CCL Industries Inc.

On my other blog I am today writing about Money Show 2015 and FinTech learn more...

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial stock. This company had some problems in 2008 and 2009, but has done quite well since. 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.

This company has been paying dividends since 1988. They have increased their dividends every year since 1999 expect for one year of 2001. The dividend yield is low and the dividend increases are moderate. The dividend growth over the past 5 and 10 years is at 13% and 10.9% per year. The current dividend yield is 0.72% based on a stock price of $207.00 and dividends at $1.50. The 5 year median dividend yield is much higher at 2.1%.

The current dividend yield is lower than the historical low one of 1.2%. If you had held this stock for 5, 10 or 15 years, you would be earning 5.3%, 6% or 14.7% on your original stock price if you had paid a median price for your stock. If you had held this stock for 5, 10 or 15 years, your original stock price would be covered by dividend payments up by 15.7%, 30.8% or 92.7% if you had paid a median price for your stock.

Shareholders have done well recently as total return for this last 5 and 10 years is at 35.39% and 17.21% per year. The portion of this total return attributable to dividend is 1.83% and 1.29% per year. The portion of this total return attributable to capital gain is 33.56% and 15.92% per year.

Total outstanding share have increase by 1% and 0.7% per year over the past 5 and 10 years. Shares have increased due to Stock Options and Share Issues. They have decreased due to Buy Backs. Revenue growth is moderate to good. Earnings growth is good. Cash Flow growth is good.

Revenue has grown at 16.6% and 5.5% per year over the past 5 and 10 years. Revenue per Share has grown at 15.5% and 4.8% per year over the past 5 and 10 years. Analysts expect Revenue to grow at around 15% in 2015. If you compare the 12 month period to the end of December 2014 to the 12 month period to the end of the third quarter, Revenue has grown at 11%.

EPS has grown by 36.8% and 13.1% per year over the past 5 and 10 years. Analysts expect growth in EPS for 1015 of 20%. If you compare the 12 month period to the end of December 2014 to the 12 month period to the end of the third quarter, EPS has grown at 23.8%.

Cash Flow has grown at 26.1% and 13.7% per year over the past 5 and 10 years. CFPS has grown at 24.8% and 12.9% per year over the past 5 and 10 years. Analysts expect growth in 2015 of around 28%. If you compare the 12 month period to the end of December 2014 to the 12 month period to the end of the third quarter, Cash Flow has grown at only 8.2%.

The Liquidity Ratio tends to be a bit low. I prefer it to be at 1.50 for safety sake. The Liquidity Ratio for 2014 is 1.37. If you add in cash flow after dividends it becomes 1.98. The Debt Ratio for 2014 is 1.87. The Leverage and Debt/Equity Ratios are a little high but not unusual at 2.15 and 1.15.

The Return on Equity has been above 10% in the last 4 out 5 years and 7 of the last 10 year. It was below 10% in 2008 to 2010 inclusive. The ROE in 2014 was 17.8% with a 5 year median of 10.3%. The ROE on comprehensive income is a little lower with the ROE in 2014 at 17.35 and the 5 year median at 9.9%.

This is the first of two parts. The second part will be posted on Tuesday, November 17, 2015 and will be 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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