PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - NYSE:PKG - US6951561090 - Common Stock
214.89 USD
+3.42 (+1.62%)
Overall PKG gets a fundamental rating of 7 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. 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.
In the past year PKG had a positive cash flow from operations.
PKG had positive earnings in each of the past 5 years.
Each year in the past 5 years PKG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 9.94%, PKG belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PKG's Return On Equity of 19.39% is amongst the best of the industry. PKG outperforms 90.91% of its industry peers.
PKG has a better Return On Invested Capital (11.81%) than 95.45% 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 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.94% | ||
| ROE | 19.39% | ||
| ROIC | 11.81% |
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 (10.40%) is better than 95.45% 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 (14.65%) than 95.45% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
PKG's Gross Margin of 22.13% is fine compared to the rest of the industry. PKG outperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of PKG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.65% | ||
| PM (TTM) | 10.4% | ||
| GM | 22.13% |
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
PKG has an Altman-Z score of 4.94. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
PKG has a better Altman-Z score (4.94) than 95.45% of its industry peers.
The Debt to FCF ratio of PKG is 3.98, which is a good value as it means it would take PKG, 3.98 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.98, PKG belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
PKG has a Debt/Equity ratio of 0.54. This is a neutral value indicating PKG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, PKG belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 4.94 |
ROIC/WACC1.48
WACC7.99%
2.3 Liquidity
PKG has a Current Ratio of 3.54. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
PKG has a better Current ratio (3.54) than 100.00% of its industry peers.
PKG has a Quick Ratio of 2.32. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
PKG has a better Quick ratio (2.32) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
PKG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.35%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.40% on average over the past years.
Looking at the last year, PKG shows a quite strong growth in Revenue. The Revenue has grown by 8.98% in the last year.
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)22.35%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%12.73%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%4.63%
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 12.21% yearly.
Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 6.89% on average per year.
EPS Next Y14.87%
EPS Next 2Y13.35%
EPS Next 3Y10.73%
EPS Next 5Y12.21%
Revenue Next Year6.56%
Revenue Next 2Y7.38%
Revenue Next 3Y6.45%
Revenue Next 5Y6.89%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 21.68 indicates a rather expensive valuation of PKG.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than 63.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of PKG to the average of the S&P500 Index (27.20), we can say PKG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 18.50, PKG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PKG is valued a bit more expensive than 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, PKG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 18.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PKG.
PKG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.02 | ||
| EV/EBITDA | 11.33 |
4.3 Compensation for Growth
PKG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)6.39
EPS Next 2Y13.35%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.30%. Purely for dividend investing, there may be better candidates out there.
PKG's Dividend Yield is comparable with the industry average which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.38, PKG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
On average, the dividend of PKG grows each year by 9.64%, 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)9.64%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
50.02% of the earnings are spent on dividend by PKG. 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.
DP50.02%
EPS Next 2Y13.35%
EPS Next 3Y10.73%
NYSE:PKG (9/17/2025, 10:41:33 AM)
214.89
+3.42 (+1.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-2.71%
Ins Owners1.61%
Ins Owner Change3.4%
Market Cap19.34B
Analysts72
Price Target217.32 (1.13%)
Short Float %2.36%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.02%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.2%
Min EPS beat(2)0.77%
Max EPS beat(2)3.62%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-3.46%
Max EPS beat(4)4.9%
EPS beat(8)7
Avg EPS beat(8)3.67%
EPS beat(12)9
Avg EPS beat(12)4.04%
EPS beat(16)13
Avg EPS beat(16)7.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)0.56%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)3.19%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)5
Avg Revenue beat(12)-1.18%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)0.95%
PT rev (3m)2.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.1%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.68 | ||
| Fwd PE | 18.5 | ||
| P/S | 2.24 | ||
| P/FCF | 31.02 | ||
| P/OCF | 14.98 | ||
| P/B | 4.17 | ||
| P/tB | 5.47 | ||
| EV/EBITDA | 11.33 |
EPS(TTM)9.91
EY4.61%
EPS(NY)11.61
Fwd EY5.41%
FCF(TTM)6.93
FCFY3.22%
OCF(TTM)14.35
OCFY6.68%
SpS96.03
BVpS51.48
TBVpS39.3
PEG (NY)1.46
PEG (5Y)6.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.94% | ||
| ROE | 19.39% | ||
| ROCE | 15.63% | ||
| ROIC | 11.81% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 15.62% | ||
| OM | 14.65% | ||
| PM (TTM) | 10.4% | ||
| GM | 22.13% | ||
| FCFM | 7.21% |
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%
ROICexcg growth 3Y-8.84%
ROICexcg 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-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 122.04% | ||
| Cap/Sales | 7.73% | ||
| Interest Coverage | 12.6 | ||
| Cash Conversion | 71.22% | ||
| Profit Quality | 69.39% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 4.94 |
F-Score8
WACC7.99%
ROIC/WACC1.48
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)22.35%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%12.73%
EPS Next Y14.87%
EPS Next 2Y13.35%
EPS Next 3Y10.73%
EPS Next 5Y12.21%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%4.63%
Revenue Next Year6.56%
Revenue Next 2Y7.38%
Revenue Next 3Y6.45%
Revenue Next 5Y6.89%
EBIT growth 1Y22.32%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year64.02%
EBIT Next 3Y23.91%
EBIT Next 5Y18.12%
FCF growth 1Y-23.96%
FCF growth 3Y2.17%
FCF growth 5Y-8.36%
OCF growth 1Y-13.4%
OCF growth 3Y2.87%
OCF growth 5Y-0.27%