Winpak (WPK) AI Stock Analysis

• Market Cap: C$2.63B
• Dividend Yield: 7.27%
• Average Volume (3M): 50.74K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.35
• Revenue Growth: 3.19%
• EPS Growth: -0.26%
• Country: CA
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.83
• Shares Outstanding: 59,727,270
• 10 Day Avg. Volume: 54,448
• 30 Day Avg. Volume: 50,738
• PEG Ratio: 4.56
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 1.85
• P/FCF Ratio: 35.97
• 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$47.00
• Price Target Upside: 6.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$48.00 ▲(9.02% Upside)

Winpak Limited's overall stock score is driven by its strong financial performance and attractive valuation. While technical indicators are neutral, recent corporate events present mixed signals with a decline in earnings but positive sustainability initiatives.

Positive Factors

Business Model Strength

Winpak's diversified revenue streams across essential sectors like food, beverage, and healthcare ensure stable demand and resilience against market fluctuations.

Balance Sheet Health

A strong balance sheet with low debt enhances financial stability and provides flexibility for strategic investments and growth opportunities.

Margin Sustainability

Consistent profit margins indicate effective cost management and operational efficiency, supporting long-term profitability and competitive positioning.

Negative Factors

Revenue Growth Decline

A decline in revenue growth could signal challenges in market expansion or competitive pressures, potentially impacting future earnings momentum.

Free Cash Flow Decline

A decrease in free cash flow growth may limit the company's ability to reinvest in business expansion or return capital to shareholders, affecting long-term growth prospects.

Revenue Decline

A decline in total revenue could reflect market challenges or reduced demand, potentially impacting the company's ability to sustain growth and profitability.

Winpak Business Overview & Revenue Model

Company Description

Winpak Ltd. manufactures and distributes packaging materials and related packaging machines in the United States, Canada, Mexico, and internationally. The company operates through three segments: Flexible Packaging, Rigid Packaging and Flexible Lidding, and Packaging Machinery. The Flexible Packaging segment provides modified atmosphere packaging products for fresh and processed meats, poultry, cheese, medical device packaging, and high performance pouch applications; high-barrier films for converting applications; barrier and non-barrier films, including shrink bags for printing, laminating, and bag making applications; and biaxially oriented nylon films for food packaging and industrial applications. The Rigid Packaging and Flexible Lidding segment offers portion control and single-serve containers, as well as plastic sheet, custom, and retort trays for food, pet food, beverage, dairy, industrial, and healthcare applications; die-cut, daisy chain, and rollstock lidding products for food, dairy, beverage, industrial, and healthcare applications; and specialized printed packaging solutions for the pharmaceutical, healthcare, nutraceutical, cosmetic, and personal care markets. The Packaging Machinery segment provides horizontal fill/seal machines for preformed containers and vertical form/fill/seal pouch machines for pumpable liquid and semi-liquid, as well as various dry products. The company was incorporated in 1975 and is based in Winnipeg, Canada. Winpak Ltd. is a subsidiary of Wihuri International Oy.

How the Company Makes Money

Winpak generates revenue through the sale of various packaging products and solutions to its clients in multiple sectors, primarily food and beverage, pharmaceuticals, and medical industries. The company's revenue model is built on producing and selling flexible and rigid packaging materials, which include bags, films, containers, and more. Key revenue streams come from long-term contracts with major food manufacturers and distributors, as well as partnerships with pharmaceutical companies. Winpak also benefits from a focus on innovation and sustainability, which attracts clients looking for eco-friendly packaging solutions. Additionally, the company's investments in advanced manufacturing technologies allow it to enhance production efficiency, reduce costs, and meet the growing demand for customized packaging solutions.

Winpak Financial Statement Overview

Summary

Winpak Limited exhibits a strong financial position with stable profitability, robust balance sheet health, and effective cash flow management. Despite a slight decline in revenue growth, the company's low leverage and solid margins position it well for future opportunities.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.13B	1.14B	1.18B	1.00B	852.49M
Gross Profit	352.12M	361.63M	334.15M	331.76M	274.45M	263.63M
EBITDA	254.64M	265.40M	250.22M	224.24M	189.70M	194.79M
Net Income	139.89M	149.46M	148.13M	128.34M	103.81M	106.32M
Balance Sheet
Total Assets	1.55B	1.65B	1.57B	1.46B	1.32B	1.33B
Cash, Cash Equivalents and Short-Term Investments	356.03M	497.26M	541.87M	398.67M	377.46M	495.35M
Total Debt	15.76M	17.85M	13.84M	12.53M	13.49M	14.28M
Total Liabilities	221.47M	363.21M	187.82M	223.71M	205.96M	165.57M
Stockholders Equity	1.29B	1.25B	1.35B	1.20B	1.08B	1.13B
Cash Flow
Free Cash Flow	57.35M	58.14M	151.81M	28.11M	48.52M	104.51M
Operating Cash Flow	153.01M	181.92M	220.84M	77.57M	97.06M	156.00M
Investing Cash Flow	-95.67M	-123.77M	-69.03M	-49.46M	-48.54M	-51.50M
Financing Cash Flow	-191.65M	-102.75M	-8.61M	-6.90M	-166.40M	-6.32M

Winpak Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 44.03 is above the 20-day moving average (MA) of 43.73, above the 50-day MA of 42.99, and above the 200-day MA of 42.31, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 54.78 is Neutral, neither overbought nor oversold. The STOCH value of 63.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:WPK.

Winpak Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.B	76 Outperform	$14.36B	17.96	14.88%	1.51%	7.12%	17.15%
CCL.A	74 Outperform	C$14.36B	18.10	15.16%	1.56%	7.12%	17.15%
WPK	73 Outperform	C$2.63B	14.09	10.45%	7.27%	3.19%	-0.26%
TCL.B	68 Neutral	C$1.89B	11.22	8.95%	8.27%	-2.45%	44.20%
TCL.A	66 Neutral	C$1.89B	11.08	8.95%	8.40%	-2.45%	44.20%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAS	61 Neutral	$1.24B	62.19	1.16%	3.91%	3.50%	―

Winpak Corporate Events

Winpak Reports Decline in Q3 2025 Earnings Amidst Lower Sales and Gross Profit

Winpak Ltd. reported a decrease in net income for the third quarter of 2025, with earnings contracting by 5.5% compared to the same period in 2024. The decline was influenced by reduced sales volumes and lower gross profit, although operating expenses provided some relief. For the first nine months of 2025, earnings fell by 10.3% year-over-year, impacted by a significant drop in gross profit and net finance income, despite a positive contribution from foreign exchange. This financial performance may affect Winpak’s market positioning and stakeholder confidence.

Winpak’s Emissions Reduction Targets Approved by SBTi

Winpak Ltd. has received approval from the Science Based Targets initiative (SBTi) for its near-term science-based emissions reduction targets. The company aims to reduce its absolute scope 1 and 2 greenhouse gas emissions by 63% and scope 3 emissions by 51.6% per metric ton of sold product by 2030, based on a 2022 baseline. These targets align with a 1.5°C temperature change trajectory, enhancing Winpak’s position in helping customers meet their sustainability goals and reduce climate impact.