Richards Packaging (RPI.UN) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 4.71%
• Average Volume (3M): 4.17K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.41
• Revenue Growth: -3.15%
• EPS Growth: -1.63%
• Country: CA
• Employees: 619
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Containers & Packaging
• EPS (TTM): 3.24
• Shares Outstanding: 10,955,007
• 10 Day Avg. Volume: 4,883
• 30 Day Avg. Volume: 4,171
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.51
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 4.90
• 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 shows strong fundamentals with efficient operational management and a robust cash flow position. However, revenue decline is a key risk factor. The stock's technical indicators suggest moderate positive momentum, while its valuation appears attractive with a low P/E ratio and a healthy dividend yield. Addressing revenue concerns could further enhance its overall performance.

Richards Packaging Business Overview & Revenue Model

Company Description

Richards Packaging Income Fund (RPI.UN) is a leading packaging distributor in North America, specializing in the distribution of a comprehensive range of rigid packaging solutions. The company's core products include plastic and glass containers, closures, and related packaging products, primarily serving the food, beverage, healthcare, cosmetics, and industrial sectors. With a strong presence across Canada and the United States, Richards Packaging leverages its extensive network and expertise to deliver customized packaging solutions to its diverse client base.

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 demonstrates strong operational efficiency and prudent financial management through stable margins and low leverage. Cash flow metrics are robust, but the decline in revenue is a concern that needs addressing to ensure long-term growth. Maintaining operational efficiency while working on reversing the revenue decline could significantly improve the company's financial standing.

Income Statement

The company's TTM revenue shows a slight decline compared to the previous year, indicating some revenue pressure. Gross and net profit margins are stable, with a gross margin of 18.7% and a net margin of 9.1% in TTM. However, both EBIT and EBITDA margins are strong at 12.9% and 15.7% respectively, showcasing good operational efficiency. The company needs to focus on reversing the revenue decline to improve its income statement performance.

Balance Sheet

The company's debt-to-equity ratio is 0.19 in TTM, reflecting a conservative leverage approach, which is a strength. However, the equity ratio stands at 60.6%, indicating a strong reliance on equity financing. Return on Equity (ROE) is moderate at 19.3% for the TTM, suggesting efficient use of equity but room for improvement. The balance sheet is generally stable, but the company could benefit from optimizing its equity usage.

Cash Flow

The TTM free cash flow to net income ratio is high at 1.42, indicating strong cash generation relative to net income. The operating cash flow to net income ratio is 1.46, showing robust operating cash flow. However, the free cash flow growth rate has declined due to reduced revenue. Overall, cash flow management is a strong point for the company, though improvements in revenue could further enhance cash flow health.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
411.81M	425.93M	446.90M	451.44M	489.24M	334.15M
	Gross Profit
77.04M	78.11M	82.09M	88.39M	112.69M	57.49M
	EBIT
53.10M	55.74M	58.73M	63.63M	93.25M	44.12M
	EBITDA
64.53M	71.44M	79.61M	38.63M	91.00M	47.65M
	Net Income Common Stockholders
37.40M	38.89M	45.17M	2.07M	50.14M	21.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.47M	8.12M	5.45M	8.42M	7.72M	8.02M
	Total Assets
270.93M	318.20M	349.89M	356.90M	352.88M	248.01M
	Total Debt
51.14M	53.17M	101.23M	64.03M	72.62M	58.41M
	Net Debt
23.68M	45.06M	95.78M	55.60M	64.90M	50.39M
	Total Liabilities
130.00M	138.06M	188.39M	226.06M	192.31M	121.28M
	Stockholders Equity
140.93M	180.15M	161.50M	130.83M	160.57M	126.73M
Cash Flow		Free Cash Flow
53.18M	80.47M	41.63M	54.51M	71.68M	38.20M
	Operating Cash Flow
54.74M	83.19M	43.15M	56.87M	74.34M	39.97M
	Investing Cash Flow
-5.79M	-2.71M	-51.05M	-11.49M	-54.58M	-1.76M
	Financing Cash Flow
-56.88M	-78.18M	4.75M	-44.95M	-21.46M	-36.36M

Richards Packaging Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RPI.UN, the sentiment is Negative. The current price of 27.75 is below the 20-day moving average (MA) of 29.05, below the 50-day MA of 29.94, and below the 200-day MA of 29.80, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 29.11 is Positive, neither overbought nor oversold. The STOCH value of 6.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RPI.UN.

Richards Packaging Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCL.B	78 Outperform	$12.66B	14.85	17.16%	1.73%	8.95%	64.88%
RPI.UN	76 Outperform		8.55	18.66%	4.71%	-3.15%	-1.63%
TRP	71 Outperform	$70.36B	15.21	16.85%	5.80%	5.31%	61.02%
WPK	71 Outperform	C$2.42B	12.05	11.45%	0.41%	0.56%	4.94%
Sector *	59 Neutral	$12.43B	10.56	2.81%	3.69%	1.58%	-17.58%
BLDP	49 Neutral	$563.36M	―	-33.54%	―	20.29%	-106.22%