Ranpak Holdings (PACK) AI Stock Analysis

• Market Cap: $284.71M
• Dividend Yield: N/A
• Average Volume (3M): 555.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: 10.11%
• EPS Growth: 6.77%
• Country: US
• Employees: 800
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Packaging & Containers
• EPS (TTM): -0.13
• Shares Outstanding: 84,233,150
• 10 Day Avg. Volume: 413,399
• 30 Day Avg. Volume: 555,874
• PEG Ratio: -3.62
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 36.61
• Enterprise Value/Market Cap: 2.25
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 5.20
• Enterprise Value/Ebitda: 2.90
• 1Y Price Target: $5.00
• Price Target Upside: 47.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $3.50 ▲( 3.55% Upside)

Ranpak Holdings has a mixed outlook with strong revenue growth in North America and promising automation prospects. However, profitability challenges, weak technical indicators, and valuation concerns weigh heavily. The company's stable liquidity position and strategic focus provide some optimism, but improvements in margins and profitability are crucial for a more favorable outlook.

Positive Factors

E-commerce Growth

Ranpak Holdings Corp. is benefiting from an inflection in volumes on a year-over-year basis with encouraging progress in e-commerce.

Financial Recovery

Ranpak is on a path to recover towards previous peak EBITDA levels.

Market Expansion

The growth in North America is reflective of accelerated adoption of paper packaging across e-commerce, including Amazon, with incremental momentum likely throughout 2H24.

Negative Factors

Balance Sheet Leverage

Balance sheet leverage remains elevated, with the company also exposed to industrial end-markets that are more susceptible to the macroeconomic backdrop.

Investment Rating

Investment rating is lowered to Neutral due to a preference towards defensive stocks.

Market Environment

The base operating environment remains sluggish, weighed upon by weaker industrial and consumer end-markets, along with a sequential increase in inflation.

Ranpak Holdings Business Overview & Revenue Model

Company Description

Ranpak Holdings Corp., together with its subsidiaries, provide product protection solutions for e-commerce and industrial supply chains in North America, Europe, and Asia. The company offers protective packaging solutions, such as void-fill protective systems that convert paper to fill empty spaces in secondary packages and protect objects under the FillPak brand; cushioning protective systems, which convert paper into cushioning pads under the PadPak brand; and wrapping protective systems that create pads or paper mesh to wrap and protect fragile items, as well as to line boxes and provide separation when shipping various objects under the WrapPak, Geami, and ReadyRoll brands. The company's products also include line automation products, which help end users automate the void filling and box closure processes after product packing is complete. It sells its products to end users primarily through a distributor network, and directly to select end users. Ranpak Holdings Corp. was founded in 1972 and is headquartered in Concord Township, Ohio.

How the Company Makes Money

Ranpak makes money primarily through the sale of its paper-based packaging systems and consumables. The company generates revenue from selling equipment that dispenses and processes paper packaging materials as well as from the recurring sales of paper consumables used within these systems. Key revenue streams include direct sales to businesses, long-term contracts with major e-commerce and industrial clients, and partnerships with distributors worldwide. Ranpak's focus on sustainability and the increasing demand for eco-friendly packaging solutions are significant factors contributing to its growth and profitability.

Ranpak Holdings Financial Statement Overview

Summary

Ranpak Holdings faces challenges in sustaining profitability, with a history of negative net income despite a strong gross profit margin. The balance sheet shows moderate leverage but declining equity, which could affect future financial flexibility. Cash flow improvements are a positive sign, indicating potential for operational stability. The company needs to focus on improving cost management and enhancing revenue growth to strengthen its financial position.

Income Statement

Ranpak Holdings has seen fluctuating revenue, with a decline from 2021 to 2024. The gross profit margin for 2024 is approximately 44.3%, which is strong, but the company has struggled with profitability, as evidenced by negative EBIT and net income. The net profit margin remained negative, indicating ongoing challenges in cost management and profitability. Despite a positive EBITDA margin of 12.7% in 2024, the overall financial health is impacted by negative earnings.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.79 in 2024, indicating manageable leverage levels. However, the company has seen a decline in stockholders' equity over the years, which is concerning. The equity ratio is approximately 49.6%, suggesting a balanced reliance on equity financing. The decrease in total assets and equity could pose risks to financial stability.

Cash Flow

Cash flow analysis highlights positive operating cash flow of $41.4 million in 2024, indicating decent cash generation from operations. The company improved its free cash flow from negative to $41.4 million, a positive turnaround from 2023. The operating cash flow to net income ratio is not ideal due to negative net income, but cash flow from operations is a positive sign for liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
368.90M	336.30M	326.50M	383.90M	298.20M
	Gross Profit
139.80M	123.30M	99.60M	148.90M	122.60M
	EBIT
-12.80M	-7.50M	-38.20M	12.20M	11.70M
	EBITDA
66.10M	55.40M	31.70M	87.60M	79.30M
	Net Income Common Stockholders
-21.50M	-27.10M	-41.40M	-2.80M	-23.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.10M	62.00M	62.80M	103.90M	48.50M
	Total Assets
1.10B	1.12B	1.13B	1.21B	1.13B
	Total Debt
431.20M	428.80M	399.00M	408.10M	433.20M
	Net Debt
355.10M	366.80M	336.20M	304.20M	384.70M
	Total Liabilities
556.10M	550.70M	520.70M	577.20M	610.60M
	Stockholders Equity
548.10M	572.00M	612.80M	636.20M	522.90M
Cash Flow		Free Cash Flow
8.30M	-2.70M	-44.70M	-1.40M	30.60M
	Operating Cash Flow
41.40M	52.60M	700.00K	54.30M	63.80M
	Investing Cash Flow
-32.50M	-52.40M	-37.50M	-69.80M	-34.50M
	Financing Cash Flow
1.80M	-1.80M	-4.50M	72.00M	-1.60M

Ranpak Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACK, the sentiment is Negative. The current price of 3.38 is below the 20-day moving average (MA) of 3.68, below the 50-day MA of 4.28, and below the 200-day MA of 6.18, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 16.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PACK.

Ranpak Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRT	78 Outperform	$621.24M	20.65	19.64%	4.94%	6.21%	1.47%
GEF	71 Outperform	$2.67B	15.64	10.09%	3.86%	6.88%	-39.67%
AMBP	71 Outperform	$2.29B	―	-69.06%	10.39%	4.42%	70.21%
SON	70 Outperform	$4.45B	29.32	5.54%	4.61%	-4.58%	-61.14%
MYE	67 Neutral	$456.81M	43.66	3.69%	4.47%	3.92%	-73.64%
Sector *	62 Neutral	$6.84B	11.22	2.83%	3.93%	2.65%	-21.93%
PACK	54 Neutral	$284.71M	―	-3.89%	―	10.11%	6.77%

Ranpak Holdings Corporate Events

Ranpak Holdings Announces Departure of Managing Director

On May 8, 2025, Ranpak Holdings Corp. announced the departure of Mark Siebert as Managing Director, North America, effective May 16, 2025. His departure is amicable, with no disagreements on company operations, and includes a separation agreement allowing his restricted stock units to continue vesting as scheduled.