PACKAGING CORP OF AMERICA (PKG)
US6951561090 - Common Stock
Overall PKG gets a fundamental rating of 6 out of 10. We evaluated PKG against 24 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.
1. Profitability
1.1 Basic Checks
PKG had positive earnings in the past year.
In the past year PKG had a positive cash flow from operations.
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
With an excellent Return On Assets value of 7.94%, PKG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
PKG's Return On Equity of 17.28% is fine compared to the rest of the industry. PKG outperforms 73.91% of its industry peers.
PKG has a better Return On Invested Capital (10.34%) than 91.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PKG is significantly below the industry average of 382232.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 17.28% | ||
| ROIC | 10.34% |
ROA(3y)10.72%
ROA(5y)9.57%
ROE(3y)23.33%
ROE(5y)21.32%
ROIC(3y)13.62%
ROIC(5y)12.59%
1.3 Margins
PKG has a better Profit Margin (8.99%) than 91.30% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
PKG's Operating Margin of 13.05% is amongst the best of the industry. PKG outperforms 86.96% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
PKG has a Gross Margin (20.57%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PKG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.05% | ||
| PM (TTM) | 8.99% | ||
| GM | 20.57% |
OM growth 3Y4.22%
OM growth 5Y-1.85%
PM growth 3Y12.29%
PM growth 5Y-1.4%
GM growth 3Y1.5%
GM growth 5Y-1.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PKG is still creating some value.
The number of shares outstanding for PKG remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PKG has less shares outstanding
PKG has a worse debt/assets ratio than last year.
2.2 Solvency
PKG has an Altman-Z score of 4.81. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PKG (4.81) is better than 91.30% of its industry peers.
PKG has a debt to FCF ratio of 4.38. This is a neutral value as PKG would need 4.38 years to pay back of all of its debts.
PKG's Debt to FCF ratio of 4.38 is amongst the best of the industry. PKG outperforms 91.30% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that PKG is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.60, PKG belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 4.38 | ||
| Altman-Z | 4.81 |
ROIC/WACC1.24
WACC8.33%
2.3 Liquidity
A Current Ratio of 2.43 indicates that PKG has no problem at all paying its short term obligations.
PKG has a better Current ratio (2.43) than 95.65% of its industry peers.
PKG has a Quick Ratio of 1.71. This is a normal value and indicates that PKG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.71, PKG belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The earnings per share for PKG have decreased by -2.36% in the last year.
PKG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.59% yearly.
PKG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.24%.
PKG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.15% yearly.
EPS 1Y (TTM)-2.36%
EPS 3Y14.56%
EPS 5Y1.59%
EPS Q2Q%29.27%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.43%
Revenue growth 5Y2.15%
Sales Q2Q%12.73%
3.2 Future
The Earnings Per Share is expected to grow by 7.35% on average over the next years.
PKG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.64% yearly.
EPS Next Y5.72%
EPS Next 2Y14.31%
EPS Next 3Y12.76%
EPS Next 5Y7.35%
Revenue Next Year7.73%
Revenue Next 2Y7.11%
Revenue Next 3Y5.87%
Revenue Next 5Y3.64%
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
A Price/Earnings ratio of 28.20 indicates a quite expensive valuation of PKG.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than the industry average as 73.91% of the companies are valued more cheaply.
PKG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 21.60, the valuation of PKG can be described as rather expensive.
PKG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 78.26% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PKG to the average of the S&P500 Index (23.82), we can say PKG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 21.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PKG is valued expensively inside the industry as 82.61% of the companies are valued cheaper.
Based on the Price/Free Cash Flow ratio, PKG is valued a bit more expensive than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.44 | ||
| EV/EBITDA | 15.02 |
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.
PKG has a very decent profitability rating, which may justify a higher PE ratio.
PKG's earnings are expected to grow with 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.93
PEG (5Y)17.71
EPS Next 2Y14.31%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.12%, PKG has a reasonable but not impressive dividend return.
PKG's Dividend Yield is comparable with the industry average which is at 2.88.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of PKG is nicely growing with an annual growth rate of 12.01%!
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)12.01%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
62.92% of the earnings are spent on dividend by PKG. This is not a sustainable payout ratio.
The dividend of PKG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.92%
EPS Next 2Y14.31%
EPS Next 3Y12.76%
PACKAGING CORP OF AMERICA
NYSE:PKG (11/21/2024, 8:04:00 PM)
Premarket: 245 -0.3 (-0.12%)245.3
+1.2 (+0.49%)
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 Cap22.03B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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 | 28.2 | ||
| Fwd PE | 21.6 | ||
| 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)4.93
PEG (5Y)17.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.94% | ||
| ROE | 17.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.05% | ||
| PM (TTM) | 8.99% | ||
| GM | 20.57% | ||
| 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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.71 | ||
| 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)-2.36%
EPS 3Y14.56%
EPS 5Y
EPS Q2Q%
EPS Next Y5.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.43%
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