Overall WRK gets a fundamental rating of 2 out of 10. We evaluated WRK against 22 industry peers in the Containers & Packaging industry. WRK may be in some trouble as it scores bad on both profitability and health. WRK is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

WRK had positive earnings in the past year.
In the past year WRK had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: WRK reported negative net income in multiple years.
In the past 5 years WRK always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 1.13%, WRK is doing worse than 65.22% of the companies in the same industry.
The Return On Equity of WRK (3.03%) is worse than 65.22% of its industry peers.
WRK has a Return On Invested Capital of 3.67%. This is in the lower half of the industry: WRK underperforms 73.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WRK is below the industry average of 7.62%.

		Industry Rank	Sector Rank
ROA	1.13%
ROE	3.03%
ROIC	3.67%

ROA(3y)0.06%

ROA(5y)0.13%

ROE(3y)-0.3%

ROE(5y)0%

ROIC(3y)4.59%

ROIC(5y)4.4%

1.3 Margins

Looking at the Profit Margin, with a value of 1.57%, WRK is doing worse than 65.22% of the companies in the same industry.
With a Operating Margin value of 5.37%, WRK is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of WRK has declined.
WRK's Gross Margin of 17.67% is on the low side compared to the rest of the industry. WRK is outperformed by 78.26% of its industry peers.
WRK's Gross Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	5.37%
PM (TTM)	1.57%
GM	17.67%

OM growth 3Y-3.18%

OM growth 5Y-8.29%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-0.99%

GM growth 5Y-3.08%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WRK is destroying value.
Compared to 1 year ago, WRK has more shares outstanding
Compared to 1 year ago, WRK has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 1.40, we must say that WRK is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.40, WRK is doing worse than 78.26% of the companies in the same industry.
The Debt to FCF ratio of WRK is 19.15, which is on the high side as it means it would take WRK, 19.15 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.15, WRK is doing worse than 65.22% of the companies in the same industry.
A Debt/Equity ratio of 0.77 indicates that WRK is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.77, WRK is doing good in the industry, outperforming 73.91% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.77
Debt/FCF	19.15
Altman-Z	1.4

ROIC/WACC0.51

WACC7.16%

2.3 Liquidity

A Current Ratio of 1.34 indicates that WRK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.34, WRK perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that WRK may have some problems paying its short term obligations.
WRK has a Quick ratio (0.85) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.34
Quick Ratio	0.85

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

WRK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.62%.
The Earnings Per Share has been decreasing by -5.84% on average over the past years.
WRK shows a decrease in Revenue. In the last year, the revenue decreased by -7.89%.
Measured over the past years, WRK shows a small growth in Revenue. The Revenue has been growing by 4.52% on average per year.

EPS 1Y (TTM)-46.62%

EPS 3Y3.3%

EPS 5Y-5.84%

EPS Q2Q%-49.35%

Revenue 1Y (TTM)-7.89%

Revenue growth 3Y4.93%

Revenue growth 5Y4.52%

Sales Q2Q%-10.44%

3.2 Future

WRK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.14% yearly.
Based on estimates for the next years, WRK will show a small growth in Revenue. The Revenue will grow by 1.08% on average per year.

EPS Next Y-28.93%

EPS Next 2Y9.37%

EPS Next 3Y11.37%

EPS Next 5Y11.14%

Revenue Next Year-4.97%

Revenue Next 2Y-0.29%

Revenue Next 3Y0.27%

Revenue Next 5Y1.08%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 22.49 indicates a rather expensive valuation of WRK.
Compared to the rest of the industry, the Price/Earnings ratio of WRK indicates a slightly more expensive valuation: WRK is more expensive than 65.22% of the companies listed in the same industry.
WRK is valuated rather cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.26, which indicates a correct valuation of WRK.
The rest of the industry has a similar Price/Forward Earnings ratio as WRK.
When comparing the Price/Forward Earnings ratio of WRK to the average of the S&P500 Index (25.95), we can say WRK is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	22.49
Fwd PE	14.26

4.2 Price Multiples

WRK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WRK is cheaper than 60.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WRK is valued a bit more expensive than the industry average as 65.22% of the companies are valued more cheaply.

		Industry Rank	Sector Rank
P/FCF	28.18
EV/EBITDA	8.46

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y9.37%

EPS Next 3Y11.37%

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5. Dividend

5.1 Amount

WRK has a Yearly Dividend Yield of 2.43%.
WRK's Dividend Yield is a higher than the industry average which is at 2.38.
WRK's Dividend Yield is a higher than the S&P500 average which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	2.43%

5.2 History

The dividend of WRK decreases each year by -8.63%.
WRK has paid a dividend for at least 10 years, which is a reliable track record.
WRK has decreased its dividend in the last 3 years.

Dividend Growth(5Y)-8.63%

Div Incr Years2

Div Non Decr Years2

5.3 Sustainability

WRK pays out 97.28% of its income as dividend. This is not a sustainable payout ratio.

DP97.28%

EPS Next 2Y9.37%

EPS Next 3Y11.37%

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WESTROCK CO / WRK FAQ

What is the ChartMill fundamental rating of WESTROCK CO (WRK) stock?

ChartMill assigns a fundamental rating of 2 / 10 to WRK.

What is the valuation status for WRK stock?

ChartMill assigns a valuation rating of 2 / 10 to WESTROCK CO (WRK). This can be considered as Overvalued.

Can you provide the profitability details for WESTROCK CO?

WESTROCK CO (WRK) has a profitability rating of 2 / 10.

How financially healthy is WESTROCK CO?

The financial health rating of WESTROCK CO (WRK) is 2 / 10.

What is the expected EPS growth for WESTROCK CO (WRK) stock?

The Earnings per Share (EPS) of WESTROCK CO (WRK) is expected to decline by -28.93% in the next year.