WINPAK LTD (WPK.CA) Stock Fundamental Analysis
TSX:WPK - Toronto Stock Exchange - CA97535P1045 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to WPK. WPK was compared to 9 industry peers in the Containers & Packaging industry. WPK gets an excellent profitability rating and is at the same time showing great financial health properties. WPK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year WPK was profitable.
WPK had a positive operating cash flow in the past year.
WPK had positive earnings in each of the past 5 years.
WPK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WPK has a Return On Assets of 9.04%. This is amongst the best in the industry. WPK outperforms 88.89% of its industry peers.
The Return On Equity of WPK (10.61%) is better than 66.67% of its industry peers.
The Return On Invested Capital of WPK (8.92%) is better than 66.67% of its industry peers.
WPK had an Average Return On Invested Capital over the past 3 years of 9.11%. This is in line with the industry average of 8.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 10.61% | ||
| ROIC | 8.92% |
ROA(3y)8.69%
ROA(5y)8.7%
ROE(3y)10.42%
ROE(5y)10.35%
ROIC(3y)9.11%
ROIC(5y)9.18%
1.3 Margins
Looking at the Profit Margin, with a value of 13.17%, WPK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of WPK has remained more or less at the same level.
WPK has a better Operating Margin (16.35%) than 100.00% of its industry peers.
WPK's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 31.12%, WPK is doing good in the industry, outperforming 66.67% of the companies in the same industry.
WPK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.35% | ||
| PM (TTM) | 13.17% | ||
| GM | 31.12% |
OM growth 3Y-3.01%
OM growth 5Y-1.64%
PM growth 3Y1.34%
PM growth 5Y1.18%
GM growth 3Y-1.81%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
WPK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, WPK has about the same amount of shares outstanding.
Compared to 5 years ago, WPK has about the same amount of shares outstanding.
Compared to 1 year ago, WPK has a worse debt to assets ratio.
2.2 Solvency
WPK has an Altman-Z score of 7.50. This indicates that WPK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.50, WPK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
WPK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 7.5 |
ROIC/WACC1.12
WACC7.94%
2.3 Liquidity
A Current Ratio of 8.31 indicates that WPK has no problem at all paying its short term obligations.
The Current ratio of WPK (8.31) is better than 100.00% of its industry peers.
A Quick Ratio of 6.35 indicates that WPK has no problem at all paying its short term obligations.
WPK's Quick ratio of 6.35 is amongst the best of the industry. WPK outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.31 | ||
| Quick Ratio | 6.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.05% over the past year.
Measured over the past 5 years, WPK shows a small growth in Earnings Per Share. The EPS has been growing by 6.30% on average per year.
Looking at the last year, WPK shows a decrease in Revenue. The Revenue has decreased by -3.17% in the last year.
WPK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.11% yearly.
EPS 1Y (TTM)4.05%
EPS 3Y11.61%
EPS 5Y6.3%
EPS Q2Q%17.31%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y10.22%
Revenue growth 5Y5.11%
Sales Q2Q%4.27%
3.2 Future
Based on estimates for the next years, WPK will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.04% on average per year.
WPK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.63% yearly.
EPS Next Y6.91%
EPS Next 2Y7.32%
EPS Next 3Y7.38%
EPS Next 5Y11.04%
Revenue Next Year-1.03%
Revenue Next 2Y2.13%
Revenue Next 3Y3.63%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.98, which indicates a correct valuation of WPK.
WPK's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 30.43. WPK is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.42 indicates a reasonable valuation of WPK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WPK is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of WPK to the average of the S&P500 Index (23.78), we can say WPK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WPK.
WPK's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WPK is more expensive than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.89 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WPK does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WPK may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)2.06
EPS Next 2Y7.32%
EPS Next 3Y7.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, WPK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.07, WPK is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.30, WPK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of WPK decreases each year by -1.05%.
WPK has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of WPK decreased in the last 3 years.
Dividend Growth(5Y)-1.05%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
3.88% of the earnings are spent on dividend by WPK. This is a low number and sustainable payout ratio.
