PACKAGING CORP OF AMERICA (PKG) Fundamental Analysis & Valuation
NYSE:PKG • US6951561090
Current stock price
215.63 USD
-0.42 (-0.19%)
Last:
This PKG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. PKG Profitability Analysis
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.
- Each year in the past 5 years PKG had a positive operating cash flow.
1.2 Ratios
- PKG has a Return On Assets of 7.17%. This is amongst the best in the industry. PKG outperforms 85.71% of its industry peers.
- PKG has a Return On Equity of 16.72%. This is amongst the best in the industry. PKG outperforms 80.95% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.55%, PKG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PKG is above the industry average of 6.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 16.72% | ||
| ROIC | 9.55% |
ROA(3y)8.32%
ROA(5y)9.68%
ROE(3y)17.95%
ROE(5y)20.97%
ROIC(3y)10.66%
ROIC(5y)12.3%
1.3 Margins
- PKG has a better Profit Margin (8.55%) than 90.48% of its industry peers.
- In the last couple of years the Profit Margin of PKG has grown nicely.
- PKG has a Operating Margin of 13.67%. This is amongst the best in the industry. PKG outperforms 100.00% of its industry peers.
- PKG's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 21.02%, PKG is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
- 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 | 13.67% | ||
| PM (TTM) | 8.55% | ||
| GM | 21.02% |
OM growth 3Y-7.66%
OM growth 5Y1.58%
PM growth 3Y-10.8%
PM growth 5Y4.48%
GM growth 3Y-5.18%
GM growth 5Y0.19%
2. PKG Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PKG is creating some value.
- The number of shares outstanding for PKG has been reduced 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 3.86. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
- PKG's Altman-Z score of 3.86 is amongst the best of the industry. PKG outperforms 95.24% of its industry peers.
- The Debt to FCF ratio of PKG is 5.47, which is a neutral value as it means it would take PKG, 5.47 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.47, PKG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- PKG has a Debt/Equity ratio of 0.86. This is a neutral value indicating PKG is somewhat dependend on debt financing.
- The Debt to Equity ratio of PKG (0.86) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.47 | ||
| Altman-Z | 3.86 |
ROIC/WACC1.18
WACC8.1%
2.3 Liquidity
- PKG has a Current Ratio of 3.17. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of PKG (3.17) is better than 90.48% of its industry peers.
- A Quick Ratio of 1.94 indicates that PKG should not have too much problems paying its short term obligations.
- With an excellent Quick ratio value of 1.94, PKG belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.94 |
3. PKG Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 3.12% over the past year.
- Measured over the past years, PKG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.23% on average per year.
- Looking at the last year, PKG shows a small growth in Revenue. The Revenue has grown by 7.86% in the last year.
- PKG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
EPS 1Y (TTM)3.12%
EPS 3Y-4.02%
EPS 5Y11.23%
EPS Q2Q%3.9%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.97%
Revenue growth 5Y6.19%
Sales Q2Q%10.59%
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 10.35% yearly.
- PKG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.08% yearly.
EPS Next Y9.96%
EPS Next 2Y11.27%
EPS Next 3Y10.8%
EPS Next 5Y10.35%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y5.63%
Revenue Next 5Y6.08%
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 stable.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. PKG Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 21.72, which indicates a rather expensive current valuation of PKG.
- Based on the Price/Earnings ratio, PKG is valued a bit more expensive than 71.43% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PKG to the average of the S&P500 Index (26.54), we can say PKG is valued inline with the index average.
- With a Price/Forward Earnings ratio of 17.70, PKG is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PKG is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 21.68. PKG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 17.7 |
4.2 Price Multiples
- 76.19% of the companies in the same industry are cheaper than PKG, based on the Enterprise Value to EBITDA ratio.
- 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 | 26.44 | ||
| EV/EBITDA | 11.91 |
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 excellent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)1.93
EPS Next 2Y11.27%
EPS Next 3Y10.8%
5. PKG Dividend Analysis
5.1 Amount
- PKG has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
- PKG's Dividend Yield is comparable with the industry average which is at 2.68.
- Compared to an average S&P500 Dividend Yield of 1.82, PKG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
- On average, the dividend of PKG grows each year by 9.70%, which is quite nice.
