Cascades Inc reports 10.3% EBITDA growth and 8.4% Revenue growth
11.03.2016 • About Cascades Inc (
$CAS) • By InTwits
Cascades Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cascades Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.3%. At the same time it's in pair with industry average of 6.8%.
- CAPEX is quite volatile: 5.8 in FY2015, 7.3 in FY2014, 38.4 in FY2013, 74.8 in FY2012, 33.4 in FY2011
- The company has potentially unprofitable business model: ROIC is at 5.7%
- It operates with high leverage: Net Debt/EBITDA is 5.0x while industry average is 2.4x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cascades Inc ($CAS) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3,625 | 3,645 | 3,370 | 3,561 | 3,861 | 8.4% |
| Gross Profit | 378 | 488 | 507 | 498 | 600 | 20.5% |
| SG&A | 362 | 382 | 335 | 334 | 360 | 7.8% |
| EBITDA | 188 | 274 | 343 | 311 | 343 | 10.3% |
| Net Income | 99 | -22 | 11 | -147 | -65 | -55.8% |
Balance Sheet
|
|---|
| Cash | 12 | 20 | 23 | 29 | 60 | 106.9% |
| Short Term Debt | 139 | 140 | 95 | 86 | 71 | -17.4% |
| Long Term Debt | 1,358 | 1,415 | 1,540 | 1,556 | 1,710 | 9.9% |
Cash flow
|
|---|
| Capex | 141 | 161 | 138 | 178 | 163 | -8.4% |
Ratios
|
|---|
| Revenue growth | 13.9% | 0.6% | -7.5% | 5.7% | 8.4% | |
| EBITDA growth | -27.1% | 45.7% | 25.2% | -9.3% | 10.3% | |
| Gross Margin | 10.4% | 13.4% | 15.0% | 14.0% | 15.5% | 1.6% |
| EBITDA Margin | 5.2% | 7.5% | 10.2% | 8.7% | 8.9% | 0.2% |
| Net Income Margin | 2.7% | -0.6% | 0.3% | -4.1% | -1.7% | 2.4% |
| SG&A, % of revenue | 10.0% | 10.5% | 9.9% | 9.4% | 9.3% | -0.1% |
| CAPEX, % of revenue | 3.9% | 4.4% | 4.1% | 5.0% | 4.2% | -0.8% |
| ROIC | 0.3% | 2.9% | 6.5% | 5.0% | 5.7% | 0.6% |
| ROE | 9.5% | -2.2% | 1.1% | -14.9% | -7.4% | 7.5% |
| Net Debt/EBITDA | 7.9x | 5.6x | 4.7x | 5.2x | 5.0x | -0.2x |
Revenue and profitability
Cascades Inc's Revenue increased on 8.4% in 2015. EBITDA Margin showed almost no change in 2015.
Gross Margin increased slightly on 1.6 pp from 14.0% to 15.5% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased on 2.4 pp from -4.1% to -1.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 4.2% in 2015. Cascades Inc's CAPEX/Revenue showed almost no change from 2012 to 2015. For the last three years the average CAPEX/Revenue was 4.4%.
Return on investment
The company operates at low but positive ROIC (5.69%) and negative ROE (-7.39%). ROIC increased slightly on 0.65 pp from 5.0% to 5.7% in 2015. ROE increased on 7.5 pp from -14.9% to -7.4% in 2015.
Leverage (Debt)
Debt level is 5.0x Net Debt / EBITDA and 5.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.2x from 5.2x to 5.0x in 2015. Debt increased on 8.5% in 2015 while cash surged on 107% in 2015.
Management team
Cascades Inc's CEO Mario Plourde is a founder and has spent 5 years at the company. Allan Hogg is a The company's CFO. Allan Hogg has spent 8 years at the company.
