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1. Company Snapshot

1.a. Company Description

Elopak ASA manufactures and supplies paper-based packaging solutions for liquid food in Norway and internationally.It offers Pure-Pak cartons for chilled and ambient applications; chilled and ambient beverages; filling chilled and ambient equipment, and distribution packaging products.It also provides packaging solutions for detergent, fabric softener, and hand wash products.


In addition, the company offers standard flexo, super flexo, UV-flexo, and offset litho printing services, as well as digital print proofs and machine print proofs on paper board.Further, it provides machine and equipment through online webshop.Elopak ASA was founded in 1957 and is based in Oslo, Norway.

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1.b. Last Insights on ELO

Elopak ASA's recent performance was positively driven by its robust growth prospects and strong fundamentals, which may not be fully reflected in its current valuation. Amidst a challenging European market marked by geopolitical tensions and economic uncertainties, the company's estimated discounts may attract investors seeking value. A recent earnings release showed no significant negative impact, and no major legal issues or acquisitions were announced. Elopak's focus on sustainable packaging solutions and potential for long-term growth may contribute to its positive outlook. (Source: Bloomberg consensus rating: Buy)

1.c. Company Highlights

2. Elopak's Q3 2025 Results: Strong Financial Performance and Strategic Progress

Elopak reported a robust financial performance in Q3 2025, with an EBITDA of EUR 49 million and a 17% margin level, driven by the Americas business, which grew by 18%. The company's EPS came in at EUR 0.82, beating estimates of EUR 0.705. Revenue growth was driven by the ramp-up in the US and improved productivity in Canada, with the Americas business reporting an 11% revenue growth, or 18% on a fixed currency basis. The company's cash flow generation from operations was also strong, at EUR 55 million, driven by profitability and improvement in working capital.

Publication Date: Nov -16

📋 Highlights
  • Record EBITDA and Margin:: Achieved EUR 49 million EBITDA with a 17% margin, the highest in company history.
  • Americas Revenue Growth:: 18% growth driven by the Little Rock plant turning profitable and expansion plans for a third production line.
  • Strong Cash Flow Generation:: EUR 55 million cash flow from operations, supported by profitability and working capital improvements.
  • Net Debt Reduction:: Net debt decreased to EUR 272 million (-EUR 31 million QoQ), nearing the 2x leverage target.
  • Little Rock Investment:: EUR 86 million invested in Little Rock to date, with EUR 42 million remaining for the third line, expected to yield EUR 6 million in Q4.

Segmental Performance

The EMEA business reported a resilient performance, with a revenue decline of 5% due to a negative mix effect from smaller filling machines. However, the company continued to increase market share in Pure-Pak and aseptic businesses. In contrast, the Americas business continued its growth journey, driven by the ramp-up in the US and improved productivity in Canada. As Thomas Kormendi mentioned, "We're focusing on the Little Rock investments, which have finally started generating profits from the capital already installed."

Strategic Progress and Outlook

Elopak is making progress in its strategic plans, including geographical expansion in America, development of its core business in Europe, and transition to more sustainable packaging solutions. The company is investing in increasing capacity in the US with a third line in Little Rock, which is expected to drive market share and establish a broader portfolio. The company expects to deliver within its mid-term targets of 4% to 6% organic growth and 15% to 17% margin growth for the year.

Valuation and Metrics

With a P/E Ratio of 21.19 and an EV/EBITDA of 7.82, Elopak's valuation suggests that the market is pricing in a certain level of growth and profitability. The company's ROE of 14.86% and ROIC of 8.49% indicate a strong return on equity and invested capital. Analysts estimate next year's revenue growth at 9.9%, which suggests that the company is on track to deliver strong growth in the coming year. The Dividend Yield of 4.06% and Free Cash Flow Yield of 9.99% also make the stock attractive to income investors.

Debt and Leverage

Elopak's net debt stood at EUR 272 million, a reduction of EUR 31 million quarter-over-quarter. The company's leverage ratio is close to its mid-term target of 2x, indicating a strong deleveraging trajectory. The Net Debt / EBITDA ratio of 2.17 is also in line with the company's target, suggesting that the company's debt levels are manageable.

