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 course 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.
Key Considerations for Quality Investors.
PACKAGING CORP OF AMERICA has achieved substantial revenue growth over the past 5 years, with a 5.64% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
With a notable ROIC excluding cash and goodwill at 17.13%, PACKAGING CORP OF AMERICA demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
With a Debt/Free Cash Flow Ratio of 3.03, PACKAGING CORP OF AMERICA exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
With a favorable Profit Quality (5-year) ratio of 91.46%, PACKAGING CORP OF AMERICA showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
PACKAGING CORP OF AMERICA has consistently achieved strong EBIT growth over the past 5 years, with a 9.25% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
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.
A complete fundamental analysis of NYSE:PKG
ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.
PKG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 23 industry peers in the Containers & Packaging industry. PKG gets an excellent profitability rating and is at the same time showing great financial health properties. PKG is valued expensive and it does not seem to be growing.
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.