NYSE:WRK

Stock Analysis Report

Executive Summary

WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, and the Asia Pacific.

Snowflake

Fundamentals

6 star dividend payer and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

WRK

2.6%

US Packaging

0.07%

US Market


1 Year Return

-5.9%

WRK

18.6%

US Packaging

8.9%

US Market

Return vs Industry: WRK underperformed the US Packaging industry which returned 18.6% over the past year.

Return vs Market: WRK underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

WRKIndustryMarket
7 Day3.7%2.6%0.07%
30 Day4.1%2.4%-0.3%
90 Day1.5%-2.4%-1.6%
1 Year-1.5%-5.9%21.5%18.6%11.3%8.9%
3 Year-10.9%-19.8%27.1%19.1%46.3%36.8%
5 Year-0.6%-23.8%47.5%30.2%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WRK ($37.65) is trading below our estimate of fair value ($77.38)

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


Price To Earnings Ratio

PE vs Industry: WRK is good value based on its PE Ratio (11.6x) compared to the Packaging industry average (17.6x).

PE vs Market: WRK is good value based on its PE Ratio (11.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WRK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WRK is good value based on its PB Ratio (0.8x) compared to the US Packaging industry average (3.5x).


Next Steps

Future Growth

How is WestRock forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRK's earnings are forecast to decline over the next 3 years (-2.3% per year).

Earnings vs Market: WRK's earnings are forecast to decline over the next 3 years (-2.3% per year).

High Growth Earnings: WRK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WRK's revenue (0.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WRK's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WRK's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has WestRock performed over the past 5 years?

28.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WRK's earnings have grown significantly by 28.3% per year over the past 5 years.

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

Earnings vs Industry: WRK had negative earnings growth (-54.4%) over the past year, making it difficult to compare to the Packaging industry average (-1.4%).


Return on Equity

High ROE: WRK's Return on Equity (7.1%) is considered low.


Return on Assets

ROA vs Industry: WRK's Return on Assets is below or equal to the Packaging industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is WestRock's financial position?


Financial Position Analysis

Short Term Liabilities: WRK's short term assets ($5.2B) exceeds its short term liabilities ($3.6B)

Long Term Liabilities: WRK's short term assets (5.2B) do not cover its long term liabilities (15.4B)


Debt to Equity History and Analysis

Debt Level: WRK's debt to equity ratio (87.4%) is considered high

Reducing Debt: WRK's debt to equity ratio has increased from 65.9% to 87.4% over the past 5 years.

Debt Coverage: WRK's debt is well covered by operating cash flow (25.9%).

Interest Coverage: WRK's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: WRK's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

4.83%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years5.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WRK's dividend (4.83%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: WRK's dividend (4.83%) is in the top 25% of dividend payers in the US market (3.68%)

Stable Dividend: WRK's dividends per share have been stable in the past 10 years.

Growing Dividend: WRK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), WRK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WRK's dividends in 3 years are forecast to be covered by earnings (56.4% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Steve Voorhees (65yo)

1.7yrs

Tenure

US$18,030,504

Compensation

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 Office ...


CEO Compensation Analysis

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

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


Management Age and Tenure

1.7yrs

Average Tenure

59.5yo

Average Age

Experienced Management: WRK's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

66yo

Average Age

Experienced Board: WRK's board of directors are considered experienced (4.8 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

BuyUS$187,50004 Mar 19
Russell Currey
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$37.50
BuyUS$100,34805 Feb 19
Ward Dickson
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares2,645
Max PriceUS$37.94

Ownership Breakdown


Management Team

  • Steve Voorhees (65yo)

    CEO, President & Director

    • Tenure: 1.7yrs
    • Compensation: US$18.03m
  • Marc Shore (65yo)

    President of Multi Packaging Solutions

    • Tenure: 2.3yrs
    • Compensation: US$3.03m
  • Rob McIntosh (62yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$1.75m
  • Jim Porter (68yo)

    President of Business Development & Latin America

    • Tenure: 0yrs
    • Compensation: US$3.59m
  • Ward Dickson (57yo)

    Executive VP & CFO

    • Tenure: 0.9yrs
    • Compensation: US$2.96m
  • Donna Cox (55yo)

    Chief Communications Officer

    • Tenure: 0yrs
  • James Armstrong

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jeff Chalovich (56yo)

    Chief Commercial Officer & President of Corrugated Packaging

    • Tenure: 0.7yrs
    • Compensation: US$2.74m
  • Kelly Janzen (46yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.9yrs
  • Amir Kazmi

    Chief Information & Digital Officer

    • Tenure: 0.8yrs

Board Members

  • Gracia Martore (67yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$270.02k
  • Russell Currey (58yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$250.02k
  • John Luke (70yo)

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: US$290.02k
  • Bettina Whyte (69yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$267.52k
  • Mike Campbell (71yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$250.02k
  • Steve Voorhees (65yo)

    CEO, President & Director

    • Tenure: 1.7yrs
    • Compensation: US$18.03m
  • Terry Crews (64yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$250.02k
  • Tim Bernlohr (60yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$270.02k
  • J. Brown (51yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$250.02k
  • Jim Nevels (68yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$270.02k

Company Information

WestRock Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WestRock Company
  • Ticker: WRK
  • Exchange: NYSE
  • Founded:
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$9.689b
  • Shares outstanding: 257.34m
  • Website: https://www.westrock.com

Number of Employees


Location

  • WestRock Company
  • 1000 Abernathy Road NE
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WRKNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1994
1WRDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1994
WRK *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1994
0LW9LSE (London Stock Exchange)YesCommon StockGBUSDMar 1994

Biography

WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, and the Asia Pacific. The company’s Corrugated Packagi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:33
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.