CCL Industries Inc. 2

Sound bite for Twitter and StockTwits is: Stock is relatively expensive. Analysts tend to gives buys when stocks rising and expensive and sells when they are falling and cheap. I suggest the opposite if you are a long term investor. This stock does have momentum. Are insiders selling because the stock price is expensive? See my spreadsheet on CCL Industries Inc.

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 of before. This is also a dividend paying stock and in 2009 it was on Dividend Achievers list.

The significant ownership is by Donald G. Lang and Stuart W. Lang which through 1281228 Ontario Inc. they own almost 95% of the Class A Shares. Class A shares are voting shares and Class B shares, which are on the TSX, are non-voting shares.

The 5 year low, median and high median Price/Earnings per Share Ratios are 11.69, 13.22 and 15.03. The 10 year corresponding values are close at 11.65, 13.23 and 14.95. The current P/E Ratio is 27.86 based on a stock price of $207.00 and 2015 EPS estimate of $7.43. This stock testing suggests that the stock price is relatively expensive.

I get a Graham Price of $84.91. The 10 year low, median and high median Price/Graham Price Ratios are 0.76, 0.92 and 1.06. The current P/GP Ratio is 2.44 based on a stock price of $207.00. This stock testing suggests that the stock price is relatively expensive.

The 10 year Price/Book Value per Share Ratio is 1.43. The current P/B Ratio is 4.80 based on a BVPS of $43.13 and a stock price of $207.00. This stock testing suggests that the stock price is relatively expensive.

The current Dividend Yield is 0.72% based on a stock price of $207.00 and dividends of $1.50. The historical low Dividend yield is 1.19% and the current Dividend yield is some 39% lower than this. This stock testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations I find Buy and Hold recommendations. Most of the recommendations are a Buy and the consensus is a Buy. The 12 month stock price consensus is $227.00. This implies a total return of 10.39% with 0.72% from dividends and 9.66% from capital gains.

Some of the analysts on Stock Chase like this stock. This article on Dakota Financial News talks about insider selling and analysts giving this stock a buy rating. This article in Canadian Plastics talks about a recent CCL acquisition.

This is the second of two parts. The first part was posted on Monday, November 16, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

A global specialty packaging pioneer, CCL is the largest label company in the world and provides innovative solutions to the Home & Personal Care, Premium Food & Beverage, Healthcare & Specialty, Automotive & Durables and Consumer markets worldwide. The Company is divided into three reporting segments: CCL Label, CCL Container and its consumer arm, Avery. Its web site is here CCL Industries Inc.

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. 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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