WESTROCK CO (WRK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WRK - US96145D1054 - Common Stock
51.51 USD
+1.76 (+3.54%)
52 USD
+0.49 (+0.95%)
Taking everything into account, WRK scores 2 out of 10 in our fundamental rating. WRK was compared to 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.
1. Profitability
1.1 Basic Checks
WRK had positive earnings in the past year.
WRK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WRK reported negative net income in multiple years.
Each year in the past 5 years WRK had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.13%, WRK is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
WRK has a Return On Equity of 3.03%. This is in the lower half of the industry: WRK underperforms 65.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.67%, WRK is doing worse than 73.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
With a Profit Margin value of 1.57%, WRK is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
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 has a Gross Margin of 17.67%. This is in the lower half of the industry: WRK underperforms 78.26% of its industry peers.
In the last couple of years the Gross Margin of WRK has declined.
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WRK is destroying value.
Compared to 1 year ago, WRK has more shares outstanding
The debt/assets ratio for WRK is higher compared to a year ago.
2.2 Solvency
WRK has an Altman-Z score of 1.40. This is a bad value and indicates that WRK is not financially healthy and even has some risk of bankruptcy.
WRK has a worse Altman-Z score (1.40) than 78.26% of its industry peers.
WRK has a debt to FCF ratio of 19.15. This is a negative value and a sign of low solvency as WRK would need 19.15 years to pay back of 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.
WRK has a Debt/Equity ratio of 0.77. This is a neutral value indicating WRK is somewhat dependend on debt financing.
WRK has a better Debt to Equity ratio (0.77) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 19.15 | ||
| Altman-Z | 1.4 |
ROIC/WACC0.51
WACC7.16%
2.3 Liquidity
WRK has a Current Ratio of 1.34. This is a normal value and indicates that WRK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WRK (1.34) is comparable to the rest of the industry.
WRK has a Quick Ratio of 1.34. This is a bad value and indicates that WRK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of WRK (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.85 |
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%.
WRK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.84% yearly.
WRK shows a decrease in Revenue. In the last year, the revenue decreased by -7.89%.
WRK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.52% yearly.
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.
WRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.08% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 22.49, the valuation of WRK can be described as rather expensive.
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.
The average S&P500 Price/Earnings ratio is at 26.60. WRK is around the same levels.
A Price/Forward Earnings ratio of 14.26 indicates a correct valuation of WRK.
WRK's Price/Forward Earnings is on the same level as the industry average.
WRK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| 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.
65.22% of the companies in the same industry are cheaper than WRK, based on the Price/Free Cash Flow ratio.
| 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%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.43%, WRK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.52, WRK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, WRK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
The dividend of WRK decreases each year by -8.63%.
WRK has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WRK decreased in the last 3 years.
Dividend Growth(5Y)-8.63%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
97.28% of the earnings are spent on dividend by WRK. This is not a sustainable payout ratio.
DP97.28%
EPS Next 2Y9.37%
EPS Next 3Y11.37%
51.51
+1.76 (+3.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners6.59%
Inst Owner Change0%
Ins Owners1.02%
Ins Owner Change0%
Market Cap13.30B
Revenue(TTM)19.46B
Net Income(TTM)304.90M
Analysts71.67
Price Target54.37 (5.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend1.1
Dividend Growth(5Y)-8.63%
DP97.28%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.23%
Min EPS beat(2)-42.7%
Max EPS beat(2)67.16%
EPS beat(4)3
Avg EPS beat(4)30%
Min EPS beat(4)-42.7%
Max EPS beat(4)86.52%
EPS beat(8)6
Avg EPS beat(8)21.28%
EPS beat(12)10
Avg EPS beat(12)16.22%
EPS beat(16)13
Avg EPS beat(16)16.85%
Revenue beat(2)0
Avg Revenue beat(2)-3.05%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-1.49%
Revenue beat(4)0
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-1.49%
Revenue beat(8)0
Avg Revenue beat(8)-2.32%
Revenue beat(12)3
Avg Revenue beat(12)-1.06%
Revenue beat(16)4
Avg Revenue beat(16)-1%
PT rev (1m)0%
PT rev (3m)19.62%
EPS NQ rev (1m)1.19%
EPS NQ rev (3m)-0.7%
EPS NY rev (1m)0.37%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.92%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 14.26 | ||
| P/S | 0.68 | ||
| P/FCF | 28.18 | ||
| P/OCF | 8.32 | ||
| P/B | 1.32 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)2.29
EY4.45%
EPS(NY)3.61
Fwd EY7.01%
FCF(TTM)1.83
FCFY3.55%
OCF(TTM)6.19
OCFY12.02%
SpS75.37
BVpS38.99
TBVpS13.08
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.03% | ||
| ROCE | 4.72% | ||
| ROIC | 3.67% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 5.44% | ||
| OM | 5.37% | ||
| PM (TTM) | 1.57% | ||
| GM | 17.67% | ||
| FCFM | 2.43% |
ROA(3y)0.06%
ROA(5y)0.13%
ROE(3y)-0.3%
ROE(5y)0%
ROIC(3y)4.59%
ROIC(5y)4.4%
ROICexc(3y)4.65%
ROICexc(5y)4.44%
ROICexgc(3y)7.13%
ROICexgc(5y)7.05%
ROCE(3y)5.89%
ROCE(5y)5.66%
ROICexgc growth 3Y3.04%
ROICexgc growth 5Y-7.16%
ROICexc growth 3Y6.65%
ROICexc growth 5Y-4.49%
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%
F-Score5
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 19.15 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 73.32% | ||
| Cap/Sales | 5.79% | ||
| Interest Coverage | 2.19 | ||
| Cash Conversion | 61.92% | ||
| Profit Quality | 154.77% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.4 |
F-Score5
WACC7.16%
ROIC/WACC0.51
Cap/Depr(3y)62.72%
Cap/Depr(5y)68.91%
Cap/Sales(3y)4.68%
Cap/Sales(5y)5.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-46.62%
EPS 3Y3.3%
EPS 5Y-5.84%
EPS Q2Q%-49.35%
EPS Next Y-28.93%
EPS Next 2Y9.37%
EPS Next 3Y11.37%
EPS Next 5Y11.14%
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y4.93%
Revenue growth 5Y4.52%
Sales Q2Q%-10.44%
Revenue Next Year-4.97%
Revenue Next 2Y-0.29%
Revenue Next 3Y0.27%
Revenue Next 5Y1.08%
EBIT growth 1Y-34.44%
EBIT growth 3Y1.6%
EBIT growth 5Y-4.15%
EBIT Next Year97.6%
EBIT Next 3Y34.37%
EBIT Next 5Y20.78%
FCF growth 1Y-60.82%
FCF growth 3Y-14.38%
FCF growth 5Y-5.94%
OCF growth 1Y-22.8%
OCF growth 3Y-4.07%
OCF growth 5Y-1.09%
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.