Pro-Pac Packaging supplies a range of packaging solutions for multiple applications. Pro-Pac has exited a number of unprofitable businesses in recent days and as a result revenue was 38% lower in FY21. But underlying EBIT only came down 0.9% to $25m, while free cash flow was still a healthy $34m. The core flexibles business did well, increasing earnings and margins, while a loss was turned into a profit for the industrial specialty packaging business.
Pro-Pac is currently trading on an EV/EBITDA multiple of 5.8x FY22 earnings, reflecting the dependable nature of the earnings.