TSXV:CAF

Stock Analysis Report

Canaf Investments

Executive Summary

Canaf Investments Inc., together with its subsidiaries, processes anthracite coal into de-volatized (calcined) anthracite in South Africa.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Canaf Investments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CAF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

CAF

6.7%

CA Metals and Mining

11.7%

CA Market


1 Year Return

-56.3%

CAF

-10.8%

CA Metals and Mining

-26.0%

CA Market

Return vs Industry: CAF underperformed the Canadian Metals and Mining industry which returned -10.8% over the past year.

Return vs Market: CAF underperformed the Canadian Market which returned -26% over the past year.


Shareholder returns

CAFIndustryMarket
7 Day0%6.7%11.7%
30 Day-36.4%-8.8%-21.9%
90 Day-36.4%-17.2%-26.6%
1 Year-56.3%-56.3%-10.2%-10.8%-23.6%-26.0%
3 Year-50.0%-50.0%-17.5%-19.0%-15.8%-23.6%
5 Year-56.3%-56.3%5.1%2.1%-3.5%-17.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAF (CA$0.04) is trading above our estimate of fair value (CA$0.02)

Significantly Below Fair Value: CAF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAF is good value based on its PE Ratio (3.2x) compared to the Metals and Mining industry average (12.1x).

PE vs Market: CAF is good value based on its PE Ratio (3.2x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CAF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CAF is good value based on its PB Ratio (0.3x) compared to the CA Metals and Mining industry average (1.1x).


Next Steps

Future Growth

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

11.5%

Forecasted Materials 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 Canaf Investments 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 Canaf Investments performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAF has high quality earnings.

Growing Profit Margin: CAF's current net profit margins (3.1%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: CAF's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: CAF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CAF had negative earnings growth (-30%) over the past year, making it difficult to compare to the Metals and Mining industry average (16.5%).


Return on Equity

High ROE: CAF's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is Canaf Investments's financial position?


Financial Position Analysis

Short Term Liabilities: CAF's short term assets ($3.1M) exceed its short term liabilities ($822.0K).

Long Term Liabilities: CAF has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: CAF is debt free.

Reducing Debt: CAF has no debt compared to 5 years ago when its debt to equity ratio was 11.3%.

Debt Coverage: CAF has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CAF has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CAF has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CAF's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CAF'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 CAF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CAF'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 CAF's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

5.2yrs

Average board tenure


CEO

Christopher Way

8.75s

Tenure

US$129,354

Compensation

Mr. Christopher Robert Way has been the President of Canaf Investments Inc. (formerly known as Canaf Group Inc.) since June 14, 2011 and its Chief Executive Officer since June 2011. Mr. Way served as a Con ...


CEO Compensation Analysis

Compensation vs Market: Christopher's total compensation ($USD129.35K) is about average for companies of similar size in the Canadian market ($USD159.52K).

Compensation vs Earnings: Christopher's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Christopher Way
President8.75yrsUS$129.35k16.53% $274.5k
Rebecca Williams
CFO & Director1.67yrsUS$42.65kno data
David Way
Chairman of the Board8.75yrsUS$57.57k6.22% $103.2k
Peter Wassenaar
Non Executive Director0.67yrno datano data

5.2yrs

Average Tenure

Experienced Board: CAF's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Canaf Investments Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canaf Investments Inc.
  • Ticker: CAF
  • Exchange: TSXV
  • Founded: 1996
  • Industry: Steel
  • Sector: Materials
  • Market Cap: CA$1.660m
  • Shares outstanding: 47.43m
  • Website: https://www.canafinvestments.com

Location

  • Canaf Investments Inc.
  • 1100-1111 Melville Street
  • Vancouver
  • British Columbia
  • V6E 3V6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAFTSXV (TSX Venture Exchange)YesCommon SharesCACADSep 1997
3CFDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1997
CAFZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1997

Biography

Canaf Investments Inc., together with its subsidiaries, processes anthracite coal into de-volatized (calcined) anthracite in South Africa. The company offers calcined anthracite to steel and ferromanganese manufacturers as a substitute product for coke. It also acquires, redevelops, and rents real estate properties primarily targeting the student and affordable housing market. Canaf Investments Inc. operates in Canada, South Africa, and the United Kingdom. The company was formerly known as Canaf Group Inc. and changed its name to Canaf Investments Inc. in July 2018. Canaf Investments Inc. was founded in 1996 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:26
End of Day Share Price2020/03/26 00:00
Earnings2020/01/31
Annual Earnings2019/10/31


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.