PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - NYSE:PKG - US6951561090 - Common Stock
197.31 USD
+5.63 (+2.94%)
197.31 USD
0 (0%)
Overall PKG gets a fundamental rating of 6 out of 10. We evaluated PKG against 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. PKG is valied quite expensively at the moment, while it does show a decent growth rate. 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.
Each year in the past 5 years PKG has been profitable.
In the past 5 years PKG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.08%, PKG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.66%, PKG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
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
PKG's Profit Margin of 10.12% is amongst the best of the industry. PKG outperforms 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.
PKG's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 21.79%, PKG perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
In the last couple of years the Gross Margin of PKG has declined.
| 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 3.63 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG has a Altman-Z score of 3.63. This is amongst the best in the industry. PKG outperforms 86.36% of its industry peers.
The Debt to FCF ratio of PKG is 5.50, which is a neutral value as it means it would take PKG, 5.50 years of fcf income to pay off 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.
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 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.17
WACC8.33%
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.
The Current ratio of PKG (3.16) is better than 95.45% 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.
PKG has a better Quick ratio (2.00) than 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.83% over the past year.
PKG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.40% yearly.
PKG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
PKG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
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.
The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y11.68%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
EPS Next 5Y11.96%
Revenue Next Year8.61%
Revenue Next 2Y11.05%
Revenue Next 3Y8.41%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.75, the valuation of PKG can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PKG indicates a slightly more expensive valuation: PKG is more expensive than 68.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PKG to the average of the S&P500 Index (25.45), we can say PKG is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.81 indicates a correct valuation of PKG.
Based on the Price/Forward Earnings ratio, PKG is valued a bit more expensive than 72.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. PKG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PKG is on the same level as its industry peers.
PKG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.56 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PKG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.69
PEG (5Y)5.82
EPS Next 2Y13.96%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.51%.
PKG's Dividend Yield is comparable with the industry average which is at 3.59.
Compared to an average S&P500 Dividend Yield of 2.45, PKG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of PKG is nicely growing with an annual growth rate of 9.64%!
PKG has paid a dividend for at least 10 years, which is 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
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 2Y13.96%
EPS Next 3Y11.53%
197.31
+5.63 (+2.94%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change6.73%
Ins Owners1.58%
Ins Owner Change-1.85%
Market Cap17.75B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target229.01 (16.07%)
Short Float %3.03%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)4.08%
PT rev (3m)6.38%
EPS NQ rev (1m)-8.54%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)7.11%
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.75 | ||
| Fwd PE | 16.81 | ||
| P/S | 2.02 | ||
| P/FCF | 24.56 | ||
| P/OCF | 12.36 | ||
| P/B | 3.73 | ||
| P/tB | 6.2 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)9.99
EY5.06%
EPS(NY)11.74
Fwd EY5.95%
FCF(TTM)8.04
FCFY4.07%
OCF(TTM)15.96
OCFY8.09%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.69
PEG (5Y)5.82
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 | 3.63 |
F-Score5
WACC8.33%
ROIC/WACC1.17
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 Y11.68%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
EPS Next 5Y11.96%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.61%
Revenue Next 2Y11.05%
Revenue Next 3Y8.41%
Revenue Next 5Y7.36%
EBIT growth 1Y14.88%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year64.72%
EBIT Next 3Y24.72%
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 3 / 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 11.68% 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%.