CCL Industries (CCL.B) AI Stock Analysis

• Market Cap: C$14.49B
• Dividend Yield: 1.46%
• Average Volume (3M): 331.30K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.78
• 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: 161,501,740
• 10 Day Avg. Volume: 260,289
• 30 Day Avg. Volume: 331,295
• 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: C$100.83
• Price Target Upside: 20.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 4.93
• Revenue Forecast (FY): C$7.98B

• Rating: 73 Outperform
• Price Target: C$93.00 ▲(11.24% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (healthy margins, accelerating TTM growth, and reasonable leverage), supported by positive technical trend and momentum. This is tempered by only fair cash conversion and a moderate valuation with a modest dividend yield.

Positive Factors

Operating & EBITDA Margins

Sustained mid-teens operating margins and ~20% EBITDA show durable pricing power and cost control across label, film and security segments. These margins support reinvestment, resilience through cycles and the ability to fund higher-value product development and customer service.

Accelerating Revenue Growth

A marked acceleration in TTM revenue growth signals stronger underlying demand and successful pricing or share gains across CCL's global end markets. Sustained top-line momentum improves economies of scale, supports margin retention and strengthens long-term customer relationships.

Reasonable Leverage & Strong ROE

Moderate leverage (D/E ~0.47) with a ~15% ROE indicates efficient capital deployment and financial flexibility. This balance-sheet posture supports investment in capacity, M&A or working-capital needs without excessive solvency risk, preserving strategic optionality.

Negative Factors

Mixed Cash Conversion

FFO/earnings conversion is uneven: FCF covers ~66% of net income and operating cash sits well below EBITDA. Persistent working-capital drag or below-the-line cash items can constrain free cash for buybacks, dividends or capex and increase sensitivity to cycle changes.

Net Margin Compression

A decline in net margin despite stable operating profitability suggests rising below-the-line costs (interest, tax, non-op items). If persistent, this reduces retained earnings and free cash, limiting financial flexibility and returns to shareholders over the medium term.

EPS Growth Weakness

Negative EPS growth indicates earnings per share have declined recently, which may reflect dilution, margin pressure, or non-operational headwinds. Continued EPS weakness can limit reinvestment capacity and signals that profit gains haven't fully translated to shareholder-level earnings.

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 makes money primarily by manufacturing and selling labels, packaging materials, and related specialty products and services to brand owners and retailers. A major revenue stream is the production of pressure-sensitive and specialty labels (e.g., decorative, functional, and information labels) that are typically ordered by consumer and healthcare brands for use on finished goods; revenue is generated per unit produced under customer supply agreements and ongoing replenishment programs tied to customers’ product volumes. Through its Avery division, CCL earns revenue from the sale of office, home, and consumer labeling products (such as printable labels and related products) distributed through retail and commercial channels. Through Checkpoint, the company generates revenue from retail loss-prevention and merchandise visibility solutions, including RFID and electronic article surveillance (EAS) components (e.g., tags/labels) and related systems sold to retailers and brand owners; recurring demand can be driven by ongoing tag/label consumption in addition to equipment and solution sales. Innovia contributes by selling specialty packaging films used in label and packaging applications, with revenue linked to film volumes and mix. CCL Secure contributes by selling secure identification and authentication products (e.g., security printing and related materials/solutions) where revenue is generated from the manufacture of specialized, higher-value secure items. Across the portfolio, earnings are influenced by manufacturing scale, long-term customer relationships with multinational brand owners, product mix (higher value-added specialty labels/films/security products), raw material input costs, and global production footprint that supports local supply for large customers.

CCL Industries Financial Statement Overview

Summary

Strong fundamentals overall: solid profitability (about 15% operating margin and ~20% EBITDA margin) and sharply improved TTM revenue growth. Balance sheet leverage appears reasonable (debt-to-equity ~0.47) with attractive ROE (~15%). Offsetting factors include a modest net margin decline versus 2024 and mixed cash conversion (FCF ~two-thirds of net income; OCF meaningfully below EBITDA).

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability with gross margin near 30% and operating profitability remaining strong (about 15% operating margin and ~20% EBITDA margin). Revenue growth accelerated sharply in TTM versus the prior annual period, signaling strong demand and/or effective pricing. A key weakness is that net margin slipped versus 2024 (TTM ~10.7% vs. 2024 ~11.6%), suggesting some pressure from below-the-line items even as operating performance improved.

Balance Sheet

Leverage looks reasonable and stable for the industry, with debt-to-equity around ~0.47 in TTM (broadly in line with recent years and improved versus 2020). Equity has grown steadily alongside assets, supporting balance sheet flexibility. Return on equity remains attractive (~15% in TTM), though it is down modestly from 2024, implying profitability did not keep pace with the expanding equity base.

Cash Flow

Cash generation is healthy, with operating cash flow and free cash flow both rising in TTM and free cash flow up strongly versus the prior year. However, cash conversion is a bit mixed: free cash flow covers only about two-thirds of net income in TTM, and operating cash flow is meaningfully below EBITDA, indicating working-capital and/or cash tax/interest headwinds. Overall cash flow quality is good but not pristine.

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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 83.6 is below the 20-day moving average (MA) of 87.92, below the 50-day MA of 86.57, and above the 200-day MA of 81.63, indicating a neutral trend. The MACD of -0.80 indicates Positive momentum. The RSI at 38.84 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, 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
WPK	77 Outperform	C$2.62B	14.22	10.45%	7.11%	3.19%	-0.26%
CCL.B	73 Outperform	C$14.49B	18.88	14.55%	1.46%	7.12%	17.15%
TCL.B	69 Neutral	C$1.97B	16.26	7.69%	8.22%	-2.45%	44.20%
SXP	65 Neutral	C$89.02M	7.49	10.80%	19.66%	-4.69%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIC	60 Neutral	C$314.60M	18.41	10.96%	―	―	―
CAS	53 Neutral	C$1.09B	18.01	1.16%	3.90%	3.50%	―