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Winpak Limited (TSE:WPK)
TSX:WPK

Winpak Limited (WPK) AI Stock Analysis

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Winpak Limited

(TSX:WPK)

71Outperform
Winpak Limited presents a compelling investment profile with solid financial performance and a robust balance sheet. While technical indicators point to a bearish trend, potentially undervaluing the stock, the company's strategic focus on sustainability and recent positive corporate events position it well for long-term growth.
Positive Factors
Financial Performance
Winpak has a strong balance sheet, strong free cash flow generation, and close to industry-leading return on invested capital and gross margins.
Volume Growth
Volume growth expected to accelerate to +5–7% in 2025, reflecting new customer onboarding and capacity additions.
Negative Factors
Tariffs
Proposed tariffs present a meaningful headwind to earnings, with a potential 25% tariff on products manufactured in Canada and shipped to the U.S.

Winpak Limited (WPK) vs. S&P 500 (SPY)

Winpak Limited Business Overview & Revenue Model

Company DescriptionWinpak Limited (WPK) is a manufacturer and distributor of packaging materials and related packaging machines. The company operates primarily in North America, serving a wide range of sectors including food, beverage, and healthcare. Winpak specializes in innovative and sustainable packaging solutions, offering a diverse portfolio that includes flexible and rigid packaging formats, as well as packaging machinery designed to optimize production efficiency.
How the Company Makes MoneyWinpak Limited generates revenue through the sale of its packaging products and machinery to various industries, primarily focusing on the food, beverage, and healthcare sectors. The company's key revenue streams include flexible packaging, which involves the manufacturing of films and laminates, and rigid packaging, which includes containers and lids. Additionally, Winpak provides packaging machinery that complements its product offerings, enabling customers to streamline their production processes. The company's earnings are further supported by its commitment to sustainability and innovation, which helps maintain and grow its customer base. Strategic partnerships and a strong presence in the North American market also contribute significantly to its revenue generation.

Winpak Limited Financial Statement Overview

Summary
Winpak Limited shows strong financial health with stable profitability and a robust balance sheet. The income statement reflects efficient cost management, while the balance sheet shows low leverage. Cash flow, although strong, has seen a recent decline in growth.
Income Statement
78
Positive
Winpak Limited demonstrated a solid financial performance with a stable gross profit margin of around 32% and a net profit margin fluctuating between 12% and 13% over recent years. Despite a slight decline in total revenue in the latest year, the company maintained strong EBIT and EBITDA margins. This reflects efficient cost management and operational effectiveness.
Balance Sheet
84
Very Positive
The company maintains a robust balance sheet with a very low debt-to-equity ratio, indicating minimal reliance on debt financing. The equity ratio remains high, supporting financial stability. A consistent return on equity around 10% suggests effective use of shareholders' funds to generate profits.
Cash Flow
72
Positive
Winpak Limited's cash flow position is healthy, with consistent free cash flow generation despite a recent drop. The company demonstrates a strong operating cash flow relative to net income, underscoring solid cash generation from operations. However, a recent decrease in free cash flow growth poses a potential concern.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.13B1.14B1.18B1.00B852.49M
Gross Profit
361.63M334.15M331.76M274.45M263.63M
EBIT
186.96M180.70M172.28M142.44M146.76M
EBITDA
265.40M250.22M224.24M189.70M194.79M
Net Income Common Stockholders
149.46M148.13M128.34M103.81M106.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
497.26M541.87M398.67M377.46M495.35M
Total Assets
1.65B1.57B1.46B1.32B1.33B
Total Debt
17.85M13.84M12.53M13.49M14.28M
Net Debt
-479.41M-528.03M-386.14M-363.97M-481.07M
Total Liabilities
363.21M187.82M223.71M205.96M165.57M
Stockholders Equity
1.25B1.35B1.20B1.08B1.13B
Cash FlowFree Cash Flow
58.14M151.81M28.11M48.52M104.51M
Operating Cash Flow
181.92M220.84M77.57M97.06M156.00M
Investing Cash Flow
-123.77M-69.03M-49.46M-48.54M-51.50M
Financing Cash Flow
-102.75M-8.61M-6.90M-166.40M-6.32M

Winpak Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price38.80
Price Trends
50DMA
42.96
Negative
100DMA
44.36
Negative
200DMA
43.33
Negative
Market Momentum
MACD
-1.45
Positive
RSI
33.25
Neutral
STOCH
16.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WPK, the sentiment is Negative. The current price of 38.8 is below the 20-day moving average (MA) of 40.99, below the 50-day MA of 42.96, and below the 200-day MA of 43.33, indicating a bearish trend. The MACD of -1.45 indicates Positive momentum. The RSI at 33.25 is Neutral, neither overbought nor oversold. The STOCH value of 16.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WPK.

Winpak Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
11.3611.40%7.33%0.64%8.65%
76
Outperform
8.5618.66%4.71%-3.15%-1.63%
TSWPK
71
Outperform
C$2.36B11.8511.45%0.42%0.56%4.94%
59
Neutral
$12.50B10.402.26%3.63%1.65%-18.81%
TSCFX
48
Neutral
C$45.01M-63.11%-8.78%-68.46%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WPK
Winpak Limited
38.80
1.38
3.69%
TSE:RPI.UN
Richards Packaging
27.99
-2.58
-8.44%
TSE:CFX
Canfor Pulp Products
0.74
-0.85
-53.46%
TSE:BPF.UN
Boston Pizza Fund
16.78
2.31
15.96%

Winpak Limited Corporate Events

Dividends
Winpak Ltd. Declares First Quarter 2025 Dividend
Positive
Feb 27, 2025

Winpak Ltd. announced a first quarter 2025 dividend of five cents per share, payable on April 11, 2025, to shareholders of record as of April 1, 2025. The Board of Directors aims for sustainable growth in dividends, targeting a payout ratio of approximately 10 percent of net earnings within five years, reflecting a commitment to shareholder value and financial stability.

Financial Disclosures
Winpak Ltd. Reports Steady Financial Growth in Q4 2024
Positive
Feb 27, 2025

Winpak Ltd. reported its financial results for the fourth quarter of 2024, showing a slight increase in revenue and net income compared to the previous year. Despite the challenges of a shorter fiscal year, the company maintained strong financial performance, indicating stability in its market position and continued demand for its packaging solutions.

Business Operations and Strategy
Winpak Achieves A- CDP Score, Reinforcing Environmental Leadership
Positive
Feb 25, 2025

Winpak Limited has achieved an A- score in the Carbon Disclosure Project (CDP) assessment for the third consecutive year, highlighting its commitment to environmental leadership and sustainability. This accomplishment underscores Winpak’s dedication to transparency and climate change mitigation, supported by its leadership and employees, solidifying its position as a leader in environmental stewardship.

Business Operations and Strategy
Winpak Ltd. Achieves Silver Medal Recognition for Sustainability
Positive
Jan 30, 2025

Winpak Ltd. has been awarded a Silver Medal by EcoVadis for its sustainability performance, placing it in the top 15% of assessed companies globally. This recognition reflects Winpak’s commitment to corporate transparency and environmental impact reduction, highlighting the company’s ongoing efforts towards sustainability and continuous improvement.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.