Scotiabank Weighs in on Cascades' FY2026 Earnings (TSE:CAS)

Key Points

• Scotiabank raised its FY2026 EPS forecast for Cascades to C$0.65 from C$0.39, while maintaining an “Outperform” rating and C$14.50 price target. The firm also estimates FY2027 EPS of C$1.19.
• Cascades reported quarterly revenue of C$1.12 billion and EPS of C$0.07, with a 2.15% net margin and 5.95% return on equity. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of C$13.93.
• The shares opened at C$13.38 and offer a 3.6% dividend yield based on an annualized C$0.48 payout. Insider ownership is significant at 23.78%, including a recent purchase of 23,302 shares by Laurent Lemaire.

Cascades Inc. (TSE:CAS - Free Report) - Analysts at Scotiabank lifted their FY2026 earnings estimates for shares of Cascades in a report released on Wednesday, July 29th. Scotiabank analyst J. Goldman now forecasts that the company will post earnings per share of $0.65 for the year, up from their prior forecast of $0.39. Scotiabank currently has a "Outperform" rating and a $14.50 price objective on the stock. The consensus estimate for Cascades' current full-year earnings is $1.30 per share. Scotiabank also issued estimates for Cascades' FY2027 earnings at $1.19 EPS.

Cascades (TSE:CAS - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported C$0.07 earnings per share (EPS) for the quarter. Cascades had a return on equity of 5.95% and a net margin of 2.15%.The business had revenue of C$1.12 billion for the quarter.

Other equities research analysts have also issued reports about the company. TD raised their price objective on Cascades from C$13.00 to C$15.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. National Bank Financial cut their target price on shares of Cascades from C$14.00 to C$13.00 and set a "sector perform" rating for the company in a research report on Friday, May 8th. Royal Bank Of Canada cut their price objective on shares of Cascades from C$15.00 to C$14.00 and set an "outperform" rating for the company in a research report on Friday, May 8th. Desjardins lowered their price target on shares of Cascades from C$15.00 to C$13.00 and set a "hold" rating on the stock in a report on Monday, April 13th. Finally, Canadian Imperial Bank of Commerce upgraded Cascades from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Cascades currently has a consensus rating of "Moderate Buy" and a consensus target price of C$13.93.

Cascades Stock Performance

Shares of TSE CAS opened at C$13.38 on Friday. The stock's fifty day simple moving average is C$11.63 and its 200 day simple moving average is C$11.83. The company has a quick ratio of 0.86, a current ratio of 1.53 and a debt-to-equity ratio of 113.03. The stock has a market capitalization of C$1.36 billion, a price-to-earnings ratio of 13.38, a PEG ratio of 0.56 and a beta of 1.03. Cascades has a 52-week low of C$8.90 and a 52-week high of C$14.27.

Insider Activity

In other news, insider Laurent Lemaire purchased 23,302 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were bought at an average cost of C$10.52 per share, for a total transaction of C$245,137.04. Following the completion of the acquisition, the insider directly owned 7,837,637 shares in the company, valued at approximately C$82,451,941.24. This trade represents a 0.30% increase in their position. 23.78% of the stock is owned by corporate insiders.

Cascades Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Thursday, June 4th were paid a $0.12 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $0.48 annualized dividend and a dividend yield of 3.6%. Cascades's dividend payout ratio (DPR) is currently 48.00%.

About Cascades

Founded in 1964, Cascades offers sustainable, innovative and value-added solutions for packaging, hygiene and recovery needs. The company employs approximately 9,000 talented people across a network of 60 production units in North America. With its participative management, half a century of experience in recycling, and ongoing efforts in research and development as driving forces, Cascades continues to deliver the innovative products that customers have come to rely on, while contributing to the well-being of people, communities and the entire planet.

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