DP3.88%
EPS Next 2Y7.32%
EPS Next 3Y7.38%
WINPAK LTD
TSX:WPK (2/14/2025, 7:00:00 PM)
42.57
-0.15 (-0.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners26.93%
Inst Owner ChangeN/A
Ins Owners54.31%
Ins Owner ChangeN/A
Market Cap2.64B
Analysts74.29
Price Target54.74 (28.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.09
Dividend Growth(5Y)-1.05%
DP3.88%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.98%
Min EPS beat(2)-3.37%
Max EPS beat(2)-2.59%
EPS beat(4)0
Avg EPS beat(4)-3.74%
Min EPS beat(4)-4.53%
Max EPS beat(4)-2.59%
EPS beat(8)2
Avg EPS beat(8)-0.41%
EPS beat(12)5
Avg EPS beat(12)4.6%
EPS beat(16)7
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)-2.19%
Min Revenue beat(2)-4.48%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-3.4%
Min Revenue beat(4)-5.55%
Max Revenue beat(4)0.1%
Revenue beat(8)2
Avg Revenue beat(8)-3.78%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)8
Avg Revenue beat(16)-0.2%
PT rev (1m)0%
PT rev (3m)1.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 11.42 | ||
| P/S | 1.66 | ||
| P/FCF | 24.89 | ||
| P/OCF | 9.3 | ||
| P/B | 1.34 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)3.28
EY7.7%
EPS(NY)3.73
Fwd EY8.75%
FCF(TTM)1.71
FCFY4.02%
OCF(TTM)4.58
OCFY10.75%
SpS25.61
BVpS31.8
TBVpS31.1
PEG (NY)1.88
PEG (5Y)2.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.04% | ||
| ROE | 10.61% | ||
| ROCE | 12.1% | ||
| ROIC | 8.92% | ||
| ROICexc | 13.53% | ||
| ROICexgc | 13.96% | ||
| OM | 16.35% | ||
| PM (TTM) | 13.17% | ||
| GM | 31.12% | ||
| FCFM | 6.68% |
ROA(3y)8.69%
ROA(5y)8.7%
ROE(3y)10.42%
ROE(5y)10.35%
ROIC(3y)9.11%
ROIC(5y)9.18%
ROICexc(3y)13.49%
ROICexc(5y)13.99%
ROICexgc(3y)14.01%
ROICexgc(5y)14.59%
ROCE(3y)12.34%
ROCE(5y)12.45%
ROICexcg growth 3Y-0.29%
ROICexcg growth 5Y-3%
ROICexc growth 3Y0.15%
ROICexc growth 5Y-3.25%
OM growth 3Y-3.01%
OM growth 5Y-1.64%
PM growth 3Y1.34%
PM growth 5Y1.18%
GM growth 3Y-1.81%
GM growth 5Y-0.73%
F-Score5
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 238.24% | ||
| Cap/Sales | 11.18% | ||
| Interest Coverage | 48.76 | ||
| Cash Conversion | 84.9% | ||
| Profit Quality | 50.72% | ||
| Current Ratio | 8.31 | ||
| Quick Ratio | 6.35 | ||
| Altman-Z | 7.5 |
F-Score5
WACC7.94%
ROIC/WACC1.12
Cap/Depr(3y)114.06%
Cap/Depr(5y)116.49%
Cap/Sales(3y)5.03%
Cap/Sales(5y)5.56%
Profit Quality(3y)57.04%
Profit Quality(5y)71.62%
High Growth Momentum
Growth
EPS 1Y (TTM)4.05%
EPS 3Y11.61%
EPS 5Y6.3%
EPS Q2Q%17.31%
EPS Next Y6.91%
EPS Next 2Y7.32%
EPS Next 3Y7.38%
EPS Next 5Y11.04%
Revenue 1Y (TTM)-3.17%
Revenue growth 3Y10.22%
Revenue growth 5Y5.11%
Sales Q2Q%4.27%
Revenue Next Year-1.03%
Revenue Next 2Y2.13%
Revenue Next 3Y3.63%
Revenue Next 5YN/A
EBIT growth 1Y2.16%
EBIT growth 3Y6.9%
EBIT growth 5Y3.39%
EBIT Next Year30.94%
EBIT Next 3Y14.16%
EBIT Next 5Y12.47%
FCF growth 1Y134.66%
FCF growth 3Y13.26%
FCF growth 5Y21.05%
OCF growth 1Y160.26%
OCF growth 3Y12.28%
OCF growth 5Y11.18%