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Cascades

TSX:CAS
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAS
TSX
CA$950M
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, and internationally. The last earnings update was 38 days ago. More info.


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CAS Share Price and Events
7 Day Returns
10.3%
TSX:CAS
0.9%
CA Packaging
0.1%
CA Market
1 Year Returns
-17.6%
TSX:CAS
-2.6%
CA Packaging
-2.8%
CA Market
CAS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cascades (CAS) 10.3% 7.8% 23.5% -17.6% 5.1% 57.5%
CA Packaging 0.9% 6.1% 14.5% -2.6% 25.7% 148.4%
CA Market 0.1% -1.1% -0.4% -2.8% 11.5% 0.9%
1 Year Return vs Industry and Market
  • CAS underperformed the Packaging industry which returned -2.6% over the past year.
  • CAS underperformed the Market in Canada which returned -2.8% over the past year.
Price Volatility
CAS
Industry
5yr Volatility vs Market

Value

 Is Cascades undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cascades to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cascades.

TSX:CAS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CAS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Packaging Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 26.5%) (210.1%))
1.707
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.71
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.707 * 5.96%)
12.12%

Discounted Cash Flow Calculation for TSX:CAS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cascades is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:CAS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 12.12%)
2019 53.97 Analyst x3 48.13
2020 115.00 Analyst x2 91.48
2021 118.03 Est @ 2.63% 83.74
2022 120.89 Est @ 2.43% 76.50
2023 123.65 Est @ 2.28% 69.79
2024 126.35 Est @ 2.18% 63.60
2025 129.02 Est @ 2.11% 57.92
2026 131.68 Est @ 2.06% 52.73
2027 134.35 Est @ 2.03% 47.98
2028 137.04 Est @ 2% 43.65
Present value of next 10 years cash flows CA$635.52
TSX:CAS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$137.04 × (1 + 1.95%) ÷ (12.12% – 1.95%)
CA$1,373.24
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$1,373.24 ÷ (1 + 12.12%)10
CA$437.40
TSX:CAS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$635.52 + CA$437.40
CA$1,072.92
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$1,072.92 / 93.65
CA$11.46
TSX:CAS Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$11.46
Current discount Discount to share price of CA$10.14
= -1 x (CA$10.14 - CA$11.46) / CA$11.46
11.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cascades is available for.
Intrinsic value
11%
Share price is CA$10.14 vs Future cash flow value of CA$11.46
Current Discount Checks
For Cascades to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cascades's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Cascades's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cascades's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cascades's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CAS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$0.23
TSX:CAS Share Price ** TSX (2019-06-14) in CAD CA$10.14
Canada Packaging Industry PE Ratio Median Figure of 6 Publicly-Listed Packaging Companies 21.81x
Canada Market PE Ratio Median Figure of 546 Publicly-Listed Companies 15.02x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cascades.

TSX:CAS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CAS Share Price ÷ EPS (both in CAD)

= 10.14 ÷ 0.23

43.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cascades is overvalued based on earnings compared to the CA Packaging industry average.
  • Cascades is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Cascades's expected growth come at a high price?
Raw Data
TSX:CAS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
39.6%per year
North America Packaging Industry PEG Ratio Median Figure of 19 Publicly-Listed Packaging Companies 1.12x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

TSX:CAS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.49x ÷ 39.6%

1.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cascades is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cascades's assets?
Raw Data
TSX:CAS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$16.01
TSX:CAS Share Price * TSX (2019-06-14) in CAD CA$10.14
Canada Packaging Industry PB Ratio Median Figure of 6 Publicly-Listed Packaging Companies 1.7x
Canada Market PB Ratio Median Figure of 2,420 Publicly-Listed Companies 1.41x
TSX:CAS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CAS Share Price ÷ Book Value per Share (both in CAD)

