WestRock Company [NYSE:WRK]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding WestRock Company [WRK], the latest average analyst recommendation we can see is from the quarter closing in September. On average, stock market experts give WRK an Hold rating. Its stock price has been found in the range of 35.20 to 67.01. This is compared to its latest closing price of $38.73.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for WestRock Company [WRK] is sitting at 2.53. This is compared to 1 month ago, when its average rating was 2.53.
For the quarter ending in Dec-18 WestRock Company [WRK] generated $4.33 billion in sales. That’s 4.54% lower than the average estimate of $4.53 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 30 Apr (In 14 Days).
Fundamental Analysis of WestRock Company [WRK]
Now let’s turn to look at profitability: with a current Operating Margin for WestRock Company [WRK] sitting at +8.72 and its Gross Margin at +19.02, this company’s Net Margin is now 5.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 8.15, and its Return on Invested Capital has reached 5.30%. Its Return on Equity is 17.48, and its Return on Assets is 7.56. These metrics suggest that this WestRock Company does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, WestRock Company [WRK] has generated a Total Debt to Total Equity ratio of 55.93. Similarly, its Total Debt to Total Capital is 35.87, while its Total Debt to Total Assets stands at 25.30. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 49.48, and its Long-Term Debt to Total Capital is 31.73. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 5.97 and its Total Debt to EBITDA Value is 2.40. The Enterprise Value to Sales for this firm is now 0.95, and its Total Debt to Enterprise Value stands at 0.33. WestRock Company [WRK] has a Price to Book Ratio of 1.18, a Price to Cash Flow Ratio of 5.73 and P/E Ratio of 10.19. These metrics all suggest that WestRock Company is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, WestRock Company [WRK] earns $361,104 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.36 and its Total Asset Turnover is 0.65. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.89 and its Current Ratio is 1.44. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
WestRock Company [WRK] has 254.80M shares outstanding, amounting to a total market cap of $9.87B. Its stock price has been found in the range of 35.20 to 67.01. At its current price, it has moved by -46.63% from its 52-week high, and it has moved 1.59% from its 52-week low.
This stock’s Beta value is currently 1.71, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 35.32. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is WestRock Company [WRK] a Reliable Buy?
WestRock Company [WRK] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.