PACK - Ranpak Holdings: A Downgrade Is In Order On Valuation
2024-07-29 00:33:07 ET
Summary
- Ranpak Holdings Corp. provides paper filling and cushioning products for packaging, showing improvements in revenue, profits, and cash flows.
- Despite revenue growth in 2024, the company's stock is now pricey compared to similar firms, leading to a downgrade to a 'hold'.
- Recent innovations in sustainable packaging products show promise for future growth, but current valuation suggests a 'hold' rating is appropriate.
Back in November of 2022, one company that I was bullish on was Ranpak Holdings Corp. ( PACK ). The company's primary business is centered around providing paper filling used to fill empty spaces in secondary packages, and it also provides cushioning products like crumpled paper that can be turned into cushioning pads in order to trap air between layers to further protect objects within boxes from things like external shocks and vibrations. Even though this might sound like a boring space to invest in, I find the more boring companies to be the more interesting ones. And at that time, my mindset was the same as it is now....
Ranpak Holdings: A Downgrade Is In Order On Valuation