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Castle Group

OTCPK:CAGU
Snowflake Description

Good value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CAGU
OTCPK
$4M
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

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. The last earnings update was 426 days ago. More info.


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CAGU Share Price and Events
7 Day Returns
0%
OTCPK:CAGU
0.4%
US Hospitality
0.8%
US Market
1 Year Returns
25.7%
OTCPK:CAGU
-4.1%
US Hospitality
4.8%
US Market
CAGU Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Castle Group (CAGU) 0% 8.3% 7.7% 25.7% 50.8% 63.9%
US Hospitality 0.4% 2.6% -1.4% -4.1% 45.8% 25.5%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • CAGU outperformed the Hospitality industry which returned -4.1% over the past year.
  • CAGU outperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
CAGU
Industry
5yr Volatility vs Market

Value

 Is Castle Group 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 Castle Group 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 Castle Group.

OTCPK:CAGU Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 OTCPK:CAGU
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.923 (1 + (1- 21%) (125.28%))
1.56
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.56
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.56 * 5.96%)
12.03%

Discounted Cash Flow Calculation for OTCPK:CAGU using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Castle Group 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.

OTCPK:CAGU DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.03%)
2020 3.51 Est @ 42.32% 3.14
2021 4.58 Est @ 30.44% 3.65
2022 5.60 Est @ 22.13% 3.98
2023 6.51 Est @ 16.31% 4.13
2024 7.30 Est @ 12.24% 4.14
2025 7.99 Est @ 9.38% 4.04
2026 8.58 Est @ 7.39% 3.87
2027 9.09 Est @ 5.99% 3.67
2028 9.55 Est @ 5.01% 3.44
2029 9.96 Est @ 4.33% 3.20
Present value of next 10 years cash flows $37.25
OTCPK:CAGU DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $9.96 × (1 + 2.73%) ÷ (12.03% – 2.73%)
$110.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $110.06 ÷ (1 + 12.03%)10
$35.34
OTCPK:CAGU Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $37.25 + $35.34
$72.59
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $72.59 / 10.06
$7.22
OTCPK:CAGU Discount to Share Price
Calculation Result
Value per share (USD) From above. $7.22
Current discount Discount to share price of $0.38
= -1 x ($0.38 - $7.22) / $7.22
94.8%

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

Current Discount
Amount off the current price Castle Group is available for.
Intrinsic value
>50%
Share price is $0.38 vs Future cash flow value of $7.22
Current Discount Checks
For Castle Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Castle Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Castle Group's share price is below the future cash flow value, and 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 Castle Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Castle Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:CAGU PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in USD $0.02
OTCPK:CAGU Share Price ** OTCPK (2019-07-01) in USD $0.38
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 21.55x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

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

** Primary Listing of Castle Group.

OTCPK:CAGU PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OTCPK:CAGU Share Price ÷ EPS (both in USD)

= 0.38 ÷ 0.02

16.32x

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

  • Castle Group is good value based on earnings compared to the US Hospitality industry average.
  • Castle Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Castle Group's expected growth come at a high price?
Raw Data
OTCPK:CAGU PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Hospitality Industry PEG Ratio Median Figure of 56 Publicly-Listed Hospitality Companies 1.9x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Castle Group, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Castle Group's assets?
Raw Data
OTCPK:CAGU PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in USD $0.17
OTCPK:CAGU Share Price * OTCPK (2019-07-01) in USD $0.38
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.24x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
OTCPK:CAGU PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:CAGU Share Price ÷ Book Value per Share (both in USD)

= 0.38 ÷ 0.17

2.27x

* Primary Listing of Castle Group.

