CXA-B.TO  Consolidated Hci Holdings B

Exchange

TSX

Sector

Diversified Industries

Industry

Market Cap.

23.66M

Vuru Grade

30.00/100

Current Price

$1.15
+0.00 (+0.00%)

Growth Price

$1.12
Fairly valued

Company Metrics

  • P/E 8.78
  • P/S 20.56
  • P/B 0.98
  • EPS 0.13
  • Cash ROIC 5.31%
  • Cash Ratio -
  • Dividend 0 / 0%
  • Avg. Vol. 3,092.00
  • Shares 20.57M
  • Market Cap. 23.66M

Company Description

Consolidated HCI Holdings Corporation operates as a real estate development company in Canada. The company engages in the redevelopment of an industrial property in Vaughan, Ontario for industrial and commercial uses; and the ownership and lease of land and commercial building in Mississauga, Ontario; and the building and sale of homes on purchased land. It also invests in syndicated mortgage loan... more


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

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CXA-B.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 CXA-B.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.

$1.15 Current Price

$1.12 Growth Price (DCF)

Fairly valued


Growth Rate Assumed by Market: 23.44%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.63 Book Price

Overvalued by 45.25%


Poor Cash Return on Invested Capital over the past 5 years

CXA-B.TO has been unable to consistently generate sufficient returns from 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.

CXA-B.TO has only created $5.31 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in September
20122013201420152016
Free Cash Flow - 15.64M 554,000.00 -144,000.00 -280,000.00
divided by
Invested Capital 51.31M 57.71M 57.74M 27.52M 27.92M
Cash ROIC - 27.10% 0.96% -0.52% -1.00%

Poor Return on Equity over the past 5 years

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

CXA-B.TO has only generated $8.14 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in September
20122013201420152016
Net Income 7.99M 6.92M -168,000.00 1.36M 784,000.00
divided by
Stockholders' Equity 44.11M 51.48M 51.92M 22.40M 23.04M
Return on Equity 18.12% 13.44% -0.32% 6.09% 3.40%

Mediocre Business Performance over the past 10 years

CXA-B.TO isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

CXA-B.TO has been unable to consistently create value for shareholders.
Figures in CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Free Cash Flow 7.45M -28.79M 1.77M 4.07M 3.75M - 15.64M 554,000.00 -144,000.00 -280,000.00

Good Balance Sheet

CXA-B.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 CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 152.80M 103.25M 91.79M 71.51M 57.39M 51.31M 57.71M 57.74M 27.52M 27.92M
Current Liabilities - - - - - - - - - -
Total Liabilities 71.20M 31.56M 15.97M 11.79M 7.83M 7.20M 6.23M 5.82M 5.12M 4.88M
Stockholder' Equity 81.60M 71.69M 75.83M 59.72M 49.57M 44.11M 51.48M 51.92M 22.40M 23.04M
Current Ratio - - - - - - - - - -
TL-to-TA 0.47 0.31 0.17 0.16 0.14 0.14 0.11 0.10 0.19 0.17

Low or No Reinvestment of Profits over the past 10 years

CXA-B.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CXA-B.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 CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Retained Earnings 45.47M 35.93M 39.80M 23.43M 13.50M 7.94M 14.86M 14.69M -14.81M -14.03M
Retained Earnings Growth - -20.98% 10.76% -41.12% -42.40% -41.15% 87.08% -1.13% -200.80% 5.29%

Erratic Net Profit Margins over the past 10 years

CXA-B.TO has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Net Income 118.81M 11.04M 3.87M 4.21M 5.50M 7.99M 6.92M -168,000.00 1.36M 784,000.00
divided by
Revenue 31.00M 52.17M 38.71M 18.65M 13.84M 7.12M 2.36M 874,000.00 1.02M 1.09M
Net Profit Margin 383.29% 21.15% 9.99% 22.59% 39.71% 112.28% 292.97% -19.22% 133.37% 71.66%

Weak Pricing Power over the past 10 years

CXA-B.TO is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that CXA-B.TO has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 31.00M 52.17M 38.71M 18.65M 13.84M 7.12M 2.36M 874,000.00 1.02M 1.09M
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

CXA-B.TO has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that CXA-B.TO may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

6.17% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Capital Expenditure 524,000.00 890,000.00 250,000.00 - - - 192,000.00 364,000.00 73,000.00 109,000.00
divided by
Net Income 118.81M 11.04M 3.87M 4.21M 5.50M 7.99M 6.92M -168,000.00 1.36M 784,000.00
Capital Expenditure Ratio 0.44% 8.07% 6.46% - - - 2.78% -216.67% 5.36% 13.90%

Inconsistent Dividend History over the past 10 years

CXA-B.TO has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Dividend Paid 174.90M 20.58M - 20.58M 15.43M 15.43M - - 30.86M -
divided by
Shares Outstanding 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M
Dividend Paid Per Share 8.43 0.99 - 0.99 0.74 0.74 - - 1.49 -
Price at Year End 0.81 0.51 1.33 1.23 1.16 1.52 1.95 2.10 0.75 1.10
Dividend Yield 1,041.25% 194.56% - 80.67% 64.15% 48.96% - - 198.45% -

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that CXA-B.TO hasn't initiated a stock buyback.
Figures in CAD. Fiscal year ends in September
2007200820092010201120122013201420152016
Shares Outstanding 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M 20.58M
Stock Bought Back - - - - - - - - - -
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