CCL Industries (CCL.B) AI Stock Analysis

• Market Cap: C$15.12B
• Dividend Yield: 1.46%
• Average Volume (3M): 331.30K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.79
• 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$101.02
• Price Target Upside: 15.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.94
• Revenue Forecast (FY): C$7.97B

• Rating: 73 Outperform
• Price Target: C$99.00 ▲(13.43% 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

Margin Sustainability

Consistently healthy gross and operating margins indicate durable pricing power and cost control across label and container products. High EBITDA margins provide room to reinvest, absorb commodity swings, and sustain profitability through industry cycles over the next 2–6 months.

Revenue Growth Trend

An acceleration in TTM revenue growth signals stronger end-market demand and/or successful pricing and commercial execution. Sustained top-line momentum supports scale benefits, capacity utilization and long-term margin stability if the company maintains product differentiation.

Balance Sheet Strength & ROE

Reasonable leverage and an attractive ROE reflect disciplined capital allocation and financial flexibility. A conservative debt profile relative to equity supports capacity for targeted M&A, capex or shareholder returns while preserving resilience against cyclical pressure.

Negative Factors

Cash Conversion Quality

Mixed cash conversion suggests working-capital, tax or interest timing pressures that reduce the cash available from reported earnings. Over the medium term this can constrain organic investment, dividend flexibility or rapid deleveraging despite solid accounting profits.

Net Margin Compression

A decline in net margin despite stable operating margins implies below-the-line headwinds (interest, taxes or non-operating items). If persistent, this erodes net income growth and reduces retained earnings available for reinvestment or balance sheet strengthening.

Revenue Concentration in Label Segment

Heavy reliance on the label segment concentrates exposure to the specific end markets it serves (food, personal care, consumer durables). Adverse demand shifts or loss of key customers in those markets would disproportionately affect revenues and operational leverage.

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 its label and packaging products. The CCL Label segment is a significant revenue driver, providing customized labeling solutions for various industries, which allows the company to charge premium prices based on the value-added features of its products. The CCL Container segment contributes additional income through the manufacture of specialized plastic containers and closures, often leveraging long-term contracts with major customers in the pharmaceutical and personal care sectors. Avery also adds to the revenue stream through direct sales of office products. Key partnerships with global brands and manufacturers enhance CCL's market reach and stability. Additionally, CCL's focus on sustainable practices and innovation positions it well to meet evolving market demands, potentially increasing its revenue in the long term.

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: Neutral
• Last Price: 87.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 87.28 is below the 20-day moving average (MA) of 88.84, above the 50-day MA of 87.23, and above the 200-day MA of 81.60, indicating a neutral trend. The MACD of 1.24 indicates Positive momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 45.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$2.77B	14.22	10.45%	7.11%	3.19%	-0.26%
CCL.B	73 Outperform	C$15.12B	18.88	14.88%	1.46%	7.12%	17.15%
TCL.B	70 Neutral	C$1.97B	9.65	8.99%	8.22%	-2.45%	44.20%
SXP	65 Neutral	C$87.31M	7.49	15.15%	19.66%	-4.69%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RIC	60 Neutral	C$331.81M	18.41	―	―	―	―
CAS	53 Neutral	C$1.19B	18.01	1.16%	3.90%	3.50%	―