OTCPK:CAGU

Stock Analysis Report

Executive Summary

The Castle Group, Inc., through its subsidiaries, operates in the hotel and resort management industry in the state of Hawaii, New Zealand, and the Commonwealth of Saipan under the Castle Resorts and Hotels trade name.


Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

CAGU

1.0%

US Hospitality

0.9%

US Market


1 Year Return

0%

CAGU

7.3%

US Hospitality

20.0%

US Market

Return vs Industry: CAGU underperformed the US Hospitality industry which returned 8.1% over the past year.

Return vs Market: CAGU underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

CAGUIndustryMarket
7 Day0%1.0%0.9%
30 Day20.2%-4.9%1.4%
90 Day-13.5%6.6%8.8%
1 Year0%0%10.0%7.3%22.5%20.0%
3 Year6.7%6.7%35.2%26.2%49.9%40.3%
5 Year60.0%60.0%47.6%32.1%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Castle Group undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Castle Group is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Castle Group has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Examine Castle Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Castle Group regulatory filings here.
  • Explore potentially undervalued companies in the Consumer Services industry.

Future Growth

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

16.8%

Forecasted Consumer Services 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 Castle 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 Castle Group performed over the past 5 years?

14.0%

Historical Consumer Services annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if CAGU has high quality earnings.

Growing Profit Margin: Insufficient data to determine if CAGU's profit margins have improved over the past year.


Past Earnings Growth Analysis

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

Accelerating Growth: Insufficient data to compare CAGU's past year earnings growth to its 5-year average.

Earnings vs Industry: Insufficient data to determine if CAGU's earnings growth over the past year exceeded the Hospitality industry average.


Return on Equity

High ROE: CAGU has a negative Return on Equity (0%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Castle Group's financial position?


Financial Position Analysis

Short Term Liabilities: Insufficient data to determine if CAGU's short term assets cover its short term liabilities.

Long Term Liabilities: CAGU has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: CAGU is debt free.

Reducing Debt: CAGU has no debt compared to 5 years ago when its debt to equity ratio was 7148%.


Balance Sheet

Inventory Level: Insufficient data to determine if CAGU has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CAGU's debt is 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: CAGU has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if CAGU has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Alan Mattson (62yo)

1.7yrs

Tenure

US$222,016

Compensation

Mr. Alan R. Mattson has been Chief Executive Officer of Castle Resorts & Hotels, Inc. since August 2018. Mr. Mattson has been the Chief Executive Officer of Castle Group, Inc. since June 28, 2018 and serve ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Insufficient data to compare Alan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Alan Mattson
CEO & Director1.7yrsUS$222.02kno data
Michael Nitta
Chief Financial Officer1.7yrsUS$115.62k1.8% $58.0k
Jerry Ruthruff
Secretary & Director6.3yrsUS$52.50kno data

1.7yrs

Average Tenure

62yo

Average Age

Experienced Management: CAGU's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alan Mattson
CEO & Director1.7yrsUS$222.02kno data
Jerry Ruthruff
Secretary & Director6.3yrsUS$52.50kno data
Motoko Takahashi
Independent Director26.9yrsno datano data
Stanley Mukai
Independent Director16.1yrsno datano data
Tony Vericella
Director16.1yrsno datano data
John Brogan
Director13.1yrsno datano data

16.1yrs

Average Tenure

72.5yo

Average Age

Experienced Board: CAGU's board of directors are seasoned and experienced ( 16.1 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.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

The Castle Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Castle Group, Inc.
  • Ticker: CAGU
  • Exchange: OTCPK
  • Founded: 1981
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: US$3.218m
  • Shares outstanding: 10.06m
  • Website: https://www.CastleResorts.com

Location

  • The Castle Group, Inc.
  • 3 Waterfront Plaza
  • Suite 555
  • Honolulu
  • Hawaii
  • 96813
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CAGUOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 1994

Biography

The Castle Group, Inc., through its subsidiaries, operates in the hotel and resort management industry in the state of Hawaii, New Zealand, and the Commonwealth of Saipan under the Castle Resorts and Hotels trade name. It manages luxury and mid-range resort condominiums and hotels on various islands in the state of Hawaii; and a property located in New Zealand. The company also provides reservations staffing and operation, advertising, sales and marketing, and accounting services to property owners. The Castle Group, Inc. was incorporated in 1981 and is headquartered in Honolulu, Hawaii. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:36
End of Day Share Price2020/02/10 00:00
Earnings2018/03/31
Annual Earnings2017/12/31


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.