WINPAK LTD (WPK.CA) Stock Fundamental Analysis
TSX:WPK - Toronto Stock Exchange - CA97535P1045 - Common Stock - Currency: CAD
We assign a fundamental rating of 7 out of 10 to WPK. WPK was compared to 8 industry peers in the Containers & Packaging industry. WPK has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. WPK is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WPK had positive earnings in the past year.
In the past year WPK had a positive cash flow from operations.
WPK had positive earnings in each of the past 5 years.
In the past 5 years WPK always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.07%, WPK belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.97%, WPK is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
WPK has a better Return On Invested Capital (10.16%) than 87.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WPK is in line with the industry average of 8.86%.
The 3 year average ROIC (9.54%) for WPK is below the current ROIC(10.16%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.07% | ||
| ROE | 11.97% | ||
| ROIC | 10.16% |
ROA(3y)9.09%
ROA(5y)8.62%
ROE(3y)11.2%
ROE(5y)10.52%
ROIC(3y)9.54%
ROIC(5y)9.13%
1.3 Margins
Looking at the Profit Margin, with a value of 13.22%, 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.
With an excellent Operating Margin value of 17.03%, WPK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
WPK's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.98%, WPK is in the better half of the industry, outperforming 62.50% 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 | 17.03% | ||
| PM (TTM) | 13.22% | ||
| GM | 31.98% |
OM growth 3Y5.89%
OM growth 5Y-0.8%
PM growth 3Y8.45%
PM growth 5Y0.12%
GM growth 3Y5.3%
GM growth 5Y0.42%
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 less shares outstanding
Compared to 5 years ago, WPK has less 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 5.52. This indicates that WPK is financially healthy and has little risk of bankruptcy at the moment.
WPK has a Altman-Z score of 5.52. This is amongst the best in the industry. WPK outperforms 100.00% of its industry peers.
There is no outstanding debt for WPK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.52 |
ROIC/WACC1.31
WACC7.75%
2.3 Liquidity
A Current Ratio of 3.71 indicates that WPK has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.71, WPK belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
A Quick Ratio of 2.77 indicates that WPK has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.77, WPK belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.07% 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 5.83% on average per year.
WPK shows a decrease in Revenue. In the last year, the revenue decreased by -0.92%.
The Revenue has been growing slightly by 5.29% on average over the past years.
EPS 1Y (TTM)3.07%
EPS 3Y13.67%
EPS 5Y5.83%
EPS Q2Q%7.41%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y4.12%
Revenue growth 5Y5.29%
Sales Q2Q%3.45%
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 11.06% on average per year.
Based on estimates for the next years, WPK will show a small growth in Revenue. The Revenue will grow by 5.22% on average per year.
EPS Next Y5.15%
EPS Next 2Y7.26%
EPS Next 3Y10.04%
EPS Next 5Y11.06%
Revenue Next Year5.14%
Revenue Next 2Y5.22%
Revenue Next 3YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
WPK is valuated correctly with a Price/Earnings ratio of 13.20.
The rest of the industry has a similar Price/Earnings ratio as WPK.
The average S&P500 Price/Earnings ratio is at 28.64. WPK is valued rather cheaply when compared to this.
WPK is valuated correctly with a Price/Forward Earnings ratio of 12.55.
WPK's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.44, WPK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
WPK's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, WPK is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.95 | ||
| EV/EBITDA | 5.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of WPK may justify a higher PE ratio.
PEG (NY)2.56
PEG (5Y)2.26
EPS Next 2Y7.26%
EPS Next 3Y10.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, WPK is not a good candidate for dividend investing.
WPK's Dividend Yield is slightly below the industry average, which is at 3.56.
With a Dividend Yield of 0.48, WPK pays less dividend than the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of WPK has a limited annual growth rate of 3.16%.
WPK has paid a dividend for at least 10 years, which is a reliable track record.
WPK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)3.16%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
4.43% of the earnings are spent on dividend by WPK. This is a low number and sustainable payout ratio.
