Review of CCL Industries Inc.

JUN 26, 2025 - CCL.B possesses a solid track record of growing dividends per share by around 17% annualized in the last ten years. That being said, uncertainty around the trade war and geopolitical tension in the Middle East could have a negative impact on CCL.B’s business in the near term, given the company’s global operations. Despite the relative underperformance in CCL.B’s share price from 2017, which was largely due to the starting valuation at that time, CCL.B’s fundamentals continues to improve and grow since then and the long-term performance in terms of total returns is quite decent if investors look out 20 years, which CCL.B manages to provide investors an annualized return of 16% across economic cycle. We think the current setup is quite attractive, given a fair valuation, a consistent growth in EPS and especially a more aggressive pace of share buyback. We think that although there is some near-term uncertainty, the resiliency and longevity of the business could help the company weather any volatility; we are maintaining our rating of a ‘B+.’