= 10.14 ÷ 16.01

0.63x

* Primary Listing of Cascades.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cascades is good value based on assets compared to the CA Packaging industry average.
X
Value checks
We assess Cascades's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check)
  5. Cascades has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cascades expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
39.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cascades expected to grow at an attractive rate?
  • Cascades's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Cascades's earnings growth is expected to exceed the Canada market average.
  • Cascades's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CAS Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CAS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 39.6%
TSX:CAS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 1.7%
Canada Packaging Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
Canada Packaging Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CAS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CAS Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 5,021 420 88 5
2019-12-31 5,004 398 139 4
TSX:CAS Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,781 387 22
2018-12-31 4,649 373 59
2018-09-30 4,531 383 181
2018-06-30 4,462 267 178
2018-03-31 4,413 217 407
2017-12-31 4,321 173 507
2017-09-30 4,218 256 454
2017-06-30 4,136 328 441
2017-03-31 4,004 343 221
2016-12-31 4,001 372 135
2016-09-30 3,997 328 54
2016-06-30 4,002 324 56

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cascades's earnings are expected to grow significantly at over 20% yearly.
  • Cascades's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CAS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Cascades Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CAS Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.93 0.93 0.93 1.00
2019-12-31 1.46 1.46 1.46 1.00
TSX:CAS Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 0.23
2018-12-31 0.62
2018-09-30 1.91
2018-06-30 1.88
2018-03-31 4.29
2017-12-31 5.35
2017-09-30 4.80
2017-06-30 4.66
2017-03-31 2.34
2016-12-31 1.43
2016-09-30 0.57
2016-06-30 0.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cascades will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Cascades's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cascades has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cascades performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cascades's growth in the last year to its industry (Packaging).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cascades has delivered over 20% year on year earnings growth in the past 5 years.
  • Cascades's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cascades's 1-year earnings growth is negative, it can't be compared to the CA Packaging industry average.
Earnings and Revenue History
Cascades's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cascades Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CAS Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,781.00 22.00 437.00
2018-12-31 4,649.00 59.00 425.00
2018-09-30 4,531.00 181.00 408.00
2018-06-30 4,462.00 178.00 403.00
2018-03-31 4,413.00 407.00 398.00
2017-12-31 4,321.00 507.00 389.00
2017-09-30 4,218.00 454.00 395.00
2017-06-30 4,136.00 441.00 409.00
2017-03-31 4,004.00 221.00 410.00
2016-12-31 4,001.00 135.00 407.00
2016-09-30 3,997.00 54.00 399.00
2016-06-30 4,002.00 56.00 383.00
2016-03-31 3,954.00 46.00 372.00
2015-12-31 3,861.00 -66.00 366.00
2015-09-30 3,765.00 -10.00 353.00
2015-06-30 3,648.00 -51.00 345.00
2015-03-31 3,608.00 -99.00 341.00
2014-12-31 3,561.00 -64.00 340.00
2014-09-30 3,359.00 -24.00 334.00
2014-06-30 3,382.00 22.00 335.00
2014-03-31 3,371.00 47.00 341.00
2013-12-31 3,370.00 41.00 343.00
2013-09-30 3,597.00 -7.00 362.00
2013-06-30 3,571.00 -32.00 374.00
2013-03-31 3,616.00 -30.00 386.00
2012-12-31 3,645.00 -17.00 394.00
2012-09-30 3,654.00 16.00 391.00
2012-06-30 3,695.00 -4.00 387.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cascades has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cascades used its assets less efficiently than the CA Packaging industry average last year based on Return on Assets.
  • Cascades's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cascades's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cascades has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cascades's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cascades's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cascades is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cascades's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cascades's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cascades Company Filings, last reported 2 months ago.

