There Is Still Room For WestRock Company (WRK) to Improve Its Value – Let’s Wait for Clarity

WestRock Company (NYSE: WRK) closed the day trading at 32.83 down -2.32% from the previous closing price of $33.61. In other words, the price has decreased by $-0.78 from its previous closing price. On the day, 2515629 shares were traded. WRK reached its highest trading level at $33.81 during the session, while it also had its lowest trading level at $32.67.

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For a better understanding of WRK, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 30.88 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 9.26. For the most recent quarter (mrq), Quick Ratio is recorded 0.90 and its Current Ratio is at 1.50. In the meantime, Its Debt-to-Equity ratio is 0.70 whereas as Long-Term Debt/Eq ratio is at 0.67.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Citigroup on June 21, 2022, Downgraded its rating to Neutral and sets its target price to $45 from $53 previously.

On January 20, 2022, BofA Securities Downgraded its rating to Neutral which previously was Buy and also lowered its target price recommendation from $60 to $57.

Jefferies Downgraded its Buy to Hold on November 01, 2021, whereas the target price for the stock was revised from $84 to $54.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Aug 18 when O’Neal John L sold 5,173 shares for $42.55 per share. The transaction valued at 220,111 led to the insider holds 46,305 shares of the business.

Nevels James E sold 2,483 shares of WRK for $105,180 on Aug 17. The Director now owns 14,326 shares after completing the transaction at $42.36 per share. On Aug 10, another insider, Nevels James E, who serves as the Director of the company, sold 1,417 shares for $42.31 each. As a result, the insider received 59,953 and left with 16,675 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, WRK now has a Market Capitalization of 8.75B and an Enterprise Value of 16.47B. As of this moment, WestRock’s Price-to-Earnings (P/E) ratio for their current fiscal year is 9.37, and their Forward P/E ratio for the next fiscal year is 6.45. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.70. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.45 while its Price-to-Book (P/B) ratio in mrq is 0.73. Its current Enterprise Value per Revenue stands at 0.79 whereas that against EBITDA is 5.36.

Stock Price History:

The Beta on a monthly basis for WRK is 1.04, which has changed by -34.93% over the last 52 weeks, in comparison to a change of -15.65% over the same period for the S&P500. Over the past 52 weeks, WRK has reached a high of $54.78, while it has fallen to a 52-week low of $33.59. The 50-Day Moving Average of the stock is 40.33, while the 200-Day Moving Average is calculated to be 44.38.

Shares Statistics:

Over the past 3-months, WRK traded about 1.71M shares per day on average, while over the past 10 days, WRK traded about 2.44M shares per day. A total of 255.60M shares are outstanding, with a floating share count of 251.02M. Insiders hold about 0.10% of the company’s shares, while institutions hold 90.20% stake in the company. Shares short for WRK as of Aug 30, 2022 were 3.02M with a Short Ratio of 1.76, compared to 3.25M on Jul 28, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.19% and a Short% of Float of 1.55%.

Dividends & Splits

WRK’s forward annual dividend rate is 1.00, up from 0.99 a year ago. Against a Trailing Annual Dividend Yield of 2.95%, it implies a Forward Annual Dividend Yield of 2.98%. The stock’s 5-year Average Dividend Yield is 3.36. The current Payout Ratio is 28.00% for WRK, which recently paid a dividend on Aug 23, 2022 with an ex-dividend date of Aug 10, 2022. Stock splits for the company last occurred on May 15, 2016 when the company split stock in a 11099:10000 ratio.

Earnings Estimates

Current recommendations for the stock of the company come from 10 analysts. On average, analysts expect EPS of $1.45 for the current quarter, with a high estimate of $1.53 and a low estimate of $1.39, while EPS last year was $1.23. The consensus estimate for the next quarter is $1.25, with high estimates of $1.81 and low estimates of $1.08.

Analysts are recommending an EPS of between $4.9 and $4.54 for the fiscal current year, implying an average EPS of $4.77. EPS for the following year is $5.07, with 12 analysts recommending between $5.7 and $4.26.

Revenue Estimates

9 analysts predict $5.49B in revenue for the current quarter. It ranges from a high estimate of $5.73B to a low estimate of $5.23B. As of the current estimate, WestRock Company’s year-ago sales were $5.09B, an estimated increase of 7.90% from the year-ago figure.

A total of 11 analysts have provided revenue estimates for WRK’s current fiscal year. The highest revenue estimate was $21.58B, while the lowest revenue estimate was $21.08B, resulting in an average revenue estimate of $21.37B. In the same quarter a year ago, actual revenue was $18.75B, up 14.00% from the average estimate. Based on 11 analysts’ estimates, the company’s revenue will be $21.86B in the next fiscal year. The high estimate is $22.47B and the low estimate is $21.21B. The average revenue growth estimate for next year is up 2.30% from the average revenue estimate for this year.