Winpak Limited (WPK) AI Stock Analysis

• Market Cap: C$2.42B
• Dividend Yield: 0.41%
• Average Volume (3M): 64.56K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.49
• Revenue Growth: 0.56%
• EPS Growth: 4.94%
• Country: CA
• Employees: 2,753
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Containers & Packaging
• EPS (TTM): 3.23
• Shares Outstanding: 61,750,000
• 10 Day Avg. Volume: 59,806
• 30 Day Avg. Volume: 64,556
• PEG Ratio: 2.46
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.51
• Price to Cash Flow (P/CF): 11.20
• P/FCF Ratio: 26.20
• 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$50.50
• Price Target Upside: 28.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

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

Flexible Packaging volumes increased 5% year-over-year while Modified Atmosphere Packaging volumes grew 7%, with growth in meat and cheese.

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 Business Overview & Revenue Model

Company Description

Winpak Ltd manufactures and sells a variety of packaging materials and related packaging machines. The packaging materials are used primarily for perishable foods, beverages, and healthcare applications. The company's products include modified atmosphere packaging, which is used to extend the shelf life of perishable foods such as meats, poultry, and cheeses, as well as medical devices. The firm also sells specialty films used in printing, rigid containers used in single-serve containers, lidding products for food and beverages, and packaging machinery. The vast majority of Winpak's revenue comes from the United States and Canada.

How the Company Makes Money

Winpak 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.13B	1.14B	1.18B	1.00B	852.49M
	Gross Profit
361.63M	334.15M	331.76M	274.45M	263.63M
	EBIT
186.96M	180.70M	172.28M	142.44M	146.76M
	EBITDA
265.40M	250.22M	224.24M	189.70M	194.79M
	Net Income Common Stockholders
149.46M	148.13M	128.34M	103.81M	106.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
497.26M	541.87M	398.67M	377.46M	495.35M
	Total Assets
1.65B	1.57B	1.46B	1.32B	1.33B
	Total Debt
17.85M	13.84M	12.53M	13.49M	14.28M
	Net Debt
-479.41M	-528.03M	-386.14M	-363.97M	-481.07M
	Total Liabilities
363.21M	187.82M	223.71M	205.96M	165.57M
	Stockholders Equity
1.25B	1.35B	1.20B	1.08B	1.13B
Cash Flow		Free Cash Flow
58.14M	151.81M	28.11M	48.52M	104.51M
	Operating Cash Flow
181.92M	220.84M	77.57M	97.06M	156.00M
	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 Price: 39.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 39.15 is below the 20-day moving average (MA) of 40.82, below the 50-day MA of 42.82, and below the 200-day MA of 43.32, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WPK.

Winpak Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPF.UN	71 Outperform		11.21	11.40%	7.43%	0.64%	8.65%
WPK	71 Outperform	C$2.42B	12.16	11.45%	0.41%	0.56%	4.94%
RPI.UN	67 Neutral		8.48	18.66%	4.76%	-4.26%	-7.76%
Sector *	59 Neutral	$12.44B	10.63	2.89%	3.66%	1.52%	-17.39%
CFX	48 Neutral	C$46.32M	―	-63.11%	―	-8.78%	-68.46%

Winpak Limited Corporate Events

Winpak Ltd. Declares First Quarter 2025 Dividend

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.

Winpak Ltd. Reports Steady Financial Growth in Q4 2024

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.

Winpak Achieves A- CDP Score, Reinforcing Environmental Leadership

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.

Winpak Ltd. Achieves Silver Medal Recognition for Sustainability

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.