CAS:CA:TSX-Cascades Inc (CAD)

COMMON STOCK | Paper & Paper Products | TSX

Last Closing Price

CAD 14.53

Change

-0.02 (-0.14)%

Market Cap

CAD 1.49B

Volume

0.11M

Average Target Price

CAD 18.38 (+26.46%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, Italy, and internationally. The company operates through four segments: Containerboard, Boxboard Europe, Specialty Products, and Tissue Papers. It provides containerboards, and coated recycled and virgin boxboards, as well as converts corrugated products. The company also offers uncoated recycled paperboards for use in packaging converters and industrial users of headers and wrappers for the paper industry, as well as partitions that are used as protective packaging; honeycomb paperboards for the beer, wine, and spirits industry; laminated paperboards for food packaging and furniture backing industries; and specialty containers, structural components, and paperboard and fiber composites. In addition, it provides egg filler flats and egg cartons for egg processors and four-cup carriers for the quick-service restaurant industry; polystyrene foam trays for processors and retailers in the food industry; rigid plastic packaging products for food processors and retailers; and flexible films for frozen foods, bakery, and ice industries. Further, the company offers bathroom and facial tissues, paper towels, paper hand towels and napkins, and other related products and services under the Cascades PRO Signature, Cascades PRO Perform, Cascades PRO Select, Cascades PRO Tandem, and Cascades PRO Tuff-Job brands; and under the Cascades Fluff, Cascades Tuff, April Soft, Best Value, and Optima labels, as well as private labels and other secondary marks. Additionally, it offers services to recover and process discarded materials for the municipal, industrial, commercial, and institutional sectors. The company sells its products through own sales force and external representatives. Cascades Inc. was founded in 1964 and is headquartered in Kingsey Falls, Canada.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-11-26 )

Largest Industry Peers for Paper & Paper Products

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
UFS:CA Domtar Corporation

-0.53 (-1.31%)

CAD2.24B 100.56 22.18
RFP:CA Resolute Forest Products Inc

-0.17 (-2.33%)

CAD0.60B 1.53 5.31
CFX:CA Canfor Pulp Products Inc

+0.04 (+0.70%)

CAD0.38B 7.31 7.28

ETFs Containing CAS:CA

Symbol Name Weight Mer Price(Change) Market Cap
NFAM:CA NBI Canadian Family Busin.. 0.00 % 0.40 %

N/A

CAD0.02B

Market Performance

  Market Performance vs.
Industry/Classification (Paper & Paper Products)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 29.62% 75% C 86% B
Dividend Return 2.85% 100% A+ 75% C
Total Return 32.47% 100% A+ 86% B
Trailing 12 Months  
Capital Gain 15.78% 75% C 78% C+
Dividend Return 2.55% 100% A+ 64% D
Total Return 18.33% 75% C 80% B-
Trailing 5 Years  
Capital Gain 26.46% 100% A+ 61% D-
Dividend Return 9.05% 67% D+ 28% F
Total Return 35.51% 100% A+ 60% D-
Average Annual (5 Year Horizon)  
Capital Gain 11.68% N/A N/A 83% B
Dividend Return 1.66% N/A N/A 53% F
Total Return 13.34% N/A N/A 83% B
Risk Return Profile  
Volatility (Standard Deviation) 33.71% N/A N/A 24% F
Risk Adjusted Return 39.56% N/A N/A 59% F
Market Capitalization 1.49B 75% C 80% B-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Paper & Paper Products)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 14.19 50% F 56% F
Price/Book Ratio 0.92 25% F 69% D+
Price / Cash Flow Ratio 3.24 100% A+ 67% D+
EV/EBITDA 6.28 75% C 75% C
Management Effectiveness  
Return on Equity 7.38% 100% A+ 67% D+
Return on Invested Capital 6.56% 100% A+ 64% D
Return on Assets 4.17% 100% A+ 77% C+
Debt to Equity Ratio 125.79% 25% F 19% F
Technical Ratios  
Short Ratio 5.17 50% F 17% F
Short Percent N/A N/A N/A N/A N/A
Beta 0.01 100% A+ 96% A
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.