PACKAGING CORP OF AMERICA (PKG) Fundamental Analysis & Valuation

NYSE:PKG • US6951561090

Current stock price

202.73 USD
-1.66 (-0.81%)
At close:
202.73 USD
0 (0%)
After Hours:

This PKG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

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.
  • In the past 5 years PKG has always been profitable.
  • PKG had a positive operating cash flow in each of the past 5 years.
PKG Yearly Net Income VS EBIT VS OCF VS FCFPKG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 7.17%, PKG belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
  • With a decent Return On Equity value of 16.72%, PKG is doing good in the industry, outperforming 77.27% of the companies in the same industry.
  • PKG's Return On Invested Capital of 9.55% is amongst the best of the industry. PKG outperforms 81.82% of its industry peers.
  • PKG had an Average Return On Invested Capital over the past 3 years of 10.66%. This is above the industry average of 7.18%.
Industry RankSector 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%
PKG Yearly ROA, ROE, ROICPKG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • The Profit Margin of PKG (8.55%) is better than 86.36% of its industry peers.
  • In the last couple of years the Profit Margin of PKG has grown nicely.
  • The Operating Margin of PKG (13.67%) is better than 95.45% 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 line with its industry, outperforming 59.09% 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 RankSector 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%
PKG Yearly Profit, Operating, Gross MarginsPKG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

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7

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.
  • PKG has less 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 is higher compared to a year ago.
PKG Yearly Shares OutstandingPKG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
PKG Yearly Total Debt VS Total AssetsPKG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 3.75 indicates that PKG is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 3.75, PKG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
  • PKG has a debt to FCF ratio of 5.47. This is a neutral value as PKG would need 5.47 years to pay back of all of its debts.
  • The Debt to FCF ratio of PKG (5.47) is better than 90.91% of its industry peers.
  • A Debt/Equity ratio of 0.86 indicates that PKG is somewhat dependend on debt financing.
  • PKG has a Debt to Equity ratio (0.86) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 5.47
Altman-Z 3.75
ROIC/WACC1.19
WACC8.02%
PKG Yearly LT Debt VS Equity VS FCFPKG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 3.17 indicates that PKG has no problem at all paying its short term obligations.
  • The Current ratio of PKG (3.17) is better than 90.91% of its industry peers.
  • A Quick Ratio of 1.94 indicates that PKG should not have too much problems paying its short term obligations.
  • PKG has a better Quick ratio (1.94) than 90.91% of its industry peers.
Industry RankSector Rank
Current Ratio 3.17
Quick Ratio 1.94
PKG Yearly Current Assets VS Current LiabilitesPKG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PKG Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 8.85% 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.
  • The Revenue has been growing slightly by 7.23% in the past 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)8.85%
EPS 3Y-4.02%
EPS 5Y11.23%
EPS Q2Q%-6.07%
Revenue 1Y (TTM)7.23%
Revenue growth 3Y1.97%
Revenue growth 5Y6.19%
Sales Q2Q%10.13%

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.
  • Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y11.24%
EPS Next 2Y11.96%
EPS Next 3Y11.7%
EPS Next 5Y10.35%
Revenue Next Year12%
Revenue Next 2Y8.1%
Revenue Next 3Y6%
Revenue Next 5Y6.08%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
PKG Yearly Revenue VS EstimatesPKG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
PKG Yearly EPS VS EstimatesPKG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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2

4. PKG Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 20.60, the valuation of PKG can be described as rather expensive.
  • PKG's Price/Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 68.18% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. PKG is around the same levels.
  • The Price/Forward Earnings ratio is 18.52, which indicates a rather expensive current valuation of PKG.
  • 63.64% of the companies in the same industry are cheaper than PKG, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of PKG to the average of the S&P500 Index (22.42), we can say PKG is valued inline with the index average.
Industry RankSector Rank
PE 20.6
Fwd PE 18.52
PKG Price Earnings VS Forward Price EarningsPKG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PKG is valued a bit more expensive than 77.27% of the companies in the same industry.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
Industry RankSector Rank
P/FCF 24.9
EV/EBITDA 11.29
PKG Per share dataPKG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • PKG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)1.83
EPS Next 2Y11.96%
EPS Next 3Y11.7%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. PKG Dividend Analysis

