CMH.TO  Carmanah Technologies Corporat...

Exchange

TSX

Sector

Cleantech

Industry

Market Cap.

106.91M

Vuru Grade

30.22/100

Current Price

$4.34
-0.03 (-0.69%)

Growth Price

$4.61
Undervalued by 6.13%

Stability Price

$1.34
Overvalued by 69.10%

Company Metrics

  • P/E 32.88
  • P/S 2.37
  • P/B 1.47
  • EPS 0.13
  • Cash ROIC -33.88%
  • Cash Ratio 1.61
  • Dividend 0 / 0%
  • Avg. Vol. 22,733.00
  • Shares 24.63M
  • Market Cap. 106.91M

Company Description

Carmanah Technologies Corporation and its subsidiaries engage in developing and distributing renewable and energy-efficient technologies, including solar-power light-emitting diodes (LED) lighting, and solar powered systems and equipment. The company offers off-grid lighting products, including EverGEN solar LED lighting products for various applications, such as street lighting, parking lot light... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Jim Meekison Announces Disposition of Common Shares of Carmanah Technologies ...
GlobeNewswire (press release) - Oct 10, 2017
TORONTO, Oct. 10, 2017 (GLOBE NEWSWIRE) -- James Meekison announces that on October 5, 2017, he disposed of 2,834,039 common shares (“Shares”) of Carmanah Technologies Corporation (“Carmanah”), pursuant to Carmanah's substantial issuer ...
Carmanah Technologies Corp
GuruFocus.com - Dec 15, 2016
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.
Carmanah Announces Final Results of Substantial Issuer Bid
GlobeNewswire (press release) - Oct 5, 2017
VICTORIA, British Columbia, Oct. 05, 2017 (GLOBE NEWSWIRE) -- Carmanah Technologies Corporation (TSX:CMH) (“the Company” or “Carmanah”) announces that it has taken up and paid for 6,000,000 million common shares (“Shares”) at a price of CAD ...
Invest in a Greener World With Carmanah Technologies
Baystreet.ca - Oct 18, 2016
Carmanah Technologies Corp (TSX:CMH) is one of Canada's oldest “green-tech” companies. It has been around since 1996 and has traded on the Toronto Stock Exchange since 2001.
Analysts See $0.04 EPS for Carmanah Technologies Corp (CMH)
BZ Weekly - Oct 16, 2017
Analysts expect Carmanah Technologies Corp (TSE:CMH) to report $0.04 EPS on November, 8.They anticipate $0.02 EPS change or 33.33 % from last quarter's $0.06 EPS.
Carmanah Technologies Corp (CMH) EPS Estimated At $0.04 - Weekly Register
$0.04 EPS Expected for Carmanah Technologies (CMH); Dodge & Cox Has Trimmed ...
Key Gazette - Oct 19, 2017
Analysts expect Carmanah Technologies Corp (TSE:CMH) to report $0.04 EPS on November, 8.They anticipate $0.02 EPS change or 33.33% from last quarter's $0.06 EPS.
Carmanah Technologies Announces Acquisition of Spot Devices including License ...
Business Wire (press release) - Nov 15, 2012
VICTORIA, British Columbia--(BUSINESS WIRE)--Carmanah Technologies (TSX: CMH) announced today a definitive agreement to acquire the assets of Spot Devices, Inc., (“Spot Devices”) a Nevada, USA-based manufacturer of pedestrian and school zone ...
One of Canada's oldest 'green tech' firms is finally starting to reward investors
The Globe and Mail - Jan 8, 2015
Solar lighting pioneer Carmanah Technologies Corp. - one of Canada's oldest "green tech" firms - may finally be turning around after almost two decades of stagnation, losses, and several CEO changes.
Carmanah Technologies: Blue flag protection lights for maintenance-free rail ...
Progressive Rail Roading - Aug 21, 2017
Carmanah Technologies Corp. offers the OL2A, an obstruction light for blue flag protection that provides shockproof, waterproof and weatherproof protection - maintenance free for five-plus years, the company says.
Carmanah closes sale of solar EPC business
Renewables Now (subscription) - Apr 5, 2017
April 5 (Renewables Now) - Canada's Carmanah Technologies Corp (TSE:CMH) said on Tuesday that a wholly-owned unit has sold its solar power engineering, procurement and construction (EPC) business for USD 2 million (EUR 1.9m).
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CMH.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CMH.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$4.34 Current Price

$4.61 Growth Price (DCF)

Undervalued by 6.13%


Growth Rate Assumed by Market: -4.15%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$1.34 Stability Price (EPV)

Overvalued by 69.10%


Discount Rate: 15.0%

$0.70 NCA Price

Overvalued by 83.97%

$5.89 Book Price

Undervalued by 35.69%


Very Poor Cash Return on Invested Capital over the past 5 years

CMH.TO has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CMH.TO has lost $33.88 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -3.98M -2.73M -3.34M -10.63M 5.63M
divided by
Invested Capital 6.16M 3.73M 15.11M 51.75M 51.37M
Cash ROIC -64.61% -73.09% -22.12% -20.54% 10.96%

Very Poor Return on Equity over the past 5 years

CMH.TO has shown an inability to deliver results for shareholders. This could be due to poor management, CMH.TO operating in a highly competitive industry, or having a weak business in general.

