Cascades (CAS) AI Stock Analysis

• Market Cap: $917.39M
• Dividend Yield: 5.13%
• Average Volume (3M): 163.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 2.77%
• EPS Growth: 81.01%
• Country: CA
• Employees: 9,700
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Packaging & Containers
• EPS (TTM): 0.19
• Shares Outstanding: 101,257,280
• 10 Day Avg. Volume: 181,650
• 30 Day Avg. Volume: 163,328
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.54
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 7.49
• 1Y Price Target: $10.37
• Price Target Upside: 10.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 57 Neutral
• Price Target: C$9.50 ▲(1.60% Upside)

Cascades' overall stock score reflects stable revenue growth and solid cash flow management, but is weighed down by ongoing profitability challenges and a negative P/E ratio. The technical analysis suggests a neutral to slightly bearish outlook, while corporate events indicate strategic efforts to improve financial flexibility. The earnings call provided mixed signals, with year-over-year improvements overshadowed by sequential declines and macroeconomic uncertainties.

Cascades Business Overview & Revenue Model

Company Description

Cascades Inc. (CAS) is a Canadian company that operates in the pulp and paper industry, with a focus on green and sustainable solutions. The company is involved in the production, conversion, and marketing of packaging and tissue products composed mainly of recycled fibers. Cascades serves a wide range of sectors, including retail, food services, industrial, and institutional markets, positioning itself as a leader in eco-friendly packaging and hygiene solutions.

How the Company Makes Money

Cascades Inc. generates revenue primarily through the sale of its packaging and tissue products. The company operates through three main business segments: Containerboard, Boxboard Europe, and Specialty Products. The Containerboard segment involves the manufacturing and converting of corrugated products, while Boxboard Europe produces coated recycled boxboard. The Specialty Products segment focuses on the production of industrial packaging, consumer product packaging, and recovery and recycling operations. Cascades benefits from strategic partnerships and a strong emphasis on sustainability, which attracts environmentally conscious consumers and businesses, contributing to its competitive edge and profitability.

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, with 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.

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

Cascades Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 9.35 is above the 20-day moving average (MA) of 9.22, above the 50-day MA of 9.14, and below the 200-day MA of 10.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 57.94 is Neutral, neither overbought nor oversold. The STOCH value of 42.81 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	77 Outperform	C$13.63B	16.40	16.68%	1.53%	9.80%	60.44%
CCL.B	74 Outperform	C$13.49B	16.01	16.78%	1.56%	9.80%	60.44%
SXP	73 Outperform	C$101.92M	―	-12.57%	4.49%	-3.15%	-222.64%
TCL.A	69 Neutral	C$1.63B	9.13	9.65%	9.80%	-2.58%	100.21%
WPK	68 Neutral	C$2.57B	13.30	10.79%	7.60%	4.69%	4.54%
Sector *	64 Neutral	€7.11B	13.90	10.63%	3.55%	1.82%	-129.24%
CAS	57 Neutral	$917.39M	―	-0.47%	5.13%	2.77%	81.01%

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.

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.