Richards Packaging (RPI.UN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.77%
• Average Volume (3M): 6.40K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.36
• Revenue Growth: -4.26%
• EPS Growth: -7.76%
• Country: CA
• Employees: 544
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Packaging & Containers
• EPS (TTM): 3.24
• Shares Outstanding: 10,955,007
• 10 Day Avg. Volume: 5,454
• 30 Day Avg. Volume: 6,396
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.49
• Price to Cash Flow (P/CF): 4.70
• P/FCF Ratio: 4.80
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Richards Packaging receives an overall stock score of 62, reflecting mixed financial performance with strong operational efficiency but challenges in revenue growth and profitability. The technical analysis suggests bearish momentum, with the stock trading below key moving averages and indicators pointing to potential oversold conditions. However, the valuation is favorable, with a low P/E ratio and high dividend yield enhancing its attractiveness.

Richards Packaging Business Overview & Revenue Model

Company Description

Richards Packaging Income Fund, together with its subsidiaries, manufactures and distributes packaging and related products in Canada and the United States. It offers plastic, glass, and metal containers and closures. The company also offers design and development, and logistics management services. It serves food and beverage, healthcare, cosmetics, industrial, and pharmaceutical sectors. Richards Packaging Income Fund was founded in 1912 and is based in Mississauga, Canada.

How the Company Makes Money

Richards Packaging generates revenue primarily through the sale and distribution of packaging products to a wide range of industries. The company's key revenue streams include the distribution of plastic and glass containers, closures, and other packaging products, tailored to meet the specific needs of clients in sectors such as food, beverage, healthcare, cosmetics, and industrial applications. The company benefits from long-standing relationships with its suppliers and customers, enabling it to maintain a stable supply chain and meet customer demand efficiently. Additionally, Richards Packaging's strategic partnerships with manufacturers and its expansive distribution network contribute significantly to its earnings by enhancing its ability to provide high-quality packaging solutions and services across North America.

Richards Packaging Financial Statement Overview

Summary

Richards Packaging displays a mixed financial performance. Operational efficiency is strong, with stable EBIT and EBITDA margins, but revenue growth and profitability face challenges. The balance sheet is supported by a healthy equity position, though declining stockholders' equity is a concern. Cash flow management is effective, but the decrease in free cash flow is noteworthy.

Income Statement

Richards Packaging has experienced a decline in total revenue from 2023 to 2024, indicating a negative revenue growth rate. The gross profit margin remains stable, reflecting efficient cost management. However, the net profit margin has also declined, suggesting challenges in maintaining profitability. The EBIT and EBITDA margins have remained relatively strong, showcasing operational efficiency despite revenue headwinds.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating manageable leverage levels. However, the decreasing stockholders' equity over the years suggests potential challenges in value retention. The equity ratio remains healthy, indicating a strong asset base supported by equity rather than debt. Return on equity has seen some fluctuations, reflecting variability in profitability and asset utilization.

Cash Flow

Richards Packaging demonstrates a strong operating cash flow relative to net income, indicating effective cash management. However, the free cash flow has decreased from 2023 to 2024, signaling potential constraints in cash generation. The free cash flow to net income ratio remains robust, highlighting the company's ability to convert earnings into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
407.78M	425.93M	446.90M	451.44M	489.24M
	Gross Profit
78.42M	78.11M	82.09M	88.39M	112.69M
	EBIT
50.72M	55.74M	58.73M	63.63M	93.25M
	EBITDA
64.99M	71.44M	79.61M	38.63M	91.00M
	Net Income Common Stockholders
35.84M	38.89M	45.17M	2.07M	50.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.19M	8.12M	5.45M	8.42M	7.72M
	Total Assets
331.26M	318.20M	349.89M	356.90M	352.88M
	Total Debt
40.79M	53.17M	101.23M	64.03M	72.62M
	Net Debt
34.60M	45.06M	95.78M	55.60M	64.90M
	Total Liabilities
127.21M	138.06M	188.39M	226.06M	192.31M
	Stockholders Equity
204.05M	180.15M	161.50M	130.83M	160.57M
Cash Flow		Free Cash Flow
49.17M	80.47M	41.63M	54.51M	71.68M
	Operating Cash Flow
51.21M	83.19M	43.15M	56.87M	74.34M
	Investing Cash Flow
-6.08M	-2.71M	-51.05M	-11.49M	-54.58M
	Financing Cash Flow
-46.97M	-78.18M	4.75M	-44.95M	-21.46M

Richards Packaging Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RPI.UN, the sentiment is Neutral. The current price of 27.65 is above the 20-day moving average (MA) of 27.19, below the 50-day MA of 28.30, and below the 200-day MA of 29.51, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 95.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RPI.UN.

Richards Packaging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPK	71 Outperform	C$2.53B	12.74	11.45%	0.39%	0.56%	4.94%
RPI.UN	62 Neutral		8.45	18.66%	4.77%	-4.26%	-7.76%
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%