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

Cascades, Inc.

Imaflex, Inc.

Winpak Ltd.

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 -1.14% 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

With ROE of 8.36%, it has a expensive valuation with a 0.63 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 22.87%, its profits have risen by 49.5% ; the PEG ratio of the company is 0.2

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cascades, Inc.

22.87%

0.52

28.38%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.14%

EBIT Growth (5y)

-5.55%

EBIT to Interest (avg)

1.98

Debt to EBITDA (avg)

3.77

Net Debt to Equity (avg)

1.19

Sales to Capital Employed (avg)

1.30

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

0.63

EV to EBIT

10.76

EV to EBITDA

5.10

EV to Capital Employed

0.81

EV to Sales

0.59

PEG Ratio

0.15

Dividend Yield

ROCE (Latest)

7.53%

ROE (Latest)

8.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 449 MM

ROCE(HY)

Highest at 5.87%

PRE-TAX PROFIT(Q)

Highest at CAD 65 MM

DEBT-EQUITY RATIO (HY)

Lowest at 108.2 %

DEBTORS TURNOVER RATIO(HY)

Highest at 10.05 times

NET PROFIT(Q)

Highest at CAD 51.6 MM

EPS(Q)

Highest at CAD 0.38

-5What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 12.4% (YoY

NET SALES(Q)

Lowest at CAD 1,125 MM

OPERATING PROFIT(Q)

Lowest at CAD 118 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.49 %

Here's what is working for Cascades, Inc.

Pre-Tax Profit

At CAD 65 MM has Grown at 306.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 51.6 MM has Grown at 522.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 65 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Operating Cash Flow

Highest at CAD 449 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Profit

Highest at CAD 51.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at 108.2 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 10.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Sales

Lowest at CAD 1,125 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Operating Profit

Lowest at CAD 118 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 10.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 12.4% (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