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): 3.7
• Beta (1Y): 2.00
• 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): N/A
• Shares Outstanding: 29,736,736
• 10 Day Avg. Volume: 261,397
• 30 Day Avg. Volume: 225,538
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 4.57
• 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$19.33
• Price Target Upside: 21.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: C$19.50 ▲(22.10% Upside)

The overall stock score is driven by strong financial performance and an attractive valuation, with a low P/E ratio indicating potential undervaluation. Technical analysis shows a balanced outlook, contributing moderately to the score.

Positive Factors

Revenue growth & margin improvement

Sustained 34% top-line growth with expanding gross and positive net margins signals durable demand and improved cost control. This trend supports margin sustainability, funds reinvestment in processing capabilities and product innovation, and strengthens long-term competitive position.

Strong cash generation

Robust operating and free cash flow growth improves financial flexibility, enabling capital expenditures, strategic partnerships, and shareholder returns without relying on external financing. Strong cash conversion enhances resilience through industry cycles and funds long-term modernization or M&A.

Conservative balance sheet

Low leverage and a strong equity base reduce refinancing and solvency risk, allowing the company to absorb shocks, invest in capacity or sustainability initiatives, and pursue opportunistic M&A. A conservative balance sheet supports long-term operational stability.

Negative Factors

Seasonal & channel demand volatility

Material seasonality and reliance on retail/foodservice volumes create durable swings in revenue and working capital needs. Frequent promotions and seasonal demand can compress margins, strain inventory management, and increase forecasting uncertainty over multiple quarters.

Limited investor guidance

Absence of formal guidance and limited earnings-call detail reduces transparency for investors and analysts, complicating multi-quarter forecasting and impairing market confidence in execution. Over time this visibility gap can increase perceived execution risk and capital cost.

Above-average market sensitivity (beta)

A higher beta indicates the company’s returns are more sensitive to market moves, reflecting exposure to cyclical demand or input-cost swings. For a meat processor, this elevates earnings volatility risk from commodity and consumer cycle variability, challenging long-term planning.

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

Canada Packers Inc. has shown significant improvement across all financial metrics. Strong revenue and profit growth, financial stability with low leverage, and robust cash generation highlight the company's solid financial performance.

Income Statement

Canada Packers Inc. demonstrated strong revenue growth of 34.35% in the latest year, indicating a robust expansion. The gross profit margin improved significantly, reflecting better cost management. The net profit margin turned positive, showcasing a turnaround from previous losses. EBIT and EBITDA margins also improved, highlighting enhanced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is low, indicating a conservative leverage approach. Return on equity improved as net income turned positive, enhancing shareholder value. The equity ratio remains strong, suggesting financial stability and a solid asset base.

Cash Flow

Operating and free cash flows have shown substantial growth, reflecting improved cash generation capabilities. The free cash flow to net income ratio is favorable, indicating efficient cash utilization. The operating cash flow to net income ratio suggests strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.83B	1.66B	1.65B	1.64B
Gross Profit	281.48M	230.82M	33.59M	24.50M
EBITDA	238.13M	202.76M	15.77M	8.27M
Net Income	133.73M	108.25M	-27.09M	-31.26M
Balance Sheet
Total Assets	921.27M	784.81M	682.32M	692.06M
Cash, Cash Equivalents and Short-Term Investments	54.33M	18.78M	9.51M	18.65M
Total Debt	104.19M	88.21M	68.79M	61.33M
Total Liabilities	248.34M	221.74M	196.56M	193.34M
Stockholders Equity	672.93M	563.07M	485.76M	498.72M
Cash Flow
Free Cash Flow	186.80M	111.70M	27.18M	-134.00K
Operating Cash Flow	186.80M	111.70M	27.18M	-134.00K
Investing Cash Flow	-28.24M	-26.70M	-32.95M	-44.85M
Financing Cash Flow	-119.23M	-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	78 Outperform	―	3.69	―	―	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
OGO	46 Neutral	C$122.89M	-6.02	―	―	132.78%	34.00%
FTI	44 Neutral	C$4.19M	-1.74	―	―	―	―

Canada Packers Inc. Corporate Events

Canada Packers Urges Rejection of TRC Capital’s Mini-Tender Offer

Canada Packers Inc. has advised its shareholders to reject an unsolicited mini-tender offer from TRC Capital Investment Corporation, which aims to purchase up to 3.36% of the company’s common shares at a below-market price. The company highlights that such offers often bypass investor protections and could mislead investors, urging shareholders to consult financial advisors and consider current market prices before making decisions.

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.

Canada Packers Inc. Reports Strong Q3 Results and Declares First Dividend

Canada Packers Inc. reported a significant increase in its third-quarter financial results, with a 37% rise in pro forma Adjusted EBITDA and a 31.7% increase in earnings compared to the previous year. The company has also declared its first dividend, marking a new chapter as a standalone public entity following its spin-off from Maple Leaf Foods Inc. This move is expected to enhance its market position and provide long-term value for stakeholders.

The most recent analyst rating on (TSE:CPKR) stock is a Hold with a C$18.00 price target. To see the full list of analyst forecasts on Canada Packers Inc. stock, see the TSE:CPKR Stock Forecast page.