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

Fundamentals

Flawless balance sheet and undervalued.

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

22.2%

CAF

-1.7%

CA Metals and Mining

1.1%

CA Market


1 Year Return

-35.3%

CAF

24.7%

CA Metals and Mining

6.9%

CA Market

Return vs Industry: CAF underperformed the Canadian Metals and Mining industry which returned 24.7% over the past year.

Return vs Market: CAF underperformed the Canadian Market which returned 6.9% over the past year.


Shareholder returns

CAFIndustryMarket
7 Day22.2%-1.7%1.1%
30 Day-8.3%0.3%2.6%
90 Day0%-4.8%4.6%
1 Year-35.3%-35.3%25.8%24.7%10.4%6.9%
3 Year10.0%10.0%-4.7%-6.5%18.6%8.0%
5 Year-21.4%-21.4%18.8%14.8%27.1%8.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CAF (CA$0.06) is trading below our estimate of fair value (CA$0.4)

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


Price To Earnings Ratio

PE vs Industry: CAF is good value based on its PE Ratio (4.1x) compared to the Metals and Mining industry average (14.5x).

PE vs Market: CAF is good value based on its PE Ratio (4.1x) compared to the Canadian market (14.4x).


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 (0.5x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

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

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAF's earnings are forecast to decline over the next 3 years (-4.4% per year).

Earnings vs Market: CAF's earnings are forecast to decline over the next 3 years (-4.4% per year).

High Growth Earnings: CAF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if CAF's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if CAF's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Canaf Investments performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAF has high quality earnings.

Growing Profit Margin: CAF's current net profit margins (4.7%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: CAF's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: CAF's earnings growth over the past year (4.4%) is below its 5-year average (18% per year).

Earnings vs Industry: CAF earnings growth over the past year (4.4%) exceeded the Metals and Mining industry -15.5%.


Return on Equity

High ROE: CAF's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Canaf Investments's financial position?


Financial Position Analysis

Short Term Liabilities: CAF's short term assets ($3.7M) exceeds its short term liabilities ($1.7M)

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 5.4%.

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

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

4.9yrs

Average board tenure


CEO

Christopher Way 0

8.4yrs

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 ($USD129.35K) is about average for companies of similar size in the Canadian market ($USD136.04K).

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


Board Age and Tenure

4.9yrs

Average Tenure

Experienced Board: CAF's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: CAF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$33,20824 Oct 19
Christopher Way
EntityIndividual
Role
Chief Executive Officer
President
Shares830,184
Max PriceUS$0.04
BuyUS$33,80029 Jul 19
Christopher Way
EntityIndividual
Role
Chief Executive Officer
President
Shares845,007
Max PriceUS$0.04
BuyUS$3,85022 Jul 19
Christopher Way
EntityIndividual
Role
Chief Executive Officer
President
Shares70,000
Max PriceUS$0.055
BuyUS$7,65018 Nov 18
Christopher Way
EntityIndividual
Role
Chief Executive Officer
President
Shares90,000
Max PriceUS$0.085

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Rick Skeith (66yo)

    Corporate Secretary

    • Tenure: 0yrs
  • Christopher Way

    President

    • Tenure: 8.4yrs
    • Compensation: US$129.35k
  • Rebecca Williams

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: US$42.65k

Board Members

  • David Way

    Chairman of the Board

    • Tenure: 8.4yrs
    • Compensation: US$57.57k
  • Christopher Way

    President

    • Tenure: 8.4yrs
    • Compensation: US$129.35k
  • Rebecca Williams

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: US$42.65k
  • Peter Wassenaar

    Director

    • Tenure: 0.3yrs

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$2.608m
  • 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. It offers calcined anthracite to steel and ferromanganese manufact ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 00:02
End of Day Share Price2019/11/11 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.