Monday, November 25, 2013

CCL Industries Inc.

On my other blog I am today writing about the updating information on Dividend Growth Stocks and their historical yields ...continue...

I do not own this stock CCL Industries Inc. (TSX-CCL.B, OTC-CCDBF). In 2009 I read a favorable report on this stock. I had also heard of this stock before. This is also a dividend paying stock and was and is on is on the Dividend Aristocrats list.

Dividends are decent and dividend increases are decent. The 5 year median dividend is 2.2% and the 5 and 10 year dividend growth is at 10% and 87% per year. The most recent dividend in 2013 was for 10.3% and the current dividend is 2%.

The 5 year median Dividend Payout Ratios are 30% for EPS and 12.7% for CFPS. The DPR for 2012 was 27% for EPS and 13% for CPFS. On stock purchased today, you might be earnings just over 4% in yield in 10 years' time and over 6% in year in 15 years' time.

Over the past 5 and 10 years there has been little change in the number of outstanding shares. Shares have increased due to Share Issues and Stock Options and have decreased due to Buy Backs. Also Class A shares have converted to Class B. Shares.

Revenue is up by 2.7% per year over the past 5 years, but down by 2.5% per year over the past 10 years. Revenue per Share is up by 2.1% per year over the past 5 years, but 2.6% per year over the past 10 years. However, if you look at the 5 year running average, Revenue per Share is down by 1.5% and 1.8% per year over the past 5 and 10 years.

The 10 year Revenues have been affected Custom Manufacturing Division in 2005. I would think that future revenues will be affected by the recent purchase of Avery Dennison in 2013.

The EPS have declined over the past 5 years, but have increased over the past 10 years. The decline was at 8.3% per year over the past 5 years. The EPS have increased by 16% per year over the past 10 years. Using 5 year running averages the EPS have decreased by 7.5% per year over the past 5 years and increased by 8.3% per year over the past 10 years.

The Cash Flow per Share is a bit better with increases of 2.3% per year and 3.9% per year over the past 5 and 10 years. If you look at 5 year running averages, the CFPS has increased by 3.4% and 3.4% per year over the past 5 and 10 years. The value to using the 5 year running averages is that exact 5 or 10 years ago, a company could have an extraordinary year or a really bad year and this could distort the growth over the particular period involved.

The Return on Equity for 2012 was 11% and was the best this company has had since 2007. However, it has not often been at or above 10%. Lots of years the ROE was closer to 4 and 5%. So this company has no stellar performance on the ratio. The comprehensive ROE for 2012 was 9.9%, which is almost 10% lower than for the net income ROE. This is not too bad. However, the ROE on comprehensive income has varied quite a bit at times from that of net income since 2006, when they first started to publish information on comprehensive income.

The current Liquidity Ratio is 1.65. The Liquidity Ratio for 2012 was 1.48. The 5 year median Liquidity Ratio is 1.48. This Ratio is fine, but I would prefer it to be at or over 1.50 consistently. The Debt Ratio has generally been better and it is currently at 1.65 with a 2012 ratio of 2.16 and a 5 year median ratio of 1.95. The Leverage and Debt/Equity Ratios for 2012 was at 1.86 and 0.86 and these are better than usual, as the 5 year median ratios are 2.27 and 1.27, respectively.

The 5 and 10 year total return on this stock was at 4.65 and 10.11% per year over the past 5 and 10 years to the end of 2012. The capital gain portion of this return was at 2.94% and 8.25% per year and the dividend portion of this return was at 1.66% and 1.88% per year over these periods.

The stock price has risen by some 90% this year. The total return to date is a lot higher at 28.52% and 17.55% per year over the pas5t 5 and 10 years with capital gains at26.70% and 15.96% and dividends at 1.81% and 1.59% per year over these periods. This big rise in stock is connected with the purchase of Avery Dennison this year.

This is an industrial stock and I think it has shown it can produce solid results. It has a decent dividend and a decent history of dividend increases. Investors, with this stock, can diversify into industrial stocks with a company that will produce increasing dividends and long term gains. See my spreadsheet at ccl.htm.

This is the first of two parts. Second part will be posted on Tuesday, November 26, 2013 and will be available here.

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 here CCL Industries.

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 for stocks followed and investment notes. Follow me on Twitter or StockTwits.


  1. Is there anyway you would be able to calculate the Profit Margin of CCL for both the 2012 and 2013 year using the Profit/Net Sales formula?

  2. Sorry, I do not track net sales. I do have Operational Profit Margin (CF/Revenue) Ratio on my spreadsheets.