Cascades (CAS) AI Stock Analysis

• Market Cap: $1.00B
• Dividend Yield: 4.84%
• Average Volume (3M): 166.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 2.77%
• EPS Growth: 81.01%
• Country: CA
• Employees: 9,700
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Packaging & Containers
• EPS (TTM): 0.19
• Shares Outstanding: 101,257,280
• 10 Day Avg. Volume: 137,165
• 30 Day Avg. Volume: 166,819
• 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: 3.02
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 6.96
• 1Y Price Target: $11.00
• Price Target Upside: 10.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: C$10.50 ▲(5.95% Upside)

Cascades' overall score is driven by its financial performance challenges, particularly profitability issues, despite revenue and cash flow growth. Technical indicators suggest bullish momentum, but valuation concerns persist due to a negative P/E ratio. The earnings call provided a mixed outlook with strong EBITDA growth but highlighted operational challenges and demand uncertainties.

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 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: 9.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 9.91 is above the 20-day moving average (MA) of 9.52, above the 50-day MA of 9.25, and below the 200-day MA of 10.13, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.86 is Neutral, neither overbought nor oversold. The STOCH value of 58.56 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.A	78 Outperform	C$14.23B	18.63	15.20%	1.46%	7.90%	19.55%
WPK	71 Outperform	C$2.56B	13.42	10.79%	7.66%	4.69%	4.54%
TCL.A	68 Neutral	C$1.68B	9.38	9.65%	9.45%	-2.58%	100.21%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
CAS	60 Neutral	$1.00B	―	-0.47%	4.84%	2.77%	81.01%
SXP	58 Neutral	C$107.57M	―	-12.57%	4.42%	-3.54%	-244.21%
CCDBF	―	$10.28B	18.36	14.88%	1.49%	―	―

Cascades Corporate Events

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.

Cascades Inc. to Close Niagara Falls Facility to Optimize Packaging Operations

Cascades Inc. has announced the permanent closure of its corrugated medium manufacturing facility in Niagara Falls, NY, as part of its strategy to optimize its packaging production platform. This decision, which will affect 123 employees, is aimed at enhancing profitability and customer service levels. Despite the closure, Cascades remains committed to strategic growth and will provide job search support to the affected employees. The company emphasizes that the closure will not impact its ability to serve customers due to its streamlined operations.

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.

Cascades Inc. Announces $400 Million Senior Notes Offering

Cascades Inc. announced the pricing of a private placement of US$400 million in Senior Notes due 2030, with a 6.750% interest rate. The proceeds will be used to redeem existing notes, repay part of its revolving credit facility, and cover transaction costs, potentially strengthening its financial position and operational flexibility.

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.

Cascades Inc. Announces $400 Million Senior Notes Offering

Cascades Inc. announced a proposed private offering of US$400 million in Senior Notes due 2030, with the intention to use the proceeds to redeem existing notes, repay part of its revolving credit facility, and cover transaction expenses. This move is aimed at optimizing the company’s financial structure and could enhance its market position by reducing debt and improving liquidity.

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.