Appendix 1: Peers in Basic Materials
Below you can find Cascades Inc benchmarking vs. other companies in Basic Materials industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northern Sun Mining Corp ($NSC) | -93.3% | 315.4% | -99.4% | 8,924.9% | |
| Turquoise Hill Resources Ltd ($TRQ) | | | -34.0% | 3,268.9% | -5.8% |
| Asian Mineral Resources Ltd ($ASN) | | | | 859.1% | |
| Ur-Energy Inc ($URE) | | | | 285.4% | 42.7% |
| Nevsun Resources Ltd ($NSU) | | 3.3% | -72.5% | 256.5% | -35.7% |
| |
|---|
| Median (130 companies) | 57.8% | 8.5% | -5.0% | -1.1% | -2.9% |
|---|
| Cascades Inc ($CAS) | | 0.6% | -7.5% | 5.7% | 8.4% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nevsun Resources Ltd ($NSU) | 90.3% | 89.9% | 94.8% | 95.5% | 82.3% |
| Franco-Nevada Corp ($FNV) | 84.6% | 86.1% | 85.0% | 83.5% | 30.3% |
| Labrador Iron Ore Royalty Corp ($LIF) | 80.2% | 80.2% | 80.2% | 80.2% | 80.3% |
| Lucara Diamond Corp ($LUC) | | 42.5% | 57.4% | 66.7% | 60.9% |
| Royal Gold Inc ($RGL) | 68.9% | 71.5% | 70.6% | 57.6% | 86.0% |
| |
|---|
| Median (133 companies) | 31.2% | 32.0% | 21.8% | 17.6% | 15.5% |
|---|
| Cascades Inc ($CAS) | 10.4% | 13.4% | 15.0% | 14.0% | 15.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Royal Gold Inc ($RGL) | 86.1% | 88.2% | 88.6% | 84.4% | 65.0% |
| Franco-Nevada Corp ($FNV) | 38.6% | 62.1% | 44.6% | 72.3% | 60.8% |
| Silver Wheaton Corp ($SLW) | 84.8% | 82.6% | 75.3% | 69.6% | |
| Sandstorm Gold Ltd ($SSL) | 63.8% | 74.3% | 49.9% | 62.1% | |
| Nevsun Resources Ltd ($NSU) | 81.0% | 76.8% | 54.5% | 60.4% | 38.6% |
| |
|---|
| Median (137 companies) | 23.3% | 18.6% | 11.7% | 9.9% | 6.7% |
|---|
| Cascades Inc ($CAS) | 5.2% | 7.5% | 10.2% | 8.7% | 8.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Barkerville Gold Mines Ltd ($BGM) | 123.7% | 38.5% | 49.9% | 7,166.9% | 3.2% |
| Marlin Gold Mining Ltd ($MLN) | | | | 508.8% | |
| Imperial Metals Corp ($III) | 28.2% | 69.2% | 185.7% | 280.2% | |
| Golden Minerals Co ($AUM) | 462.4% | 36.9% | 16.8% | 212.8% | 0.5% |
| Franco-Nevada Corp ($FNV) | 9.3% | 3.7% | 35.5% | 201.6% | 230.0% |
| |
|---|
| Median (139 companies) | 24.1% | 26.3% | 25.5% | 16.3% | 13.7% |
|---|
| Cascades Inc ($CAS) | 3.9% | 4.4% | 4.1% | 5.0% | 4.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lucara Diamond Corp ($LUC) | -7.1% | -2.9% | 41.3% | 54.7% | 39.6% |
| CanAf Group Inc ($CAF) | 74.9% | 37.0% | 65.2% | 37.6% | 13.8% |
| Nevsun Resources Ltd ($NSU) | 89.8% | 52.2% | 8.8% | 35.0% | 10.4% |
| Dynacor Gold Mines Inc ($DNG) | 45.6% | 62.8% | 50.9% | 31.3% | |
| Canfor Pulp Products Inc ($CFX) | 103.5% | 4.9% | 13.2% | 21.3% | 24.1% |
| |
|---|
| Median (143 companies) | 7.0% | 4.9% | -0.1% | -0.1% | -3.8% |
|---|
| Cascades Inc ($CAS) | 0.3% | 2.9% | 6.5% | 5.0% | 5.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| VMS Ventures Inc ($VMS) | | | | 86.7x | 4.7x |
| Ur-Energy Inc ($URE) | | | | 55.1x | 6.7x |
| Katanga Mining Ltd ($KAT) | 0.4x | 19.4x | 3.3x | 18.8x | |
| HudBay Minerals Inc ($HBM) | -2.8x | -4.8x | 2.0x | 14.0x | |
| Imperial Metals Corp ($III) | -0.1x | 1.5x | 4.9x | 12.9x | |
| |
|---|
| Median (94 companies) | -0.1x | 0.3x | 0.7x | 0.9x | 1.3x |
|---|
| Cascades Inc ($CAS) | 7.9x | 5.6x | 4.7x | 5.2x | 5.0x |