TSX:CAS Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,676.00 1,995.00 117.00
2018-12-31 1,688.00 1,895.00 123.00
2018-09-30 1,742.00 1,712.00 139.00
2018-06-30 1,715.00 1,683.00 71.00
2018-03-31 1,685.00 1,671.00 112.00
2017-12-31 1,601.00 1,615.00 89.00
2017-09-30 1,573.00 1,661.00 192.00
2017-06-30 1,624.00 1,847.00 67.00
2017-03-31 1,254.00 1,685.00 68.00
2016-12-31 1,074.00 1,594.00 62.00
2016-09-30 1,041.00 1,662.00 37.00
2016-06-30 1,017.00 1,693.00 29.00
2016-03-31 1,000.00 1,752.00 68.00
2015-12-31 963.00 1,782.00 60.00
2015-09-30 1,047.00 1,775.00 34.00
2015-06-30 1,011.00 1,717.00 24.00
2015-03-31 975.00 1,719.00 28.00
2014-12-31 1,003.00 1,642.00 29.00
2014-09-30 1,074.00 1,670.00 32.00
2014-06-30 1,093.00 1,743.00 100.00
2014-03-31 1,192.00 1,735.00 30.00
2013-12-31 1,194.00 1,636.00 23.00
2013-09-30 1,161.00 1,626.00 27.00
2013-06-30 1,120.00 1,682.00 9.00
2013-03-31 1,081.00 1,589.00 11.00
2012-12-31 1,094.00 1,560.00 35.00
2012-09-30 1,111.00 1,558.00 44.00
2012-06-30 1,144.00 1,614.00 54.00
  • Cascades's level of debt (117.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (145.7% vs 117.1% today).
  • Debt is not well covered by operating cash flow (19.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Cascades's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cascades has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.58%
Current annual income from Cascades dividends. Estimated to be 1.58% next year.
If you bought CA$2,000 of Cascades shares you are expected to receive CA$32 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cascades's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.12%).
  • Cascades's dividend is below the markets top 25% of dividend payers in Canada (5.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CAS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
North America Packaging Industry Average Dividend Yield Market Cap Weighted Average of 17 Stocks 2.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CAS Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.16 2.00
2019-12-31 0.16 2.00
TSX:CAS Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.160 1.719
2019-03-28 0.160 1.937
2019-02-28 0.160 1.909
2018-11-08 0.160 1.496
2018-08-09 0.160 1.328
2018-03-01 0.160 1.247
2017-11-09 0.160 1.135
2017-08-10 0.160 1.054
2017-05-12 0.160 0.972
2017-05-10 0.160 1.022
2017-03-30 0.160 1.042
2017-03-02 0.160 1.216
2016-11-14 0.160 1.311
2016-11-11 0.160 1.391
2016-05-05 0.160 1.537
2016-03-11 0.160 1.849
2015-11-11 0.160 1.449
2015-05-07 0.160 1.978
2015-03-13 0.160 2.245
2014-11-06 0.160 2.218
2014-08-12 0.160 2.606
2014-05-08 0.160 2.493
2014-03-13 0.160 2.312
2013-11-07 0.160 2.404
2013-08-08 0.160 2.775
2013-05-09 0.160 2.905
2013-02-21 0.160 3.563
2012-11-08 0.160 3.728
2012-08-09 0.160 3.262
2012-05-10 0.160 3.561
2012-02-23 0.160 3.861
2011-11-10 0.160 3.624
2011-08-10 0.160 3.522
2011-05-12 0.160 2.589
2011-02-24 0.160 2.243
2010-11-12 0.160 2.468
2010-08-11 0.160 2.449
2010-05-13 0.160 2.426
2010-02-26 0.160 2.005
2009-11-05 0.160 1.845
2009-08-11 0.160 2.162

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of Cascades's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Cascades's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cascades afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cascades has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mario Plourde
COMPENSATION CA$3,775,031
AGE 57
TENURE AS CEO 6.1 years
CEO Bio

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 Chief Operating Officer of Cascades, Inc. of Cascades Boxboard Group, Inc. from February 23, 2011 to May 9, 2013. He serves as the President of Cascade Diamond, Inc. He works in close collaboration with Cascades's President in the recovery, packaging and tissue paper sectors, in the pursuit of operational and business objectives. Since 2000, he served as the President of scades Inc. He served as the President of Specialty Products Group at Cascades Inc. until February 23, 2011 and served as its Chief Operating Officer, Specialty Products Group from 1997 to February 2011. Mr. Plourde served as the President and Chief Executive Officer of Cascades Fine Paper Group Inc. of Cascades Inc., until February 23, 2011. In 1985, he joined Cascades as Controller. He served as Plant Manager of Plastiques Cascades Inc. since 1986 and General Manager of Groupe Plastiques and Papiers Kingsey Falls division of Cascades Inc. and Cascades Joliette Inc. since 1989. Since 1997, he served as Vice President of Specialty Products Group of Cascades Inc. He serves as a Director of ABZAC Canada Inc. He has been a Non-Independent Director of Cascades, Inc. since November 6, 2014. Mr. Plourde has been an Independent Director of Transcontinental Inc. since March 17, 2015. He is a Member of several associations, including the Association canadienne des pâtes et papiers and the Société de l'Industrie et du Plastique in Québec. He sits on the Board of Directors of the Fondation Centre de Cancérologie Charles-Bruneau. Mr. Plourde is the Recipient of two prestigious awards; Artista 1990, honoured as a Junior Executive in a large company and the Lauréats 2001 award from the Univerisité de Quebec à Montreal (UQAM). He was awarded in 2012, the Prix bâtisseur - Tour CIBC Charles Bruneau. He completed his primary studies in Danville and Asbestos. In 1981, he enrolled at Victoriaville CEGEP in the Business Administration program with a major in Finance. Mr. Plourde has a Bachelor's degree of Administration with a major in Finance from Université du Québec in Montréal.

