Is it a good company at a reasonable price? This seems to be a good Canadian dividend growth stock that has performed well for its shareholders in the past. It does tend to be a bit cyclical. The dividend is low, but there is good growth. This stock is off its recent high. This stock is certainly at the reasonable price, but could be cheap.
I do not own this stock of CCL Industries Inc (TSX-CCL.B, OTC-CCDBF). In 2009 I read a favorable report on this stock of which I had also heard before. This is also a dividend paying stock and in 2009 it was on Dividend Achievers list.
When I was updating my spreadsheet, I noticed this stock has not done as well in the last 5 years as in previous years with a 7.48% total return with 5.98% from capital gains and 1.60% from dividends. However, analysts expect that it will do well this year.
If you had invested in this company in December 2014, for $1,006.96 you would have bought 40 shares at $25.17 per share. In December 2024, after 10 years you would have received $284.00 in dividends. The stock would be worth $2,958.00. Your total return would have been $3,242.00. This would be a total return of 12.98% per year with 11.38% from capital gain and 1.60% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $25.17 | $1,006.96 | 40 | 10 | $284.00 | $2,958.00 | $3,242.00 |
The current dividend yield is low with dividend growth moderate. The current dividend is low (below 2%) at 1.70%. The 5, 10 and historical dividend yields are also low at 1.56%, 1.22% and 1.94%. The dividend increases are moderate (between 8% and 14% ranges per year) at 11.3% per year over the past 5 years. The last dividend increase was in 2025 and it was for 10.3%.
The dividends are low, but sometimes they surprise you on what you might earning in dividends in the future. This chart is an attempt to show this. If dividends continue to increase by 11.27% as they have in the past 5 years, what you would get in dividends in 5, 10 and 15 years is shown in the Dividends Paid (Div Pd) column. The next column shows what your yield on a current stock price of $75.82 would be. The last column shows the percentage of your stock’s price would be covered by dividends in 5, 10 and 15 years.
| Div Pd | Div Yield | Years | At IRR | Div Cov |
|---|---|---|---|---|
| $2.18 | 2.88% | 5 | 11.27% | 10.57% |
| $3.72 | 4.91% | 10 | 11.27% | 25.72% |
| $6.35 | 8.38% | 15 | 11.27% | 51.57% |
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 26% with 5 year coverage at 27%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 27% with 5 year coverage at 26%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 13% with 5 year coverage at 13%. The DPR for 2024 for Free Cash Flow (FCF) is good at 34% with 5 year coverage at 30%. The FCF does not vary much for this stock in 2024 with arrange from $602M to $607M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 24.68% | 27.27% |
| AEPS | 26.85% | 26.05% |
| CFPS | 13.47% | 13.15% |
| FCF | 34.29% | 30.11% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.17 and currently at 0.19. The Liquidity Ratio for 2024 is good at 2.01 and 2.24 currently. The Debt Ratio for 2024 is good at 2.15 and 2.13 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.87 and 0.87 and currently at 1.89 and 0.89.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.17 | 0.19 |
| Intang/GW | 0.28 | 0.27 |
| Liquidity | 2.01 | 2.24 |
| Liq. + CF | 2.58 | 3.00 |
| Debt Ratio | 2.15 | 2.13 |
| Leverage | 1.87 | 1.89 |
| D/E Ratio | 0.87 | 0.89 |
The Total Return per year is shown below for years of 5 to 37 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 11.27% | 7.48% | 5.98% | 1.51% |
| 2013 | 10 | 18.09% | 12.98% | 11.38% | 1.60% |
| 2008 | 15 | 16.33% | 20.89% | 18.70% | 2.19% |
| 2003 | 20 | 14.45% | 17.92% | 16.06% | 1.86% |
| 1998 | 25 | 12.43% | 15.98% | 14.29% | 1.68% |
| 1993 | 30 | 10.63% | 14.42% | 12.83% | 1.59% |
| 1988 | 35 | 9.34% | 12.45% | 11.03% | 1.42% |
