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PACKAGING CORP OF AMERICA (NYSE:PKG) can be considered a quality stock. Here's why.

By Mill Chart

Last update: Sep 7, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PACKAGING CORP OF AMERICA (NYSE:PKG) is suited for quality investing. Investors should of couse do their own research, but we spotted PACKAGING CORP OF AMERICA showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NYSE:PKG highlighted

  • The 5-year revenue growth of PACKAGING CORP OF AMERICA has been remarkable, with 5.64% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • PACKAGING CORP OF AMERICA exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 16.99% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • The Debt/Free Cash Flow Ratio of PACKAGING CORP OF AMERICA stands at 3.03, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • PACKAGING CORP OF AMERICA exhibits impressive Profit Quality (5-year) with a 91.46% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • PACKAGING CORP OF AMERICA has consistently achieved strong EBIT growth over the past 5 years, with a 9.25% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, PACKAGING CORP OF AMERICA showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 6 out of 10 to PKG. PKG was compared to 23 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 has a expensive valuation and it also scores bad on growth.

Our latest full fundamental report of PKG contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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PACKAGING CORP OF AMERICA

NYSE:PKG (2/22/2024, 7:04:00 PM)

After market: 173.2 0 (0%)

173.2

+1.66 (+0.97%)

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