PACKAGING CORP OF AMERICA (PKG)
US6951561090 - Common Stock
Overall PKG gets a fundamental rating of 6 out of 10. We evaluated PKG against 24 industry peers in the Containers & Packaging industry. PKG gets an excellent profitability rating and is at the same time showing great financial health properties. PKG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PKG was profitable.
In the past year PKG had a positive cash flow from operations.
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
The Return On Assets of PKG (8.77%) is better than 91.30% of its industry peers.
PKG's Return On Equity of 18.00% is fine compared to the rest of the industry. PKG outperforms 73.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.91%, PKG belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PKG is significantly below the industry average of 382233.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.77% | ||
| ROE | 18% | ||
| ROIC | 10.91% |
ROA(3y)10.72%
ROA(5y)9.57%
ROE(3y)23.33%
ROE(5y)21.32%
ROIC(3y)13.62%
ROIC(5y)12.59%
1.3 Margins
PKG has a Profit Margin of 9.39%. This is amongst the best in the industry. PKG outperforms 91.30% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 13.53%, PKG belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Operating Margin of PKG has declined.
With a Gross Margin value of 21.08%, PKG perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
PKG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.53% | ||
| PM (TTM) | 9.39% | ||
| GM | 21.08% |
OM growth 3Y4.22%
OM growth 5Y-1.85%
PM growth 3Y12.29%
PM growth 5Y-1.4%
GM growth 3Y1.5%
GM growth 5Y-1.48%
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 about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PKG has less shares outstanding
PKG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.98 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG has a better Altman-Z score (4.98) than 91.30% of its industry peers.
PKG has a debt to FCF ratio of 4.21. This is a neutral value as PKG would need 4.21 years to pay back of all of its debts.
The Debt to FCF ratio of PKG (4.21) is better than 91.30% of its industry peers.
PKG has a Debt/Equity ratio of 0.58. This is a neutral value indicating PKG is somewhat dependend on debt financing.
The Debt to Equity ratio of PKG (0.58) is better than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.21 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.3
WACC8.42%
2.3 Liquidity
PKG has a Current Ratio of 2.95. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
PKG has a better Current ratio (2.95) than 100.00% of its industry peers.
A Quick Ratio of 1.98 indicates that PKG should not have too much problems paying its short term obligations.
PKG's Quick ratio of 1.98 is amongst the best of the industry. PKG outperforms 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.95 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
PKG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.36%.
PKG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.59% yearly.
PKG shows a small growth in Revenue. In the last year, the Revenue has grown by 4.24%.
Measured over the past years, PKG shows a small growth in Revenue. The Revenue has been growing by 2.15% on average per year.
EPS 1Y (TTM)-2.36%
EPS 3Y14.56%
EPS 5Y1.59%
EPS Q2Q%29.27%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.43%
Revenue growth 5Y2.15%
Sales Q2Q%12.73%
3.2 Future
The Earnings Per Share is expected to grow by 8.76% on average over the next years. This is quite good.
PKG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
EPS Next Y5.72%
EPS Next 2Y14.31%
EPS Next 3Y12.76%
EPS Next 5Y8.76%
Revenue Next Year7.74%
Revenue Next 2Y7.11%
Revenue Next 3Y5.85%
Revenue Next 5Y4.72%
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.
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
With a Price/Earnings ratio of 26.10, PKG can be considered very expensive at the moment.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than 73.91% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, PKG is valued at the same level.
A Price/Forward Earnings ratio of 20.00 indicates a rather expensive valuation of PKG.
Based on the Price/Forward Earnings ratio, PKG is valued a bit more expensive than 78.26% of the companies in the same industry.
PKG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 20 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PKG is valued a bit more expensive than 78.26% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PKG indicates a slightly more expensive valuation: PKG is more expensive than 65.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.59 | ||
| EV/EBITDA | 13.66 |
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.
The decent profitability rating of PKG may justify a higher PE ratio.
PKG's earnings are expected to grow with 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.57
PEG (5Y)16.39
EPS Next 2Y14.31%
EPS Next 3Y12.76%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.20%.
Compared to an average industry Dividend Yield of 3.07, 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 | 2.2% |
5.2 History
On average, the dividend of PKG grows each year by 12.01%, which is quite nice.
