WESTROCK CO (WRK)
US96145D1054 - Common Stock
Overall WRK gets a fundamental rating of 2 out of 10. We evaluated WRK against 24 industry peers in the Containers & Packaging industry. WRK has a bad profitability rating. Also its financial health evaluation is rather negative. WRK is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
WRK had positive earnings in the past year.
WRK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: WRK reported negative net income in multiple years.
Each year in the past 5 years WRK had a positive operating cash flow.
1.2 Ratios
WRK's Return On Assets of 1.13% is on the low side compared to the rest of the industry. WRK is outperformed by 65.22% of its industry peers.
The Return On Equity of WRK (3.03%) is worse than 65.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.67%, WRK is doing worse than 73.91% of the companies in the same industry.
WRK had an Average Return On Invested Capital over the past 3 years of 4.59%. This is significantly below the industry average of 382232.95%.
| 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'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.
In the last couple of years the Operating Margin of WRK has declined.
Looking at the Gross Margin, with a value of 17.67%, WRK is doing worse than 78.26% of the companies in the same industry.
WRK's Gross Margin has declined in the last couple of years.
| 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
WRK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
WRK has more shares outstanding than it did 1 year ago.
The number of shares outstanding for WRK has been increased compared to 5 years ago.
WRK has a worse debt/assets ratio than last year.
2.2 Solvency
WRK has an Altman-Z score of 1.40. This is a bad value and indicates that WRK is not financially healthy and even 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.
The Debt to FCF ratio of WRK (19.15) is worse than 65.22% of its industry peers.
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.
Looking at the Current ratio, with a value of 1.34, WRK is in line with its industry, outperforming 56.52% of the companies in the same industry.
WRK has a Quick Ratio of 1.34. This is a bad value and indicates that WRK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.85, WRK perfoms like the industry average, 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.
Measured over the past years, WRK shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.84% on average per year.
The Revenue has decreased by -7.89% in the past 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
Based on estimates for the next years, WRK will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.14% on average per year.
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.
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
WRK is valuated rather expensively with a Price/Earnings ratio of 22.49.
Based on the Price/Earnings ratio, WRK is valued a bit more expensive than the industry average as 65.22% of the companies are valued more cheaply.
WRK's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 14.26, WRK is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as WRK.
WRK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| 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 60.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WRK indicates a slightly more expensive valuation: WRK is more expensive than 65.22% of the companies listed 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.
Compared to an average industry Dividend Yield of 2.88, WRK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, WRK has a dividend comparable with the average S&P500 company.
| 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
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 Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 14.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.13% | ||
| ROE | 3.03% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.37% | ||
| PM (TTM) | 1.57% | ||
| GM | 17.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-46.62%
EPS 3Y3.3%
EPS 5Y
EPS Q2Q%
EPS Next Y-28.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.89%
Revenue growth 3Y4.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y