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Is NYSE:PKG suited for quality investing?

By Mill Chart

Last update: Jan 26, 2024

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.

Key Considerations for Quality Investors.

  • PACKAGING CORP OF AMERICA has shown strong performance in revenue growth over the past 5 years, with a 5.64% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 17.13%, 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.
  • 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 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 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.
  • PACKAGING CORP OF AMERICA has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

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.

PKG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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 ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.