WESTROCK CO (WRK) Fundamental Analysis & Valuation

NYSE:WRK • US96145D1054

Current stock price

51.51 USD
+1.76 (+3.54%)
At close:
52 USD
+0.49 (+0.95%)
After Hours:

This WRK fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. WRK Profitability Analysis

1.1 Basic Checks

  • In the past year WRK was profitable.
  • 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.
  • WRK had a positive operating cash flow in each of the past 5 years.
WRK Yearly Net Income VS EBIT VS OCF VS FCFWRK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B

1.2 Ratios

  • The Return On Assets of WRK (1.13%) is worse than 65.22% of its industry peers.
  • Looking at the Return On Equity, with a value of 3.03%, WRK is doing worse than 65.22% of the companies in the same industry.
  • WRK's Return On Invested Capital of 3.67% is on the low side compared to the rest of the industry. WRK is outperformed by 73.91% of its industry peers.
  • WRK had an Average Return On Invested Capital over the past 3 years of 4.59%. This is below the industry average of 7.29%.
Industry RankSector 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%
WRK Yearly ROA, ROE, ROICWRK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10

1.3 Margins

  • The Profit Margin of WRK (1.57%) is worse than 65.22% of its industry peers.
  • WRK has a worse Operating Margin (5.37%) than 73.91% of its industry peers.
  • WRK's Operating Margin has declined in the last couple of years.
  • 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.
  • WRK's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
WRK Yearly Profit, Operating, Gross MarginsWRK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15 20

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2

2. WRK Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WRK is destroying value.
  • The number of shares outstanding for WRK has been increased compared to 1 year ago.
  • The debt/assets ratio for WRK is higher compared to a year ago.
WRK Yearly Shares OutstandingWRK Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
WRK Yearly Total Debt VS Total AssetsWRK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

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.
  • With a Altman-Z score value of 1.40, WRK is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
  • 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.
  • WRK has a worse Debt to FCF ratio (19.15) than 65.22% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.77
Debt/FCF 19.15
Altman-Z 1.4
ROIC/WACC0.51
WACC7.16%
WRK Yearly LT Debt VS Equity VS FCFWRK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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.
  • 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.
  • Looking at the Quick ratio, with a value of 0.85, WRK is in line with its industry, outperforming 47.83% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.34
Quick Ratio 0.85
WRK Yearly Current Assets VS Current LiabilitesWRK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. WRK Growth Analysis

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.
  • 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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
WRK Yearly Revenue VS EstimatesWRK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5B 10B 15B 20B
WRK Yearly EPS VS EstimatesWRK Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1 2 3 4 5

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2

4. WRK Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.49, WRK is valued on the expensive side.
  • 65.22% of the companies in the same industry are cheaper than WRK, based on the Price/Earnings ratio.
  • WRK is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 14.26, WRK is valued correctly.
  • WRK's Price/Forward Earnings ratio is in line with the industry average.
  • WRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.83.
Industry RankSector Rank
PE 22.49
Fwd PE 14.26
WRK Price Earnings VS Forward Price EarningsWRK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 60.87% of the companies in the same industry are more expensive than WRK, based on the Enterprise Value to EBITDA ratio.
  • WRK's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. WRK is more expensive than 65.22% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.18
EV/EBITDA 8.46
WRK Per share dataWRK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. WRK Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.43%, WRK has a reasonable but not impressive dividend return.
  • WRK's Dividend Yield is a higher than the industry average which is at 2.57.
  • Compared to an average S&P500 Dividend Yield of 1.91, WRK pays a bit more dividend than the S&P500 average.
Industry RankSector 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
WRK Yearly Dividends per shareWRK Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

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%
WRK Yearly Income VS Free CF VS DividendWRK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B
WRK Dividend Payout.WRK Dividend Payout, showing the Payout Ratio.WRK Dividend Payout.PayoutRetained Earnings

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WRK Fundamentals: All Metrics, Ratios and Statistics

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)05-02
Earnings (Next)08-01
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis 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.