Cascades (CAS) AI Stock Analysis

• Market Cap: $1.23B
• Dividend Yield: 3.9%
• Average Volume (3M): 162.69K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.07
• Revenue Growth: 3.50%
• EPS Growth: N/A
• Country: CA
• Employees: 9,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.40
• Shares Outstanding: 101,275,250
• 10 Day Avg. Volume: 168,034
• 30 Day Avg. Volume: 162,691
• PEG Ratio: -0.06
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 5.55
• Enterprise Value/Market Cap: 2.56
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 5.93
• 1Y Price Target: $15.26
• Price Target Upside: 23.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.42
• Revenue Forecast (FY): $4.80B

• Rating: 53 Neutral
• Price Target: C$12.00 ▼(-2.52% Downside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by an improving but still uneven financial profile (profit and free cash flow rebound, but sharp 2025 revenue decline and meaningful leverage). Technical indicators are a key drag (below key moving averages with negative MACD), while valuation and the earnings call provide partial support through a ~4% dividend yield, moderate P/E, solid recent EBITDA momentum, and debt reduction despite cautious near-term demand guidance.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Cascades' products, enhancing market position and supporting long-term business expansion.

Cash Flow Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth initiatives and debt reduction, supporting long-term stability.

Debt Reduction

Effective debt reduction strengthens the balance sheet, reducing financial risk and interest expenses, which supports sustainable growth.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Profitability Challenges

Negative profitability indicates challenges in cost management and pricing power, potentially hindering reinvestment and growth opportunities.

Environmental and Restructuring Costs

Significant costs related to environmental and restructuring efforts could pressure margins and limit resources for growth initiatives.

Cascades Business Overview & Revenue Model

Company Description

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada and the United States. The company operates through three segments: Containerboard, Specialty Products, and Tissue Papers. It manufactures containerboards, as well as converts corrugated products. The company also offers uncoated recycled paperboards for use in packaging converters and industrial users of headers and wrappers for the paper industry, as well as partitions that are used as protective packaging; honeycomb paperboards for the beer, wine, and spirits industry; laminated paperboards for food packaging and furniture backing industries; and specialty containers, structural components, and paperboard and fiber composites. In addition, it provides egg filler flats and egg cartons for egg processors and four-cup carriers for the quick-service restaurant industry; polystyrene foam trays for processors and retailers in the food industry; rigid plastic packaging products for food industry, processors, and retailers; and flexible films for frozen foods, bakery, and ice industries. Further, the company offers bathroom and facial tissues, paper towels, paper hand towels and napkins, and other related products and services under the Cascades PRO Signature, Cascades PRO Perform, Cascades PRO Select, Cascades PRO Tandem, and Cascades PRO Tuff-Job brands; and under the Cascades Fluff, Cascades Tuff, and Satin Soft labels, as well as private labels and other secondary marks. Additionally, it offers services to recover and process discarded materials for the municipal, industrial, commercial, and institutional sectors. The company sells its products through own sales force and external representatives. Cascades Inc. was incorporated in 1964 and is headquartered in Kingsey Falls, Canada.

How the Company Makes Money

Cascades generates revenue through various key streams, primarily from the sale of its packaging and tissue products. The company produces and sells containerboard and boxboard used in the manufacturing of packaging products, which are distributed to various industries including food, consumer goods, and e-commerce. Additionally, Cascades offers tissue products, including bathroom tissue, paper towels, and napkins, which are sold to both retail and commercial customers. Significant partnerships with major retailers and manufacturers help drive sales while the company's commitment to sustainability attracts environmentally conscious consumers. Furthermore, Cascades benefits from its investments in recycling operations, as these initiatives reduce raw material costs and enhance profitability by providing a consistent supply of recycled fibers for production.

Cascades Financial Statement Overview

Summary

Financials are improving but still mixed: 2025 returned to profitability ($70M net income) and cash generation strengthened (operating cash flow $379M; free cash flow $227M), but revenue fell sharply in 2025 (-29.2%) and earnings have been inconsistent across prior years. Leverage is meaningful (debt-to-equity ~1.13), raising cyclicality risk.

Income Statement

Revenue has been volatile, with modest growth in 2022–2024 followed by a sharp decline in 2025 (annual revenue growth of -29.2%). Profitability improved meaningfully in 2025 with positive net income ($70M) after losses in 2022–2024, but margins remain thin (about 1.5% net margin in 2025). Operating profitability is positive and improved versus prior years, yet overall earnings power looks inconsistent across the cycle.

Balance Sheet

Leverage is meaningful with debt running above equity (debt-to-equity ~1.13 in 2025), which reduces flexibility in a downturn. Equity has been relatively stable year-to-year, and returns improved back to positive in 2025 (about 4.1% return on equity), but the business posted negative returns in several prior years. Overall, the balance sheet is serviceable but moderately leveraged for a cyclical packaging business.

