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Exploring NYSE:PKG's quality characteristics.

By Mill Chart

Last update: Oct 25, 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 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.

Looking into the quality metrics of PACKAGING CORP OF AMERICA

  • PACKAGING CORP OF AMERICA has achieved substantial revenue growth over the past 5 years, with a 5.64% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a notable ROIC excluding cash and goodwill at 16.99%, PACKAGING CORP OF AMERICA demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • 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.
  • With a favorable Profit Quality (5-year) ratio of 91.46%, PACKAGING CORP OF AMERICA showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • The 5-year EBIT growth of PACKAGING CORP OF AMERICA has been remarkable, with 9.25% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

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

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple 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. PKG gets an excellent profitability rating and is at the same time showing great financial health properties. PKG does not seem to be growing, but still is valued expensively.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

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 (2/21/2024, 7:04:00 PM)

After market: 171.54 0 (0%)

171.54

+1.93 (+1.14%)

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