PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - NYSE:PKG - US6951561090 - Common Stock
213.26 USD
+4.52 (+2.17%)
213.26 USD
0 (0%)
Overall PKG gets a fundamental rating of 7 out of 10. We evaluated PKG against 22 industry peers in the Containers & Packaging industry. PKG gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, PKG is valued expensive at the moment. These ratings could make PKG a good candidate for 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.
PKG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PKG (9.94%) is better than 100.00% of its industry peers.
PKG's Return On Equity of 19.39% is amongst the best of the industry. PKG outperforms 90.91% of its industry peers.
PKG's Return On Invested Capital of 11.81% is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PKG is significantly above the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.94% | ||
| ROE | 19.39% | ||
| ROIC | 11.81% |
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 has a Profit Margin of 10.40%. This is amongst the best in the industry. PKG outperforms 95.45% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
PKG's Operating Margin of 14.65% is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
The Gross Margin of PKG (22.13%) is better than 63.64% of its industry peers.
PKG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.65% | ||
| PM (TTM) | 10.4% | ||
| GM | 22.13% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PKG 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 4.91 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG has a better Altman-Z score (4.91) than 95.45% of its industry peers.
PKG has a debt to FCF ratio of 3.98. This is a good value and a sign of high solvency as PKG would need 3.98 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.98, PKG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
PKG has a Debt/Equity ratio of 0.54. This is a neutral value indicating PKG is somewhat dependend on debt financing.
PKG's Debt to Equity ratio of 0.54 is amongst the best of the industry. PKG outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 4.91 |
ROIC/WACC1.41
WACC8.4%
2.3 Liquidity
A Current Ratio of 3.54 indicates that PKG has no problem at all paying its short term obligations.
PKG has a Current ratio of 3.54. This is amongst the best in the industry. PKG outperforms 100.00% of its industry peers.
A Quick Ratio of 2.32 indicates that PKG has no problem at all paying its short term obligations.
PKG has a better Quick ratio (2.32) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.32 |
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.
PKG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.40% yearly.
Looking at the last year, PKG shows a small growth in Revenue. The Revenue has grown by 7.45% in the last year.
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)7.45%
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 12.21% yearly.
The Revenue is expected to grow by 6.89% on average over the next years.
EPS Next Y14.85%
EPS Next 2Y16.01%
EPS Next 3Y12.83%
EPS Next 5Y12.21%
Revenue Next Year8.2%
Revenue Next 2Y10.27%
Revenue Next 3Y8.22%
Revenue Next 5Y6.89%
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
With a Price/Earnings ratio of 21.35, PKG is valued on the expensive side.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of PKG to the average of the S&P500 Index (27.67), we can say PKG is valued slightly cheaper.
The Price/Forward Earnings ratio is 17.53, which indicates a rather expensive current valuation of PKG.
PKG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 72.73% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.33. PKG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
PKG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.79 | ||
| EV/EBITDA | 11.19 |
4.3 Compensation for Growth
PKG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PKG may justify a higher PE ratio.
PKG's earnings are expected to grow with 12.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)6.29
EPS Next 2Y16.01%
EPS Next 3Y12.83%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.40%.
Compared to an average industry Dividend Yield of 3.34, PKG has a dividend in line with its industry peers.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
50.02% of the earnings are spent on dividend by PKG. 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.
DP50.02%
EPS Next 2Y16.01%
EPS Next 3Y12.83%
213.26
+4.52 (+2.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change-0.31%
Ins Owners1.58%
Ins Owner Change-1.29%
Market Cap19.19B
Revenue(TTM)8.38B
Net Income(TTM)898.30M
Analysts72.5
Price Target220.04 (3.18%)
Short Float %2.94%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.02%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.2%
Min EPS beat(2)0.77%
Max EPS beat(2)3.62%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-3.46%
Max EPS beat(4)4.9%
EPS beat(8)7
Avg EPS beat(8)3.67%
EPS beat(12)9
Avg EPS beat(12)4.04%
EPS beat(16)13
Avg EPS beat(16)7.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)0.56%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)3.19%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)5
Avg Revenue beat(12)-1.18%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)1.25%
PT rev (3m)4.47%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.35 | ||
| Fwd PE | 17.53 | ||
| P/S | 2.22 | ||
| P/FCF | 30.79 | ||
| P/OCF | 14.86 | ||
| P/B | 4.14 | ||
| P/tB | 5.43 | ||
| EV/EBITDA | 11.19 |
EPS(TTM)9.99
EY4.68%
EPS(NY)12.17
Fwd EY5.7%
FCF(TTM)6.93
FCFY3.25%
OCF(TTM)14.35
OCFY6.73%
SpS96.03
BVpS51.48
TBVpS39.3
PEG (NY)1.44
PEG (5Y)6.29
Graham Number107.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.94% | ||
| ROE | 19.39% | ||
| ROCE | 15.63% | ||
| ROIC | 11.81% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 15.62% | ||
| OM | 14.65% | ||
| PM (TTM) | 10.4% | ||
| GM | 22.13% | ||
| FCFM | 7.21% |
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-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 122.04% | ||
| Cap/Sales | 7.73% | ||
| Interest Coverage | 12.6 | ||
| Cash Conversion | 71.22% | ||
| Profit Quality | 69.39% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 4.91 |
F-Score8
WACC8.4%
ROIC/WACC1.41
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 Y14.85%
EPS Next 2Y16.01%
EPS Next 3Y12.83%
EPS Next 5Y12.21%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.2%
Revenue Next 2Y10.27%
Revenue Next 3Y8.22%
Revenue Next 5Y6.89%
EBIT growth 1Y22.32%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year64.72%
EBIT Next 3Y24.72%
EBIT Next 5Y18.12%
FCF growth 1Y-23.96%
FCF growth 3Y2.17%
FCF growth 5Y-8.36%
OCF growth 1Y-13.4%
OCF growth 3Y2.87%
OCF growth 5Y-0.27%