PACKAGING CORP OF AMERICA (PKG) Fundamental Analysis & Valuation

NYSE:PKG • US6951561090

Current stock price

217.215 USD
-5.37 (-2.41%)
Last:

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

  • 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.
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

  • Looking at the Return On Assets, with a value of 7.17%, PKG belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 16.72%, PKG belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
  • PKG has a better Return On Invested Capital (9.55%) than 85.71% 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 6.91%.
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

  • PKG has a Profit Margin of 8.55%. This is amongst the best in the industry. PKG outperforms 90.48% of its industry peers.
  • In the last couple of years the Profit Margin of PKG has grown nicely.
  • Looking at the Operating Margin, with a value of 13.67%, PKG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of PKG has grown nicely.
  • PKG has a better Gross Margin (21.02%) than 61.90% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. PKG Health Analysis

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.
  • The number of shares outstanding for PKG has been reduced compared to 1 year ago.
  • PKG has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, PKG has a worse debt to assets ratio.
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 3.92 indicates that PKG is not in any danger for bankruptcy at the moment.
  • PKG has a better Altman-Z score (3.92) than 95.24% of its industry peers.
  • 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 90.48% of its industry peers.
  • PKG has a Debt/Equity ratio of 0.86. This is a neutral value indicating PKG is somewhat dependend on debt financing.
  • PKG's Debt to Equity ratio of 0.86 is in line compared to the rest of the industry. PKG outperforms 52.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.86
Debt/FCF 5.47
Altman-Z 3.92
ROIC/WACC1.18
WACC8.06%
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.
  • Looking at the Current ratio, with a value of 3.17, PKG belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
  • PKG has a Quick Ratio of 1.94. This is a normal value and indicates that PKG is financially healthy and should not expect problems in meeting its short term obligations.
  • PKG has a better Quick ratio (1.94) than 90.48% 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

4

3. PKG Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 3.12% over the past year.
  • PKG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.23% yearly.
  • PKG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.86%.
  • The Revenue has been growing slightly by 6.19% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 10.35% on average over the next years. This is quite good.
  • 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 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

  • 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

  • A Price/Earnings ratio of 21.87 indicates a rather expensive valuation of PKG.
  • 71.43% of the companies in the same industry are cheaper than PKG, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of PKG to the average of the S&P500 Index (26.91), we can say PKG is valued inline with the index average.
  • The Price/Forward Earnings ratio is 17.83, which indicates a rather expensive current valuation of PKG.
  • PKG's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.99, PKG is valued at the same level.
Industry RankSector Rank
PE 21.87
Fwd PE 17.83
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PKG indicates a slightly more expensive valuation: PKG is more expensive than 76.19% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, PKG is valued a bit more expensive than the industry average as 61.90% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 26.63
EV/EBITDA 12.22
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.
  • The excellent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)2.2
PEG (5Y)1.95
EPS Next 2Y11.27%
EPS Next 3Y10.8%

More info and screens

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 2.25%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.66, PKG has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, PKG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.25%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.7%
Div Incr Years0
Div Non Decr Years16
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 2Y11.27%
EPS Next 3Y10.8%
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

More info and screens

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PKG Fundamentals: All Metrics, Ratios and Statistics

PACKAGING CORP OF AMERICA

NYSE:PKG (4/29/2026, 2:20:04 PM)

217.215

-5.37 (-2.41%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Industry Strength14.29
Industry Growth22.98
Earnings (Last)04-22
Earnings (Next)07-21
Inst Owners98.81%
Inst Owner Change1.15%
Ins Owners1.62%
Ins Owner Change6.13%
Market Cap19.34B
Revenue(TTM)9.22B
Net Income(TTM)768.80M
Analysts74.67
Price Target232.26 (6.93%)
Short Float %3.93%
Short Ratio3.3
Dividend
Industry RankSector Rank
Dividend Yield 2.25%
Yearly Dividend5.02
Dividend Growth(5Y)9.7%
DP58.48%
Div Incr Years0
Div Non Decr Years16
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)-0.97%
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 RankSector Rank
PE 21.87
Fwd PE 17.83
P/S 2.15
P/FCF 26.63
P/OCF 12.42
P/B 4.21
P/tB 7.37
EV/EBITDA 12.22
EPS(TTM)9.93
EY4.57%
EPS(NY)12.18
Fwd EY5.61%
FCF(TTM)8.16
FCFY3.76%
OCF(TTM)17.49
OCFY8.05%
SpS100.97
BVpS51.65
TBVpS29.47
PEG (NY)2.2
PEG (5Y)1.95
Graham Number107.419 (-50.55%)
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 3.92
F-Score4
WACC8.06%
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%.