TSX:CCL.B

Stock Analysis Report

Executive Summary

CCL Industries Inc. manufactures and sells labels, containers, consumer printable media products, technology driven label solutions, polymer bank note substrates, and specialty films.


Snowflake Analysis

Average dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has CCL Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CCL.B's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-19.3%

CCL.B

-13.7%

CA Packaging

0.1%

CA Market


1 Year Return

-14.0%

CCL.B

-10.7%

CA Packaging

4.7%

CA Market

Return vs Industry: CCL.B underperformed the Canadian Packaging industry which returned -10.7% over the past year.

Return vs Market: CCL.B underperformed the Canadian Market which returned 4.7% over the past year.


Shareholder returns

CCL.BIndustryMarket
7 Day-19.3%-13.7%0.1%
30 Day-17.1%-12.2%0.8%
90 Day-18.7%-13.0%3.7%
1 Year-13.0%-14.0%-9.6%-10.7%7.9%4.7%
3 Year-16.1%-18.4%-14.5%-17.2%17.9%7.3%
5 Year79.1%71.2%54.4%44.6%33.8%14.4%

Price Volatility Vs. Market

How volatile is CCL Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CCL Industries undervalued compared to its fair value and its price relative to the market?

12.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CCL.B (CA$47.35) is trading below our estimate of fair value (CA$54.03)

Significantly Below Fair Value: CCL.B is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CCL.B is good value based on its PE Ratio (17.3x) compared to the Packaging industry average (18.3x).

PE vs Market: CCL.B is poor value based on its PE Ratio (17.3x) compared to the Canadian market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: CCL.B is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CCL.B is overvalued based on its PB Ratio (3x) compared to the CA Packaging industry average (1.7x).


Next Steps

Future Growth

How is CCL Industries forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCL.B's forecast earnings growth (10.4% per year) is above the savings rate (1.4%).

Earnings vs Market: CCL.B's earnings (10.4% per year) are forecast to grow slower than the Canadian market (10.9% per year).

High Growth Earnings: CCL.B's earnings are forecast to grow, but not significantly.

Revenue vs Market: CCL.B's revenue (0.9% per year) is forecast to grow slower than the Canadian market (4.7% per year).

High Growth Revenue: CCL.B's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CCL.B's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has CCL Industries performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CCL.B has high quality earnings.

Growing Profit Margin: CCL.B's current net profit margins (9%) are lower than last year (9%).


Past Earnings Growth Analysis

Earnings Trend: CCL.B's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: CCL.B's earnings growth over the past year (2.2%) is below its 5-year average (15.9% per year).

Earnings vs Industry: CCL.B earnings growth over the past year (2.2%) exceeded the Packaging industry -17.9%.


Return on Equity

High ROE: CCL.B's Return on Equity (16.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CCL Industries's financial position?


Financial Position Analysis

Short Term Liabilities: CCL.B's short term assets (CA$2.1B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: CCL.B's short term assets (CA$2.1B) do not cover its long term liabilities (CA$3.0B).


Debt to Equity History and Analysis

Debt Level: CCL.B's debt to equity ratio (79.3%) is considered high.

Reducing Debt: CCL.B's debt to equity ratio has increased from 53.7% to 79.3% over the past 5 years.

Debt Coverage: CCL.B's debt is well covered by operating cash flow (33.9%).

Interest Coverage: CCL.B's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

Inventory Level: CCL.B has a high level of physical assets or inventory.

Debt Coverage by Assets: CCL.B's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is CCL Industries's current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CCL.B's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: CCL.B's dividend (1.44%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).


Stability and Growth of Payments

Stable Dividend: CCL.B's dividends per share have been stable in the past 10 years.

Growing Dividend: CCL.B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.4%), CCL.B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CCL.B's dividends in 3 years are forecast to be well covered by earnings (24.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Geoffrey Martin (64yo)

11.8yrs

Tenure

CA$4,940,044

Compensation

Mr. Geoffrey T. Martin has been the Principal Executive Officer of Checkpoint Systems Inc. since May 13, 2016. Mr. Martin has been the President of CCL Industries Inc. since May 17, 2005 and has been its C ...


CEO Compensation Analysis

Compensation vs Market: Geoffrey's total compensation ($USD3.74M) is about average for companies of similar size in the Canadian market ($USD3.73M).