CEO Compensation
  • Mario's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Mario's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Cascades management team in years:

8.1
Average Tenure
66
Average Age
  • The average tenure for the Cascades management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Alain Lemaire

TITLE
Co-Founder & Executive Chairman
COMPENSATION
CA$1M
AGE
71

Mario Plourde

TITLE
President
COMPENSATION
CA$4M
AGE
57
TENURE
6.1 yrs

Allan Hogg

TITLE
VP & CFO
COMPENSATION
CA$1M
TENURE
9.1 yrs

Luc Langevin

TITLE
President & COO of the Cascades Specialty Products Group
COMPENSATION
CA$1M
TENURE
8.1 yrs

Charles Malo

TITLE
President & COO of Containerboard Packaging Group
COMPENSATION
CA$1M
AGE
52

Laurent Lemaire

TITLE
Co-Founder
AGE
79

Bernard Lemaire

TITLE
Co-Founder
COMPENSATION
CA$512K
AGE
81

Dominic Doré

TITLE
Chief Supply Chain & Information Officer
TENURE
9.4 yrs

Jennifer Aitken

TITLE
Director of Investor Relations

Robert Hall

TITLE
Chief Legal Officer & Corporate Secretary
COMPENSATION
CA$1M
AGE
61
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Cascades board of directors in years:

6.1
Average Tenure
58.5
Average Age
  • The tenure for the Cascades board of directors is about average.
Board of Directors

