PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
211.12 USD
+4.89 (+2.37%)
211.12 USD
0 (0%)
Taking everything into account, PKG scores 6 out of 10 in our fundamental rating. PKG was compared to 22 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. While showing a medium growth rate, PKG is valued expensive at the moment. PKG also has an excellent dividend rating. These ratings could make PKG a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
PKG had positive earnings in the past year.
PKG had a positive operating cash flow in the past year.
Each year in the past 5 years PKG has been profitable.
Each year in the past 5 years PKG had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PKG (8.08%) is better than 95.45% of its industry peers.
With an excellent Return On Equity value of 18.66%, PKG belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
The Return On Invested Capital of PKG (9.72%) is better than 81.82% of its industry peers.
PKG had an Average Return On Invested Capital over the past 3 years of 12.69%. This is significantly above the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 18.66% | ||
| ROIC | 9.72% |
ROA(3y)10.19%
ROA(5y)9.47%
ROE(3y)21.67%
ROE(5y)20.45%
ROIC(3y)12.69%
ROIC(5y)12.31%
1.3 Margins
The Profit Margin of PKG (10.12%) is better than 90.91% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 14.49%, PKG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of PKG has declined.
PKG's Gross Margin of 21.79% is in line compared to the rest of the industry. PKG outperforms 59.09% of its industry peers.
PKG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.49% | ||
| PM (TTM) | 10.12% | ||
| GM | 21.79% |
OM growth 3Y-6.17%
OM growth 5Y-2.42%
PM growth 3Y-4.05%
PM growth 5Y-0.79%
GM growth 3Y-4.25%
GM growth 5Y-2.06%
2. Health
2.1 Basic Checks
PKG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PKG has been increased compared to 1 year ago.
Compared to 5 years ago, PKG has less shares outstanding
Compared to 1 year ago, PKG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.75 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG has a better Altman-Z score (3.75) than 90.91% of its industry peers.
PKG has a debt to FCF ratio of 5.50. This is a neutral value as PKG would need 5.50 years to pay back of all of its debts.
PKG has a better Debt to FCF ratio (5.50) than 90.91% of its industry peers.
PKG has a Debt/Equity ratio of 0.84. This is a neutral value indicating PKG is somewhat dependend on debt financing.
PKG has a better Debt to Equity ratio (0.84) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.14
WACC8.5%
2.3 Liquidity
A Current Ratio of 3.16 indicates that PKG has no problem at all paying its short term obligations.
PKG's Current ratio of 3.16 is amongst the best of the industry. PKG outperforms 90.91% of its industry peers.
A Quick Ratio of 2.00 indicates that PKG has no problem at all paying its short term obligations.
PKG's Quick ratio of 2.00 is amongst the best of the industry. PKG outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
PKG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.83%, which is quite good.
The Earnings Per Share has been growing slightly by 3.40% on average over the past years.
The Revenue has been growing slightly by 7.30% in the past year.
Measured over the past years, PKG shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
EPS 1Y (TTM)14.83%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%3.02%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
3.2 Future
PKG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.96% yearly.
The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.96%
Revenue Next Year8.5%
Revenue Next 2Y10.83%
Revenue Next 3Y8.26%
Revenue Next 5Y7.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.13 indicates a rather expensive valuation of PKG.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than 68.18% of the companies in the same industry.
PKG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
PKG is valuated rather expensively with a Price/Forward Earnings ratio of 18.17.
63.64% of the companies in the same industry are cheaper than PKG, based on the Price/Forward Earnings ratio.
PKG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.17 |
4.2 Price Multiples
PKG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PKG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.27 | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PKG does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.9
PEG (5Y)6.22
EPS Next 2Y13.38%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
PKG's Dividend Yield is comparable with the industry average which is at 2.52.
PKG's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
The dividend of PKG is nicely growing with an annual growth rate of 9.64%!
PKG has been paying a dividend for at least 10 years, so it has a reliable track record.
PKG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.64%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
50.65% of the earnings are spent on dividend by PKG. This is a bit on the high side, but may be sustainable.
