Winpak (WPK) AI Stock Analysis

• Market Cap: C$2.74B
• Dividend Yield: 0.45%
• Average Volume (3M): 55.18K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.44
• Revenue Growth: 5.50%
• EPS Growth: 9.93%
• Country: CA
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Packaging & Containers
• EPS (TTM): 0.78
• Shares Outstanding: 61,514,350
• 10 Day Avg. Volume: 82,944
• 30 Day Avg. Volume: 55,182
• PEG Ratio: 0.68
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 71.75
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 4.48
• Enterprise Value/Ebitda: 1.56
• 1Y Price Target: C$52.00
• Price Target Upside: 16.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: C$49.00 ▲(9.35%Upside)

Winpak Limited's strong financial performance and positive technical indicators are key drivers of its overall score. While the valuation is fair, the low dividend yield and recent earnings decline present challenges. The company's commitment to sustainability and shareholder support are positive factors.

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.

Trade Position

Winpak's products sold cross-border are exempt from tariffs under USMCA, with the exception of foil-based products, enhancing its trade position.

Volume Growth

Volume growth expected to accelerate to 5–7%, reflecting new customer onboarding and capacity additions.

Negative Factors

Earnings Performance

Q1/25 EPS were below consensus due to lower interest income and a higher tax rate.

Tariff Impact

Proposed tariffs present a meaningful headwind to earnings, with a potential 25% tariff on products manufactured in Canada and shipped to the U.S.

Volume Performance

Q1 volumes were below forecast, with segment volume performance mixed, including declines in lidding.

Winpak Business Overview & Revenue Model

Company Description

Winpak Limited (WPK) is a leading manufacturer and distributor of high-quality packaging materials for the food, beverage, and healthcare industries. Headquartered in Canada, the company specializes in a wide range of packaging solutions, including flexible packaging, rigid containers, and packaging machinery. Winpak's products are designed to maintain product freshness, ensure safety, and enhance convenience, catering to a diverse client base across North America and beyond.

How the Company Makes Money

Winpak Limited makes money primarily through the sale of its packaging products and solutions. The company's key revenue streams include the production and distribution of flexible packaging materials, such as pouches and bags, and rigid containers made from high-performance materials. Additionally, Winpak offers packaging machinery that integrates with its products, providing comprehensive packaging solutions to its clients. A significant portion of the company's revenue is generated from the food and beverage sector, where the demand for safe and efficient packaging is continually growing. Winpak also benefits from long-standing partnerships and contracts with major corporations in these industries, ensuring a steady stream of income. The company's focus on innovation and sustainability helps in maintaining a competitive edge, contributing further to its revenue generation.

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	1.14B	1.13B	1.14B	1.18B	1.00B	852.49M
Gross Profit	363.98M	361.63M	334.15M	331.76M	274.45M	263.63M
EBITDA	267.94M	265.40M	250.22M	224.24M	189.70M	194.79M
Net Income	148.51M	149.46M	148.13M	128.34M	103.81M	106.32M
Balance Sheet
Total Assets	1.52B	1.65B	1.57B	1.46B	1.32B	1.33B
Cash, Cash Equivalents and Short-Term Investments	356.46M	497.26M	541.87M	398.67M	377.46M	495.35M
Total Debt	0.00	17.85M	13.84M	12.53M	13.49M	14.28M
Total Liabilities	216.53M	363.21M	187.82M	223.71M	205.96M	165.57M
Stockholders Equity	1.27B	1.25B	1.35B	1.20B	1.08B	1.13B
Cash Flow
Free Cash Flow	44.01M	58.14M	151.81M	28.11M	48.52M	104.51M
Operating Cash Flow	140.08M	181.92M	220.84M	77.57M	97.06M	156.00M
Investing Cash Flow	-96.07M	-123.77M	-69.03M	-49.46M	-48.54M	-51.50M
Financing Cash Flow	-241.92M	-102.75M	-8.61M	-6.90M	-166.40M	-6.32M

Winpak Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 44.81 is above the 20-day moving average (MA) of 44.76, above the 50-day MA of 43.54, and above the 200-day MA of 43.37, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 42.99 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
WPK	78 Outperform	C$2.74B	13.52	11.26%	0.45%	5.50%	9.93%
CCL.B	78 Outperform	$13.64B	16.25	16.78%	1.63%	9.80%	60.44%
CCL.A	78 Outperform	C$13.64B	16.35	16.68%	1.61%	9.80%	60.44%
TCL.B	74 Outperform	C$1.75B	9.66	9.65%	23.74%	-2.58%	100.21%
TCL.A	73 Outperform	C$1.75B	9.84	9.65%	23.32%	-2.58%	100.21%
Sector *	61 Neutral	C$5.15B	10.80	18.94%	4.18%	5.08%	6.52%
CAS	57 Neutral	$893.83M	―	-0.24%	7.45%	2.88%	80.95%

Winpak Corporate Events

Winpak Ltd. Announces Election of Board of Directors

Winpak Ltd. announced the election of its board of directors at the Annual Meeting of Shareholders, with a significant 95.30 percent of outstanding shares voted. The election results reflect strong shareholder support, particularly for Kenneth P. Kuchma and Dayna Spiring, indicating confidence in the company’s leadership and strategic direction.

The most recent analyst rating on (TSE:WPK) stock is a Hold with a C$50.00 price target. To see the full list of analyst forecasts on Winpak stock, see the TSE:WPK Stock Forecast page.

Winpak Ltd. Reports Q1 2025 Financial Results with Slight Earnings Decline

Winpak Ltd. reported a slight decline in net income for the first quarter of 2025, with earnings dropping by 2.7% compared to the same period in 2024. Despite an increase in sales volumes, net finance income negatively impacted earnings. The company operates in three distinct packaging segments: flexible packaging, rigid packaging and flexible lidding, and packaging machinery, each serving various markets including food and healthcare. The results indicate challenges in maintaining profitability amidst financial pressures, which may impact stakeholders and market positioning.