KapStone Paper and Packaging Corp. (NYSE:KS)

CAPS Rating: 4 out of 5

The Company produces and sells unbleached kraft paper and lightweight linerboard at the company's facility in Roanoke Rapids, NC and manufactures and sells dunnage bags at Ride Rite(r) Converting, located in Fordyce, AR.


Player Avatar MarkGillCPA (82.74) Submitted: 11/3/2010 4:13:57 PM : Outperform Start Price: $6.10 KS Score: +319.63

KS showed up on one of my value screens recently have a low EV/EBITDA, high FCF yield and a decent ROIC. I'd never heard of KS, so I analyzed it, more out of curiosity than anything else. When I noticed that prior year numbers were boosted by the black tar credit, I almost dropped the idea. However, looking forward, there appears to be pretty decent earnings growth and it remains a cheap stock even without the black tar credit. So I'm adding it.

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