Should you consider PACKAGING CORP OF AMERICA (NYSE:PKG) for quality investing?

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.
• PACKAGING CORP OF AMERICA demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 17.13% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• 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.
• With a robust 5-year EBIT growth of 9.25%, PACKAGING CORP OF AMERICA showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• PACKAGING CORP OF AMERICA demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NYSE:PKG?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, PKG scores 6 out of 10 in our fundamental rating. 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 has a expensive valuation and it also scores bad on growth.

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.

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.