CHW:CA:TSX-Chesswood Group Limited (CAD)

COMMON STOCK | Credit Services | TSX

Last Closing Price

CAD 8.22

Change

+0.26 (+3.27)%

Market Cap

CAD 0.13B

Volume

0.10M

Average Target Price

CAD 6.75 (-17.88%)
Average Analyst Rating

N/A

Fundamental Analysis

Verdict

About

Chesswood Group Limited, a financial services company, operates primarily in the specialty finance industry. It operates through Equipment Financing - U.S. and Equipment Financing ? Canada segments. The Equipment Financing - U.S. segment offers micro and small-ticket commercial equipment financing to small and medium-sized businesses through a network of approximately 600 independent equipment finance broker firms in the lower 48 states of the United States. The Equipment Financing ? Canada segment provides commercial equipment financing to small and medium businesses through a network of approximately 50 independent equipment finance broker firms, as well as through equipment vendors in Canada. The company was formerly known as Chesswood Income Fund and changed its name to Chesswood Group Limited in January 2011. Chesswood Group Limited was founded in 1982 and is headquartered in Toronto, Canada.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-11-25 )

Largest Industry Peers for Credit Services

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
ECN:CA ECN Capital Corp

+0.01 (+0.16%)

CAD1.50B 44.23 21.70
GSY:CA goeasy Ltd

-0.31 (-0.35%)

CAD1.33B 13.60 8.40
ACD:CA Accord Financial Corp

+0.30 (+4.68%)

CAD0.05B 42.92 24.50
CRWN:CA Crown Capital Partners Inc

N/A

CAD0.04B 15.77 N/A

ETFs Containing CHW:CA

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Credit Services)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -19.33% 60% D- 17% F
Dividend Return 1.03% 20% F 28% F
Total Return -18.30% 60% D- 16% F
Trailing 12 Months  
Capital Gain -24.17% 40% F 13% F
Dividend Return 2.26% 100% A+ 58% F
Total Return -21.91% 40% F 13% F
Trailing 5 Years  
Capital Gain -14.82% 67% D+ 29% F
Dividend Return 42.02% 100% A+ 96% A
Total Return 27.20% 67% D+ 54% F
Average Annual (5 Year Horizon)  
Capital Gain -6.35% N/A N/A 17% F
Dividend Return 7.85% N/A N/A 93% A
Total Return 1.49% N/A N/A 42% F
Risk Return Profile  
Volatility (Standard Deviation) 25.40% N/A N/A 33% F
Risk Adjusted Return 5.85% N/A N/A 33% F
Market Capitalization 0.13B 60% D- 43% F
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
(Credit Services)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 6.27 100% A+ 82% B-
Price/Book Ratio 0.96 60% D- 68% D+
Price / Cash Flow Ratio -1.19 80% B- 80% B-
EV/EBITDA 24.79 25% F 20% F
Management Effectiveness  
Return on Equity -3.84% 20% F 41% F
Return on Invested Capital 0.98% 40% F 40% F
Return on Assets -0.68% 20% F 37% F
Debt to Equity Ratio 497.86% 20% F 2% F
Technical Ratios  
Short Ratio 41.28 20% F 1% F
Short Percent N/A N/A N/A N/A N/A
Beta 2.36 20% F 7% F
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:
Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning 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.

Positive free cash flow

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

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:
Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

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.

Negative cashflow

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

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.