The dividend of WPK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP4.43%
EPS Next 2Y7.26%
EPS Next 3Y10.04%
TSX:WPK (4/23/2025, 7:00:00 PM)
42.91
+0.87 (+2.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners27.55%
Inst Owner ChangeN/A
Ins Owners55.11%
Ins Owner ChangeN/A
Market Cap2.65B
Analysts74.29
Price Target52.36 (22.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.14
Dividend Growth(5Y)3.16%
DP4.43%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-7.12%
Min EPS beat(2)-11.65%
Max EPS beat(2)-2.59%
EPS beat(4)0
Avg EPS beat(4)-5.52%
Min EPS beat(4)-11.65%
Max EPS beat(4)-2.59%
EPS beat(8)2
Avg EPS beat(8)-1.55%
EPS beat(12)4
Avg EPS beat(12)0.38%
EPS beat(16)6
Avg EPS beat(16)2%
Revenue beat(2)1
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-3.14%
Max Revenue beat(2)0.1%
Revenue beat(4)1
Avg Revenue beat(4)-3.27%
Min Revenue beat(4)-5.55%
Max Revenue beat(4)0.1%
Revenue beat(8)2
Avg Revenue beat(8)-3.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.68%
Revenue beat(16)8
Avg Revenue beat(16)-0.13%
PT rev (1m)0%
PT rev (3m)-4.35%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-2.98%
EPS NY rev (1m)-6.02%
EPS NY rev (3m)-6.97%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 12.55 | ||
| P/S | 1.69 | ||
| P/FCF | 32.95 | ||
| P/OCF | 10.53 | ||
| P/B | 1.53 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)3.25
EY7.57%
EPS(NY)3.42
Fwd EY7.97%
FCF(TTM)1.3
FCFY3.04%
OCF(TTM)4.07
OCFY9.5%
SpS25.33
BVpS27.97
TBVpS27.3
PEG (NY)2.56
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.07% | ||
| ROE | 11.97% | ||
| ROCE | 13.93% | ||
| ROIC | 10.16% | ||
| ROICexc | 15.87% | ||
| ROICexgc | 16.42% | ||
| OM | 17.03% | ||
| PM (TTM) | 13.22% | ||
| GM | 31.98% | ||
| FCFM | 5.14% |
ROA(3y)9.09%
ROA(5y)8.62%
ROE(3y)11.2%
ROE(5y)10.52%
ROIC(3y)9.54%
ROIC(5y)9.13%
ROICexc(3y)14.51%
ROICexc(5y)13.96%
ROICexgc(3y)15.02%
ROICexgc(5y)14.51%
ROCE(3y)13.08%
ROCE(5y)12.52%
ROICexcg growth 3Y8.39%
ROICexcg growth 5Y0.54%
ROICexc growth 3Y8.66%
ROICexc growth 5Y0.88%
OM growth 3Y5.89%
OM growth 5Y-0.8%
PM growth 3Y8.45%
PM growth 5Y0.12%
GM growth 3Y5.3%
GM growth 5Y0.42%
F-Score6
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 226.87% | ||
| Cap/Sales | 10.94% | ||
| Interest Coverage | 45.84 | ||
| Cash Conversion | 73.61% | ||
| Profit Quality | 38.9% | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 5.52 |
F-Score6
WACC7.75%
ROIC/WACC1.31
Cap/Depr(3y)155.45%
Cap/Depr(5y)136.06%
Cap/Sales(3y)7.06%
Cap/Sales(5y)6.41%
Profit Quality(3y)54.43%
Profit Quality(5y)61.67%
High Growth Momentum
Growth
EPS 1Y (TTM)3.07%
EPS 3Y13.67%
EPS 5Y5.83%
EPS Q2Q%7.41%
EPS Next Y5.15%
EPS Next 2Y7.26%
EPS Next 3Y10.04%
EPS Next 5Y11.06%
Revenue 1Y (TTM)-0.92%
Revenue growth 3Y4.12%
Revenue growth 5Y5.29%
Sales Q2Q%3.45%
Revenue Next Year5.14%
Revenue Next 2Y5.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.31%
EBIT growth 3Y10.25%
EBIT growth 5Y4.45%
EBIT Next Year30.87%
EBIT Next 3Y15.18%
EBIT Next 5Y10.17%
FCF growth 1Y-61.7%
FCF growth 3Y6.22%
FCF growth 5Y-10.6%
OCF growth 1Y-17.63%
OCF growth 3Y23.3%
OCF growth 5Y2.6%