PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
193.4 USD
-3.39 (-1.72%)
193.4 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. PKG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PKG is quite expensive at the moment. It does show a decent growth rate. These ratings could make PKG a good candidate 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.
In the past 5 years PKG has always been profitable.
In the past 5 years PKG always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 8.08%, PKG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
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's Return On Invested Capital of 9.72% is amongst the best of the industry. PKG outperforms 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
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.
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.
PKG has a Gross Margin (21.79%) which is in line with its industry peers.
In the last couple of years the Gross Margin of PKG has declined.
| 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
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.
Compared to 5 years ago, PKG has less shares outstanding
PKG has a better debt/assets ratio than last year.
2.2 Solvency
PKG has an Altman-Z score of 3.64. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
PKG has a better Altman-Z score (3.64) 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.
With an excellent Debt to FCF ratio value of 5.50, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
PKG has a Debt/Equity ratio of 0.84. This is a neutral value indicating PKG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.84, PKG is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.64 |
ROIC/WACC1.15
WACC8.42%
2.3 Liquidity
A Current Ratio of 3.16 indicates that PKG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.16, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
PKG has a Quick Ratio of 2.00. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.00, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| 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.
PKG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
The Revenue has been growing slightly by 3.78% on average over the past years.
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 Y11.18%
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 19.36, PKG is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of PKG indicates a slightly more expensive valuation: PKG is more expensive than 68.18% of the companies listed in the same industry.
PKG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.29.
A Price/Forward Earnings ratio of 16.70 indicates a correct valuation of PKG.
63.64% of the companies in the same industry are cheaper than PKG, based on the Price/Forward Earnings ratio.
PKG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.36 | ||
| Fwd PE | 16.7 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 11.18 |
4.3 Compensation for Growth
PKG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PKG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)5.7
EPS Next 2Y13.18%
EPS Next 3Y11.65%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 3.34, PKG has a dividend in line with its industry peers.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
5.2 History
The dividend of PKG is nicely growing with an annual growth rate of 9.64%!
PKG has been paying a dividend for at least 10 years, so it has 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
50.65% 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.
DP50.65%
EPS Next 2Y13.18%
EPS Next 3Y11.65%
193.4
-3.39 (-1.72%)
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 Cap17.40B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target229.38 (18.6%)
Short Float %2.78%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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 | 19.36 | ||
| Fwd PE | 16.7 | ||
| P/S | 1.98 | ||
| P/FCF | 24.07 | ||
| P/OCF | 12.12 | ||
| P/B | 3.66 | ||
| P/tB | 6.07 | ||
| EV/EBITDA | 11.18 |
EPS(TTM)9.99
EY5.17%
EPS(NY)11.58
Fwd EY5.99%
FCF(TTM)8.04
FCFY4.15%
OCF(TTM)15.96
OCFY8.25%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.73
PEG (5Y)5.7
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 | 3.64 |
F-Score5
WACC8.42%
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 3 / 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 6 / 10 and the dividend payout ratio is 50.65%.