CCL Industries (A) (CCL.A) AI Stock Analysis

16 Followers

Top Page

CCL Industries (A)

(TSX:CCL.A)

78Outperform

CCL Industries scores well due to strong financial performance, positive earnings call insights, and strategic corporate events. While technical analysis suggests caution, the company's stable financials and fair valuation provide a balanced investment opportunity. Notable strengths include robust revenue growth and solid financial management, while challenges such as increased net debt and market uncertainties are secondary considerations.

CCL Industries (A) (CCL.A) vs. S&P 500 (SPY)

Market Cap

C$13.74B

Dividend Yield1.48%

Average Volume (3M)97.00

Price to Earnings (P/E)16.4

Beta (1Y)0.68

Revenue Growth9.80%

EPS Growth60.44%

CountryCA

Employees26,300

SectorConsumer Cyclical

Sector Strength75

IndustryPackaging & Containers

Share Statistics

EPS (TTM)1.18

Shares Outstanding11,700,000

10 Day Avg. Volume112

30 Day Avg. Volume97

Financial Highlights & Ratios

PEG Ratio7.58

Price to Book (P/B)2.52

Price to Sales (P/S)0.00

P/FCF Ratio20.97

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

CCL Industries (A) Business Overview & Revenue Model

Company DescriptionCCL Industries Inc. engages in manufacture and sale of labels, and provides media and software solutions. It operates through four segments: CCL, Avery, Checkpoint, and Innovia. The CCL segment offers pressure sensitive and extruded film materials for decorative, instructional, security, and functional applications in the consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. This segment also provides extruded and labeled plastic tubes, aluminum aerosols and specialty bottles, folded instructional leaflets, precision decorated and die cut components, electronic displays, polymer banknote substrate, and other complementary products and services. The Avery segment offers printable media products, including address and shipping labels, marketing and product identification labels, indexes and dividers, business cards, and name badges supported by customized software solutions; and organizational products, such as binders, sheet protectors, and writing instruments. This segment also provides direct to consumer digitally imaged media products, such as labels, business cards, name badges, and family oriented identification labels supported by unique web-enabled e-commerce URLs. The Checkpoint segment offers technology-driven loss-prevention, inventory management, and labelling solutions, including radio frequency and radio-frequency identification solutions to retail and apparel industries. The Innovia segment provides specialty, high-performance, multi-layer, and surface engineered biaxially oriented polypropylene films for pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. It operates in Canada, the United States, Puerto Rico, Latin America, Europe, Asia, Africa, and Australia. The company was founded in 1951 and is headquartered in Toronto, Canada.

How the Company Makes MoneyCCL Industries primarily generates revenue through the sale of its labeling and packaging products and solutions. The company's revenue streams are diversified across its four segments: CCL Label generates income from the production and sale of specialty labels for various sectors such as healthcare and consumer products. CCL Container earns revenue from manufacturing aluminum containers for consumer products. Avery’s revenue is derived from selling printable labels, media products, and related software solutions. Checkpoint contributes to revenue through the sale of inventory management and loss prevention solutions targeted at the retail sector. The company's revenue is further supported by strategic partnerships and acquisitions that enhance its product offerings and expand its market reach globally.

CCL Industries (A) Financial Statement Overview

Summary

CCL Industries demonstrates strong financial health with consistent revenue growth, solid profitability, and efficient cash flow management. The company maintains a stable capital structure with balanced leverage and effective equity utilization, positioning it well for future growth.

Income Statement

Very Positive

CCL Industries shows strong revenue growth with a TTM revenue increase of 2.07% compared to the previous year. The gross profit margin stands at 29.67%, indicating efficient cost management. The net profit margin of 11.61% reflects solid profitability. The EBIT margin at 14.83% and EBITDA margin at 22.10% further demonstrate robust operational performance.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.47, suggesting a balanced leverage position. With a return on equity of 15.73%, the company effectively utilizes its equity to generate profits. The equity ratio of 53.53% indicates a strong capital structure, with more than half of the assets funded by equity.

