Analyzing the Quality Characteristics of PACKAGING CORP OF AMERICA (NYSE:PKG).

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 course 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.

A Deep Dive into PACKAGING CORP OF AMERICA's Quality Metrics.

• PACKAGING CORP OF AMERICA has demonstrated significant revenue growth over the past 5 years, with a 5.64% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 16.99%, PACKAGING CORP OF AMERICA showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• With a favorable Debt/Free Cash Flow Ratio of 3.03, PACKAGING CORP OF AMERICA showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• PACKAGING CORP OF AMERICA demonstrates consistent Profit Quality over the past 5 years, with a strong 91.46%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• PACKAGING CORP OF AMERICA has demonstrated consistent growth in EBIT over the past 5 years, with a strong 9.25%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• The EBIT 5-year growth of PACKAGING CORP OF AMERICA has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

How does the complete fundamental picture look for NYSE:PKG?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to PKG. PKG was compared to 23 industry peers in the Containers & Packaging industry. Both the health and profitability get an excellent rating, making PKG a very profitable company, without any liquidiy or solvency issues. PKG is valued expensive and it does not seem to be growing.

Check the latest full fundamental report of PKG for a complete fundamental analysis.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.