Ranpak Holdings: A Downgrade Is In Order On Valuation

Core Viewpoint - Ranpak Holdings has shown improvements in revenue and profitability metrics, but its shares are considered relatively expensive compared to peers, leading to a downgrade to a 'hold' rating [6][15][19] Financial Performance - In 2023, Ranpak Holdings reported revenue of $336.3 million, a 3$326.5 million in 2022 [7] - The company's net loss improved from $41.4 million in 2022 to$27.1 million in 2023, while EBITDA grew from $62.5 million to$73.4 million [11] - For the first quarter of 2024, revenue was $85.3 million, a 5$81.2 million in the same period of 2023 [17] Product Offerings - Ranpak Holdings provides various packaging systems, including cushioning protective systems (PadPak), void-fill protective systems (FillPak), and wrapping protective systems [7][11] - The PadPak brand accounted for $145.8 million, or 43.4$140.3 million in 2022 [7] - The company has launched new eco-friendly products, including Geami MV and naturemailer, to meet environmental concerns and expand revenue opportunities [19] Market Position - Ranpak Holdings has a price to operating cash flow ratio of 21.2 and an EV/EBITDA ratio of 13.4, making it the most expensive among its peers [5][13] - Analysts forecast a revenue increase for the second quarter of 2024, with expected sales of $87.7 million, a 7.1% year-over-year increase [13]