Executive Summary
Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, and internationally.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -16.4% per year for the next 3 years
Snowflake Analysis
Established dividend payer and fair value.
Similar Companies
Share Price & News
How has Cascades's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CAS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-7.0%
CAS
-6.1%
CA Packaging
-6.2%
CA Market
1 Year Return
25.4%
CAS
-12.0%
CA Packaging
-2.0%
CA Market
Return vs Industry: CAS exceeded the Canadian Packaging industry which returned -12% over the past year.
Return vs Market: CAS exceeded the Canadian Market which returned -2% over the past year.
Shareholder returns
| CAS | Industry | Market | |
|---|---|---|---|
| 7 Day | -7.0% | -6.1% | -6.2% |
| 30 Day | -4.7% | -16.8% | -5.0% |
| 90 Day | -12.3% | -16.6% | -2.8% |
| 1 Year | 28.2%25.4% | -10.9%-12.0% | 1.1%-2.0% |
| 3 Year | -14.9%-18.8% | -18.8%-21.4% | 10.7%0.6% |
| 5 Year | 49.6%37.8% | 44.7%35.6% | 27.6%8.9% |
Price Volatility Vs. Market
How volatile is Cascades's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Should You Be Tempted To Sell Cascades Inc. (TSE:CAS) Because Of Its P/E Ratio?2 weeks ago | Simply Wall St
We Think Cascades (TSE:CAS) Is Taking Some Risk With Its Debt4 weeks ago | Simply Wall St
Is Cascades Inc.'s (TSE:CAS) CEO Being Overpaid?Valuation
Is Cascades undervalued compared to its fair value and its price relative to the market?
41.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CAS (CA$10.91) is trading below our estimate of fair value (CA$18.54)
Significantly Below Fair Value: CAS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CAS is poor value based on its PE Ratio (17.1x) compared to the Packaging industry average (16.9x).
PE vs Market: CAS is poor value based on its PE Ratio (17.1x) compared to the Canadian market (14.8x).
Price to Earnings Growth Ratio
PEG Ratio: CAS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CAS is good value based on its PB Ratio (0.7x) compared to the CA Packaging industry average (1.6x).
Next Steps
Future Growth
How is Cascades forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-16.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CAS's earnings are forecast to decline over the next 3 years (-16.4% per year).
Earnings vs Market: CAS's earnings are forecast to decline over the next 3 years (-16.4% per year).
High Growth Earnings: CAS's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CAS's revenue (2.8% per year) is forecast to grow slower than the Canadian market (4.7% per year).
High Growth Revenue: CAS's revenue (2.8% 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
Next Steps
Past Performance
How has Cascades performed over the past 5 years?
33.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CAS has high quality earnings.
Growing Profit Margin: CAS's current net profit margins (1.2%) are lower than last year (4%).
Past Earnings Growth Analysis
Earnings Trend: CAS has become profitable over the past 5 years, growing earnings by 33.4% per year.
Accelerating Growth: CAS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CAS had negative earnings growth (-66.9%) over the past year, making it difficult to compare to the Packaging industry average (-17.9%).
Return on Equity
High ROE: CAS's Return on Equity (5.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Cascades's financial position?
Financial Position Analysis
Short Term Liabilities: CAS's short term assets (CA$1.5B) exceed its short term liabilities (CA$1.0B).
Long Term Liabilities: CAS's short term assets (CA$1.5B) do not cover its long term liabilities (CA$2.6B).
Debt to Equity History and Analysis
Debt Level: CAS's debt to equity ratio (115.1%) is considered high.
Reducing Debt: CAS's debt to equity ratio has reduced from 155.6% to 115.1% over the past 5 years.
Debt Coverage: CAS's debt is not well covered by operating cash flow (18.9%).
Interest Coverage: CAS's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Inventory Level: CAS has a high level of physical assets or inventory.
Debt Coverage by Assets: CAS's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Cascades's current dividend yield, its reliability and sustainability?
2.93%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CAS's dividend (2.93%) is higher than the bottom 25% of dividend payers in the Canadian market (2.07%).
High Dividend: CAS's dividend (2.93%) is low compared to the top 25% of dividend payers in the Canadian market (5.91%).
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 reasonably low payout ratio (31.3%), 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 (33.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.1yrs
Average management tenure
CEO
Mario Plourde (58yo)
6.8yrs
Tenure
CA$3,775,031
Compensation
Mr. Mario Plourde has been the Chief Executive Officer and President of Cascades, Inc., since May 9, 2013. Mr. Plourde has been Director at Cascades Inc. since November 06, 2014. Mr. Plourde served as the ...
