# Cascades Inc. (CAS.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Basic Materials / Paper & Forest Products. Price C$17.09, market value C$1.7 billion.

## Valuation
- **P/E (trailing): 13.8×** (5-yr avg 17.7×, 3-yr avg 17.7×). Cascades Inc. trades at 13.8× trailing earnings, well below its own five-year average of 17.7×: cheap by its own standards. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 8.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.03**. A PEG of 0.03 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.0×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 6.5×**. Enterprise value is 6.5× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 20.6%** (5-yr avg -3.5%). Free cash flow equals 20.6% of the market value, above its five-year average of -3.5%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 7.3%**. The inverse of the P/E: 7.3% of the price is earned each year.

## Profitability
- **Gross margin: 18.4%**. Cascades Inc. keeps 18.4% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 5.9%**. 5.9% of revenue is left after running the business.
- **Net margin: 1.5%**. 1.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 4.1%**. 4.1% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.5%**. Return on all capital, debt included, is 6.5%.
- **Return on assets: 2.7%**. Each dollar of assets produces 2.7% of profit.

## Growth
- **Revenue growth (1 yr): 1.6%** (3-yr 2.3%/yr, 5-yr -1.5%/yr). Revenue grew 1.6% over the last year, against -1.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 322.6%** (5-yr -19.6%/yr). Earnings per share rose 322.6%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 1.13**. Debt is 1.13 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 3.4×**. It would take 3.4 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.2×**. Operating profit covers interest 2.2×, thin but manageable.
- **Current ratio: 1.43** (quick 0.61). Current assets cover the next year's liabilities 1.43 times.
- **Altman Z-score: 2.17**. A Z-score of 2.17 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.81%** (C$0.48 per share, trailing). Cascades Inc. yields 2.81%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 70%** (14% of free cash flow). 70% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 25**. 25 straight years of increases (the data covers 26 years, so this may be longer): a record very few companies hold.
- **Dividend growth (5 yr): 8.4%/yr** (1-yr 0.0%). The dividend has grown 8.4% a year over five years.

## Price and momentum
- **Total return (1 yr): 78.3%** (YTD 40.2%, 3-mo 59.1%). The shares are up 78.3% over twelve months including dividends.
- **From 52-week high: -4.9%** (82.8% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 65**. An RSI of 65 is neutral.
- **Beta (1 yr): 0.64** (volatility 33%). Beta of 0.64 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CAS.TO · Page: https://foliofundamentals.com/stocks/cas.to

Not investment advice.