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)12.01%
Div Incr Years13
Div Non Decr Years14
5.3 Sustainability
58.43% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP58.43%
EPS Next 2Y14.31%
EPS Next 3Y12.76%
PACKAGING CORP OF AMERICA
NYSE:PKG (12/27/2024, 8:04:00 PM)
After market: 226.57 -0.52 (-0.23%)227.09
-2.36 (-1.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners91.29%
Inst Owner Change0.68%
Ins Owners1.64%
Ins Owner Change-8.64%
Market Cap20.39B
Analysts75.71
Price Target239.49 (5.46%)
Short Float %1.24%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Dividend Growth(5Y)12.01%
DP58.43%
Div Incr Years13
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.41%
Min EPS beat(2)1.91%
Max EPS beat(2)4.9%
EPS beat(4)4
Avg EPS beat(4)5.81%
Min EPS beat(4)1.5%
Max EPS beat(4)14.94%
EPS beat(8)7
Avg EPS beat(8)5.99%
EPS beat(12)10
Avg EPS beat(12)8.23%
EPS beat(16)13
Avg EPS beat(16)9.13%
Revenue beat(2)2
Avg Revenue beat(2)2.33%
Min Revenue beat(2)1.48%
Max Revenue beat(2)3.19%
Revenue beat(4)4
Avg Revenue beat(4)1.99%
Min Revenue beat(4)0.62%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)-1.08%
Revenue beat(12)7
Avg Revenue beat(12)-0.1%
Revenue beat(16)10
Avg Revenue beat(16)0.53%
PT rev (1m)8.23%
PT rev (3m)15.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.77%
EPS NY rev (1m)0%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.62%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 20 | ||
| P/S | 2.49 | ||
| P/FCF | 34.59 | ||
| P/OCF | 16.98 | ||
| P/B | 4.78 | ||
| P/tB | 6.49 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)8.7
EY3.83%
EPS(NY)11.36
Fwd EY5%
FCF(TTM)6.57
FCFY2.89%
OCF(TTM)13.38
OCFY5.89%
SpS91.04
BVpS47.48
TBVpS34.97
PEG (NY)4.57
PEG (5Y)16.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.77% | ||
| ROE | 18% | ||
| ROCE | 14.45% | ||
| ROIC | 10.91% | ||
| ROICexc | 12.13% | ||
| ROICexgc | 14.49% | ||
| OM | 13.53% | ||
| PM (TTM) | 9.39% | ||
| GM | 21.08% | ||
| FCFM | 7.21% |
ROA(3y)10.72%
ROA(5y)9.57%
ROE(3y)23.33%
ROE(5y)21.32%
ROIC(3y)13.62%
ROIC(5y)12.59%
ROICexc(3y)15.15%
ROICexc(5y)14.21%
ROICexgc(3y)18.61%
ROICexgc(5y)17.68%
ROCE(3y)18.06%
ROCE(5y)16.68%
ROICexcg growth 3Y4.54%
ROICexcg growth 5Y-3.56%
ROICexc growth 3Y5.61%
ROICexc growth 5Y-2.3%
OM growth 3Y4.22%
OM growth 5Y-1.85%
PM growth 3Y12.29%
PM growth 5Y-1.4%
GM growth 3Y1.5%
GM growth 5Y-1.48%
F-Score4
Asset Turnover0.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.21 | ||
| Debt/EBITDA | 1.53 | ||
| Cap/Depr | 117.48% | ||
| Cap/Sales | 7.48% | ||
| Interest Coverage | 11.49 | ||
| Cash Conversion | 73.84% | ||
| Profit Quality | 76.81% | ||
| Current Ratio | 2.95 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 4.98 |
F-Score4
WACC8.42%
ROIC/WACC1.3
Cap/Depr(3y)139.46%
Cap/Depr(5y)125.36%
Cap/Sales(3y)7.9%
Cap/Sales(5y)7.18%
Profit Quality(3y)78.15%
Profit Quality(5y)96.62%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.36%
EPS 3Y14.56%
EPS 5Y1.59%
EPS Q2Q%29.27%
EPS Next Y5.72%
EPS Next 2Y14.31%
EPS Next 3Y12.76%
EPS Next 5Y8.76%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y5.43%
Revenue growth 5Y2.15%
Sales Q2Q%12.73%
Revenue Next Year7.74%
Revenue Next 2Y7.11%
Revenue Next 3Y5.85%
Revenue Next 5Y4.72%
EBIT growth 1Y-3.43%
EBIT growth 3Y9.88%
EBIT growth 5Y0.26%
EBIT Next Year55.28%
EBIT Next 3Y24.3%
EBIT Next 5Y15.77%
FCF growth 1Y-8.42%
FCF growth 3Y11.67%
FCF growth 5Y6.19%
OCF growth 1Y-18.05%
OCF growth 3Y8.39%
OCF growth 5Y2.19%