CCL Industries

I am reviewing this stock (TSX-CCL.B) because I started a spreadsheet on it. I did this as I read a favorable report on this stock. I had also heard of this stock before. This is also a dividend paying stock and it is on is on the Dividend Achievers list at Dividend Achievers. I do not own any of the stock of this company.

This company has some good growth indicators. The dividend, cash flow and the 5 year Book Value shows health growth. The Revenue has negative growth for both the 5 year and 10 year periods. This is because they sold its North American Custom Manufacturing Division in 2005 and this caused a decline in their revenues from 2005. Their earnings growth is not great for the last 5 and 10 year periods. They had very good growth for 2005 and 2007. However, 2008 was not a good year. All the analysts seem to feel that 2009 and 2010 will be better years for earnings growth.

The Liquidity and Asset/Debt ratios are good at 1.47 and 1.74 respectively. This means that the company can cover both their current and long term debts well. When looking at Return on Equity (ROE), this company’s 5 year average of 15.8% is very good. However, the ROE for 2008 is only 6.5% and this is very mediocre, at best. The Accrual Ratio is not bad at 3.5%, but when we add in the Financial Cash Flow, it comes down to 1.25%

This stock has not preformed well as far as growth in the stock price, but this will change when we get out of this current bear market. They have already raised their dividend 7% for this year, so the company seems to feel that they will do fine for 2009. I will talk about what the analysts say about this stock currently, tomorrow.

CCL Industries Inc. provides state-of-the-art specialty packaging solutions to some of the world’s largest producers of consumer brands in personal care, cosmetic, healthcare, household and specialty food and beverage products. CCL is the world’s largest supplier of innovative and secure labeling solutions to leading global companies in the consumer product and healthcare sectors and supplies aluminum containers and plastic tubes for major consumer brands of personal care, household products and specialty food and beverages. With headquarters in Toronto, Ontario, Canada, CCL Industries operates production facilities in North America, Europe, Latin America, Asia and Australia. Its web site is www.cclind.com. See my spreadsheet at www.spbrunner.com/stocks/ccl.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets.