WESTROCK CO (WRK) Fundamental Analysis & Valuation

NYSE:WRK • US96145D1054

51.51 USD
+1.76 (+3.54%)
At close: Jul 5, 2024
52 USD
+0.49 (+0.95%)
After Hours: 7/5/2024, 8:25:24 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

2

WRK gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals 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.


Dividend Valuation Growth Profitability Health

2

1. WRK Profitability Analysis

1.1 Basic Checks

  • WRK had positive earnings in the past year.
  • 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

  • With a Return On Assets value of 1.13%, WRK is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
  • WRK has a worse Return On Equity (3.03%) than 65.22% of its industry peers.
  • With a Return On Invested Capital value of 3.67%, WRK is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
  • WRK had an Average Return On Invested Capital over the past 3 years of 4.59%. This is below the industry average of 7.52%.
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

  • 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.
  • Looking at the Operating Margin, with a value of 5.37%, WRK is doing worse than 73.91% of the companies in the same industry.
  • WRK's Operating Margin has declined in the last couple of years.
  • The Gross Margin of WRK (17.67%) is worse than 78.26% of its industry peers.
  • In the last couple of years the Gross Margin of WRK has declined.
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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. WRK Health Analysis

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.
  • WRK has a worse debt/assets ratio than last year.
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

  • 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 has a Altman-Z score of 1.40. This is in the lower half of the industry: WRK underperforms 78.26% of its industry peers.
  • 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.
  • 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.
  • WRK has a Debt to Equity ratio of 0.77. This is in the better half of the industry: WRK outperforms 73.91% of its industry peers.
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

  • 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.
  • 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.
  • WRK has a Quick ratio (0.85) which is comparable to the rest of the 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

  • The earnings per share for WRK have decreased strongly by -46.62% in the last year.
  • WRK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.84% yearly.
  • Looking at the last year, WRK shows a decrease in Revenue. The Revenue has decreased by -7.89% in the last year.
  • The Revenue has been growing slightly by 4.52% on average over the past years.
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.
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

  • 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.
  • When comparing the Price/Earnings ratio of WRK to the average of the S&P500 Index (26.74), we can say WRK is valued inline with the index average.
  • 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.82, WRK is valued a bit cheaper.
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

  • Based on the Enterprise Value to EBITDA ratio, WRK is valued a bit cheaper than 60.87% of the companies in the same industry.
  • 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 2.25.
  • WRK's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

  • The dividend of WRK decreases each year by -8.63%.
  • WRK has paid a dividend for at least 10 years, which is 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

  • 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%
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 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.