The Company in a Nutshell
- Revenues come mainly from North America (41%), Europe (32%), and Emerging Markets (27%).
- CCL employs over 25,000 people and operates over 200 production facilities in 43 countries.
- CCL is the world’s largest pressure-sensitive and specialty extruded film materials producer.
| Date Reviewed | 08/27/2025 |
| Company Name | CCL Industries Inc |
| Symbol | CCL.B.TO |
| Sector | Materials |
| Industry | Packaging & Containers |
| Beta | 0.6 |
| PRO Rating | 4 |
| Dividend Safety | 4 |
Business Model
CCL Industries Inc. is a Canada-based company, which is primarily involved in the manufacturing of labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates and specialty films. The Company's segments include CCL, Avery, Checkpoint and Innovia. CCL segment is a converter of pressure sensitive and specialty extruded film materials for a range of decorative, instructional, functional and security applications. Avery segment is a supplier of labels, specialty converted media and software solutions for short-run digital printing applications for businesses and consumers. Checkpoint segment is a developer of RF and RFID based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions, for the retail and apparel industries worldwide. Innovia segment is a producer of specialty, high performance, multi-layer, surface engineered films for label, packaging and security applications.
| Current price | 75.77 |
| ROE | 17.05 % |
| ROIC | 11.65 % |
| Shareholder Yield | 0.10 % |
| 5-Yr Total Return | 57.15 % |
| 1-Yr Total Return | -6.70 % |
| Next Earnings Date | 11-11-25 |
Latest Quarter Information
What the CEO said:
Geoffrey T. Martin, President and Chief Executive Officer, commented, “Given the difficult external operating conditions, I’m very pleased our people delivered a second consecutive quarter of record adjusted earnings per share. Profitability improvement was driven by strong results from our CCL, Checkpoint and Innovia segments, inclusive of start-up cost for the new large film extrusion facility in Germany and, as expected, a challenging start to the back-toschool season at Avery due to the tariff environment in the United States. All-in, the Company posted a record $1.22 adjusted basic earnings per Class B share(3) for the quarter compared to $1.13 in the prior year period.”
2025-08-26, CCL Industries reported a good quarter with revenue up 5% and EPS up 8%. Growth was a mix of organic (2%), acquisitions (1%) and a 1.8% positive FX impact. By segment, CCL +7.9%, Avery -3.9%, Checkpoint +4.6% and Innovia -0.7%. Growth was broadest at the CCL segment, which delivered 4.7% organic sales growth, while Checkpoint rose on MAS product strength. Avery declined on softer back-to-school shipments and tariff costs, and Innovia was essentially flat overall amid stronger Americas results offset by European start-up costs. Profitability improved with operating income up 6.1%, aided by strong contributions from CCL, Checkpoint and Innovia.
Investment Thesis
CCL Industries is a global leader in specialty label and packaging solutions, serving diverse industries such as consumer goods, healthcare, automotive, and technology. The company has expanded through strategic acquisitions, including its 2013 purchase of Avery and later acquisitions of Checkpoint and Innovia. CCL continues to generate organic growth of approximately 4 to 5 percent while actively pursuing acquisitions. The company's diversified product lines, global presence, and ability to generate strong cash flows make it a stable long-term investment. With a favorable price-to-earnings ratio and a capital allocation strategy that balances dividends, share buybacks, and reinvestments, CCL remains well-positioned for future growth.
Playbook:
CCL operates four main business segments—CCL, Avery, Checkpoint, and Innovia—each serving different industries with high demand for labeling and security solutions. The company benefits from long-term contracts and recurring revenue. CCL also operates across the world, providing geographic diversification.
Growth Vectors:
The company’s recent acquisitions continue to drive growth, particularly in RFID and specialty film solutions. Investments in new production facilities in the U.S., Canada, Mexico, and Europe are expected to improve efficiency and expand capacity.
Economic Moat:
CCL has a strong competitive advantage due to its global scale, technological innovations, and ability to acquire and integrate businesses successfully. The Lang family’s controlling stake ensures management’s interests are aligned with shareholders.
Dividend Triangle
| 5-Yr Rev. Growth | 7.70 % |
| 5-Yr EPS Growth | 7.20 % |
| 5-Yr Div Growth | 12.00 % |
Potential Risks
CCL’s business model provides some insulation against economic downturns, but several risks could impact its performance.
Business Vulnerabilities:
The company has used leverage for acquisitions, increasing its debt levels. While acquisitions have historically been successful, further expansion in a slowing economy may present integration risks. Additionally, CCL’s restructuring of Innovia highlights challenges in some segments.
Industry & Market Threats:
Rising inflation and raw material costs could put pressure on margins. This explains why CCL is part of the material sector while its business activities are more related to consumer behaviors. While CCL has managed to pass on price increases to customers, there is a limit to how much pricing power it can sustain. Any slowdown in consumer demand due to economic downturns may also impact revenue growth.
Competitive Landscape:
The label and packaging industry is highly competitive, with major players such as Avery Dennison and Amcor. CCL’s continued investment in RFID and digital printing solutions will be crucial to maintaining its edge over competitors.
| Debt/Equity | 0.45 |
| Financial Debt to EBITDA (TTM) | 1.65 |
| Current Ratio (Quarterly) | 2.00 |
| Credit Score | 95 |
Dividend Growth Perspective
CCL exhibits a nearly perfect dividend triangle, with strong revenue and dividend growth over the past 5 years. However, earnings are beginning to slow down. CCL’s business model is built on repeat orders generating consistent cash flows. An investor can expect dividend growth for many years with its low payout ratios. Following a smaller increase in 2020, CCL came out strong with dividend increases of 17%, 14%, and 10.4% in 2021, 2022, and 2023, respectively. CCL reassured the market with another generous dividend increase in early 2024 (+9.4%) and in 2025 (+10%).
| Dividend ($) | 1.28 |
| Dividend Yield Fwd | 1.70 % |
| Dividend Frequency | Quarterly |
| Average 5-Yr Yield | 1.55 % |
| Payout Ratio (%) | 24.50 |
| Cash Payout Ratio (%) | 28.45 |
| DGR 1-Yr | 9.65 |
| DGR 3-Yr | 10.35 |
| DGR 5-Yr | 12.00 |
| DGR Streak | 23 |
| Chowder Score | 13.65 |
| Next DVD PMT | 09-29-25 |
Valuation
| Recent Annual Dividend Payment | $ 1.28 |
| Expected Dividend Growth Rate Years 1-10 | 7.00% |
| Expected Terminal Dividend Growth Rate | 5.00% |
| Discount Rate | 9.00% |
| Discount Rate (Horizontal) | |||
| Margin of Safety | 8.00% | 9.00% | 10.00% |
| 20% Premium | $ 63.58 | $ 47.40 | $ 37.70 |
| 10% Premium | $ 58.29 | $ 43.45 | $ 34.56 |
| Intrinsic Value | $ 52.99 | $ 39.50 | $ 31.42 |
| 10% Discount | $ 47.69 | $ 35.55 | $ 28.27 |
| 20% Discount | $ 42.39 | $ 31.60 | $ 25.13 |
| Market Cap | 13 B |
| PE Ratio | 17.00 |
| Fwd PE | 15.85 |
| Price to Book Ratio | 2.45 |
| DDM Valuation | 39.5 |
| Average 5-Yr PE | 18.9 |
| Value Score | 73 |