CMH.TO  Carmanah Technologies Corporat...

Exchange

TSX

Sector

Cleantech

Industry

Market Cap.

100.70M

Vuru Grade

14.99/100

Current Price

$4.05
-0.04 (-0.98%)

Growth Price

$1.28
Overvalued by 68.40%

Stability Price

$3.61
Overvalued by 10.92%

Company Metrics

  • P/E 22.25
  • P/S 1.3
  • P/B 1.44
  • EPS 0.18
  • Cash ROIC -38.66%
  • Cash Ratio 0.64
  • Dividend 0 / 0%
  • Avg. Vol. 11,394.00
  • Shares 22.51M
  • Market Cap. 100.70M

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

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.
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 Announces Management Changes
Marketwired (press release) - Oct 22, 2015
VICTORIA, BRITISH COLUMBIA--(Marketwired - Oct. 22, 2015) - Carmanah Technologies Corp. (TSX:CMH) today announces that Chief Operating Officer, Ms. Tammy Neske and the Company have agreed to part ways with immediate effect.
Analysts see more gains for under-the-radar stock that has doubled in the past ...
The Globe and Mail - Sep 28, 2015
Investors who placed their bets on the comeback of struggling solar lighting firm Carmanah Technologies Corp. have been richly rewarded over the past year, and analysts believe there are more gains ahead.
GlobalStar (GSAT) Enters Strategic Agreement with Carmanah
StreetInsider.com - Aug 30, 2016
Carmanah Technologies Corporation announced a strategic agreement with Globalstar Inc. (NYSE: GSAT)). Under the terms of the agreement (the "Agreement") Carmanah will collaborate on the design and manufacture of new solar powered M2M satellite ...
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 ...
Flashing pedestrian beacon light signs coming to Vancouver
Vancity Buzz - Feb 19, 2016
A number of major North American cities such as Portland and Washington D.C. already use the technology. In Metro Vancouver, the beacon lights can already be found in Surrey, New Westminster, Port Moody, and UBC, including the recently built ...
Canadian CEOs want governments to invest in clean-tech innovation
The Globe and Mail (subscription) - Mar 27, 2016
“I firmly believe it is possible, and I don't think I am a lunatic-fringe kind of person,” said John Simmons, chief executive officer of Victoria, B.C.
BC's most profitable tech firms look beyond Vancouver for top talent
Business in Vancouver - Nov 16, 2016
Carmanah Technologies Corp.'s (TSX:CMH) profit has jumped more than 1,200% from $983,000 in 2014 to $12.85 million in 2015.
Taiwan & China Must Pay North American Solar Duties
CleanTechnica - Mar 12, 2015
In a press announcement, Canadian green manufacturer Carmanah Technologies Corporation (CTC) stated it anticipates the tariffs will affect “flexible solar panels which are only available in reliable form from Chinese suppliers.
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.

$4.05 Current Price

$1.28 Growth Price (DCF)

Overvalued by 68.40%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


CMH.TO's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$3.61 Stability Price (EPV)

Overvalued by 10.92%


Discount Rate: 15.0%

$1.17 NCA Price

Overvalued by 71.13%

$6.32 Book Price

Undervalued by 56.04%


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 $38.66 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -828,000.00 -3.98M -2.73M -3.34M -10.63M
divided by
Invested Capital 6.41M 6.16M 3.73M 15.11M 51.75M
Cash ROIC -12.92% -64.61% -73.09% -22.12% -20.54%

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 $33.48 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income -8.55M -3.92M -5.56M 994,000.00 10.68M
divided by
Stockholders' Equity 10.60M 8.70M 8.93M 23.81M 64.63M
Return on Equity -80.70% -45.09% -62.32% 4.17% 16.52%

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
2006200720082009201020112012201320142015
Free Cash Flow -8.98M 1.06M 2.86M 4.95M -1.14M -828,000.00 -3.98M -2.73M -3.34M -10.63M

Good Balance Sheet

CMH.TO's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 3.65M 4.20M 6.41M 8.66M 5.69M 4.19M 2.53M 5.20M 8.71M 14.88M
Current Assets 32.62M 27.45M 25.30M 17.60M 15.85M 12.63M 10.83M 14.13M 25.70M 51.67M
Total Assets 48.16M 46.00M 30.54M 28.03M 26.93M 15.44M 13.18M 14.96M 33.37M 89.98M
Current Liabilities 9.15M 8.10M 8.02M 4.95M 8.32M 4.84M 4.48M 6.03M 9.55M 23.35M
Total Liabilities 9.15M 8.10M 8.02M 4.95M 8.32M 4.84M 4.48M 6.03M 9.55M 25.34M
Stockholder' Equity 39.01M 37.90M 22.52M 23.08M 18.60M 10.60M 8.70M 8.93M 23.81M 64.63M
Current Ratio 3.57 3.39 3.16 3.56 1.90 2.61 2.42 2.34 2.69 2.21
TL-to-TA 0.19 0.18 0.26 0.18 0.31 0.31 0.34 0.40 0.29 0.28

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
2006200720082009201020112012201320142015
Retained Earnings 423,704.00 -9.04M -14.88M -16.66M -21.61M -27.35M -31.27M -36.83M -35.84M -25.16M
Retained Earnings Growth - -2,233.28% -64.66% -11.95% -29.72% -26.54% -14.34% -17.79% 2.70% 29.80%

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.

$8.90 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 115,568.00 -9.03M -7.66M -552,000.00 -4.95M -8.55M -3.92M -5.56M 994,000.00 10.68M
divided by
Revenue 53.66M 59.79M 49.10M 31.64M 33.92M 35.90M 26.44M 25.90M 43.73M 68.21M
Net Profit Margin 0.22% -15.11% -15.59% -1.74% -14.60% -23.82% -14.83% -21.48% 2.27% 15.66%

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.

$38.45 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
2006200720082009201020112012201320142015
Gross Profit 18.30M 15.78M 16.85M 10.73M 11.30M 33.94M 8.24M 7.38M 15.16M 22.91M
divided by
Revenue 53.66M 59.79M 49.10M 31.64M 33.92M 35.90M 26.44M 25.90M 43.73M 68.21M
Gross Margin 34.11% 26.40% 34.32% 33.90% 33.30% 94.54% 31.16% 28.51% 34.67% 33.59%

High Capital Intensity over the past 10 years

CMH.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

529.77% 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
2006200720082009201020112012201320142015
Capital Expenditure 1.72M 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
divided by
Net Income 115,568.00 -9.03M -7.66M -552,000.00 -4.95M -8.55M -3.92M -5.56M 994,000.00 10.68M
Capital Expenditure Ratio 1,491.72% -10.24% -5.40% -135.87% -11.61% -10.42% -10.99% -4.85% 90.44% 7.14%

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
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 42.40M 42.65M 42.31M 42.40M 42.29M 42.77M 44.88M 55.98M 13.99M 22.51M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 2.95 1.21 0.47 0.84 0.54 0.45 0.26 0.15 2.96 5.86
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
2006200720082009201020112012201320142015
Shares Outstanding 42.40M 42.65M 42.31M 42.40M 42.29M 42.77M 44.88M 55.98M 13.99M 22.51M
Stock Bought Back - -0.59% 0.80% -0.20% 0.27% -1.12% -4.71% -19.83% 300.22% -37.87%
Share your thoughts about CMH.TO

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!