Canada Packers Inc. (CPKR) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: N/A
• Average Volume (3M): 225.54K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 1.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: CA
• Employees: 3,700
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 0.78
• Shares Outstanding: 29,736,736
• 10 Day Avg. Volume: 261,397
• 30 Day Avg. Volume: 225,538
• PEG Ratio: -2.73
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 2.29
• 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$21.88
• Price Target Upside: 10.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.69
• Revenue Forecast (FY): C$1.81B

• Rating: 73 Outperform
• Price Target: C$21.50 ▲(8.92% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is driven mainly by improving fundamentals (earnings and cash flow turnaround) but held back by the sharp 2025 leverage increase, which raises financial risk. Technicals are supportive with price above key moving averages and positive MACD, while valuation looks especially attractive due to the very low P/E.

Positive Factors

Improved cash generation

A large increase in operating cash flow to ~209M and cash flow exceeding net income (about 1.36x) indicates stronger earnings quality and durable internal funding. This underpins capacity to fund capex, working capital, dividends, or deleveraging without depending solely on external financing over the medium term.

Strong revenue acceleration

Sharp revenue growth of ~29.5% in 2025 alongside solid operating profitability suggests improving market traction and scale benefits. Sustained top-line expansion supports margin recovery potential, better fixed-cost absorption and stronger competitive positioning in retail and foodservice channels over the next several quarters.

High operational returns

A high ROE (~39%) and healthy operating margins reflect efficient use of capital and core operational strength. Consistently strong returns imply management can generate value from invested capital, supporting reinvestment and strategic initiatives that sustain competitive advantages in the meat-processing market.

Negative Factors

Sharp leverage increase

A dramatic jump in leverage reduces financial flexibility and raises interest and refinancing risk, increasing sensitivity to demand or margin shocks. Higher debt burdens can constrain capital allocation choices, elevate default risk in downturns, and make earnings more volatile through higher fixed financing costs over the medium term.

Historical earnings volatility

Prior losses and meaningful year-to-year swings highlight cyclicality and execution risk in the business model. Margin compression in 2025 versus 2024 shows profitability can revert quickly, making future earnings less predictable and complicating long-term planning and investment decisions for the firm and its partners.

Cash flow variability

Episodes of negative operating/free cash flow and weak cash conversion indicate cash generation is not yet consistently stable. This historical variability elevates risk that temporary setbacks or working-capital swings could strain liquidity, especially given the recently higher leverage and potential seasonality in demand.

Canada Packers Inc. Business Overview & Revenue Model

Company Description

Canada Packers Inc. engages in the production of raised without antibiotics (RWA) pork. The company's integrated operations cover hog production, processing, and value-added innovation. It delivers a mix of products to various customers in North America; and internationally through representative offices in Mexico, China, South Korea, Japan, and the Philippines. The company was founded in 1927 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Canada Packers Inc. generates revenue primarily through the sale of its processed meat products to wholesalers, retailers, and foodservice operators. Key revenue streams include fresh and frozen meat sales, value-added products such as marinated or pre-cooked meats, and specialty items tailored to consumer preferences. The company also engages in strategic partnerships with grocery chains and restaurants, which enhance distribution efficiency and expand market reach. Seasonal demand fluctuations, promotional activities, and product innovation further contribute to its earnings, allowing CPKR to maintain a competitive edge in the meat processing industry.

Canada Packers Inc. Financial Statement Overview

Summary

Strong turnaround in earnings and cash generation in 2024–2025, with sharp 2025 revenue growth (~29.5%) and solid operating profitability; operating cash flow increased to ~209M and exceeded net income (~1.36x), supporting earnings quality. The major offset is the sharp leverage increase in 2025 (debt-to-equity ~1.78 vs ~0.16 in 2024), raising financial risk and sensitivity to any margin/demand slowdown.

Income Statement

Profitability has improved materially versus 2022–2023, with a return to solid positive earnings in 2024–2025 and healthy operating profitability in 2025 (gross margin ~13.8%, operating margin ~8.6%). Revenue growth accelerated sharply in 2025 (~29.5%), supporting scale and earnings power. Offsetting this, margins compressed in 2025 versus 2024 (notably net margin), and the business showed meaningful volatility with losses in 2022–2023.

Balance Sheet

Leverage increased significantly in 2025: debt rose sharply and the debt-to-equity level moved to ~1.78 from ~0.16 in 2024, reducing balance sheet flexibility. While profitability in 2025 is strong (return on equity ~39%), the big year-over-year shift in capital structure introduces higher financial risk compared with the prior low-leverage profile.

Cash Flow

Cash generation strengthened meaningfully, with operating cash flow up to ~209M in 2025 from ~112M in 2024, and cash flow exceeding net income (about 1.36x in 2025), indicating good earnings quality. Free cash flow is also positive and growing (2025 growth ~11.8%). The main drawback is historical volatility, including slightly negative operating/free cash flow in 2022 and weak cash conversion in 2023.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.84B	1.66B	1.65B	1.64B
Gross Profit	252.77M	230.82M	33.59M	24.50M
EBITDA	207.92M	202.76M	15.77M	8.27M
Net Income	106.32M	108.25M	-27.09M	-31.26M
Balance Sheet
Total Assets	923.94M	784.81M	682.32M	692.06M
Cash, Cash Equivalents and Short-Term Investments	54.28M	18.78M	9.51M	18.65M
Total Debt	484.74M	88.21M	68.79M	61.33M
Total Liabilities	651.95M	221.74M	196.56M	193.34M
Stockholders Equity	271.98M	563.07M	485.76M	498.72M
Cash Flow
Free Cash Flow	208.90M	111.70M	27.18M	-134.00K
Operating Cash Flow	208.90M	111.70M	27.18M	-134.00K
Investing Cash Flow	-32.09M	-26.70M	-32.95M	-44.85M
Financing Cash Flow	-146.92M	-75.74M	-3.37M	43.63M

Canada Packers Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPKR	73 Outperform	―	4.49	20.74%	―	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
OGO	48 Neutral	C$148.54M	-10.12	―	―	132.78%	34.00%
FTI	44 Neutral	C$4.19M	-1.86	-480.28%	―	―	―

Canada Packers Inc. Corporate Events

Canada Packers Boosts 2025 Profitability and Hikes Dividend as Adjusted Earnings Surge

Canada Packers Inc. reported fourth-quarter 2025 sales of $429.4 million, up 1.3% year over year, with adjusted EBITDA rising about 19.5% to $46.3 million and margin improving to 10.8%, while net debt stood at $341.7 million for a leverage ratio of 1.8 times. For the full year, sales climbed 10.7% to $1.84 billion and pro forma adjusted EBITDA jumped an estimated 46% to $191 million, supporting a quarterly dividend of $0.23 per share and underscoring improved profitability from premium pork offerings, higher processing volumes and tighter balance sheet discipline despite higher interest costs and lower quarterly earnings.

The company’s reported gross profit and earnings declined sharply in the fourth quarter versus 2024 due in part to higher cost of goods sold and rising selling, general and administrative expenses, even as underlying adjusted metrics strengthened. Management highlighted best-in-class profitability in value-added pork, growth from latent capacity and stronger on-farm execution as drivers of higher adjusted EBITDA and margins, positioning Canada Packers to pursue near-term growth opportunities while continuing to reduce leverage and return capital to shareholders.

The most recent analyst rating on (TSE:CPKR) stock is a Hold with a C$20.00 price target. To see the full list of analyst forecasts on Canada Packers Inc. stock, see the TSE:CPKR Stock Forecast page.