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

• Market Cap: C$15.97B
• Dividend Yield: 1.44%
• Average Volume (3M): 156.00
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.60
• Revenue Growth: 7.12%
• EPS Growth: 17.15%
• Country: CA
• Employees: 26,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 1.03
• Shares Outstanding: 11,700,000
• 10 Day Avg. Volume: 289
• 30 Day Avg. Volume: 156
• PEG Ratio: -6.38
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 17.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.94
• Revenue Forecast (FY): C$7.97B

• Rating: 77 Outperform
• Price Target: C$101.00 ▲(13.42% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (healthy margins, improving free cash flow, and improving leverage), supported by positive technical momentum (above key moving averages with positive MACD). Valuation is acceptable but not especially compelling given a moderate P/E and a modest dividend yield.

Positive Factors

Strong Cash Generation

Sustained, large operating and free cash flows provide durable funding for capex, dividends, acquisitions and debt reduction. High absolute FCF and rapid FCF growth increase strategic flexibility and reduce reliance on external financing over the medium term.

Healthy Profitability

High gross and operating margins indicate pricing power and efficient manufacturing across label/packaging segments. Strong revenue expansion alongside solid margins supports durable earnings potential driven by recurring B2B contracts and value-added, specification-led products.

Improving Leverage and Returns

Steady reduction in leverage with rising equity and mid-teens ROE signals productive capital deployment and improving balance-sheet resilience. This trend enhances financial flexibility for M&A or capex while lowering structural refinancing risk over multiple quarters.

Negative Factors

Sizable Absolute Debt

Even with improving ratios, a large absolute debt stock creates ongoing exposure to interest-rate moves and refinancing cycles. Material debt can constrain strategic investment, increase interest costs in a higher-rate environment, and amplify earnings sensitivity to cash-flow shocks.

Cash-Conversion Volatility

Below-1.0 coverage and variable cash conversion point to working-capital timing and capex swings that can compress available liquidity. Persistent conversion variability limits predictability of distributable cash and can amplify stress during slower demand periods.

Earnings Conversion Pressure

Revenue growth not fully translating to net income highlights non-operating or below-operating-line pressures (e.g., financing, FX, amortization). If structural, this reduces return on sales and weakens resilience of profits to cost inflation or margin erosion over coming quarters.

CCL Industries (A) Business Overview & Revenue Model

Company Description

CCL 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 Money

CCL Industries generates revenue primarily through the sale of labels, packaging solutions, and specialty products. The company operates under a diversified revenue model with key revenue streams coming from its various segments: CCL Label, which focuses on pressure-sensitive labels and packaging; CCL Container, which produces plastic containers; and Avery, known for office supplies and products. Significant partnerships with major global brands across different sectors, along with ongoing investments in technology and production efficiencies, contribute to the company's earnings. Additionally, CCL Industries benefits from a strong market presence and a reputation for quality and innovation, which helps to drive sales growth and customer retention.

CCL Industries (A) Financial Statement Overview

Summary

Strong fundamentals overall: Income Statement (84) shows healthy margins and strong TTM revenue growth, Balance Sheet (78) shows improving leverage with solid ROE but sizable absolute debt, and Cash Flow (81) shows strong and improving free cash flow with some timing/coverage volatility and less-than-perfect cash conversion.

Income Statement

Results show strong and improving profitability with healthy margins in TTM (Trailing-Twelve-Months): ~30% gross margin, ~15% operating margin, and ~10.7% net margin. Revenue has expanded steadily from 2020–2024 and then accelerated sharply in TTM (Trailing-Twelve-Months) (growth rate shown at ~84%), while operating profit dollars also increased. The main offset is that net income in TTM (Trailing-Twelve-Months) is slightly below 2024 despite higher revenue, indicating some mix/expense pressure below the operating line and making the latest growth look less “clean” from an earnings conversion standpoint.

Balance Sheet

Leverage looks reasonable and stable for the sector, with debt-to-equity around ~0.47 in TTM (Trailing-Twelve-Months) (improved versus ~0.64 in 2020) and equity building over time. Returns on equity are solid (about ~15% in TTM (Trailing-Twelve-Months)), supporting the view that capital is being used productively. The key watch item is that total debt remains sizable in absolute terms (~$2.4B), so the company is still exposed to refinancing/interest-rate sensitivity even though the balance sheet trend is moving in the right direction.

Cash Flow

Cash generation is a clear strength: operating cash flow rose to ~$1.30B in TTM (Trailing-Twelve-Months) and free cash flow to ~$863M, with very strong TTM (Trailing-Twelve-Months) free-cash-flow growth (shown at ~330%). Cash conversion is decent but not perfect—free cash flow is ~68% of net income in TTM (Trailing-Twelve-Months) (and was ~54–61% in prior years), suggesting ongoing working-capital and/or capital-spending needs. Operating cash flow coverage is also under 1.0 in TTM (Trailing-Twelve-Months) (~0.76), which points to some cash flow timing volatility even as absolute cash generation improves.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.66B	7.25B	6.65B	6.38B	5.73B
Gross Profit	2.30B	2.14B	1.91B	1.72B	1.59B
EBITDA	1.62B	1.43B	1.27B	1.18B	1.13B
Net Income	802.40M	843.10M	530.20M	622.70M	599.10M
Balance Sheet
Total Assets	10.10B	9.86B	8.92B	8.66B	7.63B
Cash, Cash Equivalents and Short-Term Investments	998.20M	828.70M	774.20M	839.50M	602.10M
Total Debt	2.41B	2.45B	2.28B	2.36B	1.85B
Total Liabilities	4.46B	4.58B	4.30B	4.40B	3.88B
Stockholders Equity	5.64B	5.28B	4.62B	4.27B	3.75B
Cash Flow
Free Cash Flow	863.20M	601.90M	541.70M	545.60M	514.90M
Operating Cash Flow	1.30B	1.06B	1.00B	992.80M	838.70M
Investing Cash Flow	-437.70M	-600.30M	-768.00M	-706.60M	-541.30M
Financing Cash Flow	-709.50M	-424.30M	-295.20M	-72.60M	-370.00M

