CAS

CascadesTSX:CAS Stock Report

Market Cap

CA$1.6b

7D

-3.6%

1Y

7.3%

Updated

18 Sep, 2021

Data

Company Financials +
CAS fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends5/6

CAS Overview

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, Italy, and internationally.

Cascades Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cascades
Historical stock prices
Current Share PriceCA$15.40
52 Week HighCA$13.06
52 Week LowCA$18.48
Beta0.042
1 Month Change4.27%
3 Month Change8.30%
1 Year Change7.32%
3 Year Change21.93%
5 Year Change23.70%
Change since IPO200.20%

Recent News & Updates

Shareholder Returns

CASCA PackagingCA Market
7D-3.6%-3.1%-0.6%
1Y7.3%28.0%29.0%

Return vs Industry: CAS underperformed the Canadian Packaging industry which returned 28% over the past year.

Return vs Market: CAS underperformed the Canadian Market which returned 29% over the past year.

Price Volatility

Is CAS's price volatile compared to industry and market?
CAS volatility
CAS Beta0.042
Industry Beta0.82
Market Beta1

Stable Share Price: CAS is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CAS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196411,300Mario Plourdehttps://www.cascades.com

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.

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAS (CA$15.4) is trading below our estimate of fair value (CA$67.12)

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


Price To Earnings Ratio

PE vs Industry: CAS is good value based on its PE Ratio (8.8x) compared to the Canadian Packaging industry average (15.7x).

PE vs Market: CAS is good value based on its PE Ratio (8.8x) compared to the Canadian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: CAS is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: CAS is good value based on its PB Ratio (0.9x) compared to the CA Packaging industry average (2.1x).


Future Growth

How is Cascades forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAS's forecast earnings growth (17.8% per year) is above the savings rate (1.5%).

Earnings vs Market: CAS's earnings (17.8% per year) are forecast to grow faster than the Canadian market (12.2% per year).

High Growth Earnings: CAS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CAS's revenue (2.2% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: CAS's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Cascades performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAS has high quality earnings.

Growing Profit Margin: CAS's current net profit margins (3.6%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: CAS's earnings have declined by 17.2% per year over the past 5 years.

Accelerating Growth: CAS's earnings growth over the past year (227.3%) exceeds its 5-year average (-17.2% per year).

Earnings vs Industry: CAS earnings growth over the past year (227.3%) exceeded the Packaging industry 29.7%.


Return on Equity

High ROE: CAS's Return on Equity (10.3%) is considered low.


Financial Health

How is Cascades's financial position?


Financial Position Analysis

Short Term Liabilities: CAS's short term assets (CA$1.9B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: CAS's short term assets (CA$1.9B) do not cover its long term liabilities (CA$2.2B).


Debt to Equity History and Analysis

Debt Level: CAS's debt to equity ratio (87.5%) is considered high.

Reducing Debt: CAS's debt to equity ratio has reduced from 166.4% to 87.5% over the past 5 years.

Debt Coverage: CAS's debt is well covered by operating cash flow (22.6%).

Interest Coverage: CAS's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet


Dividend

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

3.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAS's dividend (3.12%) is higher than the bottom 25% of dividend payers in the Canadian market (1.64%).

High Dividend: CAS's dividend (3.12%) is low compared to the top 25% of dividend payers in the Canadian market (4.51%).


Stability and Growth of Payments

Stable Dividend: CAS's dividends per share have been stable in the past 10 years.

Growing Dividend: CAS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20%), CAS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAS's dividends in 3 years are forecast to be well covered by earnings (24.8% payout ratio).


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Mario Plourde (60 yo)

8.33yrs

Tenure

CA$5,547,105

Compensation

Mr. Mario Plourde has been the Chief Executive Officer and President of Cascades, Inc., since May 9, 2013. Mr. Plourde has been Director at Cascades Inc. since November 06, 2014. Mr. Plourde served as the...


CEO Compensation Analysis

Compensation vs Market: Mario's total compensation ($USD4.35M) is above average for companies of similar size in the Canadian market ($USD1.93M).

Compensation vs Earnings: Mario's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CAS's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: CAS's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CAS insiders have sold more shares than they have bought 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 7.9%.


Top Shareholders

Company Information

Cascades Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Cascades Inc.
  • Ticker: CAS
  • Exchange: TSX
  • Founded: 1964
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: CA$1.579b
  • Shares outstanding: 102.51m
  • Website: https://www.cascades.com

Number of Employees


Location

  • Cascades Inc.
  • 404 Marie-Victorin Boulevard
  • PO Box 30
  • Kingsey Falls
  • Quebec
  • J0A 1B0
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.