Cascades, Inc. (CAS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Imaflex, Inc.

Winpak Ltd.

Cascades, Inc.

Oceansix Future Paths Ltd.

Why is Cascades, Inc. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -1.36% and Operating profit at -6.02% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.73% signifying low profitability per unit of shareholders funds

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -4.67%, its profits have risen by 14.2% ; the PEG ratio of the company is 0.8

Below par performance in long term as well as near term

Along with generating -4.67% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Cascades, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cascades, Inc.

7.84%

-0.04

24.58%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.52%

EBIT Growth (5y)

-6.18%

EBIT to Interest (avg)

1.98

Debt to EBITDA (avg)

3.77

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

1.29

Tax Ratio

42.86%

Dividend Payout Ratio

69.37%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

5.96%

ROE (avg)

7.73%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.66

EV to EBIT

10.57

EV to EBITDA

5.11

EV to Capital Employed

0.83

EV to Sales

0.60

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

7.85%

ROE (Latest)

6.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 40 MM has Grown at 233.33%

ROCE(HY)

Highest at 1.17%

INTEREST COVERAGE RATIO(Q)

Highest at 467.65

NET PROFIT(Q)

At CAD 30.58 MM has Grown at 135.22%

RAW MATERIAL COST(Y)

Fallen by -15.94% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.57 times

NET SALES(Q)

Highest at CAD 1,238 MM

OPERATING PROFIT(Q)

Highest at CAD 159 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.84 %

EPS(Q)

Highest at CAD 0.29

-3What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 350 MM

Here's what is working for Cascades, Inc.

Pre-Tax Profit

At CAD 40 MM has Grown at 233.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Interest Coverage Ratio

Highest at 467.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At CAD 30.58 MM has Grown at 135.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Net Sales

Highest at CAD 1,238 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 159 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 12.84 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at CAD 0.29

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Inventory Turnover Ratio

Highest at 6.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -15.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Cascades, Inc.

Operating Cash Flow

Lowest at CAD 350 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)