PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
202.82 USD
-1.21 (-0.59%)
202.82 USD
0 (0%)
PKG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while it does show a decent growth rate. PKG also has an excellent dividend rating. With these ratings, PKG could be worth investigating further for dividend and quality investing!.
1. Profitability
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.
Each year in the past 5 years PKG had a positive operating cash flow.
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.
The Average Return On Invested Capital over the past 3 years for PKG 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.
PKG's Profit Margin has been stable in the last couple of years.
The Operating Margin of PKG (14.49%) is better than 95.45% of its industry peers.
PKG's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 21.79%, PKG perfoms like the industry average, outperforming 59.09% of the companies in the same 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.
The debt/assets ratio for PKG has been reduced compared to a year ago.
2.2 Solvency
PKG has an Altman-Z score of 3.72. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.72, PKG belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
PKG has a debt to FCF ratio of 5.50. This is a neutral value as PKG would need 5.50 years to pay back of 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.
PKG has a Debt/Equity ratio of 0.84. This is a neutral value indicating 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 | 3.72 |
ROIC/WACC1.15
WACC8.44%
2.3 Liquidity
A Current Ratio of 3.16 indicates that PKG has no problem at all paying its short term obligations.
PKG's Current ratio of 3.16 is amongst the best of the industry. PKG outperforms 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
PKG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.83%, which is quite good.
PKG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.40% yearly.
Looking at the last year, PKG shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
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
PKG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.96% yearly.
The Revenue is expected to grow by 7.36% on average over the next years.
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
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
With a Price/Earnings ratio of 20.30, PKG is valued on the expensive side.
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 26.39.
PKG is valuated rather expensively with a Price/Forward Earnings ratio of 17.52.
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 23.84, PKG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.3 | ||
| Fwd PE | 17.52 |
4.2 Price Multiples
PKG's Enterprise Value to EBITDA is on the same level as the industry average.
PKG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.24 | ||
| EV/EBITDA | 11.64 |
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)1.82
PEG (5Y)5.98
EPS Next 2Y13.18%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.45%.
Compared to an average industry Dividend Yield of 2.49, PKG has a dividend in line with its industry peers.
PKG's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of PKG is nicely growing with an annual growth rate of 9.64%!
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 2Y13.18%
EPS Next 3Y11.65%
202.82
-1.21 (-0.59%)
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 Cap18.25B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target229.38 (13.1%)
Short Float %2.79%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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 | 20.3 | ||
| Fwd PE | 17.52 | ||
| P/S | 2.08 | ||
| P/FCF | 25.24 | ||
| P/OCF | 12.71 | ||
| P/B | 3.84 | ||
| P/tB | 6.37 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)9.99
EY4.93%
EPS(NY)11.58
Fwd EY5.71%
FCF(TTM)8.04
FCFY3.96%
OCF(TTM)15.96
OCFY7.87%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.82
PEG (5Y)5.98
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 | 3.72 |
F-Score5
WACC8.44%
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 Y11.18%
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 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 11.18% 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%.