WestRock
WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, Australia, and Asia. The last earnings update was 74 days ago. More info.
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WRK Share Price and Events
7 Day Returns
1 Year Returns
WRK Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| WestRock (WRK) | -2.9% | -2.6% | -12.7% | -44.7% | -12.3% | -25.6% |
| US Packaging | -3.4% | 1.8% | 7% | -4.7% | 21.6% | 28% |
| US Market | -0.8% | 2.7% | 7.5% | 7% | 37.9% | 47% |
1 Year Return vs Industry and Market
- WRK underperformed the Packaging industry which returned -4.7% over the past year.
- WRK underperformed the Market in United States of America which returned 7% over the past year.
Value
Is WestRock undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
WestRock
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for WestRock.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 11 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 11.6% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Packaging Unlevered Beta | Simply Wall St/ S&P Global | 0.89 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.892 (1 + (1- 21%) (119.71%)) |
1.493 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.49 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.493 * 5.96%) |
11.63% |
Discounted Cash Flow Calculation for NYSE:WRK using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for WestRock is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 11.63%) |
|
|---|---|---|---|
| 2019 | 1,045.40 | Analyst x5 | 936.51 |
| 2020 | 1,456.60 | Analyst x5 | 1,168.97 |
| 2021 | 1,650.00 | Analyst x1 | 1,186.25 |
| 2022 | 1,748.80 | Est @ 5.99% | 1,126.33 |
| 2023 | 1,836.43 | Est @ 5.01% | 1,059.57 |
| 2024 | 1,915.88 | Est @ 4.33% | 990.27 |
| 2025 | 1,989.59 | Est @ 3.85% | 921.26 |
| 2026 | 2,059.47 | Est @ 3.51% | 854.29 |
| 2027 | 2,126.98 | Est @ 3.28% | 790.39 |
| 2028 | 2,193.19 | Est @ 3.11% | 730.11 |
| Present value of next 10 years cash flows | $9,763.94 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $2,193.19 × (1 + 2.73%) ÷ (11.63% – 2.73%) |
$25,324.09 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $25,324.09 ÷ (1 + 11.63%)10 |
$8,430.32 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $9,763.94 + $8,430.32 |
$18,194.26 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $18,194.26 / 252.48 |
$72.06 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $72.06 |
| Current discount | Discount to share price of
$35.80
= -1 x ($35.80 - $72.06) / $72.06 |
50.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- WestRock's share price is below the future cash flow value, and at a moderate discount (> 20%).
- WestRock's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for WestRock's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
WestRock's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $3.56 |
| NYSE:WRK Share Price ** | NYSE (2019-04-22) in USD | $35.8 |
| United States of America Packaging Industry PE Ratio | Median Figure of 15 Publicly-Listed Packaging Companies | 18.1x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.21x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of WestRock.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:WRK Share Price ÷ EPS (both in USD) = 35.8 ÷ 3.56 |
10.05x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- WestRock is good value based on earnings compared to the US Packaging industry average.
- WestRock is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
WestRock's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 10.05x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts |
16%per year |
| United States of America Packaging Industry PEG Ratio | Median Figure of 15 Publicly-Listed Packaging Companies | 1.82x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 10.05x ÷ 16% |
0.63x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- WestRock is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
WestRock's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $45.54 |
| NYSE:WRK Share Price * | NYSE (2019-04-22) in USD | $35.8 |
| United States of America Packaging Industry PB Ratio | Median Figure of 19 Publicly-Listed Packaging Companies | 3.76x |
| United States of America Market PB Ratio | Median Figure of 5,186 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:WRK Share Price ÷ Book Value per Share (both in USD) = 35.8 ÷ 45.54 |
0.79x |
* Primary Listing of WestRock.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- WestRock is good value based on assets compared to the US Packaging industry average.
Value checks
We assess WestRock's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check) WestRock has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is WestRock expected to perform in the next 1 to 3 years based on estimates from 11 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- WestRock's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- WestRock's earnings growth is expected to exceed the United States of America market average.
