TSX:ITP

Stock Analysis Report

Intertape Polymer Group

Executive Summary

Intertape Polymer Group Inc., together with its subsidiaries, operates in the packaging industry in Canada, the United States, and internationally.

Rewards

Trading at 21% below its fair value

Earnings are forecast to grow 26.11% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (3.5%) are lower than last year (5.7%)



Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

How has Intertape Polymer Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ITP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

ITP

0.4%

CA Packaging

-0.4%

CA Market


1 Year Return

-6.1%

ITP

3.6%

CA Packaging

10.5%

CA Market

Return vs Industry: ITP underperformed the Canadian Packaging industry which returned 3.6% over the past year.

Return vs Market: ITP underperformed the Canadian Market which returned 10.5% over the past year.


Shareholder returns

ITPIndustryMarket
7 Day-1.1%0.4%-0.4%
30 Day-7.8%0.3%0.8%
90 Day-12.4%0.1%1.7%
1 Year-2.0%-6.1%4.7%3.6%14.1%10.5%
3 Year-27.8%-35.4%17.2%13.6%16.1%5.6%
5 Year7.2%-9.9%110.6%97.4%41.2%20.4%

Price Volatility Vs. Market

How volatile is Intertape Polymer Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Intertape Polymer Group undervalued compared to its fair value and its price relative to the market?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ITP (CA$15.93) is trading below our estimate of fair value (CA$20.17)

Significantly Below Fair Value: ITP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ITP is good value based on its PE Ratio (17.6x) compared to the Packaging industry average (19.9x).

PE vs Market: ITP is poor value based on its PE Ratio (17.6x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: ITP is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ITP is overvalued based on its PB Ratio (2.8x) compared to the CA Packaging industry average (1.6x).


Next Steps

Future Growth

How is Intertape Polymer Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITP's forecast earnings growth (26.1% per year) is above the savings rate (1.4%).

Earnings vs Market: ITP's earnings (26.1% per year) are forecast to grow faster than the Canadian market (10.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ITP's revenue (2.6% per year) is forecast to grow slower than the Canadian market (4.9% per year).

High Growth Revenue: ITP's revenue (2.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ITP's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has Intertape Polymer Group performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITP has a large one-off loss of $14.8M impacting its September 30 2019 financial results.

Growing Profit Margin: ITP's current net profit margins (3.5%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: ITP's earnings have declined by -0.4% per year over the past 5 years.

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

Earnings vs Industry: ITP had negative earnings growth (-30%) over the past year, making it difficult to compare to the Packaging industry average (-18.3%).


Return on Equity

High ROE: ITP's Return on Equity (15.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intertape Polymer Group's financial position?


Financial Position Analysis

Short Term Liabilities: ITP's short term assets ($375.9M) exceed its short term liabilities ($166.4M).

Long Term Liabilities: ITP's short term assets ($375.9M) do not cover its long term liabilities ($625.6M).


Debt to Equity History and Analysis

Debt Level: ITP's debt to equity ratio (194.4%) is considered high.

Reducing Debt: ITP's debt to equity ratio has increased from 60% to 194.4% over the past 5 years.

Debt Coverage: ITP's debt is well covered by operating cash flow (25.7%).

Interest Coverage: ITP's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: ITP's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Intertape Polymer Group's current dividend yield, its reliability and sustainability?

4.90%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Intertape Polymer Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.9%marketbottom25%2.0%markettop25%5.7%industryaverage2.4%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: ITP's dividend (4.9%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: ITP's dividend (4.9%) is low compared to the top 25% of dividend payers in the Canadian market (5.68%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ITP has been paying a dividend for less than 10 years.

Growing Dividend: ITP's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84%), ITP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ITP's dividends in 3 years are forecast to be covered by earnings (50.6% payout ratio).


Next Steps

Management

What is the CEO of Intertape Polymer Group's salary, the management and board of directors tenure and is there insider trading?

