ScoreWhy is Cascades, Inc. ?
1
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
2
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
3
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 ReportHow much should you hold?
- 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?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cascades, Inc.
-2.85%
-0.04
24.58%
S&P/TSX 60
19.1%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.30%
EBIT Growth (5y)
-4.53%
EBIT to Interest (avg)
1.98
Debt to EBITDA (avg)
3.77
Net Debt to Equity (avg)
1.19
Sales to Capital Employed (avg)
1.26
Tax Ratio
42.86%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
5.96%
ROE (avg)
7.73%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
0.58
EV to EBIT
11.17
EV to EBITDA
5.32
EV to Capital Employed
0.81
EV to Sales
0.61
PEG Ratio
0.81
Dividend Yield
NA
ROCE (Latest)
7.23%
ROE (Latest)
5.22%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
PRE-TAX PROFIT(Q)
At CAD 31 MM has Grown at 342.86%
ROCE(HY)
Highest at -0.47%
RAW MATERIAL COST(Y)
Fallen by -22.75% (YoY
NET PROFIT(9M)
Higher at CAD 52.29 MM
-12What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CAD 271 MM
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
DEBT-EQUITY RATIO
(HY)
Highest at 125.76 %
NET PROFIT(Q)
Lowest at CAD -3 MM
Here's what is working for Cascades, Inc.
Pre-Tax Profit
At CAD 31 MM has Grown at 342.86%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CAD MM)
Raw Material Cost
Fallen by -22.75% (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.
Net Profit
At CAD -3 MM has Fallen at -127.27%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Operating Cash Flow
Lowest at CAD 271 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Net Profit
Lowest at CAD -3 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
Debt-Equity Ratio
Highest at 125.76 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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