Mar. 20 at 11:48 PM
$GPK Oil, commodity prices and interest rates are all ugly for GPK in the short term but this seems to be getting way, way overdone and took down a very large chunk at 8.95 today. Institutions are looking anywhere to free up cash. I expect a fast bounce back once the air clears. 6 P/E based on TTM and 5% dividend (29% payout ratio – well covered). P/S of 0.3. Current consensus across 12 analysis is ~
$17. GPK has poured
$1.7 billion into building Waco and this CapEx drops off dramatically now, which means
$800 million in FCF targeted for 2026 and debt and dividend very well covered. As a remind, Waco is expected to add
$160 million in net income the next two years. RSI at 18 and record lows. I will add more on weakness but I have to expect all these figures will help put in a floor soon.
