Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Multi-Color Corporation (LABL): A World Full of Labels


With customers like Procter & Gamble and Colgate-Palmolive, Multi-Color’s not very vulnerable to a recession. Multi-Color Corporation (NASDAQ:LABL) released a relatively upbeat 2009 annual report when other companies struggled. The label maker’s acquisition strategy does have risks, though. At the end of fiscal 2012, Multi-Color reported $342 million of goodwill and $117 million of intangible assets on its balance sheet, and $810 million in total assets. Multi-Color hasn’t released its 10-K for fiscal 2013 yet.

Multi-Color may also need to buy smaller label makers to maintain its sales growth. The label maker reported that its sales rose by $149.6 million in fiscal 2013, but acquisitions and start-ups were responsible for $139.7 million of this sales increase.


Multi-Color’s expansion strategy has opened up international markets, improved its margins, and reduced its dependence on its main customers. The company’s wine label maker acquisitions also make a lot of sense, because Multi-Color’s labeling expertise could make a big difference for a winery. The label maker’s balance sheet and organic growth figures highlight potential risks, but the company still looks like it’s worth it. Multi-Color had a five star CAPS rating and unanimous approval from CAPS all star members on May 23, 2013. This label maker’s strategy looks like it’s paying off.

Eric Novinson has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble.

The article A World Full of Labels originally appeared on

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.