WESTROCK CO (WRK) Stock Fundamental Analysis
USA - NYSE:WRK - US96145D1054 - Common Stock
51.51 USD
+1.76 (+3.54%)
52 USD
+0.49 (+0.95%)
Overall WRK gets a fundamental rating of 2 out of 10. We evaluated WRK against 22 industry peers in the Containers & Packaging industry. Both the profitability and financial health of WRK have multiple concerns. 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.
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.
1.2 Ratios
The Return On Assets of WRK (1.13%) is worse than 65.22% of its industry peers.
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.
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.
The Average Return On Invested Capital over the past 3 years for WRK is below the industry average of 7.60%.
| 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
WRK has a worse Profit Margin (1.57%) than 65.22% of its industry peers.
WRK's Operating Margin of 5.37% is on the low side compared to the rest of the industry. WRK is outperformed by 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.
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
WRK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WRK has a worse debt to assets ratio.
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.
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
A Current Ratio of 1.34 indicates that WRK should not have too much problems paying its short term obligations.
The Current ratio of WRK (1.34) is comparable to the rest of the 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for WRK have decreased strongly by -46.62% in the last year.
The Earnings Per Share has been decreasing by -5.84% on average over the past years.
Looking at the last year, WRK shows a decrease in Revenue. The Revenue has decreased by -7.89% in the last year.
Measured over the past years, WRK shows a small growth in Revenue. The Revenue has been growing by 4.52% on average per year.
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
The Earnings Per Share is expected to grow by 11.14% on average over the next years. This is quite good.
The Revenue is expected to grow by 1.08% on average over the next years.
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.
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.
When comparing the Price/Earnings ratio of WRK to the average of the S&P500 Index (26.13), we can say WRK is valued inline with the index average.
With a Price/Forward Earnings ratio of 14.26, WRK is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WRK is on the same level as its industry peers.
WRK's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WRK is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
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 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 3.54.
WRK's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| 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
WRK pays out 97.28% of its income as dividend. 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 of WESTROCK CO (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.
What is the financial health of WESTROCK CO (WRK) stock?
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.