CEO Compensation Analysis
Compensation vs Market: Mario's total compensation ($USD2.83M) is above average for companies of similar size in the Canadian market ($USD1.69M).
Compensation vs Earnings: Mario's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Executive Chairman | 6.8yrs | CA$1.24m | 5.55% CA$57.0m | |
| President | 6.8yrs | CA$3.78m | 0.22% CA$2.3m | |
| VP & CFO | 9.8yrs | CA$1.27m | 0.094% CA$963.8k | |
| President & COO of the Cascades Specialty Products Group | 8.8yrs | CA$1.21m | 0.048% CA$495.7k | |
| President & COO of Containerboard Packaging Group | 0yrs | CA$1.16m | 0.088% CA$901.4k | |
| Chief Supply Chain & Information Officer | 10.1yrs | no data | 0.019% CA$199.7k | |
| Director of Investor Relations | 0yrs | no data | no data | |
| Chief of Strategy | 4.1yrs | CA$1.02m | 0.23% CA$2.3m | |
| Vice-President of Communications | 7.1yrs | no data | 0.0081% CA$83.0k | |
| Chief Human Resources Officer | 4.1yrs | no data | 0.027% CA$274.3k |
7.1yrs
Average Tenure
58yo
Average Age
Experienced Management: CAS's management team is seasoned and experienced (7.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder & Executive Chairman | 6.8yrs | CA$1.24m | 5.55% CA$57.0m | |
| President | 6.8yrs | CA$3.78m | 0.22% CA$2.3m | |
| Lead Director | 0yrs | CA$157.50k | no data | |
| Independent Director | 3.6yrs | CA$119.50k | 0.0095% CA$98.2k | |
| Independent Director | 6.8yrs | CA$126.00k | 0.037% CA$381.9k | |
| Independent Director | 24.1yrs | CA$98.50k | 0.0053% CA$54.7k | |
| Non-Independent Director | 21.1yrs | CA$123.50k | 0.13% CA$1.4m | |
| Independent Director | 6.8yrs | CA$119.50k | 0.0042% CA$43.6k | |
| Independent Director | 3.6yrs | CA$119.50k | 0.022% CA$231.1k | |
| Independent Director | 9.1yrs | CA$117.00k | 0.0021% CA$21.8k |
6.8yrs
Average Tenure
59.5yo
Average Age
Experienced Board: CAS's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CAS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Cascades Inc.'s company bio, 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$1.028b
- Shares outstanding: 94.25m
- Website: https://www.cascades.com
Number of Employees
Location
- Cascades Inc.
- 404 Marie-Victorin Boulevard
- Kingsey Falls
- Quebec
- J0A 1B0
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CAS | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Oct 1984 |
| CS6 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Oct 1984 |
| CADN.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Oct 1984 |
Biography
Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, and internationally. The company operates through four segments: Containerboard, Boxboard Europe, Specialty Products, and Tissue Papers. It offers containerboards, and coated recycled and virgin boxboards, as well as converts corrugated products. The company also provides roll headers; wrappers; packaging reams; laminated paperboards for food packaging and furniture backing industries; specialty containers; honeycomb paperboards; uncoated paperboard partitions for the beer, wine, and spirits industry; uncoated recycled paperboards for use in packaging converters and industrial users of headers and wrappers for the paper industry, as well as partitions used as protective packaging; and backing for vinyl flooring. In addition, it provides egg filler flats for egg processors and four-cup carriers for the quick-service restaurant industry; polystyrene foam trays under the EVOK brand for processors and retailers in the food industry, as well as plate and bowls; rigid plastic packaging products under the Ultratill and Poultray brands for food processors and retailers; and flexible films for frozen foods, bakery, and ice industries. Further, the company offers services to recover and process discarded materials for the municipal, industrial, commercial, and institutional sectors. Additionally, it offers bathroom and facial tissues, paper towels, paper hand towels and napkins, parent rolls, industrial wipes, and other products under the Decor, North River, Cascades, Cascades Moka, Tandem, Tandem+, Cascades Elite, Wiping Solutions, Cascades PRO Signature, Cascades PRO Perform, Cascades PRO Select, Cascades Pro Tandem, Cascades PRO Tuff-Job, Cascades Fluff, Cascades Tuff, April Soft, and Nature’s Choice labels. The company sells its products through sales force and external representatives. Cascades Inc. was founded in 1964 and is headquartered in Kingsey Falls, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/28 00:15 |
| End of Day Share Price | 2020/02/27 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.