Cascades (CAS) AI Stock Analysis

• Market Cap: $1.04B
• Dividend Yield: 4.32%
• Average Volume (3M): 162.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 2.77%
• EPS Growth: 81.01%
• Country: CA
• Employees: 9,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.19
• Shares Outstanding: 101,257,280
• 10 Day Avg. Volume: 168,034
• 30 Day Avg. Volume: 162,691
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.91
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 6.96
• 1Y Price Target: $11.94
• Price Target Upside: 7.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: C$12.00 ▲(8.01% Upside)

Cascades' overall stock score is driven by its financial performance challenges, particularly in profitability and leverage. While technical indicators show bullish momentum, overbought conditions pose risks. Valuation concerns persist due to a negative P/E ratio, though the dividend yield is a positive aspect. The earnings call provided mixed signals with strong EBITDA growth but highlighted operational challenges and demand uncertainties.

Cascades Business Overview & Revenue Model

Company Description

Cascades (CAS) is a Canadian company specializing in the manufacturing of sustainable and innovative packaging and tissue products. Operating primarily in the sectors of environmental services and manufacturing, Cascades utilizes recycled materials to produce a diverse range of products, including boxes, containers, and sanitary papers. The company is committed to promoting environmental stewardship and reducing its ecological footprint through responsible sourcing and production processes.

How the Company Makes Money

Cascades generates revenue through multiple key streams, primarily from the sale of packaging products and tissue papers. The company benefits from its ability to leverage recycled materials, which not only lowers production costs but also aligns with growing consumer demand for sustainable products. Additionally, Cascades has established significant partnerships with various retailers and businesses, which help secure long-term contracts and stable supply agreements. Their revenue model is further supported by a focus on innovation and the development of new products that meet market needs, thereby enhancing their competitive position and driving growth.

Cascades Financial Statement Overview

Summary

Cascades shows stable revenue growth and solid cash flow management, indicating operational resilience. However, profitability struggles persist, as reflected in negative net income and low EBIT margins. The balance sheet shows moderate leverage, allowing some financial stability but with a need for improved profitability.

Income Statement

The company shows a modest revenue growth of 0.96% in TTM (Trailing-Twelve-Months), reflecting resilience in sales. However, the net profit margin is negative, indicating ongoing profitability challenges. The EBIT margin is low at 2.87%, although EBITDA margin is relatively better at 9.14%, suggesting some operational efficiency. Overall, while there is stable revenue growth, profitability remains a concern.

Balance Sheet

The debt-to-equity ratio stands at 1.31, indicating a moderate level of leverage. Return on Equity is negative due to the net loss, highlighting profitability issues. The equity ratio is 34.02%, suggesting a reasonable proportion of assets financed by shareholders. The balance sheet reflects a company with moderate leverage but with room to improve profitability.

Cash Flow

The operating cash flow to net income ratio is strong, showing robust cash generation relative to earnings. Free cash flow has decreased but remains positive, indicating some financial flexibility. Free cash flow to net income ratio is positive, suggesting efficient cash management. Cash flow performance is solid, with strong operating cash flow providing a buffer against profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.75B	4.70B	4.64B	4.47B	3.96B	5.16B
Gross Profit	1.92B	1.85B	1.66B	1.63B	491.00M	836.00M
EBITDA	436.00M	392.00M	307.00M	273.00M	281.00M	548.00M
Net Income	-8.00M	-31.00M	-76.00M	-14.00M	-47.00M	198.00M
Balance Sheet
Total Assets	4.81B	5.00B	4.77B	5.05B	4.57B	5.41B
Cash, Cash Equivalents and Short-Term Investments	31.00M	28.00M	54.00M	111.00M	175.00M	389.00M
Total Debt	2.13B	2.12B	1.94B	2.07B	1.52B	2.06B
Total Liabilities	3.11B	3.23B	2.99B	3.13B	2.64B	3.46B
Stockholders Equity	1.67B	1.72B	1.74B	1.87B	1.88B	1.75B
Cash Flow
Free Cash Flow	108.00M	88.00M	159.00M	-362.00M	-90.00M	324.00M
Operating Cash Flow	271.00M	272.00M	510.00M	144.00M	211.00M	587.00M
Investing Cash Flow	-119.00M	-150.00M	-332.00M	-486.00M	-247.00M	-203.00M
Financing Cash Flow	-147.00M	-149.00M	-225.00M	272.00M	-529.00M	-156.00M

Cascades Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CAS, the sentiment is Positive. The current price of 11.11 is above the 20-day moving average (MA) of 10.48, above the 50-day MA of 10.08, and above the 200-day MA of 9.83, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 65.43 is Neutral, neither overbought nor oversold. The STOCH value of 56.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CAS.

Cascades Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.B	―	$14.13B	18.09	14.88%	1.60%	7.90%	19.55%
WPK	―	C$2.54B	13.27	10.45%	7.44%	3.19%	-0.26%
CCL.A	―	C$13.37B	17.18	15.20%	1.65%	7.90%	19.55%
TCL.A	―	C$1.64B	9.40	9.36%	9.65%	-2.90%	57.43%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAS	―	$1.04B	―	-0.47%	4.32%	2.77%	81.01%
SXP	―	C$86.70M	―	-12.57%	18.41%	-3.54%	-244.21%

Cascades Corporate Events

Cascades Sells Flexible Packaging Plant to Five Star Holding for CAN$31 Million

Cascades Inc. has announced the sale of its Flexible Packaging plant in Mississauga, Ontario, to Five Star Holding for CAN$31 million. This strategic move allows Cascades to reduce its debt and focus on optimizing its operational platform to grow its strategic sectors. The transaction includes a supply agreement to ensure continued production and supply of flexible film for Cascades’ Tissue and Packaging sectors. Five Star will retain all 45 employees and aims to accelerate growth in sustainability-focused packaging across North America.

The most recent analyst rating on (TSE:CAS) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Cascades stock, see the TSE:CAS Stock Forecast page.

Cascades Inc. Earnings Call: Mixed Sentiments and Strategic Outlook

The recent earnings call for Cascades Inc. revealed a mixed sentiment, highlighting both achievements and challenges faced by the company. On the positive side, there was notable EBITDA growth and improvements in the Packaging segment and Bear Island facility. However, the company also faced significant hurdles, including operational issues at the Greenpac Mill, a decline in Tissue business profitability, and trade uncertainties. Additionally, the closure of the Niagara Falls mill added a financial strain.

Cascades Inc. Reports Q2 2025 Financial Results

Cascades Inc., a leader in sustainable packaging and hygiene solutions, operates across North America with a focus on innovative and eco-friendly products.

Cascades Inc. Reports Q2 2025 Financial Results with Improved EBITDA and Reduced Debt

Cascades Inc. reported its second-quarter financial results for 2025, highlighting a slight increase in sales to $1,187 million and an adjusted EBITDA of $137 million. Despite a net loss per share, the company saw improvements in operating income and a reduction in net debt. The packaging segment benefited from price increases and stable shipments, while the tissue segment maintained stable results despite higher operational costs. The company anticipates a slightly better performance in the third quarter, with stable packaging results and stronger tissue performance expected.

The most recent analyst rating on (TSE:CAS) stock is a Hold with a C$12.50 price target. To see the full list of analyst forecasts on Cascades stock, see the TSE:CAS Stock Forecast page.