GRAPHIC PACKAGING HOLDING CO (GPK)
US3886891015 - Common Stock
Overall GPK gets a fundamental rating of 5 out of 10. We evaluated GPK against 24 industry peers in the Containers & Packaging industry. While GPK belongs to the best of the industry regarding profitability, there are concerns on its financial health. GPK has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GPK was profitable.
In the past year GPK had a positive cash flow from operations.
In the past 5 years GPK has always been profitable.
Each year in the past 5 years GPK had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.38%, GPK is doing good in the industry, outperforming 78.26% of the companies in the same industry.
GPK has a Return On Equity of 23.80%. This is amongst the best in the industry. GPK outperforms 82.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.32%, GPK is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
GPK had an Average Return On Invested Capital over the past 3 years of 8.49%. This is significantly below the industry average of 382232.95%.
The last Return On Invested Capital (9.32%) for GPK is above the 3 year average (8.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 23.8% | ||
| ROIC | 9.32% |
ROA(3y)4.49%
ROA(5y)3.69%
ROE(3y)20.36%
ROE(5y)17.2%
ROIC(3y)8.49%
ROIC(5y)7.98%
1.3 Margins
GPK has a better Profit Margin (7.99%) than 86.96% of its industry peers.
In the last couple of years the Profit Margin of GPK has grown nicely.
GPK has a better Operating Margin (13.16%) than 91.30% of its industry peers.
In the last couple of years the Operating Margin of GPK has grown nicely.
The Gross Margin of GPK (22.65%) is better than 69.57% of its industry peers.
GPK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.16% | ||
| PM (TTM) | 7.99% | ||
| GM | 22.65% |
OM growth 3Y15.3%
OM growth 5Y11.76%
PM growth 3Y44.34%
PM growth 5Y15.9%
GM growth 3Y10.94%
GM growth 5Y7.71%
2. Health
2.1 Basic Checks
GPK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GPK has less shares outstanding than it did 1 year ago.
GPK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for GPK has been reduced compared to a year ago.
2.2 Solvency
GPK has an Altman-Z score of 2.06. This is not the best score and indicates that GPK is in the grey zone with still only limited risk for bankruptcy at the moment.
GPK has a Altman-Z score of 2.06. This is in the better half of the industry: GPK outperforms 65.22% of its industry peers.
A Debt/Equity ratio of 1.79 is on the high side and indicates that GPK has dependencies on debt financing.
GPK's Debt to Equity ratio of 1.79 is on the low side compared to the rest of the industry. GPK is outperformed by 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.06 |
ROIC/WACC1.37
WACC6.78%
2.3 Liquidity
A Current Ratio of 1.73 indicates that GPK should not have too much problems paying its short term obligations.
GPK has a Current ratio (1.73) which is comparable to the rest of the industry.
GPK has a Quick Ratio of 1.73. This is a bad value and indicates that GPK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GPK (0.72) is worse than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for GPK have decreased by -3.99% in the last year.
Measured over the past years, GPK shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.92% on average per year.
GPK shows a decrease in Revenue. In the last year, the revenue decreased by -6.31%.
Measured over the past years, GPK shows a quite strong growth in Revenue. The Revenue has been growing by 9.35% on average per year.
EPS 1Y (TTM)-3.99%
EPS 3Y38.04%
EPS 5Y28.92%
EPS Q2Q%-13.51%
Revenue 1Y (TTM)-6.31%
Revenue growth 3Y12.85%
Revenue growth 5Y9.35%
Sales Q2Q%-5.66%
3.2 Future
Based on estimates for the next years, GPK will show a small growth in Earnings Per Share. The EPS will grow by 5.28% on average per year.
The Revenue is expected to grow by 2.17% on average over the next years.
EPS Next Y-12.67%
EPS Next 2Y-3.63%
EPS Next 3Y0.73%
EPS Next 5Y5.28%
Revenue Next Year-7.51%
Revenue Next 2Y-3.44%
Revenue Next 3Y-1.26%
Revenue Next 5Y2.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.68 indicates a reasonable valuation of GPK.
Compared to the rest of the industry, the Price/Earnings ratio of GPK indicates a rather cheap valuation: GPK is cheaper than 86.96% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.53. GPK is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.44, the valuation of GPK can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GPK indicates a somewhat cheap valuation: GPK is cheaper than 78.26% of the companies listed in the same industry.
GPK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 10.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPK is valued a bit cheaper than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
GPK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.37
EPS Next 2Y-3.63%
EPS Next 3Y0.73%
5. Dividend
5.1 Amount
GPK has a Yearly Dividend Yield of 1.41%.
GPK's Dividend Yield is comparable with the industry average which is at 2.89.
GPK's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
The dividend of GPK has a limited annual growth rate of 1.98%.
GPK has paid a dividend for at least 10 years, which is a reliable track record.
GPK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.98%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
17.04% of the earnings are spent on dividend by GPK. This is a low number and sustainable payout ratio.
GPK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.04%
EPS Next 2Y-3.63%
EPS Next 3Y0.73%
GRAPHIC PACKAGING HOLDING CO
NYSE:GPK (11/18/2024, 12:05:00 PM)
28.31
+0.07 (+0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 10.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.38% | ||
| ROE | 23.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.16% | ||
| PM (TTM) | 7.99% | ||
| GM | 22.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.73 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-3.99%
EPS 3Y38.04%
EPS 5Y
EPS Q2Q%
EPS Next Y-12.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.31%
Revenue growth 3Y12.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y