TSX:WPK

Stock Analysis Report

Executive Summary

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, and internationally.

Snowflake

Fundamentals

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.4%

WPK

0.2%

CA Packaging

0.2%

CA Market


1 Year Return

0.7%

WPK

-5.7%

CA Packaging

2.4%

CA Market

Return vs Industry: WPK exceeded the Canadian Packaging industry which returned -5.7% over the past year.

Return vs Market: WPK matched the Canadian Market which returned 2.4% over the past year.


Shareholder returns

WPKIndustryMarket
7 Day1.4%0.2%0.2%
30 Day8.7%-3.3%-3.3%
90 Day5.4%-17.6%-1.8%
1 Year1.0%0.7%-4.4%-5.7%6.0%2.4%
3 Year2.0%1.3%24.5%16.9%14.2%4.0%
5 Year70.2%61.7%52.9%35.2%27.2%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPK (CA$46.35) is trading below our estimate of fair value (CA$47.67)

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


Price To Earnings Ratio

PE vs Industry: WPK is poor value based on its PE Ratio (20.2x) compared to the Packaging industry average (20.2x).

PE vs Market: WPK is poor value based on its PE Ratio (20.2x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: WPK is poor value based on its PEG Ratio (8.8x)


Price to Book Ratio

PB vs Industry: WPK is overvalued based on its PB Ratio (2.3x) compared to the CA Packaging industry average (0.9x).


Next Steps

Future Growth

How is Winpak forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPK's forecast earnings growth (2.3% per year) is above the savings rate (1.9%).

Earnings vs Market: WPK's earnings (2.3% per year) are forecast to grow slower than the Canadian market (12.9% per year).

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

Revenue vs Market: WPK's revenue (1.9% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: WPK's revenue (1.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WPK's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has Winpak performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WPK's earnings have grown by 8.1% per year over the past 5 years.

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

Earnings vs Industry: WPK had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Packaging industry average (-44.3%).


Return on Equity

High ROE: WPK's Return on Equity (11.6%) is considered low.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Winpak's financial position?


Financial Position Analysis

Short Term Liabilities: WPK's short term assets ($662.4M) exceeds its short term liabilities ($71.3M)

Long Term Liabilities: WPK's short term assets (662.4M) exceeds its long term liabilities (68.8M)


Debt to Equity History and Analysis

Debt Level: WPK is debt free.

Reducing Debt: WPK has not had any debt for past 5 years.

Debt Coverage: WPK has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: WPK has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: WPK's debt is not covered by short term assets (assets are -18400.1x debt).


Next Steps

Dividend

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

0.25%

Current Dividend Yield


Dividend Yield vs Market

company0.3%marketbottom25%2.0%markettop25%6.0%industryaverage2.5%forecastin3Years0.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WPK's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: WPK's dividend (0.25%) is low compared to the top 25% of dividend payers in the Canadian market (5.96%).

Stable Dividend: WPK is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: WPK is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WPK is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WPK's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Olivier Muggli 0

2.2yrs

Tenure

US$1,272,559

Compensation

Mr. Olivier Y. Muggli has been the Chief Executive Officer and President of Winpak Ltd. since August 1, 2017. Mr. Muggli served as the Chief Operating Officer and Executive Vice President of Winpak Ltd.  ...


CEO Compensation Analysis

Compensation vs. Market: Olivier has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

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


Management Age and Tenure

2.2yrs

Average Tenure

Experienced Management: WPK's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

Experienced Board: WPK's board of directors are considered experienced (4.5 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

SellUS$254,02901 Apr 19
Ilkka Suominen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares6,000
Max PriceUS$42.34
BuyUS$8,33226 Mar 19
Vesa Laineenkare
EntityIndividual
Shares200
Max PriceUS$41.66
BuyUS$4,15425 Mar 19
Vesa Laineenkare
EntityIndividual
Shares100
Max PriceUS$41.54
BuyUS$104,07725 Mar 19
Dayna Spiring
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$41.63
SellUS$213,25304 Mar 19
Petri Leskinen
EntityIndividual
Shares5,000
Max PriceUS$42.65
SellUS$525,38228 Dec 18
Ilkka Suominen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares11,500
Max PriceUS$45.88
SellUS$25,66722 Dec 18
Lilia María Pagani
EntityIndividual
Shares557
Max PriceUS$46.08
SellUS$138,24022 Dec 18
Timothy Johnson
EntityIndividual
Role
Senior Key Executive
President of Winpak Heat Seal Packaging
Shares3,000
Max PriceUS$46.08

Ownership Breakdown


Management Team

  • Timothy Johnson

    President of Winpak Heat Seal Packaging

    • Tenure: 0yrs
    • Compensation: US$451.76k
  • D. Kemp

    Secretary

    • Tenure: 0yrs
  • David Stacey

    President of Winpak Portion Packaging

    • Tenure: 0yrs
    • Compensation: US$622.41k
  • Olivier Muggli

    President & CEO

    • Tenure: 2.2yrs
    • Compensation: US$1.27m
  • Larry Warelis

    VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$464.55k
  • James Holland

    President of Winpak Films Inc.

    • Tenure: 2.4yrs
    • Compensation: US$478.02k
  • Sharon Hooper

    Vice President of Human Resources

    • Tenure: 2.1yrs
  • Mustafa Bilgen

    Vice President of Technology & Innovation

    • Tenure: 0.8yrs

Board Members

  • Antti Aarnio-Wihuri

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: US$228.79k
  • Bruce Berry

    Director

    • Tenure: 0.5yrs
    • Compensation: US$10.27m
  • Juha Hellgren (61yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$102.37k
  • Donald R. Chatterley

    Director

    • Tenure: 13.5yrs
    • Compensation: US$102.18k
  • Ilkka Suominen

    Director

    • Tenure: 9.1yrs
    • Compensation: US$99.27k
  • Martti Aarnio-Wihuri

    Director

    • Tenure: 8.5yrs
    • Compensation: US$97.33k
  • Dayna Spiring

    Director

    • Tenure: 3.5yrs
    • Compensation: US$99.66k
  • Karen Albrechtsen

    Director

    • Tenure: 4.5yrs
    • Compensation: US$99.27k
  • Rakel Aarnio-Wihuri

    Director

    • Tenure: 0.5yrs

Company Information

Winpak Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Winpak Ltd.
  • Ticker: WPK
  • Exchange: TSX
  • Founded: 1975
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: CA$3.013b
  • Shares outstanding: 65.00m
  • Website: https://www.winpak.com

Number of Employees


Location

  • Winpak Ltd.
  • 100 Saulteaux Crescent
  • Winnipeg
  • Manitoba
  • R3J 3T3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPKTSX (The Toronto Stock Exchange)YesCommon SharesCACADAug 1986
WIPK.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 1986
25WDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1986

Biography

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, and internationally. The company operates through three segments: Rigid Packaging a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:46
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/30


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.