WESTROCK CO (WRK)
US96145D1054 - Common Stock
WRK gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 24 industry peers in the Containers & Packaging industry. WRK may be in some trouble as it scores bad on both profitability and health. WRK has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WRK was profitable.
WRK had a positive operating cash flow in the past year.
In multiple years WRK reported negative net income over the last 5 years.
In the past 5 years WRK always reported a positive cash flow from operatings.
1.2 Ratios
WRK has a Return On Assets of 1.13%. This is in the lower half of the industry: WRK underperforms 65.22% of its industry peers.
The Return On Equity of WRK (3.03%) is worse than 65.22% of its industry peers.
WRK has a worse Return On Invested Capital (3.67%) than 73.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WRK is significantly below the industry average of 382233.17%.
| 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.
WRK has a Operating Margin of 5.37%. This is in the lower half of the industry: WRK underperforms 73.91% of its industry peers.
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.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WRK is destroying value.
The number of shares outstanding for WRK has been increased compared to 1 year ago.
Compared to 5 years ago, WRK has more shares outstanding
WRK has a worse debt/assets ratio than last year.
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.
WRK's Altman-Z score of 1.40 is on the low side compared to the rest of the industry. WRK is outperformed by 78.26% of its industry peers.
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.
With a Debt to FCF ratio value of 19.15, WRK is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.77 indicates that WRK is somewhat dependend on debt financing.
The Debt to Equity ratio of WRK (0.77) is better 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
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 of 0.85. This is comparable to the rest of the industry: WRK outperforms 47.83% of its industry peers.
| 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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.49 indicates a rather expensive valuation of WRK.
65.22% of the companies in the same industry are cheaper than WRK, based on the Price/Earnings ratio.
WRK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.55.
A Price/Forward Earnings ratio of 14.26 indicates a correct valuation of WRK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WRK is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, WRK is valued a bit 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.
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
WRK has a Yearly Dividend Yield of 2.43%. Purely for dividend investing, there may be better candidates out there.
WRK's Dividend Yield is a higher than the industry average which is at 3.07.
WRK's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| 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.
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
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%
WESTROCK CO
NYSE:WRK (7/5/2024, 8:25:24 PM)
After market: 52 +0.49 (+0.95%)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 Change-92.5%
Ins Owners1.02%
Ins Owner Change-57.38%
Market Cap13.30B
Analysts71.67
Price Target54.37 (5.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Dividend Growth(5Y)-8.63%
DP97.28%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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
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%
ROICexcg growth 3Y3.04%
ROICexcg 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%