The dividend of PKG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.65%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
211.12
+4.89 (+2.37%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.36%
Inst Owner Change6.89%
Ins Owners1.58%
Ins Owner Change-1.65%
Market Cap19.00B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target227.89 (7.94%)
Short Float %3.6%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.65%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.53%
Min EPS beat(2)-3.83%
Max EPS beat(2)0.77%
EPS beat(4)2
Avg EPS beat(4)-0.73%
Min EPS beat(4)-3.83%
Max EPS beat(4)3.62%
EPS beat(8)6
Avg EPS beat(8)2.54%
EPS beat(12)9
Avg EPS beat(12)3.75%
EPS beat(16)12
Avg EPS beat(16)5.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.88%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)-0.74%
PT rev (3m)4.87%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.24%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 18.17 | ||
| P/S | 2.17 | ||
| P/FCF | 26.27 | ||
| P/OCF | 13.23 | ||
| P/B | 3.99 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 11.81 |
EPS(TTM)9.99
EY4.73%
EPS(NY)11.62
Fwd EY5.5%
FCF(TTM)8.04
FCFY3.81%
OCF(TTM)15.96
OCFY7.56%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.9
PEG (5Y)6.22
Graham Number108.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 18.66% | ||
| ROCE | 12.87% | ||
| ROIC | 9.72% | ||
| ROICexc | 10.5% | ||
| ROICexgc | 13.23% | ||
| OM | 14.49% | ||
| PM (TTM) | 10.12% | ||
| GM | 21.79% | ||
| FCFM | 8.24% |
ROA(3y)10.19%
ROA(5y)9.47%
ROE(3y)21.67%
ROE(5y)20.45%
ROIC(3y)12.69%
ROIC(5y)12.31%
ROICexc(3y)14.1%
ROICexc(5y)13.85%
ROICexgc(3y)17.07%
ROICexgc(5y)16.99%
ROCE(3y)16.8%
ROCE(5y)16.3%
ROICexgc growth 3Y-8.84%
ROICexgc growth 5Y-4.23%
ROICexc growth 3Y-7.38%
ROICexc growth 5Y-2.79%
OM growth 3Y-6.17%
OM growth 5Y-2.42%
PM growth 3Y-4.05%
PM growth 5Y-0.79%
GM growth 3Y-4.25%
GM growth 5Y-2.06%
F-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 125.76% | ||
| Cap/Sales | 8.13% | ||
| Interest Coverage | 13.66 | ||
| Cash Conversion | 78.15% | ||
| Profit Quality | 81.48% | ||
| Current Ratio | 3.16 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 3.75 |
F-Score5
WACC8.5%
ROIC/WACC1.14
Cap/Depr(3y)133.6%
Cap/Depr(5y)130.1%
Cap/Sales(3y)7.95%
Cap/Sales(5y)7.63%
Profit Quality(3y)80.36%
Profit Quality(5y)86.35%
High Growth Momentum
Growth
EPS 1Y (TTM)14.83%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%3.02%
EPS Next Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.96%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.5%
Revenue Next 2Y10.83%
Revenue Next 3Y8.26%
Revenue Next 5Y7.36%
EBIT growth 1Y14.88%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year65.51%
EBIT Next 3Y26.99%
EBIT Next 5Y18.55%
FCF growth 1Y-11.97%
FCF growth 3Y2.17%
FCF growth 5Y-8.36%
OCF growth 1Y2.6%
OCF growth 3Y2.87%
OCF growth 5Y-0.27%
PACKAGING CORP OF AMERICA / PKG FAQ
What is the fundamental rating for PKG stock?
ChartMill assigns a fundamental rating of 6 / 10 to PKG.
What is the valuation status for PKG stock?
ChartMill assigns a valuation rating of 2 / 10 to PACKAGING CORP OF AMERICA (PKG). This can be considered as Overvalued.
What is the profitability of PKG stock?
PACKAGING CORP OF AMERICA (PKG) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PACKAGING CORP OF AMERICA (PKG) stock?
The Price/Earnings (PE) ratio for PACKAGING CORP OF AMERICA (PKG) is 21.13 and the Price/Book (PB) ratio is 3.99.
How financially healthy is PACKAGING CORP OF AMERICA?
The financial health rating of PACKAGING CORP OF AMERICA (PKG) is 8 / 10.