Stock price when the opinion was issued
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Large acquisitions expand addressable market. Controversies and approval weigh on stock. Remains a high growth company. Valuation attractive relative to peers. Unlock Premium - Try 5i Free
WPK is a bit of a 'sleeper'. It has $450M net cash, and is 53% owned by its parent. The stock is cheap. Looking at consensus estimates, EPS growth is really expected to slow down, and is essentially going to be flat next year. Expectations are for sales +5% and EPS to go from $2.33 to $2.34. Assuming nothing else happens, it looks like the 'ramp up' is likely over.
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Also on April 25, this packaging company from Winnipeg reported a strong quarter. Q1 2023 EPS of $0.60 rose 16% from $0.52 a year earlier and marked the company's highest quarterly earnings in history, despite higher operating expenses shaved EPS by two pennies. Revenues of $304.5 million jumped 10.3% higher from a year ago, while volume grew by 8.7%. Note that Q1 2022 suffered from an aluminum foil shortage. Gross margins slightly shrunk to 28.8% compared to 29.5% a year ago.