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Ccl Industries Inc. Cl. A (TSE:CCL.A)
:CCL.A
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CCL Industries (A)
(TSX:CCL.A)
76Outperform
CCL Industries (A) (CCL.A) vs. S&P 500 (SPY)
Market Cap
C$12.33B
Dividend Yield1.68%
Average Volume (3M)68.00
Price to Earnings (P/E)14.8
Beta (1Y)0.64
Revenue Growth8.95%
EPS Growth64.88%
CountryCA
Employees26,300
SectorConsumer Cyclical
Sector Strength64
IndustryPackaging & Containers
Share Statistics
EPS (TTM)4.74
Shares Outstanding11,700,000
10 Day Avg. Volume45
30 Day Avg. Volume68
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)N/A
Price to Sales (P/S)1.75
Price to Cash Flow (P/CF)10.20
P/FCF Ratio11.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
CCL Industries (A) Business Overview & Revenue Model
Company DescriptionCCL Industries Inc. is a global leader in specialty label, security, and packaging solutions for global corporations, government institutions, small businesses, and consumers. The company operates through four primary segments: CCL Label, CCL Container, Avery, and Checkpoint. CCL Label provides innovative packaging solutions for various industries, including healthcare, consumer goods, automotive, and electronics. CCL Container produces aluminum aerosol cans and bottles. Avery is a market leader in printable media solutions and software for businesses and consumers. Checkpoint provides loss prevention and inventory management solutions for the retail and apparel industries.
How the Company Makes MoneyCCL Industries primarily generates revenue through the sale of its labeling and packaging products and solutions. The company's revenue streams are diversified across its four segments: CCL Label generates income from the production and sale of specialty labels for various sectors such as healthcare and consumer products. CCL Container earns revenue from manufacturing aluminum containers for consumer products. Avery’s revenue is derived from selling printable labels, media products, and related software solutions. Checkpoint contributes to revenue through the sale of inventory management and loss prevention solutions targeted at the retail sector. The company's revenue is further supported by strategic partnerships and acquisitions that enhance its product offerings and expand its market reach globally.
CCL Industries (A) Financial Statement Overview
Summary
CCL Industries showcases strong financial health with a 9% revenue growth, healthy margins, and stable leverage ratios. Despite the absence of EBIT in the latest report, the robust cash flow supports ongoing investments, reflected in an overall score derived from income statement, balance sheet, and cash flow scores.Income Statement
CCL Industries has demonstrated strong revenue growth, with a 9% increase from the previous year. The gross profit margin is healthy at 29.5%, reflecting efficient cost management. However, the absence of EBIT in the latest annual report is a concern, though the EBITDA margin remains strong at 22.4%.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with an equity ratio of 53.6%, indicating financial stability. The debt-to-equity ratio is manageable at 0.46, showing balanced leverage. ROE is robust at 16.0%, highlighting effective use of equity capital.78
Positive
Cash Flow
Operating cash flow is strong, with a slight increase year-over-year. Free cash flow growth is notable at 11.1%. The free cash flow to net income ratio is solid at 0.71, indicating efficient cash conversion. However, significant capital expenditures continue to impact free cash flow.81
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 7.25B | 6.65B | 6.38B | 5.73B | 5.24B | Gross Profit |
| 2.14B | 1.91B | 1.72B | 1.59B | 1.50B | EBIT |
| 0.00 | 928.80M | 895.40M | 849.60M | 787.30M | EBITDA |
| 1.62B | 1.25B | 1.26B | 1.19B | 1.09B | Net Income Common Stockholders |
| 843.10M | 530.20M | 622.70M | 599.10M | 529.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 820.60M | 774.20M | 831.50M | 594.10M | 700.30M | Total Assets |
| 9.86B | 8.92B | 8.66B | 7.63B | 7.34B | Total Debt |
| 2.45B | 2.28B | 2.36B | 1.85B | 2.09B | Net Debt |
| 1.63B | 1.52B | 1.53B | 1.26B | 1.39B | Total Liabilities |
| 4.58B | 4.30B | 4.40B | 3.88B | 4.05B | Stockholders Equity |
| 5.28B | 4.62B | 4.27B | 3.75B | 3.28B |
| Cash Flow | Free Cash Flow | |||
| 601.90M | 541.70M | 545.60M | 514.90M | 600.10M | Operating Cash Flow |
| 1.06B | 1.00B | 992.80M | 838.70M | 882.90M | Investing Cash Flow |
| -600.30M | -768.00M | -706.60M | -541.30M | -428.00M | Financing Cash Flow |
| -424.30M | -295.20M | -72.60M | -370.00M | -461.30M |
CCL Industries (A) Technical Analysis
Neutral
70.99
Price Trends
71.45
Negative
72.69
Negative
75.72
Negative
Market Momentum
-0.43
Negative
53.58
Neutral
66.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CCL.A, the sentiment is Neutral. The current price of 70.99 is above the 20-day moving average (MA) of 69.44, below the 50-day MA of 71.45, and below the 200-day MA of 75.72, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 66.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CCL.A.