3. NewsRoom

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3 European Stocks Estimated To Be 34.8% Below Intrinsic Value

Oct -13

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European Value Stocks Trading At Estimated Discounts In June 2025

Jun -27

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3 European Stocks That May Be Priced Below Their Estimated Value In May 2025

May -14

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Elopak ASA (STU:9J7) (Q4 2024) Earnings Call Highlights: Strong Growth Amid Global Challenges

Feb -12

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Elopak ASA (FRA:9J7) Q3 2024 Earnings Call Highlights: Record Revenue and Strategic Investments ...

Oct -31

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.54%)

6. Segments

Cartons and Closures

Expected Growth: 2.5%

Elopak ASA's Cartons and Closures segment growth of 2.5% is driven by increasing demand for sustainable packaging, expansion in emerging markets, and rising adoption of aseptic packaging in the food and beverage industry. Additionally, growing consumer preference for eco-friendly products and increasing focus on reducing carbon footprint contribute to the segment's growth.

Equipment

Expected Growth: 2.8%

Elopak ASA's equipment segment growth of 2.8% is driven by increasing demand for sustainable packaging solutions, expansion into emerging markets, and rising adoption of aseptic packaging technology in the food and beverage industry. Additionally, growing consumer preference for eco-friendly products and government regulations promoting environmentally friendly practices contribute to the segment's growth.

Service

Expected Growth: 3.2%

Elopak ASA's 3.2% growth in service segment is driven by increasing demand for sustainable packaging, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on innovation, such as the development of eco-friendly cartons, has contributed to its growth. Furthermore, the rising trend of e-commerce and online shopping has led to an increase in demand for convenient and sustainable packaging solutions.

Other

Expected Growth: 2.2%

Elopak ASA's 2.2% growth is driven by increasing demand for sustainable packaging, expansion into emerging markets, and strategic partnerships. The company's focus on eco-friendly solutions resonates with environmentally conscious consumers, while its innovative products and efficient manufacturing processes support margin growth.

7. Detailed Products

Pure-Pak Cartons

Elopak's Pure-Pak cartons are a sustainable and eco-friendly packaging solution for dairy and non-dairy products, offering a unique combination of convenience, protection, and freshness.

Elopak Gable Top Cartons

Elopak's Gable Top cartons are a popular choice for packaging milk, juice, and other liquid dairy products, offering a convenient and resealable packaging solution.

Aseptic Cartons

Elopak's Aseptic cartons are a sterile and hermetically sealed packaging solution for dairy and non-dairy products, ensuring product safety and extended shelf life.

Sustainable Packaging Solutions

Elopak's sustainable packaging solutions are designed to reduce environmental impact, using eco-friendly materials and minimizing waste, while maintaining product quality and freshness.

Customized Packaging Solutions

Elopak's customized packaging solutions cater to specific customer needs, offering tailored packaging designs, sizes, and materials to meet unique product requirements.

8. Elopak ASA's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Elopak ASA is moderate, as there are some alternatives to carton packaging, but they are not widely adopted yet.

Bargaining Power Of Customers

The bargaining power of customers is low, as Elopak ASA has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Elopak ASA relies on a few large suppliers for its raw materials, but it also has some flexibility to switch suppliers if needed.

Threat Of New Entrants

The threat of new entrants is low, as entering the carton packaging industry requires significant capital investment and expertise, which creates a barrier to entry.

Intensity Of Rivalry

The intensity of rivalry is high, as the carton packaging industry is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.00%
Debt Cost 7.07%
Equity Weight 47.00%
Equity Cost 7.07%
WACC 7.07%
Leverage 112.75%

11. Quality Control: Elopak ASA passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Guillin

A-Score: 6.3/10

Value: 7.7

Growth: 4.7

Quality: 5.1

Yield: 7.5

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Elopak

A-Score: 5.6/10

Value: 5.1

Growth: 6.4

Quality: 5.2

Yield: 4.4

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Macfarlane

A-Score: 5.3/10

Value: 8.7

Growth: 5.0

Quality: 4.9

Yield: 7.5

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Zignago Vetro

A-Score: 5.1/10

Value: 5.6

Growth: 5.1

Quality: 4.3

Yield: 8.1

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Vetropack Holding

A-Score: 4.1/10

Value: 6.4

Growth: 1.8

Quality: 3.7

Yield: 6.2

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
TFF

A-Score: 4.0/10

Value: 7.8

Growth: 4.6

Quality: 3.5

Yield: 4.4

Momentum: 0.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.25$

Current Price

48.25$

Potential

-0.00%

Expected Cash-Flows