WRK
WestRock Co
Industrial/Transportation
12/02/2013
Presented
| Date | 11/26/2013 |
| Price | $95.65 |
| Market Cap | $6.81B |
| Ent Value | $9.63B |
| P/E Ratio | 19.05x |
| Book Value | $31.27 |
| Div Yield | 1.2% |
| Shares O/S | 71.15M |
| Ave Daily Vol | 750,000 |
| Short Int | 1.12% |
Current
| Price | $51.51 |
| Market Cap | $13.30B |
| WestRock Company manufactures and sells paper and packaging solutions for consumer and corrugated markets in North America, South America, Europe, and the Asia-Pacific. It offers folding cartons for use in various food and non-food applications; superior pumps, sprayers, and dispensing closures for home cleaning, healthcare, and beauty and personal care products; and corrugated containers for home appliances, electric motors, small machinery, produce, books, furniture, and other products. The company also provides beverage multipacks for beer, carbonated soft drink, and other beverage markets; merchandising displays; chipboard partitions and other protective packaging, such as custom partitions, book cover board, single ply chip, and gypsum; and coated white top linerboard, white top linerboard, virgin and recycled linerboard, corrugated medium, kraft paper, and pulp products. In addition, it offers various paperboard products, including solid bleached sulfate, coated and uncoated recycled board, and coated and uncoated unbleached kraft. Further, the company is involved in recovering, processing, and selling recycled paperboard; developing master planned communities, and industrial and business campuses, as well as recreational/investment land sales in South Carolina and Georgia; and supplying specialty chemicals products and distinctive technologies in asphalt innovations, oilfield and pine chemicals, and activated carbon. WestRock Company is based in Richmond, Virginia. |
Please note, on 6/24/15 Rock-Tenn Company (RKT) changed its company name and ticker to WestRock Company (WRK). The content of this idea will make reference to the original company name and ticker symbol.
Highlights
The containerboard industry failed to return its cost of capital from 1990 to 2005, when a series of deals consolidated the industry and concentrated market share among a handful of companies. Today the top four companies control about 75% of market share for this commodity product, and continue to benefit from a wave of price increases that have resulted in current pricing of $1,000 per ton, up from just $300 during the financial crisis. The presenter, however, believes that the industry stands at an inflection point and is on the cusp of pricing declines that will disproportionately impact the bottom lines of players including International Paper, KapStone, and Rock-Tenn.
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