PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
219.96 USD
+1.31 (+0.6%)
219.96 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PKG. PKG was compared to 22 industry peers in the Containers & Packaging industry. PKG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, PKG is valued expensive at the moment. Finally 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
- PKG had positive earnings in the past year.
- PKG had a positive operating cash flow in the past year.
- 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's Return On Assets of 8.08% is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
- PKG has a Return On Equity of 18.66%. This is amongst the best in the industry. PKG outperforms 81.82% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 10.12%, PKG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
- 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.
- In the last couple of years the Operating Margin of PKG has declined.
- PKG's Gross Margin of 21.79% is in line compared to the rest of the industry. PKG outperforms 59.09% of 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.
- 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
- An Altman-Z score of 3.87 indicates that PKG is not in any danger for bankruptcy at the moment.
- The Altman-Z score of PKG (3.87) 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.
- 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.
- A Debt/Equity ratio of 0.84 indicates that PKG is somewhat dependend on debt financing.
- PKG has a better Debt to Equity ratio (0.84) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.87 |
ROIC/WACC1.14
WACC8.52%
2.3 Liquidity
- PKG has a Current Ratio of 3.16. This indicates that PKG is financially healthy and has no problem in meeting 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.
- PKG's Quick ratio of 2.00 is amongst the best of the industry. PKG outperforms 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.
- The Revenue has been growing slightly by 7.30% in the past 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)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
- The Earnings Per Share is expected to grow by 11.90% on average over the next years. This is quite good.
- Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.9%
Revenue Next Year8.5%
Revenue Next 2Y10.83%
Revenue Next 3Y8.26%
Revenue Next 5Y6.98%
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
- A Price/Earnings ratio of 22.02 indicates a rather expensive valuation of PKG.
- 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 similar valuation than the S&P500 average which is at 27.33.
- Based on the Price/Forward Earnings ratio of 18.93, the valuation of PKG can be described as rather expensive.
- PKG's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. PKG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 18.93 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PKG is valued a bit more expensive than 63.64% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PKG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.37 | ||
| EV/EBITDA | 12.48 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- PKG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.98
PEG (5Y)6.48
EPS Next 2Y13.38%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
- PKG has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.39, PKG has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.91, PKG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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 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
- 50.65% 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 2Y13.38%
EPS Next 3Y11.85%
219.96
+1.31 (+0.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners96.28%
Inst Owner Change0.12%
Ins Owners1.58%
Ins Owner Change-1.65%
Market Cap19.79B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target227.89 (3.61%)
Short Float %3.6%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.65%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
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)-0.65%
PT rev (3m)3.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.43%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.02 | ||
| Fwd PE | 18.93 | ||
| P/S | 2.26 | ||
| P/FCF | 27.37 | ||
| P/OCF | 13.78 | ||
| P/B | 4.16 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 12.48 |
EPS(TTM)9.99
EY4.54%
EPS(NY)11.62
Fwd EY5.28%
FCF(TTM)8.04
FCFY3.65%
OCF(TTM)15.96
OCFY7.26%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.98
PEG (5Y)6.48
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 | 3.87 |
F-Score5
WACC8.52%
ROIC/WACC1.14
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 5Y11.9%
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 5Y6.98%
EBIT growth 1Y14.88%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year65.51%
EBIT Next 3Y26.99%
EBIT Next 5Y18.48%
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 for 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.
What are the PE and PB ratios of PACKAGING CORP OF AMERICA (PKG) stock?
The Price/Earnings (PE) ratio for PACKAGING CORP OF AMERICA (PKG) is 22.02 and the Price/Book (PB) ratio is 4.16.
How financially healthy is PACKAGING CORP OF AMERICA?
The financial health rating of PACKAGING CORP OF AMERICA (PKG) is 8 / 10.