Graphic Packaging: Industry Tailwinds Support Long-Term Value Creation

ZH Advisors
16 Followers

Summary

  • Increased consumer demand for frozen/prepared food post-COVID should drive revenue growth for GPK.
  • Oligopolistic competitive landscape should help GPK successfully manage raw material inflation.
  • GPK’s current price level provides a heathy margin of safety.

Wall street sign in New York with New York Stock Exchange background

naphtalina/iStock via Getty Images

Investment Thesis

COVID lockdowns during 2020-2021 dramatically increased consumer trial in frozen and prepared food. As cost of living continues to rise, we believe that the combination of COVID and inflation has reset the baseline for long-term

This article was written by

16 Followers
Private equity analyst by trade. My primary interests include fundamental long-only, merger analysis, and special situations. 6+ years of equity research, special situations investing, and financial modeling experience combined.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GPK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GPK Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GPK

Related Stocks

SymbolLast Price% Chg
GPK
--