NYSE:WRK

Stock Analysis Report

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Executive Summary

WestRock Company manufactures and sells paper and packaging solutions in North America, South America, Europe, Asia, and Australia. More Details


Snowflake Analysis

Fair value with moderate growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WRK's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

WRK

1.1%

US Packaging

2.8%

US Market


1 Year Return

8.4%

WRK

18.6%

US Packaging

19.7%

US Market

Return vs Industry: WRK underperformed the US Packaging industry which returned 20.1% over the past year.

Return vs Market: WRK underperformed the US Market which returned 20.4% over the past year.


Shareholder returns

WRKIndustryMarket
7 Day0.6%1.1%2.8%
30 Day13.8%10.0%8.0%
90 Day42.9%22.9%6.8%
1 Year11.8%8.4%21.4%18.6%22.4%19.7%
3 Year-18.3%-26.9%31.9%22.6%47.3%37.5%
5 Year15.8%-12.5%85.4%62.8%93.6%72.3%

Long-Term 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 ($44.06) is trading below our estimate of fair value ($92.63)

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


Price To Earnings Ratio

PE vs Industry: WRK is unprofitable, so we can't compare its PE Ratio to the US Packaging industry average.

PE vs Market: WRK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WRK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WRK is good value based on its PB Ratio (1.1x) compared to the US Packaging industry average (3.2x).


Next Steps

Future Growth

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

99.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: WRK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: WRK's is expected to become profitable in the next 3 years.

Revenue vs Market: WRK's revenue (2.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: WRK's revenue (2.1% 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 (8.9%).


Next Steps

Past Performance

How has WestRock performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRK is currently unprofitable.

Growing Profit Margin: WRK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WRK is unprofitable, but has reduced losses over the past 5 years at a rate of 8.1% per year.

Accelerating Growth: Unable to compare WRK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WRK is unprofitable, making it difficult to compare its past year earnings growth to the Packaging industry (-8.9%).


Return on Equity

High ROE: WRK has a negative Return on Equity (-6.44%), as it is currently unprofitable.


Next Steps

Financial Health

How is WestRock's financial position?


Financial Position Analysis

Short Term Liabilities: WRK's short term assets ($4.9B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: WRK's short term assets ($4.9B) do not cover its long term liabilities ($15.2B).


Debt to Equity History and Analysis

Debt Level: WRK's debt to equity ratio (86%) is considered high.

Reducing Debt: WRK's debt to equity ratio has increased from 47.7% to 86% over the past 5 years.

Debt Coverage: WRK's debt is well covered by operating cash flow (22.6%).

Interest Coverage: WRK is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WRK's dividend (1.82%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: WRK's dividend (1.82%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: WRK's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: WRK is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: WRK's dividends in 3 years are forecast to be well covered by earnings (19.1% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Steve Voorhees (66 yo)

5.33yrs

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 ($USD11.66M) is about average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Voorhees
CEO, President & Director5.33yrsUS$11.66m0.45%
$ 52.7m
Ward Dickson
Executive VP & CFO5.33yrsUS$3.06m0.066%
$ 7.9m
James Porter
President of Business Development & Latin Americano dataUS$3.25m0.063%
$ 7.4m
Jeffrey Chalovich
Chief Commercial Officer & President of Corrugated Packaging1.75yrsUS$3.04m0.044%
$ 5.2m
Julia McConnell
Senior VP & Chief Accounting Officer0.42yrno data0.0054%
$ 644.7k
Amir Kazmi
Chief Information & Digital Officer1.83yrsno datano data
James Armstrong
Vice President of Investor Relationsno datano datano data
Robert McIntosh
Executive VP5.33yrsUS$1.75m0.14%
$ 16.8m
Donna Cox
Chief Communications Officerno datano datano data
Vicki Lostetter
Chief Human Resources Officer2.75yrsno data0.0054%
$ 637.6k
Thomas Stigers
Executive Vice President of Containerboard Mills4.17yrsno datano data
Nina Butler
Chief Environmental Officer & Associate General Counselno datano datano data

3.5yrs

Average Tenure

59.5yo

Average Age

Experienced Management: WRK's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Voorhees
CEO, President & Director5.33yrsUS$11.66m0.45%
$ 52.7m
Gracia Martore
Independent Director5.83yrsUS$269.99k0.011%
$ 1.4m
Russell Currey
Independent Director5.83yrsUS$249.99k0.18%
$ 20.9m
Timothy Powers
Independent Director5.83yrsUS$249.99k0.023%
$ 2.7m
John Luke
Non-Executive Chairman2.75yrsUS$289.99k0.25%
$ 29.7m
Bettina Whyte
Independent Director5.83yrsUS$267.49k0.015%
$ 1.8m
Terrell Crews
Independent Director5.83yrsUS$267.49k0.013%
$ 1.5m
Timothy Bernlohr
Independent Director5.83yrsUS$269.99k0.013%
$ 1.5m
J. Brown
Independent Director5.83yrsUS$249.99k0.019%
$ 2.3m
James Nevels
Independent Director5.83yrsUS$249.99k0.0069%
$ 817.5k
Alan Wilson
Lead Independent Directorno dataUS$269.99k0.00040%
$ 47.3k
Colleen Arnold
Independent Director2.33yrsUS$249.99k0.0034%
$ 397.5k

5.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: WRK'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: WRK insiders have sold more shares than they have bought 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$11.830b
  • Shares outstanding: 260.40m
  • 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
1WRXTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1994
W1RK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

WestRock Company manufactures and sells paper and packaging solutions in North America, South America, Europe, Asia, and Australia. The company operates through Corrugated Packaging and Consumer Packaging ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/25 23:36
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.