CMH.TO has generated a $16.11 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -3.92M -5.56M 994,000.00 10.68M 4.23M
divided by
Stockholders' Equity 8.70M 8.93M 23.81M 64.63M 68.79M
Return on Equity -45.09% -62.32% 4.17% 16.52% 6.15%

Poor Business Performance over the past 10 years

CMH.TO's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

CMH.TO has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 1.06M 2.86M 4.95M -1.14M -828,000.00 -3.98M -2.73M -3.34M -10.63M 5.63M

Very Strong Balance Sheet

CMH.TO has more Cash than its Total Liabilities, resulting in $0.15 Net Cash per share. In other words, if you buy CMH.TO today, the price you're paying for shares is actually $4.19 because $0.15 of Cash is included in the current share price. This much Cash is very healthy. It can help CMH.TO sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 4.20M 6.41M 8.66M 5.69M 4.19M 2.53M 5.20M 8.71M 14.88M 21.92M
Current Assets 27.45M 25.30M 17.60M 15.85M 12.63M 10.83M 14.13M 25.70M 51.67M 35.25M
Total Assets 46.00M 30.54M 28.03M 26.93M 15.44M 13.18M 14.96M 33.37M 89.98M 86.91M
Current Liabilities 8.10M 8.02M 4.95M 8.32M 4.84M 4.48M 6.03M 9.55M 23.35M 13.62M
Total Liabilities 8.10M 8.02M 4.95M 8.32M 4.84M 4.48M 6.03M 9.55M 25.34M 18.12M
Stockholder' Equity 37.90M 22.52M 23.08M 18.60M 10.60M 8.70M 8.93M 23.81M 64.63M 68.79M
Current Ratio 3.39 3.16 3.56 1.90 2.61 2.42 2.34 2.69 2.21 2.59
TL-to-TA 0.18 0.26 0.18 0.31 0.31 0.34 0.40 0.29 0.28 0.21

Low or No Reinvestment of Profits over the past 10 years

CMH.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CMH.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -9.04M -14.88M -16.66M -21.61M -27.35M -31.27M -36.83M -35.84M -25.16M -20.93M
Retained Earnings Growth - -64.66% -11.95% -29.72% -26.54% -14.34% -17.79% 2.70% 29.80% 16.81%

Loss Making Entity over the past 10 years

CMH.TO has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$8.04 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -9.03M -7.66M -552,000.00 -4.95M -8.55M -3.92M -5.56M 994,000.00 10.68M 4.23M
divided by
Revenue 59.79M 49.10M 31.64M 33.92M 35.90M 26.44M 25.90M 43.73M 68.21M 47.74M
Net Profit Margin -15.11% -15.59% -1.74% -14.60% -23.82% -14.83% -21.48% 2.27% 15.66% 8.86%

Inconsistent Gross Profit Margins over the past 10 years

CMH.TO has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$39.34 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 15.78M 16.85M 10.73M 11.30M 33.94M 8.24M 7.38M 15.16M 22.91M 20.54M
divided by
Revenue 59.79M 49.10M 31.64M 33.92M 35.90M 26.44M 25.90M 43.73M 68.21M 47.74M
Gross Margin 26.40% 34.32% 33.90% 33.30% 94.54% 31.16% 28.51% 34.67% 33.59% 43.03%

Medium Capital Intensity over the past 10 years

CMH.TO has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

38.95% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 924,635.00 413,123.00 750,000.00 575,000.00 891,000.00 431,000.00 270,000.00 899,000.00 763,000.00 815,000.00
divided by
Net Income -9.03M -7.66M -552,000.00 -4.95M -8.55M -3.92M -5.56M 994,000.00 10.68M 4.23M
Capital Expenditure Ratio -10.24% -5.40% -135.87% -11.61% -10.42% -10.99% -4.85% 90.44% 7.14% 19.28%

No Dividend History over the past 10 years

CMH.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 42.65M 42.31M 42.40M 42.29M 42.77M 44.88M 55.98M 13.99M 22.51M 25.26M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 1.21 0.47 0.84 0.54 0.45 0.26 0.15 2.96 5.86 3.92
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CMH.TO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 42.65M 42.31M 42.40M 42.29M 42.77M 44.88M 55.98M 13.99M 22.51M 25.26M
Stock Bought Back - 0.80% -0.20% 0.27% -1.12% -4.71% -19.83% 300.22% -37.87% -10.87%
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