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

• Market Cap: C$14.14B
• Dividend Yield: 1.56%
• Average Volume (3M): 53.00
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.66
• Revenue Growth: 9.80%
• EPS Growth: 60.44%
• Country: CA
• Employees: 26,300
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Packaging & Containers
• EPS (TTM): 1.18
• Shares Outstanding: 11,746,323
• 10 Day Avg. Volume: 60
• 30 Day Avg. Volume: 53
• PEG Ratio: 3.49
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.25
• 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

• Rating: 78 Outperform
• Price Target: C$92.00 ▲(13.24%Upside)

CCL Industries showcases solid financial performance and a positive outlook from its recent earnings call, indicating strong growth potential. Technical analysis supports a bullish trend, though caution is advised due to high RSI levels. The valuation is fair, providing stability but limited upside. The company's strategic initiatives and shareholder returns enhance its market position.

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 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's capital structure is stable, with a balanced leverage position and effective equity utilization.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	1.63B	1.58B	1.25B	1.26B	1.19B	1.09B
Net Income	858.40M	843.10M	530.20M	622.70M	599.10M	529.70M
Balance Sheet
Total Assets	10.19B	9.86B	8.92B	8.66B	7.63B	7.34B
Cash, Cash Equivalents and Short-Term Investments	821.00M	820.60M	774.20M	831.50M	594.10M	700.30M
Total Debt	2.57B	2.45B	2.28B	2.36B	1.85B	2.09B
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 Price: 81.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 81.24 is above the 20-day moving average (MA) of 79.20, above the 50-day MA of 77.49, and above the 200-day MA of 75.90, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 72.48 is Neutral, 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	78 Outperform	C$14.14B	16.81	16.68%	1.56%	9.80%	60.44%
WPK	78 Outperform	C$2.77B	13.67	11.26%	0.44%	5.50%	9.93%
TCL.B	74 Outperform	C$1.72B	9.68	9.65%	9.19%	-2.58%	100.21%
TCL.A	73 Outperform	C$1.72B	9.60	9.65%	23.89%	-2.58%	100.21%
Sector *	66 Neutral	£1.86B	11.36	6.20%	3.10%	0.61%	-17.57%
CADNF		$687.21M	―	-0.24%	5.13%	―	―
CCDBF		$10.41B	16.77	16.78%	1.58%	―	―

CCL Industries (A) Corporate Events

CCL Industries Expands Avery’s Portfolio with Strategic Acquisition

CCL Industries has announced the acquisition of Humphreys Holdings Limited, known as We Print Lanyards, a UK-based designer and manufacturer of custom lanyards, name badges, and ID cards. This acquisition is expected to enhance Avery’s portfolio in access control, badging, and credentials technologies, strengthening its market position in the retail, hospitality, and events sectors.

CCL Industries to Initiate Share Buyback Program

CCL Industries Inc. announced that the Toronto Stock Exchange has accepted its proposal to initiate a normal course issuer bid, allowing the company to repurchase up to 14,450,000 of its Class B non-voting shares, representing approximately 9.95% of the public float. This move is seen as a strategic use of funds, aimed at enhancing shareholder value by reducing the number of outstanding shares, which could potentially improve earnings per share and reflect confidence in the company’s financial health.

CCL Industries Reports Strong Shareholder Support at 2025 Annual Meeting

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.

CCL Industries Plans to Renew Share Buyback Program

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.

CCL Industries Reports Record First Quarter 2025 Results

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.

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

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.

CCL Industries to Announce Q1 2025 Earnings and Host Webcast

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.