Richards Packaging (RPI.UN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.7%
• Average Volume (3M): 7.79K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.55
• Revenue Growth: 2.99%
• EPS Growth: -40.46%
• Country: CA
• Employees: 544
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.47
• Shares Outstanding: 10,955,007
• 10 Day Avg. Volume: 14,949
• 30 Day Avg. Volume: 7,793
• PEG Ratio: -1.09
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 6.51
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.14
• Revenue Forecast (FY): C$436.94M

• Rating: 61 Neutral
• Price Target: C$30.00 ▲(6.76% Upside)

Richards Packaging's overall score is driven by strong revenue growth and a reasonable valuation, offset by declining profitability and weak technical indicators. The stable balance sheet is a positive, but operational efficiency and cash flow generation need improvement.

Positive Factors

Revenue Growth

Strong revenue growth suggests effective market strategies and product demand, enhancing long-term business viability and competitive positioning.

Stable Balance Sheet

A stable balance sheet with low debt levels provides financial flexibility, supporting sustainable operations and potential growth investments.

Efficient Cash Management

Efficient cash management relative to earnings ensures liquidity and supports reinvestment in business operations, fostering long-term growth.

Negative Factors

Declining Profitability

Decreasing profitability margins may indicate cost pressures or operational inefficiencies, potentially impacting long-term earnings stability.

Negative Cash Flow Growth

Declining cash flow generation could strain financial resources, limiting the company's ability to invest in growth and manage debt effectively.

Decreasing Return on Equity

A declining return on equity suggests reduced efficiency in generating profits from shareholders' investments, potentially impacting investor confidence.

Richards Packaging Business Overview & Revenue Model

Company Description

Richards Packaging Inc. (RPI.UN) is a leading provider of packaging solutions, specializing in the design and distribution of a diverse range of packaging products primarily for the food, beverage, personal care, and pharmaceutical sectors. The company operates through various segments, offering products such as glass, plastic, and metal containers, closures, and custom packaging designs tailored to meet the specific needs of its clients. With a focus on innovation and sustainability, Richards Packaging aims to deliver high-quality packaging solutions that enhance product presentation and functionality.

How the Company Makes Money

Richards Packaging generates revenue through the sale of its packaging products and solutions across multiple sectors. The company's primary revenue streams include direct sales of packaging items to manufacturers and retailers, as well as custom packaging design services that cater to specific customer requirements. Additionally, Richards Packaging benefits from long-term partnerships with key clients in the food and beverage industry, which provide a stable source of income. The company's emphasis on customer service and product innovation further contributes to its earnings, enabling it to maintain a competitive edge in the marketplace.

Richards Packaging Financial Statement Overview

Summary

Richards Packaging demonstrates a mixed financial performance. Strong revenue growth is offset by declining profitability margins and cash flow generation concerns. The balance sheet is stable with manageable debt, but declining return on equity and cash flow metrics could pose challenges.

Income Statement

Richards Packaging shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 65.6%, indicating strong sales recovery. However, the gross profit margin has slightly decreased over time, and the net profit margin has also declined from previous years. The EBIT and EBITDA margins have decreased compared to prior periods, suggesting potential cost pressures or operational inefficiencies.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is relatively low at 0.50, indicating a manageable level of debt. Return on equity has decreased to 11.99% in the TTM, showing a decline in profitability. The equity ratio remains stable, suggesting a balanced capital structure.

Cash Flow

Cash flow analysis reveals some concerns. The free cash flow growth rate is negative at -11.77%, indicating a decline in cash generation. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio remains strong at 92.22%, indicating efficient cash management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.30M	407.78M	425.93M	446.90M	451.44M	489.24M
Gross Profit	77.19M	78.42M	78.11M	82.09M	88.39M	112.69M
EBITDA	55.27M	64.99M	69.72M	75.84M	38.63M	105.48M
Net Income	24.16M	35.84M	38.89M	45.17M	2.07M	50.14M
Balance Sheet
Total Assets	418.11M	331.26M	318.20M	349.89M	356.90M	352.88M
Cash, Cash Equivalents and Short-Term Investments	2.64M	6.19M	8.12M	5.45M	8.42M	7.72M
Total Debt	101.86M	54.14M	69.05M	101.23M	64.03M	72.62M
Total Liabilities	216.30M	127.21M	138.06M	188.39M	226.06M	192.31M
Stockholders Equity	201.81M	204.05M	180.15M	161.50M	130.83M	160.57M
Cash Flow
Free Cash Flow	31.28M	49.17M	80.47M	41.63M	54.51M	71.68M
Operating Cash Flow	33.92M	51.21M	83.19M	43.15M	56.87M	74.34M
Investing Cash Flow	-66.83M	-6.08M	-2.71M	-51.05M	-11.49M	-54.58M
Financing Cash Flow	30.66M	-46.97M	-78.18M	4.75M	-44.95M	-21.46M

Richards Packaging Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RPI.UN, the sentiment is Negative. The current price of 28.1 is below the 20-day moving average (MA) of 28.43, below the 50-day MA of 30.77, and below the 200-day MA of 30.12, indicating a bearish trend. The MACD of -0.75 indicates Negative momentum. The RSI at 39.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RPI.UN.

Richards Packaging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.A	77 Outperform	C$13.54B	17.41	15.16%	1.55%	7.12%	17.15%
WPK	73 Outperform	C$2.52B	13.28	10.45%	7.40%	3.19%	-0.26%
TCL.A	66 Neutral	C$1.61B	9.17	9.36%	9.56%	-2.90%	57.43%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RPI.UN	61 Neutral	―	14.42	11.20%	4.70%	2.99%	-40.46%
CAS	61 Neutral	$1.13B	-141.29	1.16%	3.90%	3.50%	―
SXP	57 Neutral	C$89.34M	5.41	15.15%	19.50%	-4.69%	―