Yesterday’s Consumer Pops and Drops: WRK, BG, DLPH, LULU, UN
WestRock’s price movement
WestRock (WRK) has a market cap of $9.9 billion. It fell by 3.6% to close at $38.35 per share as of January 12, 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is -15.7%, -18.3%, and -15.9%, respectively.
Technically, the stock broke the support. It’s trading below all of the moving day averages. Currently, WestRock is trading 13.9% below its 20-day moving average, 20.2% below its 50-day moving average, and 29.4% below its 200-day moving average.
The iShares Global Timber & Forestry ETF (WOOD) invests 3.1% of its holdings in WestRock. WOOD tracks the 25 largest publicly listed companies that own or manage forests and timberlands. WOOD’s YTD price movement is -8.4% as of January 11, 2016.
WestRock’s competitors and their market caps are:
- International Paper Company (IP) – $15.1 billion
- Packaging Corporation of America (PKG) – $5.8 billion
- Graphic Packaging Holding Company (GPK) – $4.0 billion
WestRock repurchased shares
Since November 10, 2015, WestRock repurchased more than 3.7 million shares of its common stock at an average price of less than $45 per share. It repurchased shares under the ongoing 10b5-1 program. Since July 1, 2015, the company purchased 9 million shares under a 40 million share repurchase authorization.
On January 8, 2016, Barclays downgraded WestRock’s rating from “overweight” to “equal-weight.”
WestRock’s performance in 4Q15 and fiscal 2015
WestRock reported fiscal 4Q15 net sales of $3,872.6 million—a rise of 48.5% compared to net sales of $2,608.0 million in fiscal 4Q14. Its net income and EPS (earnings per share) fell to $115.8 million and $0.44, respectively, in fiscal 4Q15—compared to its net income and EPS of $153.9 million and $1.06, respectively, in fiscal 4Q14.
Fiscal 2015 results
In its fiscal 2015 results, WestRock reported net sales of $11,381.3 million—a rise of 15.0% YoY (year-over-year). Its net income and EPS rose to $507.1 million and $2.93, respectively, in fiscal 2015—compared to its net income and EPS of $479.7 million and $3.29, respectively, in fiscal 2014.
Meanwhile, its inventories rose by 90.8% in fiscal 2015. It reported cash and cash equivalents of $228.3 million in fiscal 2015—compared to cash and cash equivalents of $32.6 in fiscal 2014. Its DE (debt-to-equity) ratio fell to 1.2 in fiscal 2015—compared to its DE ratio of 1.6 in fiscal 2014.
WestRock’s PE (price-to-earnings) and PBV (price-to-book value) ratios are 12.1x and 0.86x, respectively, as of January 12, 2016.
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