Topic: How To Invest

Q: Good day, Pat and TSI team. Could you please give me your analysis and recommendation for CCL.B on the TSX? Thanks very much!

Article Excerpt

A: CCL Industries Inc., $66.25, symbol CCL.B on Toronto (Shares outstanding: 176.8 million; Market cap: $11.7 billion; www.cclind.com), primarily makes packaging products for the food, health-care, automotive and personal-care industries. Procter & Gamble and Johnson & Johnson are among its major customers. CCL also makes radio frequency identification (RFID) tags and banknotes. On June 5, 2017, the company split its shares on a five-for-one basis. It has five main divisions: Label (59% of total revenue) makes pressure-sensitive labels for plastic bottles and other forms of packaging. Avery (16%) makes labels, binders, dividers, sheet protectors and writing instruments. Checkpoint Systems (14%) makes RFID tags. Those products help retailers prevent theft and manage their inventories. Innovia (7%) makes polymer banknotes for central banks. Containers (4%) makes aluminum aerosol cans, beverage bottles and flexible plastic tubes. The U.S. supplies 40% of the company’s revenue, followed by Europe (34%), Asia (17%), Mexico, Brazil, Chile and Argentina (6%) and Canada (3%). The company has a long history of expanding through acquisitions. Notably, in July…