5.1 Amount

  • PKG has a Yearly Dividend Yield of 2.45%.
  • PKG's Dividend Yield is comparable with the industry average which is at 2.67.
  • PKG's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.45%

5.2 History

  • The dividend of PKG is nicely growing with an annual growth rate of 9.70%!
  • 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)9.7%
Div Incr Years0
Div Non Decr Years15
PKG Yearly Dividends per sharePKG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • PKG pays out 58.48% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • PKG's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP58.48%
EPS Next 2Y11.96%
EPS Next 3Y11.7%
PKG Yearly Income VS Free CF VS DividendPKG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
PKG Dividend Payout.PKG Dividend Payout, showing the Payout Ratio.PKG Dividend Payout.PayoutRetained Earnings

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PKG Fundamentals: All Metrics, Ratios and Statistics

PACKAGING CORP OF AMERICA

NYSE:PKG (3/20/2026, 8:17:08 PM)

After market: 202.73 0 (0%)

202.73

-1.66 (-0.81%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)01-27
Earnings (Next)04-20
Inst Owners98.32%
Inst Owner Change0.47%
Ins Owners1.54%
Ins Owner Change2.45%
Market Cap18.09B
Revenue(TTM)8.99B
Net Income(TTM)768.80M
Analysts73.75
Price Target234.75 (15.79%)
Short Float %4.47%
Short Ratio3.74
Dividend
Industry RankSector Rank
Dividend Yield 2.45%
Yearly Dividend5.02
Dividend Growth(5Y)9.7%
DP58.48%
Div Incr Years0
Div Non Decr Years15
Ex-Date03-13
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)0.73%
PT rev (3m)2.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)-5.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.66%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)-1.04%
Valuation
Industry RankSector Rank
PE 20.6
Fwd PE 18.52
P/S 2.01
P/FCF 24.9
P/OCF 11.61
P/B 3.93
P/tB 6.89
EV/EBITDA 11.29
EPS(TTM)9.84
EY4.85%
EPS(NY)10.95
Fwd EY5.4%
FCF(TTM)8.14
FCFY4.02%
OCF(TTM)17.46
OCFY8.61%
SpS100.77
BVpS51.54
TBVpS29.41
PEG (NY)1.83
PEG (5Y)1.83
Graham Number106.82
Profitability
Industry RankSector 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 RankSector 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 3.75
F-Score4
WACC8.02%
ROIC/WACC1.19
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)8.85%
EPS 3Y-4.02%
EPS 5Y11.23%
EPS Q2Q%-6.07%
EPS Next Y11.24%
EPS Next 2Y11.96%
EPS Next 3Y11.7%
EPS Next 5Y10.35%
Revenue 1Y (TTM)7.23%
Revenue growth 3Y1.97%
Revenue growth 5Y6.19%
Sales Q2Q%10.13%
Revenue Next Year12%
Revenue Next 2Y8.1%
Revenue Next 3Y6%
Revenue Next 5Y6.08%
EBIT growth 1Y6.86%
EBIT growth 3Y-5.84%
EBIT growth 5Y7.86%
EBIT Next Year70.27%
EBIT Next 3Y25.46%
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.


What is the profitability of PKG stock?

PACKAGING CORP OF AMERICA (PKG) has a profitability rating of 8 / 10.


What are the PE and PB ratios of PACKAGING CORP OF AMERICA (PKG) stock?

The Price/Earnings (PE) ratio for PACKAGING CORP OF AMERICA (PKG) is 20.6 and the Price/Book (PB) ratio is 3.93.


How financially healthy is PACKAGING CORP OF AMERICA?

The financial health rating of PACKAGING CORP OF AMERICA (PKG) is 7 / 10.