9.2yrs

Average management tenure


CEO

Greg Yull (52yo)

9.5yrs

Tenure

US$3,658,467

Compensation

Mr. Gregory A. C. Yull, also known as Greg, has been the Chief Executive Officer and President of Intertape Polymer Group Inc. (IPG) since June 8, 2010. Mr. Yull served as the President of Tapes & Films of ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD3.66M) is above average for companies of similar size in the Canadian market ($USD1.50M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

9.2yrs

Average Tenure

Experienced Management: ITP's management team is seasoned and experienced (9.2 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

72yo

Average Age

Experienced Board: ITP's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: ITP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$16,00027 Nov 19
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,000
Max PriceUS$16.00
BuyUS$8,15025 Nov 19
Silvano Iaboni
EntityIndividual
Shares500
Max PriceUS$16.30
BuyUS$33,56020 Nov 19
Dahra Granovsky
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,029
Max PriceUS$16.54
BuyUS$8,25318 Nov 19
Silvano Iaboni
EntityIndividual
Shares500
Max PriceUS$16.51
BuyUS$17,46915 Nov 19
Jeffrey Crystal
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,050
Max PriceUS$16.64
BuyUS$9,37313 Nov 19
Jeffrey Crystal
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares567
Max PriceUS$16.53
BuyUS$134,78413 Nov 19
Gregory A. Yull
EntityIndividual
Role
Chief Executive Officer
CEO, President & Non-Independent Director
Shares8,270
Max PriceUS$16.30
BuyUS$21,12513 Nov 19
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,300
Max PriceUS$16.25
BuyUS$51,45020 Sep 19
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares3,000
Max PriceUS$17.20
BuyUS$87,00017 Sep 19
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares5,000
Max PriceUS$17.40
BuyUS$6,99513 Jun 19
Martin Gilvarg
EntityIndividual
Shares500
Max PriceUS$13.99
SellUS$890,99523 May 19
Joseph Tocci
EntityIndividual
Role
Senior Key Executive
Senior Vice-President of Logistics & Supply Chain
Shares50,000
Max PriceUS$17.82
BuyUS$9,30201 Jan 19
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares560
Max PriceUS$16.61
BuyUS$15,88019 Dec 18
EMA Partners International
EntityCompany
Shares1,000
Max PriceUS$15.88
BuyUS$69,20618 Dec 18
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares4,500
Max PriceUS$15.74
BuyUS$7,74517 Dec 18
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares500
Max PriceUS$15.49
BuyUS$82,95013 Dec 18
James Pantelidis
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares5,000
Max PriceUS$16.59
SellUS$9,96413 Dec 18
Melbourne Yull
EntityIndividual
Role
Member of the Board of Directors
Founder & Director
Shares600
Max PriceUS$16.61

Ownership Breakdown

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


Management Team

  • Melbourne Yull (78yo)

    Founder & Director

    • Tenure: 12.5yrs
    • Compensation: US$175.64k
  • Greg Yull (52yo)

    CEO, President & Non-Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$3.66m
  • Shawn Nelson

    Senior Vice President of Sales

    • Tenure: 9.9yrs
    • Compensation: US$798.53k
  • Doug Nalette

    Senior Vice President of Operations

    • Tenure: 13.9yrs
    • Compensation: US$825.14k
  • Joe Tocci

    Senior Vice-President of Logistics & Supply Chain

    • Tenure: 8.9yrs
    • Compensation: US$756.96k
  • Jeffrey Crystal

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: US$1.26m
  • Randi Booth

    Senior Vice President

    • Tenure: 2yrs
  • Mary Thompson

    Vice President Human Resources

    • Tenure: 2.9yrs
  • Jai Sundararaman

    Vice President of business transformation

    • Tenure: 0yrs
  • Dave Bennett

    Vice President of Operations

    • Tenure: 0yrs

Board Members

  • Melbourne Yull (78yo)

    Founder & Director

    • Tenure: 12.5yrs
    • Compensation: US$175.64k
  • Greg Yull (52yo)

    CEO, President & Non-Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$3.66m
  • Robert Foster (76yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$198.41k
  • Jim Pantelidis (73yo)

    Independent Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: US$191.93k
  • Dahra Granovsky (49yo)

    Independent Director

    • Tenure: 0.5yrs
  • Jorge Quintas (72yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$179.15k
  • Bob Beil (66yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$177.06k
  • Mary Salomone (59yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$155.66k
  • Frank Di Tomaso (72yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$171.74k

Company Information

Intertape Polymer Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Intertape Polymer Group Inc.
  • Ticker: ITP
  • Exchange: TSX
  • Founded: 1981
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: CA$938.502m
  • Shares outstanding: 58.88m
  • Website: https://www.itape.com

Number of Employees


Location

  • Intertape Polymer Group Inc.
  • 9999 Cavendish Boulevard
  • Suite 200
  • Montreal
  • Quebec
  • H4M 2X5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITPO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 1992
ITPTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1992
2NIDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1992

Biography

Intertape Polymer Group Inc., together with its subsidiaries, operates in the packaging industry in Canada, the United States, and internationally. It develops, manufactures, and sells various paper-and-fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 23:37
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.