Cash Flow

Very Positive

The free cash flow growth rate is 7.68%, showcasing healthy cash generation. An operating cash flow to net income ratio of 1.22 reflects efficient cash flow management. The free cash flow to net income ratio of 0.76 indicates solid cash conversion from profits.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
7.39B	7.25B	6.65B	6.38B	5.73B	5.24B
	Gross Profit
2.19B	2.14B	1.91B	1.72B	1.59B	1.50B
	EBIT
1.10B	1.06B	928.80M	895.40M	849.60M	787.30M
	EBITDA
1.63B	1.58B	1.25B	1.26B	1.19B	1.09B
	Net Income Common Stockholders
858.40M	843.10M	530.20M	622.70M	599.10M	529.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
821.00M	820.60M	774.20M	831.50M	594.10M	700.30M
	Total Assets
10.19B	9.86B	8.92B	8.66B	7.63B	7.34B
	Total Debt
2.57B	2.45B	2.28B	2.36B	1.85B	2.09B
	Net Debt
1.75B	1.63B	1.52B	1.53B	1.26B	1.39B
	Total Liabilities
4.74B	4.58B	4.30B	4.40B	3.88B	4.05B
	Stockholders Equity
5.46B	5.28B	4.62B	4.27B	3.75B	3.28B
Cash Flow		Free Cash Flow
648.10M	601.90M	541.70M	545.60M	514.90M	600.10M
	Operating Cash Flow
1.05B	1.06B	1.00B	992.80M	838.70M	882.90M
	Investing Cash Flow
-535.70M	-600.30M	-768.00M	-706.60M	-541.30M	-428.00M
	Financing Cash Flow
-463.20M	-424.30M	-295.20M	-72.60M	-370.00M	-461.30M

CCL Industries (A) Technical Analysis

Technical Analysis Sentiment

Positive

Last Price79.49

Price Trends

50DMA

71.93

Positive

100DMA

72.55

Positive

200DMA

75.80

Positive

Market Momentum

MACD

2.15

Negative

RSI

70.01

Negative

STOCH

83.72

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCL.A, the sentiment is Positive. The current price of 79.49 is above the 20-day moving average (MA) of 73.83, above the 50-day MA of 71.93, and above the 200-day MA of 75.80, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 83.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CCL.A.

CCL Industries (A) Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.A	78 Outperform	C$13.74B	16.45	16.68%	1.48%	9.80%	60.44%
WPK	73 Outperform	C$2.69B	13.23	11.26%	0.41%	5.50%	9.93%
TCL.A	71 Outperform	C$1.73B	10.79	8.50%	4.35%	-4.75%	68.04%
TCL.B	71 Outperform	C$1.73B	10.80	8.50%	4.35%	-4.75%	68.04%
Sector *	62 Neutral	$6.98B	11.38	2.86%	3.90%	2.64%	-22.07%

* Consumer Cyclical Sector Average

Performance Comparison

TSE:CCL.A

CCL Industries (A)

79.20

7.86

11.02%

TSE:TCL.A

Transcontinental

20.80

8.81

73.48%

TSE:TCL.B

Transcontinental Inc. Class B

20.88

8.84

73.42%

TSE:WPK

Winpak

43.56

1.66

3.96%

CADNF

Cascades

6.40

-0.39

-5.74%

CCDBF

CCL Industries

56.49

5.53

10.85%

CCL Industries (A) Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 9.28%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a generally positive outlook with significant sales and EPS growth, strong free cash flow, and robust performance in segments like Innovia. However, challenges such as increased net debt, regional performance issues in Checkpoint, and uncertainties around tariffs and the U.S. back-to-school market create a balanced view.

Q1-2025 Updates

Positive Updates

Sales Increase

Sales for the first quarter of 2025 increased by 8.6%, reaching $1.89 billion compared to $1.74 billion in the first quarter of 2024.

Operating Income Growth

Operating income increased by 9% to $316.9 million for the 2025 first quarter, excluding the impact of foreign currency translation.

Record Quarterly EPS

Record quarterly adjusted earnings per share of $1.18 for the first quarter of 2025, compared to $1.08 in the first quarter of 2024.

Improved Free Cash Flow

Free cash flow from operations was an inflow of $39.1 million for the first quarter of 2025, compared to an outflow of $7 million in the first quarter of 2024.

Strong Performance in Innovia

Innovia segment showed strong volume growth and share gain, especially in North America, with profitability improvement.

Shareholder Returns

The company repurchased 1.4 million shares for $100 million and increased the annual dividend by 10.3%.

Negative Updates

Net Debt Increase

Net debt increased to $1.75 billion, up by almost $134 million from December 31, 2024, primarily due to capital expenditures and share buyback.

Challenges in Checkpoint Segment

Checkpoint segment had a decline in some regions, especially in the Americas, despite strong performance in Europe.

Uncertainty in U.S. Back-to-School Season

Avery's outlook marked by uncertainty due to potential tariffs affecting back-to-school inventory planning, which could impact EBIT by approximately $10 million.

Exposure to Tariffs

Checkpoint MAS products, which rely on the China supply chain, face potential tariff impacts, leading to accelerated plans to shift production.

Company Guidance

In the first quarter of 2025, CCL Industries reported an 8.6% increase in sales, reaching $1.89 billion, driven by 3.8% organic growth, 1.4% acquisition-related growth, and a 3.4% positive impact from foreign currency translation. Operating income rose to $316.9 million, marking a 9% increase from the previous year, excluding currency effects. The company's EBITDA grew by 8%, and net earnings increased by 6% to $207.4 million. Basic and adjusted earnings per share reached a record $1.18, up from $1.08 in Q1 2024. CCL also reported a significant turnaround in free cash flow, with an inflow of $39.1 million compared to a $7 million outflow in the prior year. Shareholder returns included the repurchase of 1.4 million shares for $100 million and dividends totaling $56.3 million. The company's net debt rose to $1.75 billion, with a leverage ratio of 1.14 times, while maintaining robust liquidity with $821 million in cash and $1.9 billion in available credit. Looking ahead, CCL expects continued stable performance with potential currency and RFID growth, despite uncertainties in the U.S. back-to-school market and tariff impacts.