CCL Industries (A) Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$12.33B | 14.85 | 17.03% | 1.68% | 8.95% | 64.88% | |
73 Outperform | C$3.05B | 31.83 | 6.33% | 3.60% | 0.89% | ― | |
73 Outperform | C$2.62B | 12.94 | 11.26% | 0.38% | 5.50% | 9.93% | |
67 Neutral | C$1.78B | 21.39 | 9.08% | 1.86% | 4.21% | -18.67% | |
60 Neutral | $6.85B | 11.57 | 3.09% | 4.18% | 2.37% | -21.38% | |
57 Neutral | $892.78M | ― | -1.80% | 5.38% | 1.36% | 59.36% | |
48 Neutral | C$705.43M | ― | -18.73% | ― | -8.81% | -13.99% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:CCL.A
CCL Industries (A)
70.99
-0.27
-0.38%
TSE:IFP
Interfor
13.71
-3.76
-21.52%
TSE:CAS
Cascades
8.84
-0.03
-0.33%
TSE:RCH
Richelieu Hardware
32.19
-6.63
-17.08%
TSE:MFI
Maple Leaf Foods
24.66
1.09
4.62%
TSE:WPK
Winpak Limited
42.42
1.64
4.02%
CCL Industries (A) Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -0.95% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with substantial increases in sales, net earnings, and shareholder returns. However, the company faces challenges in specific segments and regions, with some impact from start-up costs and market conditions.Highlights
Sales and Organic Growth Increase
Sales increased 9% in Q4 2024, with 6.8% organic growth, leading to $1.81 billion in sales compared to $1.66 billion in Q4 2023.
Significant Increase in Net Earnings
Net earnings for Q4 2024 were $179.8 million, a substantial increase from $38.8 million in Q4 2023, impacted by a prior goodwill impairment charge.
Strong Performance of Innovia Segment
Innovia saw strong volume growth in North America, profitability boosts from productivity, and share gains, especially in the label segment.
Solid Free Cash Flow
Free cash flow from operations was $606.5 million for 2024, up from $559.6 million in 2023.
Increased Returns to Shareholders
The company repurchased 2.6 million shares and increased the annual dividend by 9.4%, returning $407 million to shareholders in 2024.
Strong Balance Sheet and Liquidity
Liquidity was robust with $829 million of cash on hand, and a balance sheet leverage ratio of approximately 1.08x.
Lowlights
Checkpoint Segment Challenges
Checkpoint faced unfavorable mix and foreign exchange issues in Turkey, and a poor quarter in Latin America, affecting margins.
Mixed Regional Performance in CCL Segment
CCL segment saw low single-digit decline in Europe despite strong growth in other regions.
Impact of Start-Up Costs
Start-up costs for new plants were highlighted as a factor, potentially impacting EBITDA by less than $10 million annually.
