CCL Industries (TSX:CCL.B): Evaluating Shares After Strong Q3 Earnings Growth

CCL Industries (TSX:CCL.B) has posted its third quarter results, showing both sales and net income increased compared to the same period last year. Investors are paying close attention as earnings per share also rose from last year.

See our latest analysis for CCL Industries.

Following the upbeat earnings and steady flow of dividends, CCL Industries’ share price has continued to show momentum, not just in the days around results, but with a 7% share price return over the past month. While the one-year total shareholder return is essentially flat, long-term shareholders have seen compelling gains, with total returns topping 40% over three years and nearly 50% over five years. The recent rally suggests investors see potential for further growth as earnings expand.

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With shares trading at a notable discount to analyst price targets, and following a recent rally, investors are now asking if CCL Industries is undervalued or if the market has already priced in future growth.

Most Popular Narrative: 12% Undervalued

With CCL Industries’ fair value pegged at CA$92.70 by the most widely followed narrative, the CA$81.34 last close suggests room for meaningful upside. This view is shaped by expectations of innovation-driven growth and strategic expansion.

The continued expansion of intelligent labels and RFID solutions positions CCL to capture increased demand for brand protection, traceability, and supply chain security. As supply chain normalization is expected to return RFID growth to double digits, this supports future revenue and a higher-margin product mix. Growing global consumption of packaged goods, especially from middle-class expansion in emerging markets, underpins long-term volume growth in core labeling and packaging segments. This drives sustainable revenue and operating income growth even as some developed markets see flattish volumes.

Read the complete narrative.

Want to peek behind the scenes of this compelling valuation? The narrative’s entire math hinges on growth levers that surprise even analysts. Find out which projections send the fair value soaring and what assumptions could shake up the price chart.

Result: Fair Value of $92.70 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing supply chain disruptions and pressure for sustainable packaging could challenge CCL Industries’ growth. These factors could potentially limit upside if these risks materialize.

Find out about the key risks to this CCL Industries narrative.

Build Your Own CCL Industries Narrative

If you’re curious to put the numbers to the test or want to challenge the consensus, you can build your own narrative for CCL Industries in just a few minutes. Do it your way

A great starting point for your CCL Industries research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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