Trade-Ideas LLC identified

WestRock

(

WRK

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified WestRock as such a stock due to the following factors:

  • WRK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.6 million.
  • WRK is up 2.7% today from today's close.

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More details on WRK:

WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, and Asia. The company operates through Corrugated Packaging, Consumer Packaging, and Land and Development segments. The stock currently has a dividend yield of 4.2%. Currently there are 4 analysts that rate WestRock a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for WestRock has been 1.9 million shares per day over the past 30 days. WestRock has a market cap of $9.1 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 1.59 and a short float of 3.4% with 4.18 days to cover. Shares are down 18.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates WestRock as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • WRK's very impressive revenue growth greatly exceeded the industry average of 9.3%. Since the same quarter one year prior, revenues leaped by 50.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $252.20 million or 15.47% when compared to the same quarter last year. In addition, WESTROCK CO has also vastly surpassed the industry average cash flow growth rate of -68.38%.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Containers & Packaging industry. The net income has significantly decreased by 48.2% when compared to the same quarter one year ago, falling from $109.80 million to $56.90 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Containers & Packaging industry and the overall market, WESTROCK CO's return on equity significantly trails that of both the industry average and the S&P 500.

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