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WPK

WinpakTSX:WPK Stock Report

Last Price

CA$36.40

Market Cap

CA$2.4b

7D

-1.2%

1Y

-13.0%

Updated

22 Jan, 2022

Data

Company Financials +
WPK fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance1/6
Financial Health6/6
Dividends0/6

WPK Stock Overview

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

Rewards

Trading at 47.1% below our estimate of its fair value

Earnings are forecast to grow 10.79% per year

Risk Analysis

WPK passed our risk checks.

Winpak Competitors

CCL Industries

TSX:CCL.B

CA$11.7b

Transcontinental

TSX:TCL.A

CA$1.8b

Ball

NYSE:BLL

US$28.6b

International Paper

NYSE:IP

US$18.3b

Price History & Performance

Summary of all time highs, changes and price drops for Winpak
Historical stock prices
Current Share PriceCA$36.40
52 Week HighCA$45.59
52 Week LowCA$34.74
Beta0.19
1 Month Change-0.55%
3 Month Change-8.36%
1 Year Change-13.02%
3 Year Change-24.64%
5 Year Change-24.02%
Change since IPO3,065.22%

Recent News & Updates

Jan 11
Here's What's Concerning About Winpak's (TSE:WPK) Returns On Capital

Here's What's Concerning About Winpak's (TSE:WPK) Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Sep 23
Winpak (TSE:WPK) May Have Issues Allocating Its Capital

Winpak (TSE:WPK) May Have Issues Allocating Its Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Shareholder Returns

WPKCA PackagingCA Market
7D-1.2%-3.0%-2.9%
1Y-13.0%-1.6%15.9%

Return vs Industry: WPK underperformed the Canadian Packaging industry which returned -1.6% over the past year.

Return vs Market: WPK underperformed the Canadian Market which returned 15.9% over the past year.

Price Volatility

Is WPK's price volatile compared to industry and market?
WPK volatility
WPK Average Weekly Movement2.6%
Packaging Industry Average Movement3.8%
Market Average Movement9.9%
10% most volatile stocks in CA Market17.4%
10% least volatile stocks in CA Market3.7%

Stable Share Price: WPK is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: WPK's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19752,507Olivier Mugglihttps://www.winpak.com

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, Mexico, and internationally. The company operates through three segments: Flexible Packaging, Rigid Packaging and Flexible Lidding, and Packaging Machinery. The Flexible Packaging segment provides modified atmosphere packaging products for fresh and processed meats, poultry, cheese, medical device packaging, and high performance pouch applications; high-barrier films for converting applications; barrier and non-barrier films for printing, laminating, and bag making, including shrink bags; and biaxially oriented nylon films for printing, metalizing, or laminating processes, food packaging, and industrial applications.

Winpak Fundamentals Summary

How do Winpak's earnings and revenue compare to its market cap?
WPK fundamental statistics
Market CapUS$1.89b
Earnings (TTM)US$101.03m
Revenue (TTM)US$935.03m

18.7x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WPK income statement (TTM)
RevenueUS$935.03m
Cost of RevenueUS$672.07m
Gross ProfitUS$262.97m
ExpensesUS$161.93m
EarningsUS$101.03m

Last Reported Earnings

Sep 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.55
Gross Margin28.12%
Net Profit Margin10.81%
Debt/Equity Ratio0%

How did WPK perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

6%

Payout Ratio

Valuation

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

47.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPK (CA$36.4) is trading below our estimate of fair value (CA$68.79)

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


Price To Earnings Ratio

PE vs Industry: WPK is poor value based on its PE Ratio (18.7x) compared to the Canadian Packaging industry average (14.5x).

PE vs Market: WPK is poor value based on its PE Ratio (18.7x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: WPK is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: WPK is overvalued based on its PB Ratio (1.8x) compared to the CA Packaging industry average (1.7x).


Future Growth

How is Winpak forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPK's forecast earnings growth (10.8% per year) is above the savings rate (1.6%).

Earnings vs Market: WPK's earnings (10.8% per year) are forecast to grow slower than the Canadian market (10.9% per year).

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

Revenue vs Market: WPK's revenue (3.6% per year) is forecast to grow slower than the Canadian market (5.5% per year).

High Growth Revenue: WPK's revenue (3.6% 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 (9.8%).


Past Performance

How has Winpak performed over the past 5 years?

-0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPK has high quality earnings.

Growing Profit Margin: WPK's current net profit margins (10.8%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: WPK's earnings have declined by 0.6% 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 (22.9%).


Return on Equity

High ROE: WPK's Return on Equity (9.7%) is considered low.


Financial Health

How is Winpak's financial position?


Financial Position Analysis

Short Term Liabilities: WPK's short term assets ($704.0M) exceed its short term liabilities ($79.6M).

Long Term Liabilities: WPK's short term assets ($704.0M) exceed its long term liabilities ($102.4M).


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


Dividend

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

0.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WPK's dividend (0.32%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: WPK's dividend (0.32%) is low compared to the top 25% of dividend payers in the Canadian market (4.75%).


Stability and Growth of Payments

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

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

3.1yrs

Average management tenure


CEO

Olivier Muggli

4.42yrs

Tenure

US$756,995

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's total compensation ($USD757.00K) is below average for companies of similar size in the Canadian market ($USD1.93M).

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


Leadership Team

Experienced Management: WPK's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: WPK's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: WPK insiders have bought more shares than they have sold 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

Winpak Ltd.'s 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
  • Implied Market Cap: CA$2.366b
  • Shares outstanding: 65.00m
  • Website: https://www.winpak.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:38
End of Day Share Price2022/01/21 00:00
Earnings2021/09/26
Annual Earnings2020/12/27


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.