CCL Industries (CCL.B) AI Stock Analysis

• Market Cap: $13.81B
• Dividend Yield: 1.56%
• Average Volume (3M): 211.32K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.64
• Revenue Growth: 9.80%
• EPS Growth: 60.44%
• Country: CA
• Employees: 26,300
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Packaging & Containers
• EPS (TTM): 1.18
• Shares Outstanding: 163,239,790
• 10 Day Avg. Volume: 190,114
• 30 Day Avg. Volume: 211,324
• PEG Ratio: 7.76
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.59
• 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: $91.12
• Price Target Upside: 16.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: C$89.00 ▲(13.52%Upside)

CCL Industries presents a strong investment opportunity, driven by robust financial performance and positive earnings call highlights. The stock's technical indicators suggest upward momentum, though caution is advised due to near-term overbought signals. The valuation is balanced, with the P/E ratio and dividend yield indicating the stock is fairly priced. Overall, the company's operational excellence and strategic initiatives contribute to a favorable outlook, despite minor challenges such as increased corporate expenses and rising net debt.

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 makes money through its diversified business segments that generate revenue by providing specialized packaging and labeling solutions. The company's revenue streams are primarily driven by its Label segment, which includes pressure-sensitive labels, shrink sleeves, and other labeling solutions used across industries. Additionally, the Avery segment contributes to revenue through office products and printable media, while the Checkpoint segment provides technology-driven label solutions for retail inventory management. CCL's Innovia segment adds to earnings through the production of specialty films, including polymer banknote substrates. Strategic acquisitions and partnerships further enhance CCL's market position and revenue generation capabilities, while its global presence allows it to cater to a broad customer base.

CCL Industries Financial Statement Overview

Summary

CCL Industries showcases strong financial performance with robust revenue and profit growth, impressive profitability margins, and a solid balance sheet. The company's effective cash flow management supports its strategic growth initiatives. While leverage exists, it is mitigated by substantial equity backing, ensuring financial stability.

Income Statement

CCL Industries has demonstrated robust revenue growth with a notable increase from previous years, reaching $7.39 billion in the TTM period. The gross profit margin stands strong at 29.67%, and the net profit margin is impressive at 11.61%. EBIT and EBITDA margins are healthy at 14.83% and 22.10%, respectively, indicating efficient cost management and operational excellence. The company has shown consistent revenue growth, enhancing its profitability and market position.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.47, reflecting a prudent approach to leverage. The equity ratio of 53.54% signifies strong equity backing and financial stability. Return on equity is commendable at 15.73%, showcasing effective utilization of shareholder funds. Despite the presence of substantial debt, the company's equity position provides a buffer against potential financial risks.

Cash Flow

CCL Industries exhibits a healthy cash flow with operating cash flow exceeding net income, indicating strong cash generation efficiency. The free cash flow growth rate is solid, and the free cash flow to net income ratio is 0.76, suggesting effective capital expenditure management. The company's ability to generate free cash flow consistently supports its strategic initiatives and growth plans.

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
EBITDA	1.58B	1.25B	1.26B	1.19B	1.09B
Net Income	843.10M	530.20M	622.70M	599.10M	529.70M
Balance Sheet
Total Assets	9.86B	8.92B	8.66B	7.63B	7.34B
Cash, Cash Equivalents and Short-Term Investments	820.60M	774.20M	831.50M	594.10M	700.30M
Total Debt	2.45B	2.28B	2.36B	1.85B	2.09B
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: Neutral
• Last Price: 78.40
• 50DMA: Positive
• 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 78.4 is below the 20-day moving average (MA) of 79.81, below the 50-day MA of 78.78, and above the 200-day MA of 74.93, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 31.94 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
CCL.B	78 Outperform	$13.81B	16.32	16.78%	1.56%	9.80%	60.44%
TCL.B	74 Outperform	C$1.69B	9.44	9.65%	9.42%	-2.58%	100.21%
IFX	74 Outperform	C$66.15M	11.52	9.56%	―	13.92%	310.18%
TCL.A	67 Neutral	C$1.69B	9.49	9.65%	9.53%	-2.58%	100.21%
WPK	65 Neutral	C$2.65B	13.59	10.79%	0.18%	4.69%	4.54%
Sector *	57 Neutral	HK$26.40B	4.11	-2.03%	5.49%	-0.23%	-68.02%
CADNF	―	$689.12M	―	-0.24%	5.01%	―	―