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

  • Castle Group is overvalued based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Castle Group'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 Hospitality 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 Hospitality industry average (and greater than 0)? (1 check)
  5. Castle Group has a total score of 4/6, 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 Castle Group expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
16.5%
Expected Hospitality industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Castle Group expected to grow at an attractive rate?
  • Unable to compare Castle Group's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Castle Group's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Castle Group's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
OTCPK:CAGU Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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
OTCPK:CAGU Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:CAGU Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-03-31 27 3 0
2017-12-31 26 3 0
2017-09-30 26 2 0
2017-06-30 27 2 0
2017-03-31 26 1 0
2016-12-31 26 1 0
2016-09-30 26 1 1
2016-06-30 25 1 0
2016-03-31 25 1 0
2015-12-31 24 1 0
2015-09-30 24 1 0
2015-06-30 24 1 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Castle Group is high growth as no earnings estimate data is available.
  • Unable to determine if Castle Group is high growth as no revenue estimate data is available.
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
OTCPK:CAGU Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Castle Group Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:CAGU Past Financials Data
Date (Data in USD Millions) EPS *
2018-03-31 0.02
2017-12-31 0.00
2017-09-30 -0.01
2017-06-30 0.02
2017-03-31 0.02
2016-12-31 0.02
2016-09-30 0.05
2016-06-30 0.03
2016-03-31 0.01
2015-12-31 0.01
2015-09-30 0.02
2015-06-30 0.03

*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 Castle Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Castle Group is trading at Castle Group'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Castle Group's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Consumer Services companies here
  3. While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Castle Group's filings and announcements here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Castle Group'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Castle Group has a total score of 0/6, 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 Castle Group performed over the past 5 years?

  • Castle Group's last earnings update was 426 days ago.
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 Castle Group's growth in the last year to its industry (Hospitality).
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.
  • Insufficient data to establish if Castle Group's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Castle Group's 1-year earnings growth to the 5-year average due to insufficient past data.
  • Castle Group's earnings growth has exceeded the US Hospitality industry average in the past year (39.2% vs -0.5%).
Earnings and Revenue History
Castle Group'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 Castle Group Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:CAGU Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 26.77 0.23 4.62
2017-12-31 26.25 0.02 4.48
2017-09-30 26.31 -0.05 4.31
2017-06-30 26.93 0.15 4.20
2017-03-31 26.45 0.17 4.09
2016-12-31 26.29 0.21 3.84
2016-09-30 25.79 0.50 5.76
2016-06-30 25.11 0.34 4.94
2016-03-31 24.54 0.06 4.22
2015-12-31 24.21 0.09 3.50
2015-09-30 24.43 0.17 0.54
2015-06-30 24.20 0.32 0.55
2015-03-31 24.53 0.56 0.55
2014-12-31 24.54 0.57 0.54
2014-09-30 23.70 0.27 0.48
2014-06-30 23.67 -0.05 0.48
2014-03-31 23.73 0.21 0.48
2013-12-31 23.88 0.20 0.48
2013-09-30 23.91 0.47 0.48
2013-06-30 23.43 0.56 0.46
2013-03-31 23.47 0.57 0.46
2012-12-31 22.77 0.50 0.45
2012-09-30 23.22 0.38 0.45

*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.
  • Castle Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Castle Group used its assets less efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Castle Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Castle Group'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 Hospitality 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.
Castle Group 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 Castle Group'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 Castle Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Castle Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Castle Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Castle Group'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 covered by short term assets, assets are 1.5x 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 Castle Group Company Filings, last reported 1 year ago.

OTCPK:CAGU Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 2.77 4.75 4.26
2017-12-31 2.48 4.70 4.32
2017-09-30 2.30 5.02 2.76
2017-06-30 2.30 5.26 2.95
2017-03-31 2.24 5.17 2.66
2016-12-31 2.16 5.26 2.78
2016-09-30 2.06 5.68 1.66
2016-06-30 1.84 5.73 2.04
2016-03-31 1.77 5.79 2.22
2015-12-31 1.65 5.95 2.37
2015-09-30 1.28 5.72 1.38
2015-06-30 1.21 6.26 1.88
2015-03-31 1.41 6.76 1.85
2014-12-31 1.23 7.11 1.75
2014-09-30 0.67 7.19 1.23
2014-06-30 0.46 8.21 1.23
2014-03-31 0.46 8.25 1.27
2013-12-31 0.33 8.07 1.14
2013-09-30 0.21 8.11 0.51
2013-06-30 0.16 7.72 0.32
2013-03-31 0.12 8.46 0.56
2012-12-31 -0.08 8.47 0.78
2012-09-30 -0.35 8.59 0.24
  • Castle Group's level of debt (171.2%) 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 (7148% vs 171.2% today).
  • Debt is well covered by operating cash flow (57.4%, greater 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 Castle Group'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. Castle Group has a total score of 3/6, 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 Castle Group'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
0%
Current annual income from Castle Group dividends.
If you bought $2,000 of Castle Group shares you are expected to receive $0 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?
  • Unable to evaluate Castle Group's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Castle Group's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
OTCPK:CAGU 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 0 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 47 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

