TSX:CHW

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CHW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.3%

CHW

-2.2%

CA Diversified Financial

-1.6%

CA Market


1 Year Return

-39.0%

CHW

2.5%

CA Diversified Financial

-8.0%

CA Market

Return vs Industry: CHW underperformed the Canadian Diversified Financial industry which returned 2.5% over the past year.

Return vs Market: CHW underperformed the Canadian Market which returned -8% over the past year.


Shareholder returns

CHWIndustryMarket
7 Day11.3%-2.2%-1.6%
30 Day-2.0%-0.8%-3.8%
90 Day46.7%14.6%5.1%
1 Year-35.4%-39.0%4.3%2.5%-4.8%-8.0%
3 Year-41.8%-53.0%20.3%10.9%6.5%-3.8%
5 Year-21.2%-47.5%-15.8%-39.7%39.2%17.9%

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 compared to its fair value and its price relative to the market?

24.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHW (CA$5.81) is trading below our estimate of fair value (CA$7.66)

Significantly Below Fair Value: CHW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHW is unprofitable, so we can't compare its PE Ratio to the CA Diversified Financial industry average.

PE vs Market: CHW is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CHW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CHW is good value based on its PB Ratio (0.7x) compared to the CA Diversified Financial industry average (1x).


Next Steps

Future Growth

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

-43.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CHW's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CHW's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHW's revenue is expected to decline over the next 3 years (-43.9% per year).

High Growth Revenue: CHW's revenue is forecast to decline over the next 3 years (-43.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CHW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Chesswood Group performed over the past 5 years?

-5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHW is currently unprofitable.

Growing Profit Margin: CHW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CHW is unprofitable, and losses have increased over the past 5 years at a rate of 5.5% per year.

Accelerating Growth: Unable to compare CHW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CHW is unprofitable, making it difficult to compare its past year earnings growth to the Diversified Financial industry (5.8%).


Return on Equity

High ROE: CHW has a negative Return on Equity (-9.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Chesswood Group's financial position?


Financial Position Analysis

Short Term Liabilities: CHW's short term assets (CA$857.4M) exceed its short term liabilities (CA$21.0M).

Long Term Liabilities: CHW's short term assets (CA$857.4M) exceed its long term liabilities (CA$749.1M).


Debt to Equity History and Analysis

Debt Level: CHW's debt to equity ratio (521.7%) is considered high.

Reducing Debt: CHW's debt to equity ratio has increased from 222.9% to 521.7% over the past 5 years.

Debt Coverage: CHW's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if CHW's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CHW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CHW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CHW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CHW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: CHW is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHW's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Ryan Marr

0.25

Tenure

Mr. Ryan Marr has been President and Chief Executive Officer of Chesswood Group Limited since June 29, 2020 and its Director since 2020. He is Partner, Chief Investment Officer and Portfolio Manager at Way ...


Leadership Team

NamePositionTenureCompensationOwnership
Frederick Steiner
Co-Founder & Independent Director9.75yrsCA$112.26k6.7%
CA$ 7.5m
Lisa Stevenson
Director of Finance18.58yrsCA$337.38k0.78%
CA$ 877.1k
Ryan Marr
President0.25yrno datano data
Mike Sheehan
President of Tandem Finance1.5yrsno datano data

1.5yrs

Average Tenure

Experienced Management: CHW's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Frederick Steiner
Co-Founder & Independent Director9.75yrsCA$112.26k6.7%
CA$ 7.5m
Ryan Marr
President0.25yrno datano data
Edward Sonshine
Independent Chairman0.25yrCA$67.46k10.7%
CA$ 12.0m
Clare Copeland
Independent Director9.75yrsCA$98.48k0.29%
CA$ 321.5k
Robert Day
Independent Director9.75yrsCA$94.18k0.88%
CA$ 979.4k
Samuel Leeper
Independent Director9.75yrsCA$106.18k0.93%
CA$ 1.0m
Jeff Fields
Independent Directorno datano datano data

9.8yrs

Average Tenure

Experienced Board: CHW's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CHW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

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$111.796m
  • Market Cap: CA$103.206m
  • Shares outstanding: 19.24m
  • Website: https://www.chesswoodgroup.com

Number of Employees


Location

  • Chesswood Group Limited
  • 156 Duncan Mill Road
  • Unit 15
  • 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 Analysis2020/09/28 05:47
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.