Hi there,
Richards Packaging is doing quite well as the demand for its products are increasing. The company is a packaging company that principally distributes plastic and glass containers and associated closures. It is used in packaging for cosmetics, healthcare, food, beverage, and other products.
As with most packaging companies - the shift to eCommerce has increased demand for their products. It is important to note however, that this isn't a one-time bump for the company. It has a strong history of growing revenue and earnings YoY and it delivered consistent returns over the past decade. It is just a solid company.
I think the recent pullback is healthy as the pandemic jump was likely a little overdone (and too quick). It does however, remain a solid company (pandemic or not). Also worth noting, RPI is a reliable dividend payer. Although it lost its status as a Canadian Dividend Aristocrat in 2019, the company has never cut the dividend.
For the most part RPI is trading inline with its own historical valuations at these levels. All things considered, I'd expect RPI to grow along with expected growth rates (high single digits) moving forward. I would not expect 2020-like returns (I view it as an aberration), but consistent and reliable returns is the more likely outcome.
Mat