Cascades Inc (CAS.TO) Buy, Sell or Hold

Cascades Inc (CAS.TO)

11.65

-0.19 (1.60%)

as of Jun 30, 2026, 8:00:00 pm Market Open.

151 watching

BUY ON WEAKNESS

Hasn't had the same price benefit compared to lumber producers. It is a different but related business. Owns it from a valuation perspective. A cyclical stock that trades below book value, 5x enterprise value, 4x price to free cashflow. Top 5% of cheapness. Price momentum has been held back. A bit stretched on debt but it is okay.

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PARTIAL SELL

A smaller cap name in paper and forestry. The tissue side has benefited from stay-at-home, but hotels aren't using as much tissue. The packaging business has enjoyed an increase with more packages needed for online shopping. However, this sector is cyclical, falling a lot if the market falls, though bouncing a lot if it rises. Cascades has performed quite well. Next year, supply is coming onstream in the container board business which have pressure pricing going forward. Take profits.

TOP PICK

They had a bit of revenue pulled forward during COVID as everyone bought six months worth of toilet paper. It scores well on valuation and top of the pack on price momentum. The only challenge is the heavier debt load, although supported with valuation. (Analysts’ price target is $13.92)

TOP PICK

They sell paper products from recycled fibers. It has a 10% free cash flow yield and attracts at .68 times enterprise value. He bought in at $12.50. Yield 2.33% (Analysts’ price target is $13.83)

WEAK BUY

You will not retire on this stock but it will do little wrong to your portfolio. They make good investments. They are a diversifier and a stable kind of name.

PAST TOP PICK

(A Top Pick Jul 20/18, Up 0.1%) Fell a fair bit and then sort of bounced back. They make 100% recycled and recyclable paper. Excited with the future. Signed a deal with Amazon. Also new insulated packaging that's fully recyclable, to keep things cool for food delivery companies. Thinks the company has very good growth prospects.

WATCH

Great stable business in recycling. Lots of moving parts, and he can't figure it out. He'll stay on the sidelines for now.

HOLD

It was a past pick a while ago but it did not do well. He would stay patient with it. He is a decade trader rather than a day trader. You may want to buy a little more at the lower price. This is a long term play as they come out with compostable packaging for packaged and home delivered food.

DON'T BUY

You should have done well but didn't. It has continued its trend down. There is nothing in the chart. Seasonally it is not time to buy it. He would not get into it.

WEAK BUY

The valuation has become fairly compelling. It is at half book value, but they have had issues in the tissue segment. He has seen some of their competitors beat expectations so he is hopeful they will have positive news as well.

DON'T BUY

He exited Q4 2018. CAS will benefit from e-commerce shipping, but boxboard demand has been a little weak lately, so this sector has been pressured. CAS carries some debt; he wants them to deleverage more. Well-run company and cheap now, but be cautious.

BUY

There's been an oversupply of tissue in the market. Their container board and boxboard businesses have been steady, but they have come off lately. CAS is getting cheap and attractive. Overall, they've made some improvements to their balance sheet. Current stock prices reflect the competitive market they're in. This is a good long-term investment.

PAST TOP PICK

(A Top Pick Apr 24/18, Down 21%) Recent earnings have been reasonably strong, but he sold earlier at $11.50 to cut his losses and risk. There's a lot of new capacity in the containerboard industry coming, and there are worries about weakening pricing going with worries over the economy. That's why this stock has been under pressure. Demand for boxes moves up and down with the economy. A cyclical.

BUY

Likes it. Globally, it's one of the cheapest valuations in its sector. It's a way to play e-commerce, since CAS makes boxes that packages are delivered in. Generates a lot of free cash flows. Insiders own a lot of stock.

COMMENT

Would you take a full position? If you bought it as a trade, and the trade is there with the 10% pop, sell it. But if you did it as an investment, he’d continue to hold. Thinks there’s upside from here, and he’d buy some more.

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Cascades Inc (CAS.TO)