Why NYSE:PKG qualifies as a quality stock.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PACKAGING CORP OF AMERICA (NYSE:PKG) is suited for quality investing. Investors should of couse do their own research, but we spotted PACKAGING CORP OF AMERICA showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of PACKAGING CORP OF AMERICA

• The 5-year revenue growth of PACKAGING CORP OF AMERICA has been remarkable, with 5.64% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• PACKAGING CORP OF AMERICA exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 16.99% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 3.03, PACKAGING CORP OF AMERICA showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 91.46%, PACKAGING CORP OF AMERICA highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• PACKAGING CORP OF AMERICA has experienced impressive EBIT growth over the past 5 years, with 9.25% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, PACKAGING CORP OF AMERICA showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

How does the complete fundamental picture look for NYSE:PKG?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Overall PKG gets a fundamental rating of 6 out of 10. We evaluated PKG against 23 industry peers in the Containers & Packaging industry. PKG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PKG has a expensive valuation and it also scores bad on growth.

Check the latest full fundamental report of PKG for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.