TSXV:CAG

Stock Analysis Report

Composite Alliance Group

Executive Summary

Composite Alliance Group Inc. engages in designing, manufacturing, and selling machines and processes to customers for fabricating composite components.

Rewards

Trading at 88% below its fair value

Revenue grew by 96.4% over the past year

Risk Analysis

Does not have a meaningful market cap (CA$10M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Composite Alliance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CAG

-2.8%

CA Electronic

-0.9%

CA Market


1 Year Return

n/a

CAG

-6.5%

CA Electronic

8.3%

CA Market

Return vs Industry: Insufficient data to determine how CAG performed against the Canadian Electronic industry.

Return vs Market: Insufficient data to determine how CAG performed against the Canadian Market.


Shareholder returns

CAGIndustryMarket
7 Day0%-2.8%-0.9%
30 Day-52.6%3.8%1.1%
90 Dayn/a10.0%5.3%
1 Yearn/a-3.6%-6.5%11.7%8.3%
3 Yearn/a-13.4%-18.0%17.3%6.7%
5 Yearn/a4.0%-7.4%33.3%13.9%

Price Volatility Vs. Market

How volatile is Composite Alliance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Composite Alliance Group 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: CAG (CA$0.15) is trading below our estimate of fair value (CA$1.25)

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


Price To Earnings Ratio

PE vs Industry: CAG is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: CAG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CAG is overvalued based on its PB Ratio (133.6x) compared to the CA Electronic industry average (2.4x).


Next Steps

Future Growth

How is Composite Alliance Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.6%

Forecasted Tech 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 Composite Alliance Group 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 Composite Alliance Group performed over the past 5 years?

-11.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: CAG is currently unprofitable.

Growing Profit Margin: CAG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if CAG's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare CAG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CAG is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (22.1%).


Return on Equity

High ROE: CAG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Composite Alliance Group's financial position?


Financial Position Analysis

Short Term Liabilities: CAG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CAG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CAG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CAG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: CAG has a low level of unsold assets or inventory.

Debt Coverage by Assets: CAG has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable CAG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CAG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 115.2% per year.


Next Steps

Dividend

What is Composite Alliance Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if CAG'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 CAG'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 Composite Alliance Group's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Jim Hsieh (60yo)

0.8yrs

Tenure

0

Mr. Yu-Chung Hsieh, also known as Jim, serves as President, Chief Executive Officer and Director of CanAsia Financial Inc. (now Composite Alliance Group Inc.) since February 2019. Mr. Hseih served as Direc ...


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: CAG's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

58yo

Average Age

Experienced Board: CAG's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.8%.


Management Team

  • V. E. Burstall (58yo)

    Corporate Secretary & Director

    • Tenure: 0.8yrs
  • Debbie Chien

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Jim Hsieh (60yo)

    President

    • Tenure: 0.8yrs

Board Members

  • V. E. Burstall (58yo)

    Corporate Secretary & Director

    • Tenure: 0.8yrs
  • Serge Luquain

    Director

    • Tenure: 0.8yrs
  • Ron Love

    Director

    • Tenure: 0.8yrs
  • Sicheng Zhang (54yo)

    Director

    • Tenure: 0.8yrs
  • Jim Hsieh (60yo)

    President

    • Tenure: 0.8yrs
  • Bill Cui

    Director

    • Tenure: 0.8yrs

Company Information

Composite Alliance Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Composite Alliance Group Inc.
  • Ticker: CAG
  • Exchange: TSXV
  • Founded:
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CA$9.921m
  • Shares outstanding: 110.23m
  • Website: https://www.tme-composites.com

Number of Employees


Location

  • Composite Alliance Group Inc.
  • 333 – 7 Avenue S.W.
  • Suite 1600
  • Calgary
  • Alberta
  • T2P 2Z1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAGTSXV (TSX Venture Exchange)YesCommon SharesCACADJan 2019

Biography

Composite Alliance Group Inc. engages in designing, manufacturing, and selling machines and processes to customers for fabricating composite components. The company’s services engineering, automation and robotization, manufacturing optimization, prototyping, commission, and after-sales support. It also provides molding presses, molds, lay-up equipment, and tool products. The company is headquartered in Calgary, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/29 01:16
End of Day Share Price2020/01/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.