PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - NYSE:PKG - US6951561090 - Common Stock
199.09 USD
-1.35 (-0.67%)
199.09 USD
0 (0%)
PKG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 valied quite expensively at the moment, while 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
PKG's Return On Assets of 9.94% is amongst the best of the industry. PKG outperforms 100.00% of its industry peers.
PKG has a Return On Equity of 19.39%. This is amongst the best in the industry. PKG outperforms 86.36% of its industry peers.
PKG has a Return On Invested Capital of 11.81%. This is amongst the best in the industry. PKG outperforms 95.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PKG is above the industry average of 7.70%.
| 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
PKG has a Profit Margin of 10.40%. This is amongst the best in the industry. PKG outperforms 95.45% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
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.
PKG's Gross Margin has declined in the last couple of years.
| 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
An Altman-Z score of 4.79 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG has a better Altman-Z score (4.79) than 100.00% of its industry peers.
PKG has a debt to FCF ratio of 3.98. This is a good value and a sign of high solvency as PKG would need 3.98 years to pay back of 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.
A Debt/Equity ratio of 0.54 indicates that PKG is somewhat dependend on debt financing.
PKG has a Debt to Equity ratio of 0.54. This is amongst the best in the industry. PKG outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 4.79 |
ROIC/WACC1.41
WACC8.37%
2.3 Liquidity
A Current Ratio of 3.54 indicates that PKG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.54, PKG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 Quick ratio of 2.32. This is amongst the best in the industry. PKG outperforms 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 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.
Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 7.36% on average per year.
EPS Next Y11.68%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
EPS Next 5Y11.96%
Revenue Next Year8.61%
Revenue Next 2Y11.05%
Revenue Next 3Y8.41%
Revenue Next 5Y7.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.93, the valuation of PKG can be described as rather expensive.
68.18% of the companies in the same industry are cheaper than PKG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.91, PKG is valued a bit cheaper.
A Price/Forward Earnings ratio of 16.96 indicates a correct valuation of PKG.
Based on the Price/Forward Earnings ratio, PKG is valued a bit more expensive than 72.73% of the companies in the same industry.
PKG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
PKG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.74 | ||
| EV/EBITDA | 10.71 |
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)1.71
PEG (5Y)5.87
EPS Next 2Y13.96%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.52%.
Compared to an average industry Dividend Yield of 3.55, PKG has a dividend in line with its industry peers.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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 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.
The dividend of PKG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.02%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
199.09
-1.35 (-0.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change0.86%
Ins Owners1.58%
Ins Owner Change-1.65%
Market Cap17.91B
Revenue(TTM)8.77B
Net Income(TTM)898.30M
Analysts72.5
Price Target229.01 (15.03%)
Short Float %2.55%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
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)4.08%
PT rev (3m)6.38%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-1%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.93 | ||
| Fwd PE | 16.96 | ||
| P/S | 2.07 | ||
| P/FCF | 28.74 | ||
| P/OCF | 13.87 | ||
| P/B | 3.87 | ||
| P/tB | 5.07 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)9.99
EY5.02%
EPS(NY)11.74
Fwd EY5.9%
FCF(TTM)6.93
FCFY3.48%
OCF(TTM)14.35
OCFY7.21%
SpS96.03
BVpS51.48
TBVpS39.3
PEG (NY)1.71
PEG (5Y)5.87
Graham Number107.57
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%
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-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 | 4.79 |
F-Score8
WACC8.37%
ROIC/WACC1.41
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 Y11.68%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
EPS Next 5Y11.96%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.61%
Revenue Next 2Y11.05%
Revenue Next 3Y8.41%
Revenue Next 5Y7.36%
EBIT growth 1Y22.32%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year64.72%
EBIT Next 3Y24.72%
EBIT Next 5Y18.55%
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%
PACKAGING CORP OF AMERICA / PKG FAQ
What is the fundamental rating for PKG stock?
ChartMill assigns a fundamental rating of 7 / 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 11.68% 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 50.02%.