TSX:CHW

Stock Analysis Report

Executive Summary

Chesswood Group Limited, a financial services company, operates primarily in the specialty finance industry.

Snowflake

Fundamentals

Undervalued established dividend payer.

Risks

  • Chesswood Group is covered by less than 3 analysts.

Share Price & News

How has Chesswood Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

CHW

0.1%

CA Diversified Financial

0.9%

CA Market


1 Year Return

-23.4%

CHW

39.3%

CA Diversified Financial

-0.2%

CA Market

CHW underperformed the Diversified Financial industry which returned 36.8% over the past year.

CHW underperformed the Market in Canada which returned -0.1% over the past year.


Share holder returns

CHWIndustryMarket
7 Day1.3%0.1%0.9%
30 Day2.0%3.6%5.7%
90 Day-10.9%8.6%1.8%
1 Year-17.0%-23.4%43.2%39.3%3.3%-0.2%
3 Year-7.1%-25.6%-9.1%-32.8%19.2%8.5%
5 Year-8.6%-39.2%8.0%-22.8%23.3%5.8%

Price Volatility Vs. Market

How volatile is Chesswood Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chesswood Group undervalued based on future cash flows and its price relative to the stock market?

47%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Chesswood Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Chesswood Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Chesswood Group is good value based on earnings compared to the CA Diversified Financial industry average.

Chesswood Group is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Chesswood Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Chesswood Group is good value based on assets compared to the CA Diversified Financial industry average.


Next Steps

Future Growth

How is Chesswood Group expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

37.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Chesswood Group's revenue is expected to grow significantly at over 20% yearly.

Chesswood Group's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Chesswood Group's revenue growth is expected to exceed the Canada market average.

Chesswood Group's earnings growth is positive but not above the Canada market average.

Chesswood Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Chesswood Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Chesswood Group performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Chesswood Group has delivered over 20% year on year earnings growth in the past 5 years.

Chesswood Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Chesswood Group's 1-year earnings growth is negative, it can't be compared to the CA Diversified Financial industry average.


Return on Equity

Chesswood Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Chesswood Group used its assets less efficiently than the CA Diversified Financial industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Chesswood Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Chesswood Group's financial position?


Financial Position Analysis

Chesswood Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Chesswood Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Chesswood Group's level of debt (406.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (172.5% vs 406.6% today).

Operating cash flow is negative therefore debt is not well covered.

Unable to confirm if the interest payments on Chesswood Group's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Chesswood Group's current dividend yield, its reliability and sustainability?

9.18%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Chesswood Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Chesswood Group's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.95%).

Chesswood Group's dividend is above the markets top 25% of dividend payers in Canada (5.78%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Chesswood Group's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Barry Shafran 0

0yrs

Tenure

CA$1,351,968

Compensation

Mr. Barry W. Shafran has been President of cars4U Ltd since July 7, 1999 and has been its Chief Executive Officer since 2002. Mr. Shafran serves as a Director at Rifco Inc. Mr. Shafran has been President a ...


CEO Compensation Analysis

Barry's remuneration is higher than average for companies of similar size in Canada.

Barry's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

6.8yrs

Average Tenure

The average tenure for the Chesswood Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.8yrs

Average Tenure

The tenure for the Chesswood Group board of directors is about average.


Insider Trading

More shares have been bought than sold by Chesswood Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyCA$180,00016 Sep 19
Edward Sonshine
EntityIndividual
Role
Member of Advisory Board
Advisor to the Board
Shares20,000
Max PriceCA$9.00
BuyCA$88,92030 Aug 19
Frederick Steiner
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceCA$8.89
BuyCA$17,52614 Aug 19
Gary Souverein
EntityIndividual
Shares2,000
Max PriceCA$8.76
BuyCA$148,75206 Aug 19
Frederick Steiner
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares16,000
Max PriceCA$9.30
BuyCA$112,04423 May 19
Gary Souverein
EntityIndividual
Shares11,000
Max PriceCA$10.19
BuyCA$20,38922 May 19
Frederick Steiner
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares2,000
Max PriceCA$10.20

Ownership Breakdown


Management Team

  • Ed Sonshine (72yo)

    Advisor to the Board

    • Tenure: 0yrs
    • Compensation: CA$67.46k
  • Barry Shafran

    President

    • Tenure: 0yrs
    • Compensation: CA$1.35m
  • Lisa Stevenson

    Director of Finance

    • Tenure: 17.6yrs
    • Compensation: CA$618.11k
  • Mike Sheehan

    President of Tandem Finance

    • Tenure: 0.5yrs

Board Members

  • Ed Sonshine (72yo)

    Advisor to the Board

    • Tenure: 0yrs
    • Compensation: CA$67.46k
  • Clare Copeland (83yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: CA$121.24k
  • Fred Steiner

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$138.87k
  • Barry Shafran

    President

    • Tenure: 0yrs
    • Compensation: CA$1.35m
  • David Obront

    Director

    • Tenure: 8.8yrs
    • Compensation: CA$115.74k
  • Rob Day

    Director

    • Tenure: 8.8yrs
    • Compensation: CA$107.24k
  • Sam Leeper

    Director

    • Tenure: 8.8yrs
    • Compensation: CA$122.24k

Company Information

Chesswood Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chesswood Group Limited
  • Ticker: CHW
  • Exchange: TSX
  • Founded: 1982
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Implied Market Cap: CA$162.156m
  • Market Cap: CA$148.628m
  • Shares outstanding: 17.72m
  • Website: https://www.chesswoodgroup.com

Number of Employees


Location

  • Chesswood Group Limited
  • 156 Duncan Mill Road
  • Unit 16
  • Toronto
  • Ontario
  • M3B 3N2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHWTSX (The Toronto Stock Exchange)YesNew Common SharesCACADMay 2006
CHWW.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDMay 2006

Biography

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 Eq ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 00:22
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.