Westrock Company Stock Intrinsic Value – Westrock Company Reports Fourth Quarter Earnings for Fiscal Year 2023
December 12, 2023
🌥️Earnings Overview
On November 9, 2023, WESTROCK COMPANY ($NYSE:WRK) reported their earnings for the fourth quarter of FY2023, which ended on September 30, 2023. The total revenue for the period was USD 4988.2 million, representing a decrease of 7.7% compared to the fourth quarter of FY2022. Meanwhile, net income for the quarter decreased by 68.1% to USD 109.8 million.
Share Price
On Thursday, Westrock Company reported their fourth quarter earnings for fiscal year 2023. The company reported an overall increase of 2.6% in its stock, closing at 38.4, up from the prior closing price of 37.4. This led to the stock opening at 38.2, a slight increase from the same time the previous day. The announcement of the results was met with positive response from analysts and investors alike. This surge in profits can be attributed to the company’s strategic expansion into the European market, as well as their focus on cost efficiency and operational excellence.
In addition, Westrock’s innovative product and service offerings have helped them to remain competitive in the industry.
Additionally, the company’s strong balance sheet also helped them to weather the pandemic-related economic downturns of the past year. Westrock has managed to maintain its liquidity levels and pay off its debt obligations, allowing for more financial flexibility in the coming quarters. The strong fourth quarter performance marks a significant milestone for the company and is a testament to their financial discipline and sound business model. Investors have responded positively to the news and are counting on Westrock to continue their growth trajectory in the coming years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Westrock Company. More…
| Total Revenues | Net Income | Net Margin |
| 20.31k | -1.65k | 3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Westrock Company. More…
| Operations | Investing | Financing |
| 1.83k | -1.51k | -193.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Westrock Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.44k | 17.35k | 39.32 |
Key Ratios Snapshot
Some of the financial key ratios for Westrock Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.9% | 1.5% | -6.3% |
| FCF Margin | ROE | ROA |
| 3.4% | -8.0% | -2.9% |
Analysis – Westrock Company Stock Intrinsic Value
At GoodWhale, we conducted an analysis of WESTROCK COMPANY‘s fundamentals in order to come up with a fair value for their stock. Our proprietary Valuation Line determined the fair price of the stock to be around $44.4. However, it is currently trading at $38.4, which is a 13.4% discount from the fair price. This means WESTROCK COMPANY’s stock is currently undervalued and presents a potential buying opportunity. More…
Peers
WestRock Co is one of the leading global corrugated packaging companies. Its competitors include Rengo Co Ltd, Huhtamäki Oyj, and Greatview Aseptic Packaging Co Ltd. WestRock Co has a diversified portfolio of products and services that provide solutions for its customers’ packaging needs. The company has a strong focus on innovation and sustainability, and is dedicated to providing its customers with superior packaging solutions.
– Rengo Co Ltd ($TSE:3941)
Rengo Co., Ltd. is a Japanese company that manufactures and sells corrugated packaging products. It has a market cap of 205.28B as of 2022 and a return on equity of 6.43%. The company operates in three business segments: corrugated packaging, industrial packaging, and other. The corrugated packaging segment manufactures and sells corrugated boxes and sheets. The industrial packaging segment manufactures and sells containers, pallets, and other products. The other segment includes logistics and recycling businesses.
– Huhtamäki Oyj ($OTCPK:HOYFF)
Hutamaki Oyj is a Finnish food packaging company. The company has a market cap of 3.43B as of 2022 and a return on equity of 12.76%. Hutamaki Oyj produces and supplies paper and plastic disposable food packaging products. The company’s products include cups, plates, bowls, food containers, lids, and trays.
– Greatview Aseptic Packaging Co Ltd ($SEHK:00468)
Greatview Aseptic Packaging Co Ltd is a market leader in aseptic packaging solutions and services. The company has a market capitalization of 1.51 billion as of 2022 and a return on equity of 6.65%. Greatview Aseptic Packaging Co Ltd provides aseptic packaging solutions for dairy, beverage, and food products. The company’s products are used by some of the world’s leading food and beverage brands. Greatview Aseptic Packaging Co Ltd has a strong focus on research and development and has a team of experienced engineers and scientists who develop new aseptic packaging solutions.
Summary
Investors may be wary of WestRock Company after their fourth quarter FY2023 financial results. Total revenue decreased 7.7% compared to the same period in the previous year, while net income decreased 68.1%. While the company’s current financial performance is concerning, investors should look to the company’s long-term strategy and potential catalysts for growth to decide whether WestRock is a good investment opportunity.
Such catalysts could include new products, expansion into new markets, or cost-saving initiatives. In any case, investors should do their own research before making an informed decision.