CCL Industries (A) Corporate Events

Shareholder MeetingsBusiness Operations and Strategy

CCL Industries Reports Strong Shareholder Support at 2025 Annual Meeting

Positive

May 9, 2025

CCL Industries Inc. announced the results of its 2025 Annual and Special Shareholders’ Meeting, where all proposed matters, including the election of nine directors, appointment of an auditor, and amendments to the Performance Stock Unit Plan, were approved. The meeting saw a high participation rate with 97.66% of Class A voting shares represented. These approvals reflect strong shareholder support and are likely to enhance CCL’s operational capabilities and strategic positioning in the market.

Spark’s Take on TSE:CCL.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:CCL.A is a Outperform.

CCL Industries scores well due to robust financial performance and positive earnings guidance. While technical indicators suggest caution, stable financials and fair valuation provide a balanced investment opportunity, supported by positive corporate events.

To see Spark’s full report on TSE:CCL.A stock, click here.

Stock BuybackBusiness Operations and Strategy

CCL Industries Plans to Renew Share Buyback Program

Positive

May 8, 2025

CCL Industries announced its intention to renew its normal course issuer bid (NCIB) to repurchase up to 14,450,000 Class B non-voting shares, approximately 9.95% of the public float, pending approval from the Toronto Stock Exchange. This move is seen as a strategic use of funds, aligning with the company’s interests, and follows the expiration of its current NCIB, under which 4,006,082 shares were purchased and canceled.

Spark’s Take on TSE:CCL.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:CCL.A is a Outperform.

CCL Industries scores well due to robust financial performance and positive earnings guidance. While technical indicators suggest caution, the company’s stable financials and fair valuation provide a balanced investment opportunity, supported by positive corporate events.

To see Spark’s full report on TSE:CCL.A stock, click here.

Stock BuybackDividendsFinancial Disclosures

CCL Industries Reports Record First Quarter 2025 Results

Positive

May 7, 2025

CCL Industries reported record financial results for the first quarter of 2025, with an 8.6% increase in sales and a 12.4% rise in operating income. The company’s performance was bolstered by organic growth, acquisitions, and favorable currency translations. Notably, the CCL and Innovia segments showed strong results, contributing to a 9.3% increase in adjusted basic earnings per Class B share. Despite geopolitical challenges, the company maintained a robust balance sheet and returned $156.3 million to shareholders through dividends and stock buybacks.

Spark’s Take on TSE:CCL.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:CCL.A is a Outperform.

CCL Industries receives a strong overall score of 80, driven by robust financial performance and positive earnings call insights. The company showcases consistent revenue growth, solid margins, and stable leverage. Despite technical indicators suggesting some caution, the firm maintains a fair valuation, making it a balanced investment choice.

To see Spark’s full report on TSE:CCL.A stock, click here.

Executive/Board Changes

CCL Industries Mourns the Loss of Esteemed Board Member Vincent J. Galifi

Negative

Apr 24, 2025

CCL Industries Inc. announced the passing of Vincent J. Galifi, a respected member of its Board of Directors, who joined in 2016 and served as Chair of the Audit Committee since 2019. Mr. Galifi was known for his financial expertise and strategic guidance, significantly contributing to the company’s governance and operations. His passing is a notable loss for the company, affecting its board dynamics and potentially influencing future strategic decisions.

Spark’s Take on TSE:CCL.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:CCL.A is a Outperform.

CCL Industries receives a solid score of 75, driven by strong financial performance and positive recent earnings call insights. While technical indicators suggest caution, the company’s stable financials and fair valuation offer a balanced investment case.

To see Spark’s full report on TSE:CCL.A stock, click here.

Financial Disclosures

CCL Industries to Announce Q1 2025 Earnings and Host Webcast

Positive

Apr 10, 2025

CCL Industries Inc. announced it will release its 2025 First Quarter Earnings Results on May 7, 2025, followed by a live webcast on May 8, 2025, to discuss the results and address questions. This announcement signifies CCL’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations positively.

Spark’s Take on TSE:CCL.A Stock

According to Spark, TipRanks’ AI Analyst, TSE:CCL.A is a Outperform.

CCL Industries receives a solid overall score of 72, reflecting strong financial performance and a positive outlook from the latest earnings call. Despite technical indicators suggesting caution, the company’s stable financials and fair valuation provide a balanced investment case.

To see Spark’s full report on TSE:CCL.A stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.