The T Rowe Price Equity Income Fund (Trades, Portfolio), managed by John Linehan, sold out of WestRock Co. (WRK, Financial) during the fourth quarter. The trade had a 0.13% impact on the fund’s portfolio.
The fund established the holding during the third quarter of 2015.
WestRock has a market cap of $13.54 billion, an enterprise value of $19.09 billion, a price-book (P/B) ratio of 1.39, a current ratio of 1.79 and a quick ratio of 1.04.
WestRock provides paper and packaging solutions in consumer and corrugated markets. The company offers corrugated container, paperboard, partitions and protective packaging, containerboard and beverage multipacks. The company operates in North America, South America, Europe and Asia.
According to GuruFocus, WestRock has a 4 of 10 financial strength rating with a cash-debt ratio of 0.06, an equity-asset ratio of 0.42 and a Piotroski F-Score of 4, which indicates the company’s financial situation is typical for a stable company.
WestRock has a 6 of 10 profitability and growth rating with an operating margin of -0.30%, a net margin of -2.72%, a return on equity (ROE) of -3.72%, three-year revenue growth of -5.60% and a return on capital (ROC) of 0.24%.
According to GuruFocus, the company has two severe warning signs that may have contributed to the fund's decision to exit the position:
- The company’s per-share revenue growth rate was -5.60% per year over the previous three years.
- The company’s operating margin has been in five-year decline. The average rate of decline is -8.3% per year.
Below is a Peter Lynch chart for WestRock that shows it is trading above its intrinsic value.
Disclosure: Author does not own any shares of this company.
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