Top Performing Canadian Stocks Over 10 Years: Label Maker Has Packaged Itself Nicely

Who said ‘buy and hold’ is dead?

SmallCapPower | April 20, 2016: Today we take a look at some Canadian companies that have rewarded patient investors that have held its shares over the past decade. Examining what has made these companies successful will hopefully help one find the next big winning stock for their portfolio.

Win Big With Our Small Cap Picks

 

CCL Industries Inc. (TSE:CCL.B): 759.2% Stock Price Appreciation

For many successful companies boring can be beautiful. If this is the case, then there’s a reason why some long-term investors have been attracted to CCL Industries.

SciVacThe Company is likely the world’s largest manufacturer of labels, packaging, and containers. Take a look at almost anything you purchased for personal use recently, from that plastic mustard bottle in your kitchen, to the shampoo in your shower, to the weed killer that you use on your lawn, and chances are CCL Industries had a hand in the package and the label that caught your eye while you were in the store.

CCL has been successful in helping consolidate a highly-fragmented market, without indulging in excessive debt or shareholder dilution. In fact, the Company has just 32.7 million Class B common shares outstanding.

One of its most significant acquisitions in recent years was the purchase of Avery from Avery Dennison Corp. in 2013 for US$500-million in cash. If you ever attended an event that required a name tag or badge then it likely was printed by Avery. CCL cut costs quickly and added new digital products, with Avery now accounting for 25% of CCL’s total sales with its Return on Sales increasing from 16.4% in 2014 to 19.5% in 2015.

In 2015 alone the Company completed six acquisitions, most notably Worldmark.

On March 2, 2016, CCL announced what could turn out to be another game changer in the pending purchase of Checkpoint Systems, Inc. (NYSE:CKP) for about US$556 million in cash. Checkpoint produces radio frequency technology tags on clothing and other merchandise that helps retailers manage inventory and loss prevention. CCL expects synergy savings of up to $40 million annually and the deal will give the Company access to a long-standing, blue-chip customer base of top global retailers and apparel brands. Checkpoint generated net revenue of approximately $820 million and Adjusted EBITDA of $83 million in 2015.

CCL’s Return on Equity, meanwhile, has grown steadily from 9.5% in 2010 to a record 21.1% in 2015, while producing double-digit earnings per share growth during the past six years. All of which has allowed CCL to regularly raise its annual dividend from $0.40 in 2005 to $2.00 in 2016 – a 400% increase over this time. And, with a dividend payout of 17% this Company has plenty of room to raise, making it appealing to income investors going forward.

Read more top performing Canadian stock articles:

http://www.smallcappower.com/posts/aricle-top-performing-canadian-stocks-june-2014

http://www.smallcappower.com/posts/article-top-performing-canadian-stocks-16-5-2014

Please continue to follow SmallCapPower.com to discover other Top Performing Canadian Stocks Over the Past 10 Years.

DISCLAIMER
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source.