WestRock Company posted earnings for its fourth quarter that surpassed the Street expectations.
The corrugated packaging company's adjusted earnings came in at $1.43 per share, above the $1.41 per share expected by analysts’ (according to Thomson Reuters compilation).
Revenue climbed +6.1% from the year-ago quarter to $5.40 billion. The company’s sales from Corrugated Packaging business rose +8% year over year to $2,386 million, while adjusted segment EBITDA increased +6% year over year to $384 million. The Consumer Packaging segment’s sales were up +12.7% year-over-year to $1,306 million, with adjusted segment EBITDA rising +10.7% year over year to $219 million. The Paper segment generated revenue of $1,429 million down -2.3% year over, with adjusted segment EBITDA slipping -0.3% year over year to $306 million. The Distribution business sales increased +7% year over year to $374 million, and the segment’s adjusted EBITDA rose +11% year over year to $26 million.
WRK saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 01, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 44 instances where the indicator turned negative. In of the 44 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The 10-day RSI Indicator for WRK moved out of overbought territory on April 01, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WRK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for WRK entered a downward trend on May 01, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Momentum Indicator moved above the 0 level on April 29, 2024. You may want to consider a long position or call options on WRK as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
WRK moved above its 50-day moving average on April 26, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WRK advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
WRK may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WRK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.249) is normal, around the industry mean (2.844). P/E Ratio (9.113) is within average values for comparable stocks, (26.161). Projected Growth (PEG Ratio) (2.472) is also within normal values, averaging (2.389). Dividend Yield (0.023) settles around the average of (0.034) among similar stocks. P/S Ratio (0.633) is also within normal values, averaging (11.437).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a paper & packaging company
Industry ContainersPackaging