Mario Plourde

TITLE
President
COMPENSATION
CA$4M
AGE
57
TENURE
4.6 yrs

Sylvie Lemaire

TITLE
Non-Independent Director
COMPENSATION
CA$124K
AGE
55
TENURE
20.4 yrs

Alain Lemaire

TITLE
Co-Founder & Executive Chairman
COMPENSATION
CA$1M
AGE
71
TENURE
6.1 yrs

Georges Kobrynsky

TITLE
Lead Director
COMPENSATION
CA$158K
AGE
71

Laurence Sellyn

TITLE
Independent Director
COMPENSATION
CA$126K
AGE
68
TENURE
6.1 yrs

Louis Garneau

TITLE
Independent Director
COMPENSATION
CA$99K
AGE
59
TENURE
23.4 yrs

Élise Pelletier

TITLE
Independent Director
COMPENSATION
CA$117K
AGE
57
TENURE
8.4 yrs

Sylvie Vachon

TITLE
Independent Director
COMPENSATION
CA$120K
AGE
58
TENURE
6.1 yrs

Martin Couture

TITLE
Independent Director
COMPENSATION
CA$120K
AGE
49
TENURE
2.9 yrs

Michelle Cormier

TITLE
Independent Director
COMPENSATION
CA$120K
AGE
61
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
15. Mar 19 Buy Sylvie Vachon Individual 15. Mar 19 15. Mar 19 2,000 CA$8.23 CA$16,467
08. Mar 19 Buy Alain Lemaire Individual 07. Mar 19 07. Mar 19 10,000 CA$8.24 CA$82,160
08. Mar 19 Buy Laurence Sellyn Individual 07. Mar 19 07. Mar 19 5,000 CA$8.09 CA$40,454
07. Mar 19 Buy Alain Lemaire Individual 06. Mar 19 06. Mar 19 10,000 CA$8.34 CA$83,400
04. Mar 19 Buy Alain Lemaire Individual 01. Mar 19 01. Mar 19 20,000 CA$8.75 CA$174,220
01. Mar 19 Buy Michelle Cormier Individual 01. Mar 19 01. Mar 19 2,000 CA$8.78 CA$17,552
19. Dec 18 Buy Laurence Sellyn Individual 19. Dec 18 19. Dec 18 2,000 CA$11.63 CA$23,254
15. Nov 18 Buy Martin Couture Individual 14. Nov 18 14. Nov 18 9,090 CA$10.00 CA$90,925
07. Dec 18 Buy Laurent Lemaire Individual 06. Dec 18 06. Dec 18 3,010 CA$12.34 CA$36,984
20. Nov 18 Buy Laurent Lemaire Individual 12. Nov 18 16. Nov 18 17,151 CA$11.25 CA$191,866
19. Nov 18 Buy Laurent Lemaire Individual 14. Nov 18 16. Nov 18 29,486 CA$11.06 CA$325,219
15. Nov 18 Buy Laurent Lemaire Individual 12. Nov 18 14. Nov 18 62,560 CA$10.83 CA$669,372
09. Nov 18 Buy Laurent Lemaire Individual 09. Nov 18 09. Nov 18 73 CA$10.90 CA$796
14. Sep 18 Buy Laurent Lemaire Individual 11. Sep 18 12. Sep 18 2,615 CA$13.06 CA$33,883
13. Aug 18 Sell Sylvie Lemaire Individual 10. Aug 18 10. Aug 18 -50,000 CA$13.44 CA$-661,681
21. Jun 18 Buy Allan Hogg Individual 19. Jun 18 19. Jun 18 40,000 CA$12.20 CA$488,000
21. Jun 18 Buy Robert Hall Individual 19. Jun 18 19. Jun 18 60,000 CA$12.20 CA$732,000
21. Jun 18 Buy Mario Plourde Individual 19. Jun 18 19. Jun 18 50,000 CA$12.20 CA$610,000
X
Management checks
We assess Cascades's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cascades has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholders Own Cascades Inc. (TSE:CAS)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Cascades is not a large company by global standards. … institutional investors have bought into the company.

Simply Wall St -

Are Cascades Inc.'s (TSE:CAS) Interest Costs Too High?

Help shape the future of investing tools and receive a $20 prize! … (TSE:CAS) with its market cap of CA$950m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Does Cascades Inc.'s (TSE:CAS) P/E Ratio Signal A Buying Opportunity?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … That corresponds to an earnings yield of approximately 19%. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Why You Should Care About Cascades Inc.’s (TSE:CAS) Low Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

What To Know Before Buying Cascades Inc. (TSE:CAS) For Its Dividend

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … (TSE:CAS) has been paying a dividend to shareholders. … Here's how I find good dividend stocks

Simply Wall St -

Calculating The Fair Value Of Cascades Inc. (TSE:CAS)

by estimating the company's future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Do Directors Own Cascades Inc (TSE:CAS) Shares?

So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Our analysis of the ownership of the company, below, shows that. … We can zoom in on the different ownership groups, to learn more about CAS

Simply Wall St -

What Should Investors Know About Cascades Inc's (TSE:CAS) Return On Capital?

and want to better understand how you can grow your money by investing in Cascades Inc (TSE:CAS). … Thus, to understand how your money can grow by investing in Cascades, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Calculating Return On Capital Employed for CAS

Simply Wall St -

Is Cascades Inc's (TSE:CAS) PE Ratio A Signal To Buy For Investors?

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … While CAS might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

Should You Be Concerned About Cascades Inc's (TSE:CAS) Shareholders?

In this article, I will take a quick look at Cascades Inc’s (TSE:CAS) recent ownership structure – an unconventional investing subject, but an important one. … The impact of a company's ownership structure affects both its short- and long-term performance. … If an activist institution invests the same amount of capital in a stock as a passive long-term pension fund, the implications are potentially different for key corporate financing decisions such as the use of excess cash or the source of financing.

Simply Wall St -

Company Info

Description

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.

Details
Name: Cascades Inc.
CAS
Exchange: TSX
Founded: 1964
CA$949,560,472
93,645,017
Website: http://www.cascades.com
Address: Cascades Inc.
404 Marie-Victorin Boulevard,
Kingsey Falls,
Quebec, J0A 1B0,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CAS Common Shares The Toronto Stock Exchange CA CAD 17. Oct 1984
OTCPK CADN.F Common Shares Pink Sheets LLC US USD 17. Oct 1984
DB CS6 Common Shares Deutsche Boerse AG DE EUR 17. Oct 1984
Number of employees
Current staff
Staff numbers
11,700
Cascades employees.
Industry
Paper Packaging
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 00:30
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.