Q: Pros and cons of buying Cascades right now. Touching on industry, insider ownership, balance sheet, history of dividend increases or whatever else you think I need to know. Buy, wait or pass?
5i Research Answer:
Low valuation and a 5.7% dividend plus potential growth would be the main pros. Cons include its small size, negative momentum, very high debt, economic sensitivity, tariff worries and not a great record of creating shareholder value. Total 15 year return is 25%. The dividend has not been raised since 2021but has a decent long term growth record and was not cut in the pandemic. Insiders own 24%. We would pass here.