TSX:WPK

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 3.39% per year

Risk Analysis

No risks detected for WPK from our risk checks.


Snowflake Analysis

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

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


Market Performance


7 Day Return

-3.6%

WPK

-4.8%

CA Packaging

-8.1%

CA Market


1 Year Return

-11.0%

WPK

-1.2%

CA Packaging

-60.7%

CA Market

Return vs Industry: WPK underperformed the Canadian Packaging industry which returned -1.2% over the past year.

Return vs Market: WPK exceeded the Canadian Market which returned -60.7% over the past year.


Shareholder returns

WPKIndustryMarket
7 Day-3.6%-4.8%-8.1%
30 Day-8.3%-2.1%-6.7%
90 Day-11.2%8.9%-26.5%
1 Year-10.7%-11.0%0.4%-1.2%-59.0%-60.7%
3 Year-15.1%-15.8%-8.3%-11.8%-60.3%-64.4%
5 Year-1.3%-2.6%29.4%22.2%-51.7%-59.4%

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?

19.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WPK (CA$41.69) is trading above our estimate of fair value (CA$40.06)

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


Price To Earnings Ratio

PE vs Industry: WPK's PE Ratio (19.2x) is in line with the CA Packaging industry average.

PE vs Market: WPK is poor value based on its PE Ratio (19.2x) compared to the Canadian market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: WPK is poor value based on its PEG Ratio (5.7x)


Price to Book Ratio

PB vs Industry: WPK's PB Ratio (1.8x) is in line with the CA Packaging industry average.


Next Steps

Future Growth

How is Winpak forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPK's forecast earnings growth (3.4% per year) is above the savings rate (1.7%).

Earnings vs Market: WPK's earnings (3.4% per year) are forecast to grow slower than the Canadian market (60.1% per year).

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

Revenue vs Market: WPK's revenue (2% per year) is forecast to grow slower than the Canadian market (7.3% per year).

High Growth Revenue: WPK's revenue (2% 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 (8.7%).


Next Steps

Past Performance

How has Winpak performed over the past 5 years?

2.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPK has high quality earnings.

Growing Profit Margin: WPK's current net profit margins (12.3%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: WPK's earnings have grown by 2.4% 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 (-7.9%) over the past year, making it difficult to compare to the Packaging industry average (42.4%).


Return on Equity

High ROE: WPK's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Winpak's financial position?


Financial Position Analysis

Short Term Liabilities: WPK's short term assets ($758.2M) exceed its short term liabilities ($69.3M).

Long Term Liabilities: WPK's short term assets ($758.2M) exceed its long term liabilities ($92.4M).


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


Next Steps

Dividend

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

0.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WPK's dividend (0.29%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.75%).

High Dividend: WPK's dividend (0.29%) is low compared to the top 25% of dividend payers in the Canadian market (6.04%).


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?

3.3yrs

Average management tenure


CEO

Olivier Muggli

3.17yrs

Tenure

US$1,064,509

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 ($USD1.06M) is below average for companies of similar size in the Canadian market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Olivier Muggli
President & CEO3.17yrsUS$1.06mno data
Larry Warelis
VP & CFO3.42yrsUS$442.01kno data
Mustafa Bilgen
Vice President of Technology & Innovation1.75yrsUS$408.05kno data
James Holland
President of Winpak Films Inc.3.42yrsUS$561.49kno data
Timothy Johnson
President of Winpak Heat Seal Packagingno dataUS$451.76kno data
Gregory Powell
President of Winpak Portion Packagingno datano datano data
D. Kemp
Secretaryno datano datano data

3.3yrs

Average Tenure

Experienced Management: WPK's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Antti Aarnio-Wihuri
Chairman of the Boardno dataUS$255.91k0.18%
$ 4.8m
Bruce Berry
Director1.5yrsUS$66.49kno data
Kenneth Kuchma
Director1.08yrsUS$22.58k0.015%
$ 416.8k
Ilkka Suominen
Director10.08yrsUS$109.14kno data
Martti Aarnio-Wihuri
Director9.5yrsUS$109.14kno data
Dayna Spiring
Independent Director4.5yrsUS$109.14k0.015%
$ 416.8k
Rakel Aarnio-Wihuri
Director1.5yrsUS$66.49kno data

3.0yrs

Average Tenure

Experienced Board: WPK's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

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


Top Shareholders

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$2.710b
  • 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, Mexico, and internationally. The company operates through three segments: Rigid Pac ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:29
End of Day Share Price2020/10/29 00:00
Earnings2020/09/27
Annual Earnings2019/12/29


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.