- WestRock's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:WRK Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts | 16% |
| NYSE:WRK Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts | 3.8% |
| United States of America Packaging Industry Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Packaging Industry Revenue Growth Rate | Market Cap Weighted Average | 2.5% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | 21,346 | 1 | ||
| 2022-09-30 | 21,134 | 1 | ||
| 2021-09-30 | 19,796 | 2,872 | 1,564 | 2 |
| 2020-09-30 | 19,138 | 2,668 | 1,067 | 11 |
| 2019-09-30 | 18,713 | 2,465 | 962 | 11 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 16,719 | 2,479 | 910 |
| 2018-09-30 | 16,285 | 2,421 | 1,906 |
| 2018-06-30 | 16,109 | 1,883 | 1,822 |
| 2018-03-31 | 15,667 | 1,700 | 1,882 |
| 2017-12-31 | 15,307 | 1,629 | 1,762 |
| 2017-09-30 | 14,860 | 1,901 | 708 |
| 2017-06-30 | 14,411 | 1,788 | 425 |
| 2017-03-31 | 14,312 | 1,730 | 248 |
| 2016-12-31 | 14,148 | 1,683 | 201 |
| 2016-09-30 | 14,172 | 1,688 | 148 |
| 2016-06-30 | 14,176 | 1,694 | 340 |
| 2016-03-31 | 13,119 | 1,428 | 346 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
All data from WestRock Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | ||||
| 2022-09-30 | ||||
| 2021-09-30 | 6.21 | 6.21 | 6.21 | 1.00 |
| 2020-09-30 | 4.12 | 5.72 | 3.15 | 7.00 |
| 2019-09-30 | 3.76 | 4.60 | 3.13 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 3.56 |
| 2018-09-30 | 7.46 |
| 2018-06-30 | 7.14 |
| 2018-03-31 | 7.40 |
| 2017-12-31 | 6.96 |
| 2017-09-30 | 2.81 |
| 2017-06-30 | 1.69 |
| 2017-03-31 | 0.99 |
| 2016-12-31 | 0.80 |
| 2016-09-30 | 0.58 |
| 2016-06-30 | 1.33 |
| 2016-03-31 | 1.51 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess WestRock's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
WestRock has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has WestRock performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- WestRock has delivered over 20% year on year earnings growth in the past 5 years.
- WestRock's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- WestRock's 1-year earnings growth is negative, it can't be compared to the US Packaging industry average.
Earnings and Revenue History
All data from WestRock Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 16,718.50 | 910.10 | 1,493.70 | |
| 2018-09-30 | 16,285.10 | 1,905.90 | 1,466.30 | |
| 2018-06-30 | 16,109.10 | 1,822.40 | 1,471.70 | |
| 2018-03-31 | 15,667.20 | 1,882.20 | 1,451.60 | |
| 2017-12-31 | 15,306.50 | 1,762.10 | 1,419.50 | |
| 2017-09-30 | 14,859.70 | 708.10 | 1,399.60 | |
| 2017-06-30 | 14,410.80 | 425.30 | 1,393.50 | |
| 2017-03-31 | 14,311.70 | 248.30 | 1,386.90 | |
| 2016-12-31 | 14,148.10 | 200.70 | 1,379.80 | |
| 2016-09-30 | 14,171.80 | 148.40 | 1,379.40 | |
| 2016-06-30 | 14,176.20 | 340.30 | 1,357.50 | |
| 2016-03-31 | 13,118.60 | 345.70 | 1,240.70 | |
| 2015-12-31 | 12,081.50 | 400.10 | 1,129.20 | |
| 2015-09-30 | 11,124.80 | 496.50 | 1,014.60 | |
| 2015-06-30 | 10,116.70 | 545.20 | 904.70 | |
| 2015-03-31 | 10,108.70 | 522.00 | 861.20 | |
| 2014-12-31 | 10,046.70 | 495.00 | 876.20 | |
| 2014-09-30 | 9,895.10 | 479.60 | 889.70 | |
| 2014-06-30 | 9,772.20 | 502.10 | 911.50 | |
| 2014-03-31 | 9,689.60 | 509.00 | 974.20 | |
| 2013-12-31 | 9,620.90 | 750.70 | 966.10 | |
| 2013-09-30 | 9,545.40 | 727.10 | 869.20 | |
| 2013-06-30 | 9,414.10 | 632.80 | 946.70 | |
| 2013-03-31 | 9,269.00 | 550.90 | 932.40 | |
| 2012-12-31 | 9,227.00 | 258.00 | 924.60 | |
| 2012-09-30 | 9,207.60 | 248.30 | 927.50 | |
| 2012-06-30 | 9,317.30 | 249.50 | 909.50 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- WestRock has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- WestRock used its assets less efficiently than the US Packaging industry average last year based on Return on Assets.
- WestRock has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess WestRock's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
WestRock has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is WestRock's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up WestRock's finances.
The net worth of a company is the difference between its assets and liabilities.
