WestRock
Market Cap
US$7.5b
Last Updated
2020/03/31 02:48 UTC
Data Sources
Company Financials +
Executive Summary
WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, Asia, and Australia.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued 6 star dividend payer.
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
Stable Share Price: WRK's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
10.5%
WRK
11.9%
US Packaging
7.2%
US Market
1 Year Return
-25.5%
WRK
-14.1%
US Packaging
-10.4%
US Market
Return vs Industry: WRK underperformed the US Packaging industry which returned -17.9% over the past year.
Return vs Market: WRK underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| WRK | Industry | Market | |
|---|---|---|---|
| 7 Day | 10.5% | 11.9% | 7.2% |
| 30 Day | -12.8% | -9.1% | -12.6% |
| 90 Day | -32.4% | -19.6% | -19.4% |
| 1 Year | -21.9%-25.5% | -12.0%-14.1% | -8.5%-10.4% |
| 3 Year | -37.0%-43.7% | 0.7%-6.1% | 15.8%8.3% |
| 5 Year | -37.9%-53.1% | 10.3%-3.3% | 35.8%21.0% |
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
3 days ago | Simply Wall St
What Kind Of Shareholder Appears On The WestRock Company's (NYSE:WRK) Shareholder Register?2 weeks ago | Simply Wall St
Why You Should Care About WestRock Company’s (NYSE:WRK) Low Return On Capital3 weeks ago | Simply Wall St
Is WestRock Company's (NYSE:WRK) P/E Ratio Really That Good?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 ($27.89) is trading below our estimate of fair value ($121.72)
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 (8.3x) compared to the Packaging industry average (14.8x).
PE vs Market: WRK is good value based on its PE Ratio (8.3x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: WRK is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: WRK is good value based on its PB Ratio (0.6x) compared to the US Packaging industry average (2.4x).
Next Steps
Future Growth
How is WestRock forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
10.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WRK's forecast earnings growth (10.6% per year) is above the savings rate (1.7%).
Earnings vs Market: WRK's earnings (10.6% per year) are forecast to grow slower than the US market (12.3% per year).
High Growth Earnings: WRK's earnings are forecast to grow, but not significantly.
Revenue vs Market: WRK's revenue (2.6% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: WRK's revenue (2.6% 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 (8.2%).
Next Steps
Past Performance
How has WestRock performed over the past 5 years?
24.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WRK has high quality earnings.
Growing Profit Margin: WRK's current net profit margins (4.7%) are lower than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: WRK's earnings have grown significantly by 24.4% 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 (-5.3%) over the past year, making it difficult to compare to the Packaging industry average (-5.6%).
Return on Equity
High ROE: WRK's Return on Equity (7.3%) is considered low.
Next Steps
Financial Health
How is WestRock's financial position?
Financial Position Analysis
Short Term Liabilities: WRK's short term assets ($5.0B) exceed its short term liabilities ($3.4B).
Long Term Liabilities: WRK's short term assets ($5.0B) do not cover its long term liabilities ($15.6B).
Debt to Equity History and Analysis
Debt Level: WRK's debt to equity ratio (83.9%) is considered high.
Reducing Debt: WRK's debt to equity ratio has increased from 63.8% to 83.9% over the past 5 years.
Debt Coverage: WRK's debt is well covered by operating cash flow (24.6%).
Interest Coverage: WRK's interest payments on its debt are well covered by EBIT (3.4x 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?
6.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WRK's dividend (6.67%) is higher than the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: WRK's dividend (6.67%) is in the top 25% of dividend payers in the US market (5.49%)
Stability and Growth of Payments
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 (54.6%), 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 (57.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Steve Voorhees (65yo)
4.67s
Tenure
US$11,659,257
Compensation
Mr. Steven C. Voorhees, also known as Steve, serves Director at Truist Financial Corporation since December 6, 2019. Mr. Voorhees has been Chief Executive Officer, President and Director of Kapstone Paper ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD11.66M) is above average for companies of similar size in the US market ($USD7.36M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 4.67yrs | US$11.66m | 0.44% $32.9m | |
| Executive VP & CFO | 4.67yrs | US$3.06m | 0.061% $4.6m | |
| President of Business Development & Latin America | no data | US$3.25m | 0.060% $4.5m | |
| Chief Commercial Officer & President of Corrugated Packaging | 1yr | US$3.04m | 0.045% $3.3m | |
| President of Multi Packaging Solutions | 2.67yrs | US$3.15m | 0.039% $2.9m | |
| Chief Accounting Officer | 2.25yrs | no data | 0.0034% $255.6k | |
| Chief Information & Digital Officer | 1.17yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Executive VP | 4.67yrs | US$1.75m | 0.14% $10.3m | |
| Chief Communications Officer | no data | no data | no data |
2.7yrs
Average Tenure
59.5yo
Average Age
Experienced Management: WRK's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 4.67yrs | US$11.66m | 0.44% $32.9m | |
| Independent Director | 5.17yrs | US$269.99k | 0.012% $863.5k | |
| Independent Director | 5.17yrs | US$249.99k | 0.18% $13.4m | |
| Non-Executive Chairman | 2yrs | US$289.99k | 0.25% $19.0m | |
| Independent Director | 5.17yrs | US$267.49k | 0.015% $1.1m | |
| Independent Director | 5.17yrs | US$267.49k | 0.013% $965.4k | |
| Independent Director | 5.17yrs | US$269.99k | 0.013% $969.9k | |
| Independent Director | 5.17yrs | US$249.99k | 0.020% $1.5m | |
| Independent Director | 5.17yrs | US$249.99k | 0.0067% $503.7k | |
| Lead Independent Director | no data | US$269.99k | 0.00040% $30.0k |
5.2yrs
Average Tenure
64.5yo
Average Age
Experienced Board: WRK's board of directors are considered experienced (5.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WRK 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
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$7.495b
- Shares outstanding: 258.46m
- Website: https://www.westrock.com
Number of Employees
Location
- WestRock Company
- 1000 Abernathy Road NE
- Atlanta
- Georgia
- 30328
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WRK | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Mar 1994 |
| 1WR | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1994 |
| WRK * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Mar 1994 |
| 0LW9 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Mar 1994 |
| W1RK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 1 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, Asia, and Australia. The company’s Corrugated Packaging segment produces containerboards, corrugated sheets, corrugated packaging, and preprinted linerboards for consumer and industrial products manufacturers, and corrugated box manufacturers. It also provides structural and graphic design, engineering services and custom, and automated packaging machines; and operates recycling facilities that collect, sort, grade, and bale recovered paper. The company’s Consumer Packaging segment manufactures and sells folding and beverage cartons that are used to package food, paper, beverages, dairy products, tobacco, confectionery, health and beauty, other household consumer, and commercial and industrial products; and express mail packages for the overnight courier industry. It also offers inserts and labels, as well as rigid packaging and other printed packaging products; and secondary packages and paperboard packaging for over-the-counter and prescription drugs. In addition, this segment manufactures and sells solid fiber and corrugated partitions, and die-cut paperboard components; temporary and permanent displays; and lithographic laminated packaging products, as well as provides contract packing services. Its Land and Development segment sells real estate primarily in the Charleston, South Carolina region. WestRock Company is based in Atlanta, Georgia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:48 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.