PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
208.91 USD
+1.58 (+0.76%)
208.91 USD
0 (0%)
Overall PKG gets a fundamental rating of 6 out of 10. We evaluated PKG against 22 industry peers in the Containers & Packaging industry. Both the health and profitability get an excellent rating, making PKG a very profitable company, without any liquidiy or solvency issues. PKG is quite expensive at the moment. It does show a decent growth rate. PKG also has an excellent dividend rating. These ratings would make PKG suitable for dividend and quality investing!
1. Profitability
1.1 Basic Checks
PKG had positive earnings in the past year.
In the past year PKG had a positive cash flow from operations.
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 better Return On Assets (8.08%) than 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
PKG has a Profit Margin of 10.12%. This is amongst the best in the industry. PKG outperforms 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.
PKG has a better Operating Margin (14.49%) than 95.45% of its industry peers.
PKG's Operating Margin has declined in the last couple of years.
The Gross Margin of PKG (21.79%) is comparable to the rest of the industry.
PKG's Gross Margin has declined in the last couple of years.
| 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
PKG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PKG has more shares outstanding
PKG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PKG has an improved debt to assets ratio.
2.2 Solvency
PKG has an Altman-Z score of 3.78. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PKG (3.78) is better than 90.91% of its industry peers.
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.
PKG's Debt to FCF ratio of 5.50 is amongst the best of the industry. PKG outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that PKG is somewhat dependend on debt financing.
The Debt to Equity ratio of PKG (0.84) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.78 |
ROIC/WACC1.15
WACC8.43%
2.3 Liquidity
A Current Ratio of 3.16 indicates that PKG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.16, PKG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
A Quick Ratio of 2.00 indicates that PKG has no problem at all paying its short term obligations.
The Quick ratio of PKG (2.00) is better 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%.
Measured over the past years, PKG shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
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.
The Revenue is expected to grow by 7.36% on average over the next years.
EPS Next Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.96%
Revenue Next Year8.5%
Revenue Next 2Y10.83%
Revenue Next 3Y8.26%
Revenue Next 5Y7.36%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PKG is valuated rather expensively with a Price/Earnings ratio of 20.91.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
PKG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
A Price/Forward Earnings ratio of 17.98 indicates a rather expensive valuation of PKG.
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 23.46, PKG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 17.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PKG.
The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PKG does not grow enough to justify the current Price/Earnings ratio.
PKG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.88
PEG (5Y)6.16
EPS Next 2Y13.38%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
PKG's Dividend Yield is comparable with the industry average which is at 2.52.
Compared to an average S&P500 Dividend Yield of 2.00, PKG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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.
The dividend of PKG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.65%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
208.91
+1.58 (+0.76%)
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 Cap18.80B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target227.89 (9.09%)
Short Float %2.79%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
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)-0.74%
PT rev (3m)4.87%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.24%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.91 | ||
| Fwd PE | 17.98 | ||
| P/S | 2.14 | ||
| P/FCF | 26 | ||
| P/OCF | 13.09 | ||
| P/B | 3.95 | ||
| P/tB | 6.56 | ||
| EV/EBITDA | 11.94 |
EPS(TTM)9.99
EY4.78%
EPS(NY)11.62
Fwd EY5.56%
FCF(TTM)8.04
FCFY3.85%
OCF(TTM)15.96
OCFY7.64%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.88
PEG (5Y)6.16
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 | 3.78 |
F-Score5
WACC8.43%
ROIC/WACC1.15
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 Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.96%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.5%
Revenue Next 2Y10.83%
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 3Y26.99%
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 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 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 11.13% in the next year.
Is the dividend of PACKAGING CORP OF AMERICA sustainable?
The dividend rating of PACKAGING CORP OF AMERICA (PKG) is 7 / 10 and the dividend payout ratio is 50.65%.