- WestRock is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- WestRock's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from WestRock Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 11,619.30 | 10,820.80 | 260.70 |
| 2018-09-30 | 11,486.60 | 6,415.20 | 636.80 |
| 2018-06-30 | 11,417.50 | 6,537.50 | 452.60 |
| 2018-03-31 | 11,587.00 | 6,726.50 | 266.50 |
| 2017-12-31 | 11,398.00 | 6,610.40 | 306.40 |
| 2017-09-30 | 10,390.80 | 6,554.80 | 298.10 |
| 2017-06-30 | 10,209.40 | 6,522.80 | 225.20 |
| 2017-03-31 | 9,769.50 | 5,673.70 | 385.30 |
| 2016-12-31 | 9,642.70 | 5,767.20 | 493.30 |
| 2016-09-30 | 9,843.70 | 5,789.20 | 340.90 |
| 2016-06-30 | 10,037.10 | 5,859.10 | 258.70 |
| 2016-03-31 | 11,089.20 | 6,377.20 | 367.60 |
| 2015-12-31 | 11,136.50 | 5,816.50 | 236.90 |
| 2015-09-30 | 11,798.10 | 5,621.90 | 207.80 |
| 2015-06-30 | 4,570.80 | 2,643.50 | 43.20 |
| 2015-03-31 | 4,440.40 | 2,749.40 | 39.70 |
| 2014-12-31 | 4,401.00 | 2,807.70 | 32.80 |
| 2014-09-30 | 4,321.10 | 2,984.70 | 32.60 |
| 2014-06-30 | 4,532.40 | 2,986.40 | 40.00 |
| 2014-03-31 | 4,420.00 | 2,666.80 | 32.20 |
| 2013-12-31 | 4,365.30 | 2,753.50 | 24.60 |
| 2013-09-30 | 4,326.10 | 2,844.80 | 36.40 |
| 2013-06-30 | 3,957.40 | 3,026.40 | 42.30 |
| 2013-03-31 | 3,833.00 | 3,179.00 | 51.30 |
| 2012-12-31 | 3,480.40 | 3,251.20 | 31.00 |
| 2012-09-30 | 3,417.60 | 3,412.50 | 37.20 |
| 2012-06-30 | 3,555.30 | 3,360.30 | 19.50 |
- WestRock's level of debt (93.1%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (63% vs 93.1% today).
- Debt is well covered by operating cash flow (22.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 5x coverage).
Financial health checks
We assess WestRock's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) WestRock has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is WestRock's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
WestRock
shares you are expected to receive
$102
in your first year as a dividend.
Dividend Amount
- WestRock's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
- WestRock's dividend is above the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| United States of America Packaging Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 2.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-09-30 | ||
| 2022-09-30 | ||
| 2021-09-30 | 1.96 | 3.00 |
| 2020-09-30 | 1.90 | 8.00 |
| 2019-09-30 | 1.84 | 9.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-01 | 1.820 | 4.746 |
| 2018-10-26 | 1.820 | 4.301 |
| 2018-07-27 | 1.720 | 3.329 |
| 2018-04-20 | 1.720 | 2.892 |
| 2018-02-02 | 1.720 | 2.653 |
| 2017-10-27 | 1.720 | 2.713 |
| 2017-07-28 | 1.600 | 2.790 |
| 2017-04-20 | 1.600 | 2.866 |
| 2017-01-27 | 1.600 | 3.050 |
| 2016-11-04 | 1.600 | 3.125 |
| 2016-07-29 | 1.500 | 3.240 |
| 2016-04-22 | 1.500 | 3.744 |
| 2016-02-02 | 1.500 | 4.174 |
| 2015-10-30 | 1.500 | 3.401 |
| 2015-04-24 | 1.282 | 2.145 |
| 2015-01-30 | 1.282 | 1.962 |
| 2014-10-24 | 0.750 | 1.286 |
| 2014-07-24 | 0.700 | 1.435 |
| 2014-04-25 | 0.700 | 1.394 |
| 2014-01-31 | 0.700 | 1.337 |
| 2013-10-25 | 0.700 | 1.407 |
| 2013-07-25 | 0.600 | 1.082 |
| 2013-04-26 | 0.600 | 1.169 |
| 2012-12-07 | 0.450 | 1.115 |
| 2012-10-26 | 0.450 | 1.377 |
| 2012-07-27 | 0.400 | 1.186 |
| 2012-04-27 | 0.400 | 1.444 |
| 2012-01-27 | 0.400 | 1.195 |
| 2011-10-28 | 0.400 | 1.353 |
| 2011-07-28 | 0.400 | 1.520 |
| 2011-04-29 | 0.400 | 1.192 |
| 2011-01-28 | 0.400 | 1.169 |
| 2010-10-29 | 0.400 | 1.438 |
| 2010-07-29 | 0.300 | 1.166 |
| 2010-04-23 | 0.300 | 1.168 |
| 2010-01-29 | 0.300 | 1.363 |
| 2009-10-30 | 0.300 | 1.243 |
| 2009-07-30 | 0.200 | 0.845 |
| 2009-04-24 | 0.200 | 1.030 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
WestRock's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
Income/ dividend checks
We assess WestRock's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can WestRock afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) WestRock has a total score of 6/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $18,030,504 |
| AGE | 64 |
| TENURE AS CEO | 1.2 years |
CEO Bio
