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Canada Packers Inc.
(TSX:CPKR)
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Rating:56Neutral
Price Target:
C$15.00
▼(-9.15% Downside)
Action:Reiterated
Date:10/29/26
The score is held back primarily by higher leverage and recent TTM/quarterly earnings and margin pressure, reinforced by weak technical trends. These risks are partially offset by supportive cash flow, management’s maintained growth targets/liquidity focus, and an attractive valuation (low P/E and high dividend yield).
Positive Factors
Cash Generation
Positive free cash flow provides internal funding for debt repayment, capital investment and ongoing operations. Although cash generation has softened from stronger periods, the current contribution supports liquidity and gives management greater flexibility through industry volatility.
Negative Factors
Higher Leverage
The materially more debt-funded capital structure reduces financial flexibility if earnings remain under pressure. Higher leverage can direct more future cash toward obligations and leave less capacity for investment, dividends or absorbing prolonged weakness in processing margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Positive free cash flow provides internal funding for debt repayment, capital investment and ongoing operations. Although cash generation has softened from stronger periods, the current contribution supports liquidity and gives management greater flexibility through industry volatility.
Read all positive factors
Canada Packers Inc. (CPKR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$413.78M
Dividend Yield6.62%
Average Volume (3M)86.96K
Price to Earnings (P/E)38.6
Beta (1Y)0.71
Revenue Growth-6.60%
EPS Growth-92.12%
CountryCA
Employees3,700
SectorGeneral
Sector StrengthN/A
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)0.36
Shares Outstanding29,768,436
10 Day Avg. Volume102,671
30 Day Avg. Volume86,958
Financial Highlights & Ratios
PEG Ratio-2.73
Price to Book (P/B)1.76
Price to Sales (P/S)0.26
P/FCF Ratio2.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$19.00Price Target Upside15.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.3
Revenue Forecast (FY)C$1.67B
Canada Packers Inc. Business Overview & Revenue Model
Company Description
Canada Packers Inc. focuses on providing pork products that are raised without antibiotics (RWA). The company's operations are fully integrated, overseeing the entire process from hog farming and processing to creating innovative, value-added prod...
Canada Packers Inc. Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 10, 2027
Earnings Call Sentiment Neutral
The call had a mixed but cautiously constructive tone. The quarter included substantial market-driven pressure, with lower sales, a net loss, a 43.8% decline in adjusted EBITDA, a 430-basis-point margin contraction and weaker hog-processing volumes. However, management emphasized positive adjusted profitability, positive free cash flow, debt reduction, maintained dividends, available liquidity, operational improvements and continued progress toward using existing processing capacity. Management also characterized the weakness as cyclical rather than structural, while acknowledging that the timing of recovery cannot be predicted.Positive Updates
Positive Adjusted Profitability Despite Challenging Market
Canada Packers remained profitable on an adjusted basis and reported adjusted EBITDA of $31.5 million in Q3 2026 despite significant industry-wide spread compression.
Negative Updates
Industry-Wide Spread Compression
The quarter was affected by sharply compressed packer and vertically integrated spreads, driven by softer U.S. demand, slower exports and high year-over-year U.S. inventories amid steady supply. The company did not experience the seasonal improvement in pork values normally expected.
Read all updates
Q3-2026 Updates
Positive
Negative
Positive Adjusted Profitability Despite Challenging Market
Canada Packers remained profitable on an adjusted basis and reported adjusted EBITDA of $31.5 million in Q3 2026 despite significant industry-wide spread compression.
Read all positive updates
Company Guidance
The company continues to expect full year 2026 hog processing growth to be within our 2% to 3% target range, including the additional week in our fiscal calendar; deliveries from internal farming operations are expected to increase as we move through 2027, with new supply contracts expected to contribute additional volumes, particularly in the second half of next year, while growth will not be perfectly linear, with more regular growth expected by the back half of '27 and confidence in filling capacity over the next, say, 4 years or so. The normal annual adjusted EBITDA margin target range is 8% to 12% based on normalized market conditions, the company expects to utilize the full $20 million receivables-financing capacity over the coming quarters, and its Q4 dividend is $0.23 per share to be paid out on January 4, 2027; management is not assuming an immediate improvement in pork markets and said, “We have no idea when it will return, but we're confident that it will.”Canada Packers Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
45
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.71B | 1.84B | 1.66B | 1.65B | 1.64B |
| Gross Profit | 145.20M | 252.77M | 230.82M | 33.59M | 24.50M |
| EBITDA | 98.65M | 207.92M | 202.76M | 15.77M | 8.27M |
| Net Income | 10.46M | 106.32M | 108.25M | -27.09M | -31.26M |
Balance Sheet | |||||
| Total Assets | 867.25M | 923.94M | 784.81M | 682.32M | 692.06M |
| Cash, Cash Equivalents and Short-Term Investments | 36.68M | 54.28M | 18.78M | 9.51M | 18.65M |
| Total Debt | 465.43M | 484.74M | 88.21M | 68.79M | 61.33M |
| Total Liabilities | 619.27M | 651.95M | 221.74M | 196.56M | 193.34M |
| Stockholders Equity | 247.97M | 271.98M | 563.07M | 485.76M | 498.72M |
Cash Flow | |||||
| Free Cash Flow | 125.52M | 208.90M | 111.70M | 27.18M | -134.00K |
| Operating Cash Flow | 125.52M | 208.90M | 111.70M | 27.18M | -134.00K |
| Investing Cash Flow | -34.33M | -32.09M | -26.70M | -32.95M | -44.85M |
| Financing Cash Flow | -114.46M | -146.92M | -75.74M | -3.37M | 43.63M |
Canada Packers Inc. Technical Analysis
Negative
16.51
Price Trends
15.15
Negative
16.80
Negative
17.53
Negative
Market Momentum
-0.25
Negative
38.97
Neutral
69.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CPKR, the sentiment is Negative. The current price of 16.51 is above the 20-day moving average (MA) of 14.18, above the 50-day MA of 15.15, and below the 200-day MA of 17.53, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 38.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CPKR.
Canada Packers Inc. Peers Comparison
UnderperformOutperform
Sector (55)
TSE:CPKR
Canada Packers Inc.
13.90
-1.43
-9.32%
TSE:FTI
FTI Foodtech International
0.18
0.00
0.00%
TSE:OGO
Organto Foods
0.35
-0.26
-42.50%
TSE:FRSH
Fresh Factory B.C. Ltd.
0.75
-0.32
-29.91%
Canada Packers Inc. Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Canada Packers Hit by Margin Squeeze but Maintains Dividend Amid Q3 Loss
Negative
Oct 28, 2026
Canada Packers Inc. reported a sharp downturn in third-quarter 2026 results, with sales falling 12.7% to $420.7 million and a net loss of $28.1 million compared with a profit a year earlier. Adjusted EBITDA dropped to $31.5 million from pro-forma ...
Business Operations and StrategyFinancial Disclosures
Canada Packers Sets October 28 Date for Q3 2026 Results and Earnings Call
Neutral
Sep 28, 2026
Canada Packers Inc. will release its third quarter 2026 financial results before markets open on October 28, followed by an earnings conference call and webcast at 8:00 a.m. ET hosted by its chief executive and chief financial officer. The schedul...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.