| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
CAS Overview
Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, Italy, and internationally.
Rewards
Risk Analysis
Cascades Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$15.40 |
| 52 Week High | CA$13.06 |
| 52 Week Low | CA$18.48 |
| Beta | 0.042 |
| 1 Month Change | 4.27% |
| 3 Month Change | 8.30% |
| 1 Year Change | 7.32% |
| 3 Year Change | 21.93% |
| 5 Year Change | 23.70% |
| Change since IPO | 200.20% |
Recent News & Updates
Shareholder Returns
| CAS | CA Packaging | CA Market | |
|---|---|---|---|
| 7D | -3.6% | -3.1% | -0.6% |
| 1Y | 7.3% | 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
| CAS volatility | |
|---|---|
| CAS Beta | 0.042 |
| Industry Beta | 0.82 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1964 | 11,300 | Mario Plourde | https://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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:02 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.