CCL Industries (A) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 89.05 is above the 20-day moving average (MA) of 88.65, above the 50-day MA of 87.59, and above the 200-day MA of 82.17, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 62.31 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.A	77 Outperform	C$15.97B	18.88	15.16%	1.44%	7.12%	17.15%
WPK	77 Outperform	C$2.78B	14.22	10.45%	7.11%	3.19%	-0.26%
TCL.A	74 Outperform	C$1.93B	9.65	8.95%	8.32%	-2.45%	44.20%
LNR	73 Outperform	$5.51B	6.59	4.01%	1.32%	-5.33%	-57.58%
TCL.B	70 Neutral	C$1.93B	9.65	8.95%	8.22%	-2.45%	44.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAS	53 Neutral	$1.23B	18.01	1.16%	3.90%	3.50%	―

CCL Industries (A) Corporate Events

CCL Industries Adopts Automatic Plan to Accelerate Class B Share Buybacks

CCL Industries Inc. has entered into an automatic securities purchase plan with a designated broker to facilitate buybacks of its Class B non-voting shares under its existing normal course issuer bid. The plan, effective March 2, 2026, is designed to allow share repurchases to continue during blackout periods when the company would otherwise be restricted from trading.

The company has TSX approval to repurchase up to 14,450,000 Class B non-voting shares, representing about 9.95% of the public float, during the 12-month period ending May 25, 2026. As of the announcement date, CCL has already bought back 2,050,343 Class B shares, and purchases made under the automatic plan will count toward the overall issuer bid, potentially supporting the stock and signaling ongoing capital return to shareholders.

The most recent analyst rating on ($TSE:CCL.A) stock is a Buy with a C$94.00 price target. To see the full list of analyst forecasts on CCL Industries (A) stock, see the TSE:CCL.A Stock Forecast page.

CCL Industries Delivers Record 2025 Earnings Amid Mixed Segment Performance

CCL Industries reported record annual results for 2025, with sales up 5.8% to $7.66 billion and operating income rising 8.7%, supported by 2.5% organic growth, modest acquisition contributions and a favourable currency tailwind. Adjusted basic earnings per Class B share increased 7.4% to $4.64, despite a higher effective tax rate, while the company returned $523.7 million to shareholders through dividends and share buybacks.

In the fourth quarter, sales rose 3.5% to $1.88 billion and operating income grew 4.8%, but basic earnings per Class B share edged down 2.0% as tax expenses climbed, partly offsetting gains from currency translation. Segment performance was mixed, with solid organic growth at the core CCL and Avery businesses offset by declines at Checkpoint and Innovia, underscoring softer consumer markets even as overall margins improved and management highlighted the resilience of its core operations.

The most recent analyst rating on ($TSE:CCL.A) stock is a Buy with a C$94.00 price target. To see the full list of analyst forecasts on CCL Industries (A) stock, see the TSE:CCL.A Stock Forecast page.

CCL Industries Schedules Webcast to Review Fourth-Quarter and 2025 Year-End Results

CCL Industries announced it will release its fourth-quarter and full-year 2025 financial results on February 25, 2026, followed by a live webcast and audio call on February 26 to discuss the performance and take questions from stakeholders. The event, supported by online presentation materials and a replay available through late March, underscores the company’s efforts to maintain active engagement with investors and analysts as it continues to leverage its global scale and diversified portfolio in labels, packaging, security solutions and materials science to serve customers across consumer packaging, healthcare, electronics, automotive and retail markets.

The most recent analyst rating on ($TSE:CCL.A) stock is a Buy with a C$94.00 price target. To see the full list of analyst forecasts on CCL Industries (A) stock, see the TSE:CCL.A Stock Forecast page.

CCL Industries to Acquire ALT Technologies, Expanding Automotive Safety Business

CCL Industries has signed a binding agreement to acquire Advanced Safety Technologies B.V. and its subsidiaries, which operate as ALT Technologies, a privately owned producer of covers, wraps and seals for automotive airbags and durable labels for automotive and industrial applications. ALT, which runs manufacturing facilities in the Netherlands, Romania, China and Mexico and generated approximately $67 million in sales with an estimated 11.3% adjusted EBITDA margin over the twelve months to November 30, 2025, will be purchased for about $32 million in an all-cash, debt-free transaction expected to close in the second quarter of 2026, subject to regulatory procedures; the acquisition will form a new Automotive Safety business unit within CCL Design, deepening CCL’s footprint in the global automotive safety supply chain and broadening its industrial label offering.

The most recent analyst rating on ($TSE:CCL.A) stock is a Buy with a C$94.00 price target. To see the full list of analyst forecasts on CCL Industries (A) stock, see the TSE:CCL.A Stock Forecast page.