Difficult Comparisons in Apparel Segment
Checkpoint's apparel business faces significantly more difficult comps for the year ahead, despite growth in RFID.
Company Guidance
During CCL Industries' fourth quarter investor update, the company reported several key financial metrics and strategic developments. For the fourth quarter of 2024, CCL achieved a 9% increase in sales, reaching $1.81 billion, with 6.8% organic growth, 1.4% from acquisitions, and a 0.8% positive impact from foreign currency translation. Operating income rose to $267.9 million, marking a 5% increase from the previous year. The net earnings for the quarter were significantly higher at $179.8 million compared to $38.8 million in the fourth quarter of 2023, partly due to a $95 million goodwill impairment charge in 2023. The company recorded a consolidated EBITDA growth of 7% and a reduction in the effective tax rate to 22.9%. CCL's free cash flow from operations was $261.7 million for the quarter. For the full year 2024, sales, operating income, and net income increased by 8%, 13%, and 60%, respectively. The company repurchased 2.6 million shares, with a 9.4% increase in the annual dividend, totaling $407 million returned to shareholders. Capital expenditures were around $457 million in 2024, with a forecast of $485 million for 2025, including investments in a new plant in Vietnam. Despite an increase in net debt to $1.62 billion, CCL maintained a strong balance sheet with a leverage ratio of 1.08x and robust liquidity.CCL Industries (A) Corporate Events
Executive/Board Changes
CCL Industries Mourns the Loss of Esteemed Board Member Vincent J. Galifi
Negative
Apr 24, 2025
CCL Industries Inc. announced the passing of Vincent J. Galifi, a respected member of its Board of Directors, who joined in 2016 and served as Chair of the Audit Committee since 2019. Mr. Galifi was known for his financial expertise and strategic guidance, significantly contributing to the company’s governance and operations. His passing is a notable loss for the company, affecting its board dynamics and potentially influencing future strategic decisions.
Spark’s Take on TSE:CCL.A Stock
According to Spark, TipRanks’ AI Analyst, TSE:CCL.A is a Outperform.
CCL Industries receives a solid score of 75, driven by strong financial performance and positive recent earnings call insights. While technical indicators suggest caution, the company’s stable financials and fair valuation offer a balanced investment case.
To see Spark’s full report on TSE:CCL.A stock, click here.
Financial Disclosures
CCL Industries to Announce Q1 2025 Earnings and Host Webcast
Positive
Apr 10, 2025
CCL Industries Inc. announced it will release its 2025 First Quarter Earnings Results on May 7, 2025, followed by a live webcast on May 8, 2025, to discuss the results and address questions. This announcement signifies CCL’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations positively.
Spark’s Take on TSE:CCL.A Stock
According to Spark, TipRanks’ AI Analyst, TSE:CCL.A is a Outperform.
CCL Industries receives a solid overall score of 72, reflecting strong financial performance and a positive outlook from the latest earnings call. Despite technical indicators suggesting caution, the company’s stable financials and fair valuation provide a balanced investment case.
To see Spark’s full report on TSE:CCL.A stock, click here.
Financial Disclosures
CCL Industries Reports Strong 2024 Financial Performance
Positive
Feb 19, 2025
CCL Industries reported strong financial results for the fourth quarter and the entire year of 2024, with a 9.0% increase in sales driven by organic growth, acquisitions, and positive currency translation. The company’s operating income also saw a notable improvement, although it faced some challenges from foreign currency impacts and operational restructuring expenses.
Financial Disclosures
CCL Industries to Release Q4 and Year-End 2024 Financial Results
Neutral
Jan 31, 2025
CCL Industries announced it will release its Fourth Quarter and Year End 2024 financial results on February 19, 2025, followed by a live webcast on February 20, 2025, to discuss the outcomes. This announcement may impact stakeholders by providing insights into the company’s financial performance and strategic positioning in the industry.
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.