| 1987 | 37 | 9.25% | 12.74% | 11.16% | 1.58% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 15.55, 17.70 and 20.73. The corresponding 10 year ratios are 17.61, 20.92 and 24.81. The corresponding historical ratios are 13.66, 16.62 and 49.49. The current P/E Ratio is 16.55 based on a stock price of $75.29 and EPS estimate for 2025 of $4.55. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 14.33, 16.69 and 19.49. The corresponding 10 year ratios are 15.20, 19.57 and 22.95. The corresponding historical ratios are 12.08, 15.47 and 20.61. The current P/AEPS Ratio is 16.26 based on a stock price of $75.29 and EPS estimate for 2025 of $4.63. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $56.69. The 10-year low, median, and high median Price/Graham Price Ratios are 1.35, 1.74 and 1.99. The current ratio is 1.33 based on a stock price of $75.29. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Book Value per Share Ratio of 3.38. The current ratio is 2.44 based on a Book Value of $5,379M, Book Value per Share of $30.85 and a stock price of $75.29. The current ratio is 28% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I also have a Book Value per Share estimate for 2025 of $31.05. This implies a ratio of 2.42 based on a stock price of $75.29 and a Book Value of $5,415M. This ratio is 28% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 13.04. The current ratio is 9.71 based on Cash Flow per Share estimate for 2025 of $7.76, Cash Flow of $1,352M and a stock price of $75.29. The current ratio is 26% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 1.94%. The current dividend yield is 1.70% based on dividends of $1.28 and a stock price of $75.29. The current dividend yield is 12% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a 10 year median dividend yield of 1.22%. The current dividend yield is 1.70% based on dividends of $1.28 and a stock price of $75.29. The current dividend yield is 39% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 1.97. The current P/S Ratio is 1.72 based on Revenue estimate for 2025 of $7,613M, Revenue per Share of $43.65 and a stock price of $75.29. The current ratio is 13% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is probably reasonable, but might be cheap. The 10 year dividend yield test says that the stock price is cheap. This is why the stock price could be cheap. However, the P/S Ratio test says that it is reasonable and below the median. The rest of the testing varies from cheap to reasonable.
When I look at analysts’ recommendations, I find Strong Buy (4), and Buy (6). The consensus would be a Strong Buy. The 12 month stock price consensus is $92.70 with a high of $96.00 and a low of $90.00. The consensus stock price of $92.70 implies a total return of 24.82% with 23.12% from capital gains and 1.70% from dividends based on a current stock price of $75.29.
There is only one entry for 2025 on Stock Chase. The analyst says he has owned it for a long time. Has good organic growth but is cyclical. Amy Legate-Wolfe on Motley Fool says this stock is a buy and hold for dividend investors. Aditya Raghunath on Motley Fool thinks it is still a good buy. The company put out a press release via TMX Money about their results for their fourth quarter of 2024. The company put out a Press Release about their second quarter of 2025 via Morningstar.
Simply Wall Street via Yahoo Finance reviews the returns on this stock. Simply Wall Street via Yahoo Finance looks at who owns shares in this company. They have one warning of significant insider selling over the past 3 months. The Chairman and a director have sold shares over the past year.
CCL Industries Inc manufactures and sells packaging and packaging-related products. Its geographical segments include Canada; USA and Puerto Rico; Mexico, Brazil, Chile, and Argentina; Europe; and Asia, Australia, Africa, and New Zealand. Its web site is here CCL Industries Inc .
The last stock I wrote about was about was Brookfield Corp (TSX-BN, NYSE-BN) ... learn more. The next stock I will write about will be Ovintiv Inc (TSX-OVV, NYSE-OVV) ... learn more on Wednesday, October 22, 2025 around 5 pm. Tomorrow on my other blog I will write about Dividend Ninja .... .... learn more on Tuesday, October 21, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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