TSXV:CEP

Stock Analysis Report

Executive Summary

Cliffside Capital Ltd., through its 85% interest in CAL LP and 60% interest in ACC LP III, invests in retail sales contracts originated by CanCap Management Inc.

Snowflake

Poor track record with worrying balance sheet.

Share Price & News

How has Cliffside Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CEP

-1.4%

CA Capital Markets

1.1%

CA Market


1 Year Return

-30.0%

CEP

17.5%

CA Capital Markets

6.9%

CA Market

Return vs Industry: CEP underperformed the Canadian Capital Markets industry which returned 17.5% over the past year.

Return vs Market: CEP underperformed the Canadian Market which returned 6.9% over the past year.


Shareholder returns

CEPIndustryMarket
7 Day0%-1.4%1.1%
30 Day7.7%0.8%2.6%
90 Day-6.7%4.6%4.6%
1 Year-30.0%-30.0%22.9%17.5%10.4%6.9%
3 Year33.3%33.3%37.8%21.2%18.6%8.0%
5 Year21.7%21.7%32.4%4.7%27.1%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cliffside Capital undervalued compared to its fair value and its price relative to the market?

1.67x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CEP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CEP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CEP is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: CEP 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 CEP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CEP is overvalued based on its PB Ratio (1.7x) compared to the CA Capital Markets industry average (0.9x).


Next Steps

Future Growth

How is Cliffside Capital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cliffside Capital has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Cliffside Capital performed over the past 5 years?

-33.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CEP has a high level of non-cash earnings.

Growing Profit Margin: CEP's current net profit margins (95.1%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: CEP is unprofitable, and losses have increased over the past 5 years at a rate of -33.2% per year.

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

Earnings vs Industry: CEP is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (7.8%).


Return on Equity

High ROE: CEP has a negative Return on Equity (-18.69%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cliffside Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CEP has a low level of unsold assets or inventory.

Debt Coverage by Assets: CEP's debt is covered by short term assets (assets are 1.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CEP has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: CEP has less than a year of cash runway if free cash flow continues to reduce at historical rates of -60.3% each year


Financial Institutions Analysis

Asset Level: CEP's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if CEP has a sufficient allowance for bad loans.

Low Risk Liabilities: CEP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CEP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CEP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CEP has an appropriate level of bad loans.


Next Steps

Dividend

What is Cliffside Capital's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

4.2yrs

Average board tenure


CEO

Steve Malone 0

1.5yrs

Tenure

CA$149,174

Compensation

Mr. Stephen R. Malone, also known as Steve, has been Chief Executive Officer of Cliffside Capital Ltd. since May 22, 2018. Mr. Malone has significant leadership experience in the Canadian financial service ...


Board Age and Tenure

4.2yrs

Average Tenure

63yo

Average Age

Experienced Board: CEP's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$137,97001 Apr 19
Michael Stein
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares836,185
Max PriceCA$0.16
BuyCA$137,97001 Apr 19
Mark H. Newman
EntityIndividual
Role
Member of the Board of Directors
Director
Shares836,185
Max PriceCA$0.16
BuyCA$100,00001 Apr 19
Lawrence Zimmering
EntityIndividual
Shares606,061
Max PriceCA$0.16
BuyCA$100,00001 Apr 19
Trov, Inc.
EntityCompany
Shares606,060
Max PriceCA$0.16

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.5%.


Management Team

  • Steve Malone

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: CA$149.17k
  • Praveen Gupta

    CFO & Secretary

    • Tenure: 0.4yrs

Board Members

  • Michael Stein (68yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Mark H. Newman (60yo)

    Director

    • Tenure: 6.1yrs
  • Maish Kagan (63yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: CA$44.75k
  • Keith Ray

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: CA$14.92k
  • Steve Malone

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: CA$149.17k

Company Information

Cliffside Capital Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cliffside Capital Ltd.
  • Ticker: CEP
  • Exchange: TSXV
  • Founded: 2013
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$10.467m
  • Shares outstanding: 74.77m
  • Website: https://www.cliffsidecapital.ca

Location

  • Cliffside Capital Ltd.
  • 11 Church Street
  • Suite 200
  • Toronto
  • Ontario
  • M5E 1W1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CEPTSXV (TSX Venture Exchange)YesCommon SharesCACADApr 2014

Biography

Cliffside Capital Ltd., through its 85% interest in CAL LP and 60% interest in ACC LP III, invests in retail sales contracts originated by CanCap Management Inc. and secured by collateral charges on motor  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:25
End of Day Share Price2019/10/28 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.