CCL Industries Inc Class B (TSE:CCL.B)
TSX:CCL.B
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CCL Industries
(TSX:CCL.B)
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Rating:71Outperform
Price Target:
C$96.00
▲(9.78% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid financial performance—strong margins and healthy returns with manageable leverage—partly offset by weaker cash-flow momentum (TTM free cash flow decline). Technicals are supportive on moving averages but dampened by negative MACD and only neutral RSI, while valuation appears reasonable with a modest dividend yield.
Positive Factors
High and improving margins
Sustained gross (~30%), EBIT (~15%) and net (~10%) margins indicate structural pricing power and manufacturing efficiency. Durable margins and operating leverage support reinvestment, dividend capacity and resilience to cost volatility across packaging cycles, underpinning long-term cash generation.
Negative Factors
Recent free cash flow decline
TTM free cash flow reversed after 2025 despite solid absolute FCF (~$0.86B), suggesting higher capex or working-capital strain. A FCF downturn reduces financial flexibility for debt paydown, dividends or acquisitions and increases dependence on maintaining operating margins.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving margins
Sustained gross (~30%), EBIT (~15%) and net (~10%) margins indicate structural pricing power and manufacturing efficiency. Durable margins and operating leverage support reinvestment, dividend capacity and resilience to cost volatility across packaging cycles, underpinning long-term cash generation.
Read all positive factors
CCL Industries (CCL.B) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$14.95B
Dividend Yield1.46%
Average Volume (3M)331.30K
Price to Earnings (P/E)18.4
Beta (1Y)0.77
Revenue Growth4.34%
EPS Growth-4.98%
CountryCA
Employees26,300
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)4.59
Shares Outstanding160,926,900
10 Day Avg. Volume260,289
30 Day Avg. Volume331,295
Financial Highlights & Ratios
PEG Ratio-6.38
Price to Book (P/B)2.69
Price to Sales (P/S)1.98
P/FCF Ratio17.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$102.57Price Target Upside17.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)4.94
Revenue Forecast (FY)C$8.02B
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...
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 ...
CCL Industries Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook with notable achievements in sales growth, improved cash flow, and shareholder returns, contrasted by challenges such as increased tax rates, tariff impacts, and net debt rise. Despite these challenges, the company maintains a strong position in the market.Positive Updates
Sales and Operating Income Growth
Sales increased by 4.8% reaching $1.9 billion compared to the previous year's $1.8 billion, with a 5% increase in operating income excluding foreign currency effects.
Negative Updates
High Effective Tax Rate
The effective tax rate increased to 25.3% in Q2 2025, up from 18.8% in Q2 2024, impacting net earnings.
Read all updates
Q2-2025 Updates
Positive
Negative
Sales and Operating Income Growth
Sales increased by 4.8% reaching $1.9 billion compared to the previous year's $1.8 billion, with a 5% increase in operating income excluding foreign currency effects.
Read all positive updates
Company Guidance
In CCL Industries' second quarter of 2025 investor update, the company reported a 4.8% increase in sales, reaching $1.9 billion, driven by 2% organic growth, 1% acquisition-related growth, and a 1.8% positive impact from currency translation. Operating income rose by 5% to $322.1 million, excluding currency effects. Notably, net earnings were $213.1 million, down from $279.5 million the previous year, primarily due to a $78.1 million noncash revaluation gain in 2024. Excluding this gain, net earnings were $201.4 million, highlighting a 6.9% increase in net income for the first half of 2025. The company's effective tax rate increased to 25.3% from 18.8% in the prior year, excluding the revaluation gain. EBITDA grew 6%, and free cash flow from operations surged to $226 million from $118.8 million. The company reported a slight increase in net debt to $1.63 billion, maintaining a strong balance sheet with a leverage ratio of 1.04x. Adjusted earnings per Class B share increased by 8% to $1.22, supported by improved operating income, favorable currency translation, and reduced net finance costs. CCL Industries returned $312.1 million to shareholders, through share repurchases and dividends, and plans $485 million in capital expenditure for 2025.CCL Industries Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.72B | 7.66B | 7.25B | 6.65B | 6.38B | 5.73B |
| Gross Profit | 2.31B | 2.30B | 2.14B | 1.91B | 1.72B | 1.59B |
| EBITDA | 1.62B | 1.62B | 1.43B | 1.27B | 1.18B | 1.13B |
| Net Income | 799.90M | 802.40M | 843.10M | 530.20M | 622.70M | 599.10M |
Balance Sheet | ||||||
| Total Assets | 10.40B | 10.10B | 9.86B | 8.92B | 8.66B | 7.63B |
| Cash, Cash Equivalents and Short-Term Investments | 999.10M | 998.20M | 828.70M | 774.20M | 839.50M | 602.10M |
| Total Debt | 2.38B | 2.41B | 2.45B | 2.28B | 2.36B | 1.85B |
| Total Liabilities | 4.79B | 4.46B | 4.58B | 4.30B | 4.40B | 3.88B |
| Stockholders Equity | 5.61B | 5.64B | 5.28B | 4.62B | 4.27B | 3.75B |
Cash Flow | ||||||
| Free Cash Flow | 861.50M | 863.20M | 601.90M | 541.70M | 545.60M | 514.90M |
| Operating Cash Flow | 1.29B | 1.30B | 1.06B | 1.00B | 992.80M | 838.70M |
| Investing Cash Flow | -422.80M | -437.70M | -600.30M | -768.00M | -706.60M | -541.30M |
| Financing Cash Flow | -692.10M | -709.50M | -424.30M | -295.20M | -72.60M | -370.00M |
CCL Industries Technical Analysis
Positive
87.45
Price Trends
86.09
Positive
86.48
Positive
83.27
Positive
Market Momentum
-0.37
Negative
53.76
Neutral
64.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCL.B, the sentiment is Positive. The current price of 87.45 is above the 20-day moving average (MA) of 85.28, above the 50-day MA of 86.09, and above the 200-day MA of 83.27, indicating a bullish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 64.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CCL.B.
CCL Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$14.95B | 18.41 | 14.41% | 1.46% | 4.34% | -4.98% | |
69 Neutral | C$459.51M | 16.26 | 7.69% | 8.22% | -14.81% | -9.37% | |
67 Neutral | C$2.34B | 15.42 | 10.32% | 7.11% | -2.26% | -7.15% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | C$310.09M | 18.41 | 10.96% | ― | 5.99% | -47.22% | |
60 Neutral | C$1.06B | 7.67 | 5.95% | 3.90% | 0.02% | ― | |
58 Neutral | C$88.78M | 28.46 | 10.80% | 19.66% | 0.50% | ― |
* Consumer Cyclical Sector Average
TSE:CCL.B
CCL Industries
86.54
9.57
12.43%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.