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

  • Unable to perform a dividend volatility check as Castle Group has not reported any payouts.
  • Unable to verify if Castle Group's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Castle Group's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Castle Group has not reported any payouts.
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 Castle Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Castle Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Castle Group has a total score of 0/6, 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 Castle Group'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
Alan Mattson
COMPENSATION $222,016
AGE 62
TENURE AS CEO 1.1 years
CEO Bio

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 served as its Chief Operating Officer since June 2007. Mr. Mattson served as the President and Chief Operating Officer of Castle Resorts & Hotels Inc. from 2005 to August 2018. Mr. Mattson served as Senior Vice President of Sales & Marketing of Castle Group Inc. He served as Vice President of sales and marketing for Dollar Rent a Car and was responsible for all sales and marketing efforts for Hawaii, Asia and the Pacific. He began his tourism and hospitality career with Hilton Hotels Corp., and prior to joining Castle, he spent 10 years in the car rental industry. Prior to Dollar Rent a Car, he was Director of marketing for Avis Car Rental, operating out of the Avis worldwide headquarters in New York. Mr. Mattson has over 30 years of senior level hospitality and travel industry experience. He joined Castle Group Inc. in September 1999 and served as its President since July, 2005. Mr. Mattson also has seven years of sales and marketing experience with Hilton Hotels Corporation, performing in a variety of senior level sales and marketing positions in Hawaii and the domestic United States. Mr. Mattson serves as Director of Castle Group Inc. and Pacific Historic Parks. He received his bachelor's degree in marketing from San Diego State University.

CEO Compensation
  • Alan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Alan to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Castle Group management team in years:

1.1
Average Tenure
62
Average Age
  • The average tenure for the Castle Group management team is less than 2 years, this suggests a new team.
Management Team

Alan Mattson

TITLE
CEO & Director
COMPENSATION
$222K
AGE
62
TENURE
1.1 yrs

Michael Nitta

TITLE
Chief Financial Officer
COMPENSATION
$116K
AGE
60
TENURE
1.1 yrs

Jerry Ruthruff

TITLE
Secretary & Director
COMPENSATION
$53K
AGE
71
TENURE
5.7 yrs
Board of Directors Tenure

Average tenure and age of the Castle Group board of directors in years:

15.5
Average Tenure
72.5
Average Age
  • The average tenure for the Castle Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Alan Mattson

TITLE
CEO & Director
COMPENSATION
$222K
AGE
62

Jerry Ruthruff

TITLE
Secretary & Director
COMPENSATION
$53K
AGE
71
TENURE
5.7 yrs

Motoko Takahashi

TITLE
Independent Director
AGE
74
TENURE
26.3 yrs

Stanley Mukai

TITLE
Independent Director
AGE
86
TENURE
15.5 yrs

Tony Vericella

TITLE
Director
AGE
66
TENURE
15.5 yrs

John Brogan

TITLE
Director
AGE
86
TENURE
12.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Castle Group'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. Castle Group 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

Company Info

Description

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.

Details
Name: The Castle Group, Inc.
CAGU
Exchange: OTCPK
Founded: 1981
$3,791,259
10,056,392
Website: http://www.CastleResorts.com
Address: The Castle Group, Inc.
3 Waterfront Plaza,
Suite 555,
Honolulu,
Hawaii, 96813,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK CAGU Common Stock Pink Sheets LLC US USD 03. Feb 1994
Number of employees
Current staff
Staff numbers
0
Castle Group employees.
Industry
Hotels, Resorts and Cruise Lines
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:34
End of day share price update: 2019/07/01 00:00
Last earnings filing: 2018/05/15
Last earnings reported: 2018/03/31
Last annual earnings reported: 2017/12/31


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.