CCL Industries (CCL.B) AI Stock Analysis

• Market Cap: $11.98B
• Dividend Yield: 1.75%
• Average Volume (3M): 398.33K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.62
• Revenue Growth: 8.95%
• EPS Growth: 64.88%
• Country: CA
• Employees: 26,300
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Packaging & Containers
• EPS (TTM): 4.74
• Shares Outstanding: 163,881,560
• 10 Day Avg. Volume: 404,169
• 30 Day Avg. Volume: 398,330
• PEG Ratio: 0.22
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.75
• Price to Cash Flow (P/CF): 10.20
• P/FCF Ratio: 11.00
• 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: C$90.29
• Price Target Upside: 31.10% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

CCL Industries shows strong financial performance and fair valuation, but technical indicators suggest caution. The financial health and strategic investments provide a solid foundation for future growth, though sector-specific challenges may impact short-term performance.

Positive Factors

Business Model

CCL's resilient and diverse business model highlights its ability to manage through challenging market backdrops and seek out pockets of growth.

Competitive Position

CCL's competitive position as the world's largest label converter with a global network of plants and profitable expansion into materials science supports its outperform rating.

Financial Position

CCL remains well positioned and is one of the only players in the industry that has the financial wherewithal to take advantage of and benefit from many trends in the label industry.

Negative Factors

CCL Industries 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 specialty labels, containers, and packaging solutions. Its key revenue streams include the CCL Label segment, which offers pressure-sensitive labels, shrink sleeves, and other labeling products; the CCL Container segment, providing aluminum aerosol containers and specialty bottles; the Avery segment, which sells printable media and office products; and the Checkpoint segment, offering technology-driven labeling solutions such as RFID and electronic article surveillance. The company benefits from significant partnerships with major consumer goods companies and retailers, which help drive continuous demand for its products. Additionally, CCL Industries focuses on innovation and sustainability, which enhances its market competitiveness and contributes to its financial performance.

CCL Industries Financial Statement Overview

Summary

CCL Industries demonstrates robust financial health with strong revenue growth and solid margins. The income statement, balance sheet, and cash flow scores indicate effective cost management and prudent leverage, though the absence of EBIT data warrants attention.

Income Statement

CCL Industries has demonstrated strong revenue growth with a 9% increase from 2023 to 2024. Gross profit margin improved, indicating efficient cost management. The EBITDA margin of 22.4% showcases solid operational performance, although the EBIT margin is unavailable for 2024, suggesting potential areas for improvement in operating profitability.

Balance Sheet

The company maintains a healthy equity ratio of 53.6%, reflecting a strong equity base. The debt-to-equity ratio stands at 0.46, indicating prudent leverage management. Return on equity improved to 16%, highlighting effective use of shareholders' equity. Overall, the balance sheet depicts a stable financial position with manageable debt levels.

Cash Flow

Operating cash flow shows consistent strength with a slight increase over the years. The free cash flow to net income ratio of 0.71 indicates robust cash generation relative to net income. The free cash flow growth rate of 11.1% from 2023 to 2024 signifies positive cash flow dynamics, supporting future investment opportunities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.25B	6.65B	6.38B	5.73B	5.24B
	Gross Profit
2.14B	1.91B	1.72B	1.59B	1.50B
	EBIT
0.00	928.80M	895.40M	849.60M	787.30M
	EBITDA
1.62B	1.25B	1.26B	1.19B	1.09B
	Net Income Common Stockholders
843.10M	530.20M	622.70M	599.10M	529.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
820.60M	774.20M	831.50M	594.10M	700.30M
	Total Assets
9.86B	8.92B	8.66B	7.63B	7.34B
	Total Debt
2.45B	2.28B	2.36B	1.85B	2.09B
	Net Debt
1.63B	1.52B	1.53B	1.26B	1.39B
	Total Liabilities
4.58B	4.30B	4.40B	3.88B	4.05B
	Stockholders Equity
5.28B	4.62B	4.27B	3.75B	3.28B
Cash Flow		Free Cash Flow
601.90M	541.70M	545.60M	514.90M	600.10M
	Operating Cash Flow
1.06B	1.00B	992.80M	838.70M	882.90M
	Investing Cash Flow
-600.30M	-768.00M	-706.60M	-541.30M	-428.00M
	Financing Cash Flow
-424.30M	-295.20M	-72.60M	-370.00M	-461.30M

CCL Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCL.B, the sentiment is Negative. The current price of 68.87 is below the 20-day moving average (MA) of 69.51, below the 50-day MA of 70.68, and below the 200-day MA of 74.73, indicating a bearish trend. The MACD of -1.12 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 54.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CCL.B.

CCL Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBL	72 Outperform	C$375.10M	20.02	10.28%	3.36%	16.43%	8.64%
WPK	71 Outperform	C$2.53B	12.74	11.45%	0.39%	0.56%	4.94%
CCL.B	70 Outperform	$11.98B	14.41	17.16%	1.75%	8.95%	64.88%
RPI.UN	62 Neutral		8.50	18.66%	4.77%	-4.26%	-7.76%
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%