Bullboard - Stock Discussion Forum Richards Packaging Income Fund T.RPI.UN

Alternate Symbol(s): RPKIF

Consumer Cyclical Packaging & Containers

Richards Packaging Income Fund (the Fund) is a Canada-based company. The Fund owns Richards Packaging Inc. (Richards Packaging), which serves a range of customer bases throughout North America comprised of approximately 17,000 regional food, beverage, cosmetics, healthcare, and other enterprises. Richards Packaging specializes in the design, manufacture, and distribution of packaging solutions... see more

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TSX:RPI.UN - Post Discussion

Richards Packaging Income Fund > Valuation

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Post by DanielDarden123 on May 06, 2021 1:09pm

Valuation

As a long term holder, valuation has always been a factor for consideration. However, many factors enter into that .evaluation. With a stellar balance sheet, $50M of working capital, and a low POR a EV/Ebitda multiple of 10 seems reasonable. Cosmetics accounted for half of the decrease in revenue from their legacy business so an improvement post pandemic would provide growth Q/Q going forward. Presumably demand would increase with increasing socializing. In the event of a prolonged pandemic, the last year results demonstrate stability.

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Comment by HermannHaller on May 06, 2021 1:32pm

As a long term holder, you probably remember that it traded under 8x EBITDA two years ago. Today, at $67, I estimate it is over 11x, using my forecast for 2021 EBITDA. I think the company has done a great job over the years, showing its resilience, and improving the balance sheet. But it's undeniable that the company got a boost from Covid last year, that they are now seeing 'unwind'. ...more

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