Mr. Steven C. Voorhees, also known as Steve, has been Chief Executive Officer, President and Director of Kapstone Paper and Packaging Corporation since November 2, 2018. He serves as Chief Executive Officer and Director of Multi Packaging Solutions, Inc. Mr. Voorhees has been the Chief Executive Officer and President of WestRock Company since November 2, 2018. He has been the Chief Executive Officer and President of WRKCo Inc. since November 2013 and July 1, 2015 respectively. Mr. Voorhees served as Chief Executive Officer of Multi Packaging Solutions International Limited since June 6, 2017. He served as the President and Chief Operating Officer of Rock-Tenn Company from January 2013 to October 2013; Chief Financial Officer and Executive Vice President from September 2000 to January 2013; Chief Administrative Officer from July 2008 to January 2013 and also served as its Principal Accounting Officer. He was the Managing Partner of Kinetic LLC Partners from November 1999 to August 2000. He served as an Executive of Sonat, Inc. from July 1980 to October 1999. Mr. Voorhees served in a variety of executive positions including Executive Vice President of Sonat Marketing from 1995 to 1999. He served as an Executive Vice President of Sonat Power Marketing and Sonat Power. He has been a Director of SunTrust Banks, Inc. since January 1, 2018. He has been a Director of WestRock Company since 2015. He has been a Director of WRKCo, Inc. since July 1, 2015. He has been a Director of SunTrust Bank since January 1, 2018. He serves as a Director of Quality Packaging Specialists International, LLC. He served as a Director of Ingevity Corporation until May 16, 2016. He served as Director of Multi Packaging Solutions International Limited since June 6, 2017. He holds a Bachelor’s Degree in Economics and Mathematics from Northwestern University and a Master’s of Business Administration from the Darden School at the University of Virginia.
CEO Compensation
- Steve's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
- Steve's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the WestRock management team in years:
- The average tenure for the WestRock management team is less than 2 years, this suggests a new team.
Management Team
Steve Voorhees
CEO, President & Director
$18M
64
1.2 yrs
Ward Dickson
Executive VP & CFO
$3M
56
0.4 yrs
Jim Porter
President of Business Development & Latin America
$4M
67
Jeff Chalovich
Chief Commercial Officer & President of Corrugated Packaging
$3M
55
0.2 yrs
Bob Feeser
President of Consumer Packaging
$3M
56
3.8 yrs
Marc Shore
President of Multi Packaging Solutions
$3M
64
1.8 yrs
Kelly Janzen
Senior VP & Chief Accounting Officer
45
1.4 yrs
Amir Kazmi
Chief Information Officer
0.3 yrs
James Armstrong
Vice President of Investor Relations
Rob McIntosh
Executive VP
$2M
61
3.8 yrs
Board of Directors Tenure
Average tenure and age of the WestRock board of directors in years:
- The tenure for the WestRock board of directors is about average.
Board of Directors
John Luke
Non-Executive Chairman
$290K
69
1.2 yrs
Steve Voorhees
CEO, President & Director
$18M
64
4.3 yrs
Bettina Whyte
Director
$268K
68
1.2 yrs
Tim Bernlohr
Director
$270K
59
4.3 yrs
Terry Crews
Director
$250K
63
4.3 yrs
Gracia Martore
Director
$270K
66
4.3 yrs
Jim Nevels
Lead Independent Director
$270K
67
Russell Currey
Director
$250K
57
4.3 yrs
J. Brown
Director
$250K
50
4.3 yrs
Mike Campbell
Director
$250K
70
4.3 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by WestRock insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 04. Mar 19 | Buy | Russell Currey | Individual | 28. Feb 19 | 28. Feb 19 | 5,000 | $37.50 | $187,500 | ||
| 05. Feb 19 | Buy | Ward Dickson | Individual | 04. Feb 19 | 04. Feb 19 | 2,645 | $37.94 | $100,348 | ||
Management checks
We assess WestRock's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) WestRock has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Should WestRock Company (NYSE:WRK) Focus On Improving This Fundamental Metric?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.079 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleIs WestRock Company (NYSE:WRK) Undervalued After Accounting For Its Future Growth?
