Winpak (WPK) AI Stock Analysis

• Market Cap: C$2.56B
• Dividend Yield: 7.7%
• Average Volume (3M): 64.40K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.42
• Revenue Growth: 4.69%
• EPS Growth: 4.54%
• Country: CA
• Employees: 2,900
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Packaging & Containers
• EPS (TTM): 0.67
• Shares Outstanding: 61,368,890
• 10 Day Avg. Volume: 64,194
• 30 Day Avg. Volume: 64,402
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$48.50
• Price Target Upside: 16.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: C$46.00 ▲(10.66% Upside)

Winpak Limited's strong financial performance and attractive valuation are significant strengths. However, bearish technical indicators and recent earnings decline present challenges. Positive corporate events partially offset these concerns, resulting in a moderate overall score.

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 is expected to accelerate to 5–7% in 2025, reflecting new customer onboarding and capacity additions.

Negative Factors

Customer Demand

Volumes were below forecast, driven mainly by customer demand weakness in rigid packaging and flexible lidding.

Earnings

Q2/25 EBITDA was below consensus, reflecting a significant year-over-year decline.

Tariff Uncertainties

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 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 makes money by producing and selling a wide range of packaging products and machinery to customers in the food, beverage, and healthcare industries. The company's revenue model is based on the sale of its proprietary packaging materials, such as flexible films and rigid containers, which are used to package a variety of consumer goods. Additionally, Winpak generates revenue from the sale of packaging machinery designed to complement its packaging materials, offering customers a comprehensive solution. The company also benefits from long-term partnerships with key players in its target industries, which help to drive consistent demand for its products. Furthermore, its focus on innovation and sustainability contributes to its competitive edge and ongoing profitability.

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	0.00	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: Negative
• Last Price: 41.57
• 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:WPK, the sentiment is Negative. The current price of 41.57 is below the 20-day moving average (MA) of 41.60, below the 50-day MA of 43.35, and below the 200-day MA of 43.18, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 59.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WPK.

Winpak Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.A	78 Outperform	C$14.23B	18.46	15.20%	1.46%	7.90%	19.55%
TCL.B	74 Outperform	C$1.68B	9.46	9.65%	9.40%	-2.58%	100.21%
WPK	71 Outperform	C$2.56B	13.42	10.79%	7.70%	4.69%	4.54%
TCL.A	68 Neutral	C$1.68B	9.38	9.65%	9.44%	-2.58%	100.21%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
CADNF	―	$725.48M	―	-0.47%	4.74%	―	―
CCDBF	―	$10.28B	18.36	14.88%	1.48%	―	―

Winpak Corporate Events

Winpak Declares Third Quarter 2025 Dividend

Winpak Ltd. has announced a third-quarter dividend of five cents per share, payable on October 10, 2025, to shareholders recorded by October 1, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may impact its financial positioning and stakeholder relations positively.

The most recent analyst rating on (TSE:WPK) stock is a Hold with a C$52.00 price target. To see the full list of analyst forecasts on Winpak stock, see the TSE:WPK Stock Forecast page.

Winpak Expands Healthcare Packaging with DuPont™ Tyvek® Partnership

Winpak Ltd. has announced its new role as an authorized converter of DuPont™ Tyvek® healthcare packaging, enhancing its product offerings for medical device applications from its Winnipeg site. This collaboration with DuPont™ Tyvek® represents a significant advancement in sustainable packaging solutions, aligning with the healthcare industry’s growing demand for eco-friendly options, and is expected to strengthen Winpak’s market position and commitment to environmental responsibility.

The most recent analyst rating on (TSE:WPK) stock is a Buy with a C$55.00 price target. To see the full list of analyst forecasts on Winpak stock, see the TSE:WPK Stock Forecast page.

Winpak Ltd. Reports Decline in Q2 2025 Earnings

Winpak Ltd. reported a decline in net income for the second quarter of 2025, with earnings falling by 22.2% compared to the same period in 2024. The decrease was attributed to a significant drop in gross profit, reduced net finance income, and increased operating expenses, although foreign exchange gains provided a slight offset. The company’s earnings for the first half of 2025 also saw a decrease of 12.9% compared to the previous year, highlighting ongoing challenges in maintaining profitability.

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. 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.