PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
205.07 USD
-0.23 (-0.11%)
205.07 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PKG. PKG was compared to 22 industry peers in the Containers & Packaging industry. PKG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, PKG is valued expensive at the moment. With these ratings, PKG could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year PKG was profitable.
PKG had a positive operating cash flow in the past year.
PKG had positive earnings in each of the past 5 years.
PKG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PKG has a Return On Assets of 8.08%. This is amongst the best in the industry. PKG outperforms 95.45% of its industry peers.
PKG's Return On Equity of 18.66% is amongst the best of the industry. PKG outperforms 81.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.72%, PKG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PKG 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
With an excellent Profit Margin value of 10.12%, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Profit Margin of PKG has remained more or less at the same level.
The Operating Margin of PKG (14.49%) is better than 95.45% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
The Gross Margin of PKG (21.79%) is comparable to the rest of the industry.
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.
Compared to 1 year ago, PKG has more shares outstanding
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 3.74 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG's Altman-Z score of 3.74 is amongst the best of the industry. PKG outperforms 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's Debt to FCF ratio of 5.50 is amongst the best of the industry. PKG outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that 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 | 3.74 |
ROIC/WACC1.15
WACC8.45%
2.3 Liquidity
PKG has a Current Ratio of 3.16. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
PKG has a Current ratio of 3.16. This is amongst the best in the industry. PKG outperforms 90.91% of its industry peers.
PKG has a Quick Ratio of 2.00. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PKG (2.00) is better than 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.
PKG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
The Revenue has been growing slightly by 3.78% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 7.36% on average per year.
EPS Next Y11.18%
EPS Next 2Y13.18%
EPS Next 3Y11.65%
EPS Next 5Y11.96%
Revenue Next Year8.52%
Revenue Next 2Y10.87%
Revenue Next 3Y8.26%
Revenue Next 5Y7.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 20.53, the valuation of PKG can be described as rather expensive.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than 68.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. PKG is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.71, PKG is valued on the expensive side.
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 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 17.71 |
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 | 25.52 | ||
| EV/EBITDA | 11.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)6.05
EPS Next 2Y13.18%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 3.34, PKG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, PKG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
On average, the dividend of PKG grows each year by 9.64%, which is quite nice.
PKG has paid a dividend for at least 10 years, which is a reliable track record.
PKG has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.64%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
PKG pays out 50.65% of its income as dividend. This is a bit on the high side, but may be sustainable.
PKG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.65%
EPS Next 2Y13.18%
EPS Next 3Y11.65%
205.07
-0.23 (-0.11%)
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 Cap18.45B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target229.38 (11.85%)
Short Float %2.78%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.65%
Div Incr Years0
Div Non Decr Years15
Ex-Date
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)0.16%
PT rev (3m)5.55%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)7.24%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.53 | ||
| Fwd PE | 17.71 | ||
| P/S | 2.1 | ||
| P/FCF | 25.52 | ||
| P/OCF | 12.85 | ||
| P/B | 3.88 | ||
| P/tB | 6.44 | ||
| EV/EBITDA | 11.77 |
EPS(TTM)9.99
EY4.87%
EPS(NY)11.58
Fwd EY5.65%
FCF(TTM)8.04
FCFY3.92%
OCF(TTM)15.96
OCFY7.78%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.84
PEG (5Y)6.05
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 | 3.74 |
F-Score5
WACC8.45%
ROIC/WACC1.15
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 Y11.18%
EPS Next 2Y13.18%
EPS Next 3Y11.65%
EPS Next 5Y11.96%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.52%
Revenue Next 2Y10.87%
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 3Y26.88%
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 of PACKAGING CORP OF AMERICA (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.
Can you provide the expected EPS growth for PKG stock?
The Earnings per Share (EPS) of PACKAGING CORP OF AMERICA (PKG) is expected to grow by 11.18% in the next year.
Is the dividend of PACKAGING CORP OF AMERICA sustainable?
The dividend rating of PACKAGING CORP OF AMERICA (PKG) is 6 / 10 and the dividend payout ratio is 50.65%.