- PKG has been paying a dividend for at least 10 years, so it has 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)9.7%
Div Incr Years0
Div Non Decr Years16
5.3 Sustainability
- 58.48% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP58.48%
EPS Next 2Y11.27%
EPS Next 3Y10.8%
PKG Fundamentals: All Metrics, Ratios and Statistics
NYSE:PKG (4/30/2026, 3:01:25 PM)
215.63
-0.42 (-0.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Industry Strength14.29
Industry Growth22.36
Earnings (Last)04-22 2026-04-22/amc
Earnings (Next)07-21 2026-07-21
Inst Owners98.81%
Inst Owner Change1.15%
Ins Owners1.62%
Ins Owner Change6.13%
Market Cap19.20B
Revenue(TTM)9.22B
Net Income(TTM)768.80M
Analysts74.67
Price Target232.26 (7.71%)
Short Float %3.93%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend5.02
Dividend Growth(5Y)9.7%
DP58.48%
Div Incr Years0
Div Non Decr Years16
Ex-Date03-13 2026-03-13 (1.25)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.17%
Min EPS beat(2)-4.51%
Max EPS beat(2)-3.83%
EPS beat(4)2
Avg EPS beat(4)-0.99%
Min EPS beat(4)-4.51%
Max EPS beat(4)3.62%
EPS beat(8)5
Avg EPS beat(8)0.11%
EPS beat(12)8
Avg EPS beat(12)3%
EPS beat(16)11
Avg EPS beat(16)3.7%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-4%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-4%
Max Revenue beat(4)0.56%
Revenue beat(8)4
Avg Revenue beat(8)0.18%
Revenue beat(12)5
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)-0.71%
PT rev (1m)-0.97%
PT rev (3m)0.56%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-6.6%
EPS NY rev (1m)-1.15%
EPS NY rev (3m)-5.18%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.72 | ||
| Fwd PE | 17.7 | ||
| P/S | 2.14 | ||
| P/FCF | 26.44 | ||
| P/OCF | 12.33 | ||
| P/B | 4.18 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 11.91 |
EPS(TTM)9.93
EY4.61%
EPS(NY)12.18
Fwd EY5.65%
FCF(TTM)8.16
FCFY3.78%
OCF(TTM)17.49
OCFY8.11%
SpS100.97
BVpS51.65
TBVpS29.47
PEG (NY)2.18
PEG (5Y)1.93
Graham Number107.419 (-50.18%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.17% | ||
| ROE | 16.72% | ||
| ROCE | 12.65% | ||
| ROIC | 9.55% | ||
| ROICexc | 10.34% | ||
| ROICexgc | 13.25% | ||
| OM | 13.67% | ||
| PM (TTM) | 8.55% | ||
| GM | 21.02% | ||
| FCFM | 8.08% |
ROA(3y)8.32%
ROA(5y)9.68%
ROE(3y)17.95%
ROE(5y)20.97%
ROIC(3y)10.66%
ROIC(5y)12.3%
ROICexc(3y)11.98%
ROICexc(5y)13.59%
ROICexgc(3y)14.69%
ROICexgc(5y)16.7%
ROCE(3y)14.13%
ROCE(5y)16.3%
ROICexgc growth 3Y-13.5%
ROICexgc growth 5Y-2.03%
ROICexc growth 3Y-14.91%
ROICexc growth 5Y-2.24%
OM growth 3Y-7.66%
OM growth 5Y1.58%
PM growth 3Y-10.8%
PM growth 5Y4.48%
GM growth 3Y-5.18%
GM growth 5Y0.19%
F-Score4
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 5.47 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 127.34% | ||
| Cap/Sales | 9.25% | ||
| Interest Coverage | 12.21 | ||
| Cash Conversion | 82.79% | ||
| Profit Quality | 94.46% | ||
| Current Ratio | 3.17 | ||
| Quick Ratio | 1.94 | ||
| Altman-Z | 3.86 |
F-Score4
WACC8.1%
ROIC/WACC1.18
Cap/Depr(3y)115.45%
Cap/Depr(5y)134.7%
Cap/Sales(3y)7.77%
Cap/Sales(5y)8.19%
Profit Quality(3y)90.16%
Profit Quality(5y)78.78%
High Growth Momentum
Growth
EPS 1Y (TTM)3.12%
EPS 3Y-4.02%
EPS 5Y11.23%
EPS Q2Q%3.9%
EPS Next Y9.96%
EPS Next 2Y11.27%
EPS Next 3Y10.8%
EPS Next 5Y10.35%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y1.97%
Revenue growth 5Y6.19%
Sales Q2Q%10.59%
Revenue Next Year10.96%
Revenue Next 2Y7.74%
Revenue Next 3Y5.63%
Revenue Next 5Y6.08%
EBIT growth 1Y6.86%
EBIT growth 3Y-5.84%
EBIT growth 5Y7.86%
EBIT Next Year68.55%
EBIT Next 3Y24.37%
EBIT Next 5Y16.07%
FCF growth 1Y39.76%
FCF growth 3Y3%
FCF growth 5Y3.71%
OCF growth 1Y30.75%
OCF growth 3Y1.37%
OCF growth 5Y8.56%
PACKAGING CORP OF AMERICA / PKG Fundamental Analysis 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.
How profitable is PACKAGING CORP OF AMERICA (PKG) stock?
PACKAGING CORP OF AMERICA (PKG) has a profitability rating of 8 / 10.
What is the earnings growth outlook for PACKAGING CORP OF AMERICA?
The Earnings per Share (EPS) of PACKAGING CORP OF AMERICA (PKG) is expected to grow by 9.96% 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 58.48%.