Cascades (CAS) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: 3.97%
• Average Volume (3M): 162.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: 3.50%
• EPS Growth: N/A
• Country: CA
• Employees: 9,700
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.38
• Shares Outstanding: 101,257,280
• 10 Day Avg. Volume: 168,034
• 30 Day Avg. Volume: 162,691
• PEG Ratio: 0.66
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 13.67
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 6.96
• 1Y Price Target: $13.42
• Price Target Upside: 11.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$12.50 ▲(3.48% Upside)

Cascades' overall stock score reflects a mix of strengths and challenges. The company's strong technical indicators and positive corporate events are offset by high valuation concerns and ongoing profitability issues. The earnings call provided a positive outlook, but caution remains due to potential demand fluctuations and environmental costs.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and effective business strategies, which are crucial for long-term sustainability and expansion.

Debt Reduction

Reducing debt enhances financial flexibility and reduces interest expenses, supporting long-term financial health and investment capacity.

Sustainable Business Model

The focus on sustainability aligns with consumer trends and regulatory pressures, providing a competitive advantage and supporting long-term growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth, posing risks to long-term financial stability and shareholder returns.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to navigate economic downturns.

Environmental and Restructuring Costs

Significant costs related to environmental and restructuring efforts can strain resources and impact profitability, affecting long-term operational efficiency.

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

Cascades is experiencing growth in revenue and cash flow, but profitability remains a significant challenge. The company has a strong gross profit margin, but negative net income and increasing leverage are concerns. While cash flow metrics are improving, the reliance on debt and negative returns on equity highlight the need for strategic improvements to enhance financial stability and profitability.

Income Statement

Cascades has shown a positive revenue growth trend, with a 14.7% increase in the TTM period. However, the company is struggling with profitability, as indicated by negative net profit margins and a negative net income. The gross profit margin is relatively strong at 38.5%, but the EBIT and EBITDA margins are modest, suggesting operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.31, indicating a higher reliance on debt financing, which could pose a risk if not managed properly. The return on equity is negative, reflecting the company's ongoing profitability issues. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cascades has improved its free cash flow by 36.7% in the TTM period, which is a positive sign. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests that cash flow improvements are not yet translating into profitability.

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	330.00M	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: 12.08
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 12.08 is below the 20-day moving average (MA) of 12.38, above the 50-day MA of 11.47, and above the 200-day MA of 9.77, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 15.02 is Positive, 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	76 Outperform	$13.54B	17.32	14.88%	1.53%	7.12%	17.15%
CCL.A	74 Outperform	C$13.54B	17.41	15.16%	1.55%	7.12%	17.15%
WPK	73 Outperform	C$2.52B	13.28	10.45%	7.20%	3.19%	-0.26%
TCL.A	66 Neutral	C$1.61B	9.17	8.95%	8.09%	-2.45%	44.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAS	61 Neutral	$1.13B	-141.29	1.16%	3.97%	3.50%	―
SXP	57 Neutral	C$86.16M	5.22	15.15%	19.89%	-4.69%	―

Cascades Corporate Events

Cascades Inc. Reports Strong Q3 2025 Financial Results

Cascades Inc. reported strong financial results for the third quarter of 2025, with sales reaching $1,238 million and operating income of $73 million. The company saw significant improvements in net earnings per share and a reduction in net debt, driven by strong operational execution and favorable market conditions. The packaging and tissue segments performed well, with the company achieving a 24% increase in production volumes at Bear Island. Looking ahead, Cascades anticipates stable performance in the fourth quarter, despite seasonal challenges in packaging, and remains focused on strategic objectives to enhance its financial and operational profile.

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.