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Winpak (TSX:WPK) Posted Higher Q2 Earnings, Is The Valuation Still Reasonable?

Simply Wall St · 3d ago

Winpak (TSX:WPK) is back in focus after reporting second quarter results that showed higher sales and net income than a year earlier, with earnings per share also above the prior period.

See our latest analysis for Winpak.

Winpak’s second quarter update has arrived after a period of steady share price momentum, with a 30 day share price return of 6.93% and a 90 day share price return of 9.8%. The 1 year total shareholder return sits at 12.85%, indicating that recent strength has built on longer term gains as investors react to the earnings picture rather than any activity in the buyback program.

If you want to see what else is attracting interest beyond packaging, this is a good moment to broaden your search through the 3 top founder-led companies

For Winpak, the share price move has arrived alongside higher quarterly sales and net income, not fresh buybacks or a story shift. How does the current valuation compare with these business results and growth rates?

Price-to-Earnings of 13.8x: Is it justified?

Winpak is trading on a P/E of 13.8x, which puts the current CA$45.83 share price slightly above the peer average while still below the wider global packaging group.

The P/E ratio compares the share price to earnings per share, so it gives a quick sense of how much investors are paying today for each dollar of Winpak’s earnings. For a packaging manufacturer with established operations across North America, this is a commonly used yardstick because earnings tend to be a central focus.

On one hand, Winpak screens as a bit expensive versus its direct peers, with the 13.8x P/E just above the peer average of 13.7x. This points to investors paying a small premium compared to that group. On the other hand, the same 13.8x multiple sits below the global packaging industry average of 16.3x. It is also above an estimated fair P/E of 11.6x that our models suggest the market could eventually gravitate toward if sentiment or expectations cool.

Explore the SWS fair ratio for Winpak

Result: Price-to-Earnings of 13.8x (ABOUT RIGHT)

However, Winpak’s story could shift if its North American heavy revenue skew faces weaker demand, or if the packaging sector’s earnings multiples compress from current levels.

Find out about the key risks to this Winpak narrative.

Another view on Winpak’s value

The P/E of 13.8x suggests Winpak is roughly in line with peers, but the SWS DCF model points in a different direction. With an estimated future cash flow value of CA$72 per share versus the current CA$45.83, the stock screens as undervalued on this method. Which signal do you give more weight to?

Look into how the SWS DCF model arrives at its fair value.

WPK Discounted Cash Flow as at Jul 2026
WPK Discounted Cash Flow as at Jul 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Winpak for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 5 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this Winpak update has you leaning one way, it is worth moving quickly to check the data and stress test your own view using the 2 key rewards

Looking for more investment ideas beyond Winpak?

If Winpak has sharpened your focus on quality, do not stop here, broaden your watchlist with other clear, data backed ideas that could suit your style.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.