Cash Flow

Cash generation is a relative strength: operating cash flow was solid in 2025 ($379M) and free cash flow improved to $227M, up sharply from 2024. That said, cash flow has been uneven historically (including negative free cash flow in 2021–2022), and 2025 cash conversion was not exceptionally strong relative to accounting earnings (free cash flow running at ~60% of net income). Still, the recent rebound in free cash flow supports debt capacity and reinvestment.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.78B	4.70B	4.64B	4.47B	3.96B
Gross Profit	565.00M	1.85B	1.66B	1.63B	491.00M
EBITDA	591.00M	392.00M	330.00M	273.00M	281.00M
Net Income	70.00M	-31.00M	-76.00M	-14.00M	-47.00M
Balance Sheet
Total Assets	4.67B	5.00B	4.77B	5.05B	4.57B
Cash, Cash Equivalents and Short-Term Investments	48.00M	28.00M	54.00M	111.00M	175.00M
Total Debt	1.94B	2.12B	1.94B	2.07B	1.52B
Total Liabilities	2.92B	3.23B	2.99B	3.13B	2.64B
Stockholders Equity	1.72B	1.72B	1.74B	1.87B	1.88B
Cash Flow
Free Cash Flow	227.00M	88.00M	159.00M	-362.00M	-90.00M
Operating Cash Flow	379.00M	272.00M	510.00M	144.00M	211.00M
Investing Cash Flow	-94.00M	-150.00M	-332.00M	-486.00M	-247.00M
Financing Cash Flow	-263.00M	-149.00M	-225.00M	272.00M	-529.00M

Cascades Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CAS, the sentiment is Negative. The current price of 12.31 is below the 20-day moving average (MA) of 13.23, below the 50-day MA of 13.02, and above the 200-day MA of 10.77, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 34.19 is Neutral, neither overbought nor oversold. The STOCH value of 13.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CAS.

Cascades Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPK	77 Outperform	C$2.78B	14.22	10.45%	7.11%	3.19%	-0.26%
CCL.B	73 Outperform	C$15.97B	18.88	14.88%	1.46%	7.12%	17.15%
TCL.B	70 Neutral	C$1.93B	9.65	8.95%	8.22%	-2.45%	44.20%
SXP	65 Neutral	C$89.99M	7.49	15.15%	19.66%	-4.69%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIC	60 Neutral	C$335.96M	18.41	―	―	―	―
CAS	53 Neutral	$1.23B	18.01	1.16%	3.90%	3.50%	―

Cascades Corporate Events

Cascades Boosts 2025 Profit, Cuts Debt as Strategic Moves Take Hold

Cascades reported fourth-quarter 2025 sales of $1.197 billion, with operating income rising to $76 million and earnings per share improving to $0.37, reflecting stronger packaging performance offset by weaker tissue results and a costly power outage. For full-year 2025, sales grew to $4.776 billion, operating income more than doubled to $235 million, adjusted EBITDA climbed to $576 million, and net debt fell to $1.896 billion, as asset sales surpassed the company’s monetization target and strategic actions began to deliver operational and financial gains.

Management expects first-quarter results to soften sequentially due to normal seasonality, weather-driven cost pressures and lingering impacts from the power outage, though performance should remain above prior-year levels. Looking to 2026, Cascades anticipates results will exceed 2025 as it continues deleveraging, benefits from profitability initiatives and consolidates its positioning in packaging and tissue despite macroeconomic uncertainty.

The most recent analyst rating on (TSE:CAS) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Cascades stock, see the TSE:CAS Stock Forecast page.

Cascades Exits Honeycomb and Partition Packaging to Refocus on Core Markets

Cascades Inc. is exiting its honeycomb paperboard and partition packaging segments, closing three plants in Berthierville and Saint-Césaire, Quebec, and York, Pennsylvania, as it concentrates on strategic markets where it sees better long-term growth and profitability. The move underscores a shift away from declining niche markets toward strengthening its core packaging platform, while the adjacent Cascades Sonoco – Berthierville plant remains unaffected.

The Berthierville honeycomb packaging facility shuts immediately, affecting 52 employees, with certain assets sold to Emballages LM for about $9 million to help ensure service continuity for customers. The York plant, with 37 employees, will close by February 19, 2026, and the Saint-Césaire cardboard partition facility, which employs 25 people and has suffered from falling demand and geographic disadvantages, will cease operations by April 17, 2026.

Cascades will provide transition support and job search assistance to affected workers and is encouraging them to seek roles at other company sites. Management frames the closures as a necessary optimization to realign assets with priority sectors and reinforce Cascades’ position as a preferred partner in its chosen packaging markets, signaling a tighter operational focus and potential efficiency gains for stakeholders.

The most recent analyst rating on (TSE:CAS) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Cascades stock, see the TSE:CAS Stock Forecast page.

Cascades Sells Richmond, B.C. Packaging Plant to Crown Paper Group for $65.5 Million

Cascades Inc. has agreed to sell its corrugated packaging plant in Richmond, British Columbia, to Crown Paper Group for $65.5 million, including real estate assets and subject to customary adjustments and closing conditions. The divestiture is part of Cascades’ broader strategy to optimize its operational footprint and reduce debt by reallocating capital to core markets, with management emphasizing that the asset sale monetizes valuable real estate while having no material impact on the packaging segment’s cash flow profile. Because the Richmond facility had limited integration and synergy potential within Cascades’ network due to its geography, the plant is seen as a stronger strategic fit for Crown, whose existing integrated containerboard mill and regional presence in the Pacific Northwest and Western Canada are expected to ensure a seamless transition for employees and customers, reinforce Crown’s regional expansion, and maintain ongoing investment in the site.

The most recent analyst rating on (TSE:CAS) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Cascades stock, see the TSE:CAS Stock Forecast page.