CCL INDUSTRIES INC - CL B (CCL-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CCL-B - CA1249003098 - Common Stock
86.84 CAD
+0.58 (+0.67%)
Taking everything into account, CCL-B scores 5 out of 10 in our fundamental rating. CCL-B was compared to 9 industry peers in the Containers & Packaging industry. CCL-B scores excellent on profitability, but there are some minor concerns on its financial health. CCL-B has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year CCL-B was profitable.
- CCL-B had a positive operating cash flow in the past year.
- In the past 5 years CCL-B has always been profitable.
- Each year in the past 5 years CCL-B had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 7.72%, CCL-B is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
- With an excellent Return On Equity value of 14.54%, CCL-B belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- CCL-B's Return On Invested Capital of 9.69% is amongst the best of the industry. CCL-B outperforms 88.89% of its industry peers.
- CCL-B had an Average Return On Invested Capital over the past 3 years of 9.32%. This is in line with the industry average of 7.93%.
- The 3 year average ROIC (9.32%) for CCL-B is below the current ROIC(9.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.72% | ||
| ROE | 14.54% | ||
| ROIC | 9.69% |
ROA(3y)7.23%
ROA(5y)7.35%
ROE(3y)14.01%
ROE(5y)14.83%
ROIC(3y)9.32%
ROIC(5y)9.53%
1.3 Margins
- The Profit Margin of CCL-B (10.67%) is better than 77.78% of its industry peers.
- In the last couple of years the Profit Margin of CCL-B has grown nicely.
- CCL-B's Operating Margin of 15.06% is fine compared to the rest of the industry. CCL-B outperforms 77.78% of its industry peers.
- CCL-B's Operating Margin has been stable in the last couple of years.
- CCL-B's Gross Margin of 29.94% is in line compared to the rest of the industry. CCL-B outperforms 44.44% of its industry peers.
- In the last couple of years the Gross Margin of CCL-B has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.06% | ||
| PM (TTM) | 10.67% | ||
| GM | 29.94% |
OM growth 3Y0.47%
OM growth 5Y1.18%
PM growth 3Y3.65%
PM growth 5Y5.35%
GM growth 3Y2.04%
GM growth 5Y0.75%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CCL-B is still creating some value.
- Compared to 1 year ago, CCL-B has less shares outstanding
- The number of shares outstanding for CCL-B has been reduced compared to 5 years ago.
- Compared to 1 year ago, CCL-B has an improved debt to assets ratio.
2.2 Solvency
- CCL-B has an Altman-Z score of 3.76. This indicates that CCL-B is financially healthy and has little risk of bankruptcy at the moment.
- CCL-B has a Altman-Z score of 3.76. This is in the better half of the industry: CCL-B outperforms 77.78% of its industry peers.
- The Debt to FCF ratio of CCL-B is 3.14, which is a good value as it means it would take CCL-B, 3.14 years of fcf income to pay off all of its debts.
- CCL-B's Debt to FCF ratio of 3.14 is on the low side compared to the rest of the industry. CCL-B is outperformed by 66.67% of its industry peers.
- A Debt/Equity ratio of 0.46 indicates that CCL-B is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.46, CCL-B is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.14 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.27
WACC7.64%
2.3 Liquidity
- CCL-B has a Current Ratio of 2.19. This indicates that CCL-B is financially healthy and has no problem in meeting its short term obligations.
- With a Current ratio value of 2.19, CCL-B perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
- A Quick Ratio of 1.66 indicates that CCL-B should not have too much problems paying its short term obligations.
- CCL-B has a Quick ratio of 1.66. This is comparable to the rest of the industry: CCL-B outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.66 |
3. Growth
3.1 Past
- CCL-B shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.61%.
- The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
- Looking at the last year, CCL-B shows a small growth in Revenue. The Revenue has grown by 7.12% in the last year.
- CCL-B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.37% yearly.
EPS 1Y (TTM)3.61%
EPS 3Y11.84%
EPS 5Y10.99%
EPS Q2Q%12.15%
Revenue 1Y (TTM)7.12%
Revenue growth 3Y8.12%
Revenue growth 5Y6.37%
Sales Q2Q%6.28%
3.2 Future
- CCL-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.85% yearly.
- Based on estimates for the next years, CCL-B will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y2.89%
EPS Next 2Y3.96%
EPS Next 3Y4.85%
EPS Next 5YN/A
Revenue Next Year6.56%
Revenue Next 2Y4.98%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
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 decreasing.
- 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
- With a Price/Earnings ratio of 18.92, CCL-B is valued on the expensive side.
- Based on the Price/Earnings ratio, CCL-B is valued a bit more expensive than 66.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of CCL-B to the average of the S&P500 Index (28.82), we can say CCL-B is valued slightly cheaper.
- The Price/Forward Earnings ratio is 17.10, which indicates a rather expensive current valuation of CCL-B.
- CCL-B's Price/Forward Earnings is on the same level as the industry average.
- CCL-B is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.92 | ||
| Fwd PE | 17.1 |
4.2 Price Multiples
- CCL-B's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CCL-B is more expensive than 66.67% of the companies in the same industry.
- CCL-B's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CCL-B is more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 10.33 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CCL-B does not grow enough to justify the current Price/Earnings ratio.
- CCL-B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.55
PEG (5Y)1.72
EPS Next 2Y3.96%
EPS Next 3Y4.85%
5. Dividend
5.1 Amount
- CCL-B has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.04, CCL-B has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, CCL-B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- The dividend of CCL-B is nicely growing with an annual growth rate of 11.36%!
- CCL-B has paid a dividend for at least 10 years, which is a reliable track record.
- CCL-B has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.36%
Div Incr Years23
Div Non Decr Years34
5.3 Sustainability
- 27.03% of the earnings are spent on dividend by CCL-B. This is a low number and sustainable payout ratio.
- The dividend of CCL-B is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.03%
EPS Next 2Y3.96%
EPS Next 3Y4.85%
CCL INDUSTRIES INC - CL B / CCL-B.CA FAQ
What is the fundamental rating for CCL-B stock?
ChartMill assigns a fundamental rating of 6 / 10 to CCL-B.CA.
What is the valuation status for CCL-B stock?
ChartMill assigns a valuation rating of 3 / 10 to CCL INDUSTRIES INC - CL B (CCL-B.CA). This can be considered as Overvalued.
How profitable is CCL INDUSTRIES INC - CL B (CCL-B.CA) stock?
CCL INDUSTRIES INC - CL B (CCL-B.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CCL INDUSTRIES INC - CL B (CCL-B.CA) stock?
The Price/Earnings (PE) ratio for CCL INDUSTRIES INC - CL B (CCL-B.CA) is 18.92 and the Price/Book (PB) ratio is 2.7.
What is the earnings growth outlook for CCL INDUSTRIES INC - CL B?
The Earnings per Share (EPS) of CCL INDUSTRIES INC - CL B (CCL-B.CA) is expected to grow by 2.89% in the next year.