WestRock Company (NYSE:WRK) is considered a high-growth stock, but its last closing price of $39.77 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … What can we expect from WestRock in the future.
Simply Wall St - – Full articleIs WestRock Company (NYSE:WRK) A Smart Pick For Income Investors?
The stock currently pays out a dividend yield of 4.8%, and has a market cap of US$9.5b. … Does WestRock tick all the boxes of a great dividend stock? … 5 questions to ask before buying a dividend stock
Simply Wall St - – Full articleIs There Now An Opportunity In WestRock Company (NYSE:WRK)?
received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $44.41 at one point, and dropping to the lows of $35.24. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether WestRock's current trading price of $37.55 reflective of the actual value of the?
Simply Wall St - – Full articleAre Insiders Buying WestRock Company (NYSE:WRK) Stock?
So we'll take a look at whether insiders have been buying or selling shares in WestRock Company (NYSE:WRK). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that an insider was happy to buy shares at around the current price.
Simply Wall St - – Full articleWhy You Should Care About WestRock Company’s (NYSE:WRK) Low Return On Capital
To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleIs WestRock Company's (NYSE:WRK) Balance Sheet Strong Enough To Weather A Storm?
Mid-caps stocks, like WestRock Company (NYSE:WRK) with a market capitalization of US$9.9b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … This article will examine WRK’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Check out our latest analysis for WestRock
Simply Wall St - – Full articleHere's What WestRock Company's (NYSE:WRK) P/E Ratio Is Telling Us
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how WestRock Company's (NYSE:WRK) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleIs WestRock Company (NYSE:WRK) A Financially Sound Company?
its financial health remains the key to continued success. … I will provide an overview of WestRock’s financial liquidity and leverage to give you an idea of WestRock’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself
Simply Wall St - – Full articleShould Investors Buy WestRock Company (NYSE:WRK) And Lock In The 4.5% Dividend Yield?
Over the past 10 years WestRock Company (NYSE:WRK) has grown its dividend payouts from $0.20 to $1.82. … With a market cap of US$10b, WestRock pays out 23% of its earnings, leading to a 4.5% yield. … Take the survey and be part of one of the most advanced studies of stock market investors to date?
Simply Wall St - – Full articleCompany Info
Description
WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, Australia, and Asia. The company operates through three segments: Corrugated Packaging, Consumer Packaging, and Land and Development. The Corrugated Packaging segment produces containerboards, corrugated sheets, corrugated packaging, and preprinted linerboards for consumer and industrial products manufacturers, and corrugated box manufacturers. This segment also provides structural and graphic design, engineering services, and automated packaging machines; resells recovered paper and other products; and offers recycling services. Its corrugated packaging products are used to provide protective packaging for the shipment and distribution of food, paper, health and beauty, other household, consumer, commercial, and industrial products. The Consumer Packaging segment manufactures and sells folding and beverage cartons, displays, dispensing, interior partitions, inserts, and labels; bleached and recycled paperboards; express mail packages for the overnight courier industry; and secondary packages and paperboard packaging for the healthcare market. This segment also manufactures and sells solid fiber and corrugated partitions and die-cut paperboard components; temporary and permanent point-of-purchase displays for the consumer products and retail markets; and lithographic laminated packaging products, as well as provides contract packing services. The Land and Development segment owns, develops, and sells real estate properties primarily in Charleston, South Carolina. WestRock Company was founded in 2015 and is based in Atlanta, Georgia.
Details
| Name: | WestRock Company |
| WRK | |
| Exchange: | NYSE |
| Founded: | 2015 |
| $9,038,922,617 | |
| 252,483,872 | |
| Website: | http://www.westrock.com |
| Address: |
WestRock Company 1000 Abernathy Road NE, Atlanta, Georgia, 30328, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | WRK | Common Stock | New York Stock Exchange | US | USD | 03. Mar 1994 | |
| DB | 1WR | Common Stock | Deutsche Boerse AG | DE | EUR | 03. Mar 1994 | |
| LSE | 0LW9 | Common Stock | London Stock Exchange | GB | USD | 03. Mar 1994 | |
| BMV | WRK * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 03. Mar 1994 |
Number of employees
Current staff
Industry
| Paper Packaging | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/23 00:58 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/02/08 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/09/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
