GRAPHIC PACKAGING HOLDING CO (GPK)
US3886891015 - Common Stock
Taking everything into account, GPK scores 6 out of 10 in our fundamental rating. GPK was compared to 22 industry peers in the Containers & Packaging industry. GPK scores excellent on profitability, but there are concerns on its financial health. GPK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GPK had positive earnings in the past year.
GPK had a positive operating cash flow in the past year.
GPK had positive earnings in each of the past 5 years.
Each year in the past 5 years GPK had a positive operating cash flow.
1.2 Ratios
GPK's Return On Assets of 6.00% is amongst the best of the industry. GPK outperforms 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 23.84%, GPK belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
GPK has a Return On Invested Capital of 10.45%. This is amongst the best in the industry. GPK outperforms 86.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GPK is in line with the industry average of 7.81%.
The last Return On Invested Capital (10.45%) for GPK is above the 3 year average (8.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 23.84% | ||
| ROIC | 10.45% |
ROA(3y)4.49%
ROA(5y)3.69%
ROE(3y)20.36%
ROE(5y)17.2%
ROIC(3y)8.49%
ROIC(5y)7.98%
1.3 Margins
GPK has a Profit Margin of 7.36%. This is amongst the best in the industry. GPK outperforms 86.36% of its industry peers.
In the last couple of years the Profit Margin of GPK has grown nicely.
Looking at the Operating Margin, with a value of 13.51%, GPK belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of GPK has grown nicely.
With a decent Gross Margin value of 23.08%, GPK is doing good in the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Gross Margin of GPK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.51% | ||
| PM (TTM) | 7.36% | ||
| GM | 23.08% |
OM growth 3Y15.3%
OM growth 5Y11.76%
PM growth 3Y44.34%
PM growth 5Y15.9%
GM growth 3Y10.94%
GM growth 5Y7.71%
2. Health
2.1 Basic Checks
GPK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GPK has less shares outstanding
The number of shares outstanding for GPK has been increased compared to 5 years ago.
The debt/assets ratio for GPK has been reduced compared to a year ago.
2.2 Solvency
GPK has an Altman-Z score of 1.97. This is not the best score and indicates that GPK is in the grey zone with still only limited risk for bankruptcy at the moment.
GPK has a Altman-Z score (1.97) which is comparable to the rest of the industry.
GPK has a debt to FCF ratio of 38.42. This is a negative value and a sign of low solvency as GPK would need 38.42 years to pay back of all of its debts.
GPK's Debt to FCF ratio of 38.42 is on the low side compared to the rest of the industry. GPK is outperformed by 77.27% of its industry peers.
GPK has a Debt/Equity ratio of 1.73. This is a high value indicating a heavy dependency on external financing.
GPK has a Debt to Equity ratio of 1.73. This is comparable to the rest of the industry: GPK outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | 38.42 | ||
| Altman-Z | 1.97 |
ROIC/WACC1.56
WACC6.7%
2.3 Liquidity
A Current Ratio of 1.24 indicates that GPK should not have too much problems paying its short term obligations.
GPK's Current ratio of 1.24 is on the low side compared to the rest of the industry. GPK is outperformed by 63.64% of its industry peers.
A Quick Ratio of 0.52 indicates that GPK may have some problems paying its short term obligations.
GPK has a worse Quick ratio (0.52) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
GPK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.84%.
GPK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.92% yearly.
Looking at the last year, GPK shows a decrease in Revenue. The Revenue has decreased by -3.99% in the last year.
The Revenue has been growing by 9.35% on average over the past years. This is quite good.
EPS 1Y (TTM)6.84%
EPS 3Y38.04%
EPS 5Y28.92%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-3.99%
Revenue growth 3Y12.85%
Revenue growth 5Y9.35%
Sales Q2Q%-7.34%
3.2 Future
GPK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.28% yearly.
Based on estimates for the next years, GPK will show a small growth in Revenue. The Revenue will grow by 2.17% on average per year.
EPS Next Y-7.95%
EPS Next 2Y-0.83%
EPS Next 3Y3.46%
EPS Next 5Y5.28%
Revenue Next Year-5.58%
Revenue Next 2Y-2.07%
Revenue Next 3Y1.01%
Revenue Next 5Y2.17%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.92, the valuation of GPK can be described as very reasonable.
GPK's Price/Earnings ratio is rather cheap when compared to the industry. GPK is cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.41. GPK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.71, which indicates a very decent valuation of GPK.
77.27% of the companies in the same industry are more expensive than GPK, based on the Price/Forward Earnings ratio.
GPK is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GPK is valued cheaper than 86.36% of the companies in the same industry.
GPK's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GPK is more expensive than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.89 | ||
| EV/EBITDA | 7.41 |
4.3 Compensation for Growth
The excellent profitability rating of GPK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.34
EPS Next 2Y-0.83%
EPS Next 3Y3.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.43%, GPK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, GPK has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.30, GPK is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of GPK has a limited annual growth rate of 1.98%.
GPK has paid a dividend for at least 10 years, which is a reliable track record.
As GPK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)1.98%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
18.06% of the earnings are spent on dividend by GPK. This is a low number and sustainable payout ratio.
GPK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP18.06%
EPS Next 2Y-0.83%
EPS Next 3Y3.46%
GRAPHIC PACKAGING HOLDING CO
NYSE:GPK (7/26/2024, 7:04:00 PM)
After market: 27.2 -0.68 (-2.44%)27.88
+0.59 (+2.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.57B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 9.71 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 23.84% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.51% | ||
| PM (TTM) | 7.36% | ||
| GM | 23.08% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)6.84%
EPS 3Y38.04%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.99%
Revenue growth 3Y12.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y