Compensation vs Earnings: Geoffrey's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Lang
Executive Chairman11.8yrsCA$1.01m0.00042% CA$35.5k
Geoffrey Martin
President11.8yrsCA$4.94m0.36% CA$30.1m
Sean Washchuk
Senior VP & CFO8.3yrsCA$3.04m0.029% CA$2.5m
Lalitha Vaidyanathan
Senior Vice President of Finance0yrsCA$3.49m0.060% CA$5.1m
Ben Rubino
President of Home & Personal Care Worldwide8.3yrsCA$3.98mno data
Günther Birkner
President of Food & Beverage3.9yrsCA$3.65m0.039% CA$3.3m
John Dargan
President of Checkpoint Worldwide3.1yrsCA$2.70m0.0081% CA$686.7k
Nicolangelo Vecchiarelli
Vice President of Corporate Accounting0yrsno data0.00070% CA$59.2k
Mark McClendon
VP & General Counsel5.6yrsno data0.0031% CA$265.5k
Ben Lilienthal
VP & MD of CCL Industries - Central America0yrsno data0.035% CA$3.0m

6.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CCL.B's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Lang
Executive Chairman11.8yrsCA$1.01m0.00042% CA$35.5k
Geoffrey Martin
President11.8yrsCA$4.94m0.36% CA$30.1m
Vincent Galifi
Independent Director3.2yrsCA$162.17k0.0011% CA$94.7k
Alan Horn
Independent Director0.8yrsCA$61.62k0.14% CA$11.6m
Thomas Peddie
Independent Director16.7yrsCA$259.58k0.0056% CA$473.6k
Douglas Muzyka
Independent Director3.3yrsCA$167.89kno data
Stuart Lang
Non-Independent Director28.8yrsCA$162.27k0.066% CA$5.6m
Mandy Shapansky
Independent Director5.7yrsCA$172.71kno data
Kathleen Keller-Hobson
Non-Executive Lead Director0yrsCA$192.75k0.0018% CA$153.9k
Erin Lang
Non-Independent Director3.2yrsCA$150.09kno data

5.7yrs

Average Tenure

64yo

Average Age

Experienced Board: CCL.B's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CCL.B insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CCL Industries Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CCL Industries Inc.
  • Ticker: CCL.B
  • Exchange: TSX
  • Founded: 1951
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: CA$8.457b
  • Shares outstanding: 178.63m
  • Website: https://www.cclind.com

Number of Employees


Location

  • CCL Industries Inc.
  • 111 Gordon Baker Road
  • Suite 801
  • Toronto
  • Ontario
  • M2H 3R1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCL.ATSX (The Toronto Stock Exchange)Class A Voting SharesCACADJul 1983
CCL.BTSX (The Toronto Stock Exchange)YesClass B Non-Voting SharesCACADJul 1983
CCDB.FOTCPK (Pink Sheets LLC)YesClass B Non-Voting SharesUSUSDJul 1983
1C9DB (Deutsche Boerse AG)YesClass B Non-Voting SharesDEEURJul 1983
CCLL.FOTCPK (Pink Sheets LLC)Class A Voting SharesUSUSDJul 1983

Biography

CCL Industries Inc. manufactures and sells labels, containers, consumer printable media products, technology driven label solutions, polymer bank note substrates, and specialty films. The company operates through four segments: CCL, Avery, Checkpoint, and Innovia. The CCL segment offers pressure sensitive and specialty extruded film materials for decorative, instructional, functional, and security applications in the consumer packaging, healthcare, chemicals, consumer electronic device, and automotive markets. This segment also provides extruded and laminated plastic tubes, aluminum aerosols and specialty bottles, folded instructional leaflets, precision decorated and die cut components, electronic displays, and other complementary products and services. The Avery segment offers printable media products, including address labels, shipping labels, marketing and product identification labels, business cards, and name badges supported by customized software solutions; and organizational products, such as binders, sheet protectors, indexes and dividers, and writing instruments. This segment also provides direct to consumer digitally imaged media products, such as labels, business cards, name badges, and family oriented identification labels supported by unique Web-enabled e-commerce URLs. The Checkpoint segment provides technology-driven, loss-prevention, inventory management, and labelling solutions, including radio frequency and radio-frequency identification solutions to retail and apparel industries. The Innovia segment offers specialty, high-performance, multi-layer, and surface engineered biaxially oriented polypropylene films for pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:01
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.