MeadWestvaco CorporationMWV

Morningstar Rating

Stock Research and Analysis

by Todd Wenning

Like many firms in the packaging and container industry, MeadWestvaco has transformed its business in recent years through a number of acquisitions and divestitures. Between 2006 and 2008, the company acquired a number of packaging and dispensing companies Read more

Bulls Say

Now that MeadWestvaco has divested its Consumer & Office Products business, it can better focus on improving margins in its packaging business.

MeadWestvaco has six decades of experience in Brazil and its recent investment will pay off handsomely if economic growth in the region continues to outpace developed market growth.

Unlike many of its competitors who are burdened by yawning pension deficits, MeadWestvaco's balance sheet is anchored by tangible real estate and pension assets.

MeadWestvaco's Specialty Chemicals business will benefit from global megatrends of energy, infrastructure spending, and environmental protection. Read more

Bears Say

Most of MeadWestvaco's products are commoditized and compete primarily on price.

Over the last decade, MeadWestvaco has struggled to earn its cost of capital and its stock has underperformed the S&P 500.

Between 2004 and 2011, capital expenditures in MeadWestvaco's former Packaging Resources and Consumer Solutions segments averaged just 75% of depreciation. This underinvestment does not seem to reflect management's optimism about its core packaging businesses. Read more

Management

John A. Luke, Jr. has been chairman and CEO of MeadWestvaco since the merged company's formation in 2002, and was the chairman and CEO of Westvaco from 1996 to 2002. He began his career with Westvaco in 1979 and held a variety of financial, marketing, Read more

Profile

Following the recent spin-off and merger of its consumer and office products division with ACCO Brands, MeadWestvaco is more focused on its packaging divisions, which account Read more