTM)0.73
EY32.44%
EPS(NY)0.36
Fwd EY16.13%
FCF(TTM)0.39
FCFY17.28%
OCF(TTM)0.89
OCFY39.47%
SpS3.63
BVpS2.57
TBVpS2.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.62% | ||
| ROE | 25.24% | ||
| ROCE | 19.59% | ||
| ROIC | 15.11% | ||
| ROICexc | 17.19% | ||
| ROICexgc | 17.19% | ||
| OM | 24.52% | ||
| PM (TTM) | 17.87% | ||
| GM | 30.29% | ||
| FCFM | 10.7% |
ROA(3y)10.67%
ROA(5y)5.37%
ROE(3y)24.11%
ROE(5y)6.67%
ROIC(3y)19.1%
ROIC(5y)N/A
ROICexc(3y)20.96%
ROICexc(5y)N/A
ROICexgc(3y)20.96%
ROICexgc(5y)N/A
ROCE(3y)24.77%
ROCE(5y)N/A
ROICexcg growth 3Y-1.19%
ROICexcg growth 5YN/A
ROICexc growth 3Y-1.19%
ROICexc growth 5YN/A
OM growth 3Y-2.98%
OM growth 5YN/A
PM growth 3Y13.11%
PM growth 5YN/A
GM growth 3Y-2.94%
GM growth 5YN/A
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 195.11% | ||
| Cap/Sales | 13.74% | ||
| Interest Coverage | 13.57 | ||
| Cash Conversion | 77.43% | ||
| Profit Quality | 59.88% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 1.21 |
F-Score6
WACC9.09%
ROIC/WACC1.66
Cap/Depr(3y)154.24%
Cap/Depr(5y)126.08%
Cap/Sales(3y)10.69%
Cap/Sales(5y)9.14%
Profit Quality(3y)413.99%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.51%
EPS 3Y16.06%
EPS 5YN/A
EPS Q2Q%21.95%
EPS Next Y-50.45%
EPS Next 2Y-25.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.52%
Revenue growth 3Y5.93%
Revenue growth 5Y7.67%
Sales Q2Q%-14.71%
Revenue Next Year1.06%
Revenue Next 2Y-1.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y33.01%
EBIT growth 3Y2.77%
EBIT growth 5YN/A
EBIT Next Year-24.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y31.55%
FCF growth 3Y-4.54%
FCF growth 5YN/A
OCF growth 1Y26.74%
OCF growth 3Y8.3%
OCF growth 5Y27.93%