PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
196.82 USD
-1.66 (-0.84%)
PKG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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. While showing a medium growth rate, PKG is valued expensive at the moment. This makes PKG very considerable 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.
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.
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.
PKG has a better Return On Invested Capital (9.72%) than 81.82% of its industry peers.
PKG had an Average Return On Invested Capital over the past 3 years of 12.69%. This 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
The Profit Margin of PKG (10.12%) is better than 90.91% of its industry peers.
In the last couple of years the Profit Margin of PKG has remained more or less at the same level.
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.
In the last couple of years the Operating Margin of PKG has declined.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PKG is still creating some value.
PKG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PKG has been reduced compared to 5 years ago.
The debt/assets ratio for PKG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.68 indicates that PKG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.68, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 5.50, PKG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
PKG has a Debt/Equity ratio of 0.84. This is a neutral value indicating PKG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.84, PKG is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.16
WACC8.4%
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 90.91% of its industry peers.
A Quick Ratio of 2.00 indicates that PKG has no problem at all paying its short term obligations.
PKG has a better Quick ratio (2.00) than 90.91% 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.
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%.
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
Based on estimates for the next years, PKG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.96% on average per year.
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
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
A Price/Earnings ratio of 19.70 indicates a rather expensive valuation of PKG.
PKG's Price/Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 63.64% of the companies in the same industry.
PKG is valuated rather cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
PKG is valuated correctly with a Price/Forward Earnings ratio of 17.00.
PKG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, PKG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.7 | ||
| Fwd PE | 17 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.49 | ||
| EV/EBITDA | 11.43 |
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)1.76
PEG (5Y)5.8
EPS Next 2Y13.18%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.54%, PKG has a reasonable but not impressive dividend return.
PKG's Dividend Yield is comparable with the industry average which is at 3.34.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| 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%
NYSE:PKG (12/8/2025, 1:20:49 PM)
196.82
-1.66 (-0.84%)
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 Cap17.71B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target229.38 (16.54%)
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 | 19.7 | ||
| Fwd PE | 17 | ||
| P/S | 2.02 | ||
| P/FCF | 24.49 | ||
| P/OCF | 12.33 | ||
| P/B | 3.72 | ||
| P/tB | 6.18 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)9.99
EY5.08%
EPS(NY)11.58
Fwd EY5.88%
FCF(TTM)8.04
FCFY4.08%
OCF(TTM)15.96
OCFY8.11%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.76
PEG (5Y)5.8
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 | 3.68 |
F-Score5
WACC8.4%
ROIC/WACC1.16
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 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 11.18% 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%.