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

Fundamentals

Mediocre balance sheet second-rate dividend payer.


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


Market Performance


7 Day Return

0.3%

CCL.B

1.2%

CA Packaging

0.2%

CA Market


1 Year Return

1.4%

CCL.B

-3.5%

CA Packaging

3.5%

CA Market

Return vs Industry: CCL.B exceeded the Canadian Packaging industry which returned -3.5% over the past year.

Return vs Market: CCL.B underperformed the Canadian Market which returned 3.5% over the past year.


Shareholder returns

CCL.BIndustryMarket
7 Day0.3%1.2%0.2%
30 Day-3.6%-3.6%-3.3%
90 Day-22.0%-19.4%-1.9%
1 Year2.6%1.4%-2.1%-3.5%7.3%3.5%
3 Year14.9%11.8%25.3%17.7%14.7%4.4%
5 Year144.4%133.7%51.2%33.8%26.2%7.7%

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?

19.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CCL.B (CA$52.9) is trading above our estimate of fair value (CA$49.71)

Significantly Below Fair Value: CCL.B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CCL.B is good value based on its PE Ratio (19.9x) compared to the Packaging industry average (20x).

PE vs Market: CCL.B is poor value based on its PE Ratio (19.9x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: CCL.B is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: CCL.B is overvalued based on its PB Ratio (3.4x) compared to the CA Packaging industry average (0.9x).


Next Steps

Future Growth

How is CCL Industries forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CCL.B's forecast earnings growth (10.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CCL.B's earnings (10.7% per year) are forecast to grow slower than the Canadian market (13% per year).

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

Revenue vs Market: CCL.B's revenue (3.5% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: CCL.B's revenue (3.5% 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 (17.2%).


Next Steps

Past Performance

How has CCL Industries performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CCL.B's earnings have grown significantly by 20% per year over the past 5 years.

Accelerating Growth: CCL.B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CCL.B had negative earnings growth (-8.6%) over the past year, making it difficult to compare to the Packaging industry average (-44.3%).


Return on Equity

High ROE: CCL.B's Return on Equity (17.2%) is considered low.


Return on Assets

ROA vs Industry: CCL.B has a higher Return on Assets than the Packaging industry average last year.


Return on Capital Employed

ROCE Improving: CCL.B's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (CA$1.2B)

Long Term Liabilities: CCL.B's short term assets (2.1B) do not cover its long term liabilities (3.1B)


Debt to Equity History and Analysis

Debt Level: CCL.B's debt to equity ratio (88.7%) is considered high

Reducing Debt: CCL.B's debt to equity ratio has increased from 67.8% to 88.7% over the past 5 years.

Debt Coverage: CCL.B's debt is well covered by operating cash flow (29.9%).

Interest Coverage: CCL.B's interest payments on its debt are well covered by EBIT (8.9x 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 0.8x debt).


Next Steps

Dividend

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

1.29%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%2.0%markettop25%5.9%industryaverage2.5%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CCL.B's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.98%).

High Dividend: CCL.B's dividend (1.29%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).

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 (22.5%), CCL.B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of CCL Industries's salary, the management and board of directors tenure and is there insider trading?

6.6yrs

Average management tenure


CEO

Geoffrey Martin (64yo)

11.4yrs

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 ($USD3.77M) is about average for companies of similar size in the Canadian market ($USD3.93M).

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


Management Age and Tenure

6.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CCL.B's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: CCL.B's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$3,685,50019 Jun 19
Günther Birkner
EntityIndividual
Role
Senior Key Executive
President of Food & Beverage
Shares56,700
Max PriceCA$65.00
SellCA$1,487,50017 May 19
James Sellors
EntityIndividual
Shares25,000
Max PriceCA$59.50
SellCA$6,05016 May 19
Suzana Furtado
EntityIndividual
Shares100
Max PriceCA$60.50
SellCA$1,233,71630 Nov 18
Sebastian Rubino
EntityIndividual
Shares23,470
Max PriceCA$53.21

Ownership Breakdown


Management Team

  • Geoffrey Martin (64yo)

    President

    • Tenure: 11.4yrs
    • Compensation: CA$4.94m
  • Sean Washchuk (46yo)

    Senior VP & CFO

    • Tenure: 8yrs
    • Compensation: CA$3.04m
  • Lalitha Vaidyanathan

    Senior Vice President of Finance

    • Tenure: 0yrs
    • Compensation: CA$3.49m
  • Donald Lang (64yo)

    Executive Chairman

    • Tenure: 11.4yrs
    • Compensation: CA$1.01m
  • Ben Rubino (56yo)

    President of Home & Personal Care Worldwide

    • Tenure: 7.9yrs
    • Compensation: CA$3.98m
  • Ben Lilienthal

    VP & MD of CCL Industries - Central America

    • Tenure: 0yrs
  • Günther Birkner (46yo)

    President of Food & Beverage

    • Tenure: 3.6yrs
    • Compensation: CA$3.65m
  • John Dargan (55yo)

    President of Checkpoint Worldwide

    • Tenure: 2.8yrs
    • Compensation: CA$2.70m
  • Mark McClendon

    VP & General Counsel

    • Tenure: 5.3yrs
  • Nick Vecchiarelli

    Vice President of Corporate Accounting

    • Tenure: 0yrs

Board Members

  • Vincent Galifi (59yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$162.17k
  • Alan Horn (67yo)

    Independent Director

    • Tenure: 0.4yrs
    • Compensation: CA$61.62k
  • Tom Peddie (71yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: CA$259.58k
  • Doug Muzyka (64yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: CA$167.89k
  • Stuart Lang (68yo)

    Non-Independent Director

    • Tenure: 28.4yrs
    • Compensation: CA$162.27k
  • Geoffrey Martin (64yo)

    President

    • Tenure: 11.4yrs
    • Compensation: CA$4.94m
  • Donald Lang (64yo)

    Executive Chairman

    • Tenure: 11.4yrs
    • Compensation: CA$1.01m
  • Mandy Shapansky (57yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$172.71k
  • Kathleen Keller-Hobson (62yo)

    Non-Executive Lead Director

    • Tenure: 0yrs
    • Compensation: CA$192.75k
  • Erin Lang (34yo)

    Non-Independent Director

    • Tenure: 2.8yrs
    • Compensation: CA$150.09k

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$9.451b
  • Shares outstanding: 178.29m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.