ScoreWhy is Cascades, Inc. ?
1
Poor Management Efficiency with a low ROCE of 5.96%
- The company has been able to generate a Return on Capital Employed (avg) of 5.96% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of -1.14% and Operating profit at -5.55% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 7.73% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of -1.14% and Operating profit at -5.55% over the last 5 years
4
The company has declared Positive results for the last 4 consecutive quarters
- NET PROFIT(Q) At CAD 27.4 MM has Grown at 1,013.33%
- OPERATING CASH FLOW(Y) Highest at CAD 498 MM
- ROCE(HY) Highest at 7.3%
5
With ROE of 8.36%, it has a expensive valuation with a 0.68 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 74.42%, its profits have risen by 49.5% ; the PEG ratio of the company is 0.2
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Cascades, Inc. should be less than 10%
- Overall Portfolio exposure to Packaging should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cascades, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Cascades, Inc.
79.03%
2.38
33.03%
S&P/TSX 60
20.36%
2.51
12.02%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-1.14%
EBIT Growth (5y)
-5.55%
EBIT to Interest (avg)
1.78
Debt to EBITDA (avg)
3.85
Net Debt to Equity (avg)
1.19
Sales to Capital Employed (avg)
1.30
Tax Ratio
17.28%
Dividend Payout Ratio
69.37%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
5.84%
ROE (avg)
7.73%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.68
EV to EBIT
11.12
EV to EBITDA
5.27
EV to Capital Employed
0.84
EV to Sales
0.61
PEG Ratio
0.17
Dividend Yield
NA
ROCE (Latest)
7.53%
ROE (Latest)
8.36%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
NET PROFIT(Q)
At CAD 27.4 MM has Grown at 1,013.33%
OPERATING CASH FLOW(Y)
Highest at CAD 498 MM
ROCE(HY)
Highest at 7.3%
INTEREST COVERAGE RATIO(Q)
Highest at 507.14
DEBT-EQUITY RATIO
(HY)
Lowest at 105.68 %
-2What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 14.49% (YoY
Here's what is working for Cascades, Inc.
Net Profit
At CAD 27.4 MM has Grown at 1,013.33%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (CAD MM)
Interest Coverage Ratio
Highest at 507.14
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at CAD 498 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Debt-Equity Ratio
Lowest at 105.68 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at CAD 77 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Cascades, Inc.
Raw Material Cost
Grown by 14.49% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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