TSE:CHW

2.66
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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

The experts have mixed opinions on Chesswood Group (CHW-T). Some believe that the U.S. side of the business became weak last year and consider it an okay investment but not the best in the finance sector. Others view it as a well-run business with steady insider buying, although profits have been impacted by financing costs. However, there is concern over a disappointing Q1, large provision for loan losses, and increased costs, leading to slashed profits. Overall, the company pays a 7% dividend and shares are considered cheap, but there are warnings to look elsewhere.

Consensus
Mixed
Valuation
Fair Value
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Chesswood Group

The U.S. side of the business became weak last year. It is mostly equipment leasing as well vehicle financing. There is an ongoing strategic review. He considers it OK but there are better places to be in the finance sector.

merchandising / lodging
COMMENT
Chesswood Group

It is a good business, well run with steady insider buying. Profits have been hurt by financing costs since there is a lot of floating rate debt.

merchandising / lodging
PAST TOP PICK
Chesswood Group
(A Top Pick Jul 11/22, Down 33%)

Last year, profits were way up, but suddenly Q1 was disappointing. They took a large provision for loan losses and their costs have shot up. So, they slashed profits. Pays a 7% dividend, and shares are cheap. He has trimmed his holding. Look elsewhere.

merchandising / lodging
BUY
Chesswood Group

Public company that originally was a car leasing business.
Recently pivoted into equipment leasing business.
Diversified lending company.
Growing at a strong pace.
20% return on capital with strong dividend.
Great long term investment.

merchandising / lodging
TOP PICK
Chesswood Group
This is another alternative lender which has been transformed over the past two years with a new CEO who has done well diversifying its product offering as well as its funding sources. It is growing very quickly and has bought an auto lending as well as an investment manager business. It is trading at 5X earnings with a 4% dividend. It is small and not well known but will be more noticed over the next few quarters and years. Buy 2, Hold 1, Sell 0 (Analysts’ price target is $19.00)
merchandising / lodging
PAST TOP PICK
Chesswood Group
(A Top Pick Jul 27/17, Down 7%) Down as they face growing competition. So, they're re-positioning and spending to diversify their business. Generates high ROE and is well-run. The CEO holds a lot of stock, which is big positive.
merchandising / lodging
HOLD
Chesswood Group
It is a leasing company. It pays a good dividend and he respects management. It could be a good takeover target in the future. It has a good valuation today. Yield 7.3%
merchandising / lodging
DON'T BUY
Chesswood Group

They are involved in small equipment leasing, which historically has correlated with auto leasing. He is negative on the prospects for auto leasing and is concerned about the prospects for Chesswood’s funding sources. The dividend is high but the payout ratio is around 50% so he thinks the dividend is reasonably safe. However, this could come under pressure in the future.

merchandising / lodging
PAST TOP PICK
Chesswood Group

(Top Pick Feb 24/17, Up 3.56%) A Top Pick again. The growth rate remained great and they are a potential take out candidate.

merchandising / lodging
TOP PICK
Chesswood Group

Small ticket equipment leasing to US companies. They have a top management team that can manage risks as well as the company. It has a 6.7% dividend that is sustainable and could be raised. They are a prime takeout candidate for major financial services companies. (Analysts’ target: $15.50).

merchandising / lodging
TOP PICK
Chesswood Group

A small-ticket equipment leasing business, and they also provide lending solutions. Mostly operates in the US. The small business confidence in the US is at an all-time high, and as a result, they have seen a very strong pipeline. Has a good organic growth profile. A very solid and capable management team that understands the credit cycles. Thinks this is a prime take-out candidate because it would be hugely liquid for a financial services institution. Dividend yield of 6.8% is sustainable and there is room for further dividend increases.

merchandising / lodging
COMMENT
Chesswood Group

Just had an interesting quarter where they had great numbers both from earnings and cash flow, but their loan loss provisions came in a little bit lower than expected. It looks like management is streamlining what they have, making a few smaller acquisitions that tuck into their traditional financing business. It still trades at a pretty reasonable multiple. Also, has a nice yield which is well supported. He has this on his radar screen.

merchandising / lodging
COMMENT
Chesswood Group

A great stock. Trading at under 10X earnings with a 7.5% dividend yield that is more than covered with earnings and cash flow. This has been really getting focused on their core business of leasing and working capital loans. They deal with small and medium-sized businesses. Very smart management. He expects to see multiple expansion to 11 or 12 times earnings, a 20% gain from here not including the dividend.

merchandising / lodging
COMMENT
Chesswood Group

Thinks this company is destined to be privatized. Trading at about 9 or 10 times earnings, pays a really nice dividend, insiders own a big chunk, and business is pretty good. You have other leasing companies that are trading at much higher valuations. No one is really paying attention to this and it doesn’t trade a whole lot. He thinks that eventually a private equity group or management might consider taking it private. Dividend yield of 7.8%.

merchandising / lodging
BUY
Chesswood Group

Good company. They have good management and it is a good business. It is at a fair price right now. Good yield of 6.6%.

merchandising / lodging
Showing 1 to 15 of 35 entries

Chesswood Group(CHW-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 1

Stockchase rating for Chesswood Group is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Chesswood Group(CHW-T) Frequently Asked Questions

What is Chesswood Group stock symbol?

Chesswood Group is a Canadian stock, trading under the symbol CHW-T on the Toronto Stock Exchange (CHW-CT). It is usually referred to as TSX:CHW or CHW-T

Is Chesswood Group a buy or a sell?

In the last year, 1 stock analyst published opinions about CHW-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Chesswood Group.

Is Chesswood Group a good investment or a top pick?

Chesswood Group was recommended as a Top Pick by on . Read the latest stock experts ratings for Chesswood Group.

Why is Chesswood Group stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Chesswood Group worth watching?

1 stock analyst on Stockchase covered Chesswood Group In the last year. It is a trending stock that is worth watching.

What is Chesswood Group stock price?

On 2024-07-22, Chesswood Group (CHW-T) stock closed at a price of $2.66.