Cascades (CAS) AI Stock Analysis

• Market Cap: $903.97M
• Dividend Yield: 5.25%
• Average Volume (3M): 364.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 2.88%
• EPS Growth: 80.95%
• Country: CA
• Employees: 9,700
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Packaging & Containers
• EPS (TTM): 0.13
• Shares Outstanding: 101,115,630
• 10 Day Avg. Volume: 305,384
• 30 Day Avg. Volume: 364,198
• PEG Ratio: -2.57
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.11
• Price Target Upside: 12.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 59 Neutral
• Price Target: C$9.50 ▲(5.56%Upside)

Cascades' overall stock score reflects a combination of stable revenue growth and solid cash flow management, offset by profitability challenges and valuation issues. The recent strategic financial initiatives and positive earnings call sentiment provide some optimism, though macroeconomic uncertainties and technical analysis suggest caution. The company's dividend yield adds some attractiveness to income-focused investors.

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 Inc. generates revenue through the sale of its packaging and tissue products, which are primarily made from recycled fibers. The company's revenue streams are diversified across its three main divisions: Containerboard, which includes the production and conversion of corrugated products; Boxboard Europe, which produces coated and uncoated recycled boxboard; and Specialty Products, which focuses on niche markets such as industrial packaging and consumer products. Cascades also benefits from strategic partnerships and long-term contracts with key clients, ensuring a steady demand for its sustainable products. Additionally, the company's emphasis on recycling and environmental stewardship helps reduce raw material costs and enhances its competitive edge in the market.

Cascades Financial Statement Overview

Summary

Cascades demonstrates stable revenue growth and solid cash flow management, which are positive indicators of 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 to enhance overall financial health. The company should focus on improving margins and reducing debt to strengthen its financial position.

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
1.83B	1.85B	1.66B	1.63B	491.00M	836.00M
	EBIT
136.00M	95.00M	40.00M	141.00M	151.00M	366.00M
	EBITDA
434.00M	392.00M	307.00M	273.00M	281.00M	548.00M
	Net Income Common Stockholders
-4.00M	-31.00M	-76.00M	-14.00M	-47.00M	198.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
389.00M	28.00M	54.00M	111.00M	175.00M	389.00M
	Total Assets
5.41B	5.00B	4.77B	5.05B	4.57B	5.41B
	Total Debt
2.06B	2.12B	1.94B	2.07B	1.52B	2.06B
	Net Debt
1.68B	2.10B	1.88B	1.97B	1.35B	1.68B
	Total Liabilities
3.46B	3.23B	2.99B	3.13B	2.64B	3.46B
	Stockholders Equity
1.75B	1.72B	1.74B	1.87B	1.88B	1.75B
Cash Flow		Free Cash Flow
79.00M	88.00M	159.00M	-362.00M	-90.00M	324.00M
	Operating Cash Flow
258.00M	272.00M	510.00M	144.00M	211.00M	587.00M
	Investing Cash Flow
-144.00M	-150.00M	-332.00M	-486.00M	-247.00M	-203.00M
	Financing Cash Flow
-114.00M	-149.00M	-225.00M	272.00M	-529.00M	-156.00M

Cascades Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.00
• 50DMA: Positive
• 100DMA: Negative
• 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 is above the 20-day moving average (MA) of 8.68, above the 50-day MA of 8.96, and below the 200-day MA of 10.35, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 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$13.79B	16.71	16.68%	1.47%	9.80%	60.44%
WPK	78 Outperform	C$2.73B	13.46	11.26%	0.40%	5.50%	9.93%
TCL.A	74 Outperform	C$1.81B	11.29	9.65%	4.16%	-2.58%	100.21%
SXP	68 Neutral	C$98.98M	―	-10.60%	4.47%	-3.15%	-222.64%
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
CAS	59 Neutral	$903.97M	―	-0.24%	5.25%	2.88%	80.95%
CCDBF		$10.10B	16.51	16.78%	1.49%	―	―

Cascades Corporate Events

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.

Cascades Inc. Elects Directors at Annual Shareholders Meeting

Cascades Inc. held its Annual General Meeting of Shareholders on May 8, 2025, where all eleven proposed directors were elected by a majority vote. This election reinforces the company’s leadership team as it continues to focus on eco-friendly products and sustainable practices. The final voting results will be filed with Canadian Securities Regulators, reflecting the company’s commitment to transparency and governance.

Cascades Inc. Sees Improved Q1 2025 Results Amid Economic Challenges

Cascades Inc. reported its financial results for the first quarter of 2025, showing a slight increase in sales compared to the previous year, despite facing challenges such as lower volumes and higher operational costs. The company experienced a significant improvement in operating income and net earnings per share, attributed to favorable selling prices and raw material costs, as well as the depreciation of the Canadian dollar. The outlook for the second quarter is optimistic, with expected improvements in packaging and tissue performance, although macro-economic uncertainties may impact future demand.