GRAPHIC PACKAGING HOLDING CO (GPK)
US3886891015 - Common Stock
GPK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Containers & Packaging industry. GPK has an excellent profitability rating, but there are concerns on its financial health. GPK is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years GPK has always been profitable.
GPK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.66%, GPK is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
GPK has a Return On Equity of 25.64%. This is amongst the best in the industry. GPK outperforms 82.61% of its industry peers.
GPK has a better Return On Invested Capital (10.21%) than 78.26% of its industry peers.
GPK had an Average Return On Invested Capital over the past 3 years of 8.49%. This is significantly below the industry average of 382233.40%.
The 3 year average ROIC (8.49%) for GPK is below the current ROIC(10.21%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 25.64% | ||
| ROIC | 10.21% |
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
The Profit Margin of GPK (7.93%) is better than 86.96% of its industry peers.
In the last couple of years the Profit Margin of GPK has grown nicely.
The Operating Margin of GPK (13.25%) is better than 91.30% of its industry peers.
GPK's Operating Margin has improved in the last couple of years.
The Gross Margin of GPK (22.91%) is better than 69.57% of its industry peers.
GPK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.25% | ||
| PM (TTM) | 7.93% | ||
| GM | 22.91% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GPK is still 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.
Compared to 1 year ago, GPK has an improved debt to assets ratio.
2.2 Solvency
GPK has an Altman-Z score of 2.10. 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.
The Altman-Z score of GPK (2.10) is better than 60.87% of its industry peers.
The Debt to FCF ratio of GPK is 292.06, which is on the high side as it means it would take GPK, 292.06 years of fcf income to pay off all of its debts.
GPK has a worse Debt to FCF ratio (292.06) than 78.26% of its industry peers.
GPK has a Debt/Equity ratio of 1.76. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GPK (1.76) is worse than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 292.06 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.56
WACC6.56%
2.3 Liquidity
GPK has a Current Ratio of 1.45. This is a normal value and indicates that GPK is financially healthy and should not expect problems in meeting its short term obligations.
GPK has a Current ratio (1.45) which is comparable to the rest of the industry.
A Quick Ratio of 0.58 indicates that GPK may have some problems paying its short term obligations.
GPK's Quick ratio of 0.58 is on the low side compared to the rest of the industry. GPK is outperformed by 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.23% over the past year.
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 -5.93% in the last year.
Measured over the past years, GPK shows a quite strong growth in Revenue. The Revenue has been growing by 9.35% on average per year.
EPS 1Y (TTM)2.23%
EPS 3Y38.04%
EPS 5Y28.92%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)-5.93%
Revenue growth 3Y12.85%
Revenue growth 5Y9.35%
Sales Q2Q%-6.48%
3.2 Future
The Earnings Per Share is expected to grow by 5.28% on average over the next years.
GPK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.17% yearly.
EPS Next Y-7.19%
EPS Next 2Y0.12%
EPS Next 3Y2.93%
EPS Next 5Y5.28%
Revenue Next Year-6.08%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.3%
Revenue Next 5Y2.17%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
GPK is valuated reasonably with a Price/Earnings ratio of 10.44.
86.96% of the companies in the same industry are more expensive than GPK, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GPK to the average of the S&P500 Index (30.97), we can say GPK is valued rather cheaply.
GPK is valuated reasonably with a Price/Forward Earnings ratio of 9.81.
78.26% of the companies in the same industry are more expensive than GPK, based on the Price/Forward Earnings ratio.
GPK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GPK indicates a rather cheap valuation: GPK is cheaper than 86.96% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GPK is valued a bit more expensive than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 478.84 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
The excellent profitability rating of GPK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y0.12%
EPS Next 3Y2.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.40%, GPK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.93, GPK is paying slightly less dividend.
GPK's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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.
GPK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)1.98%
Div Incr Years2
Div Non Decr Years5
5.3 Sustainability
17.06% 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.
DP17.06%
EPS Next 2Y0.12%
EPS Next 3Y2.93%
GRAPHIC PACKAGING HOLDING CO
NYSE:GPK (10/8/2024, 8:04:00 PM)
After market: 28.72 0 (0%)28.72
+0.15 (+0.53%)
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 Cap8.62B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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 | 10.44 | ||
| Fwd PE | 9.81 | ||
| 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)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 25.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.25% | ||
| PM (TTM) | 7.93% | ||
| GM | 22.91% | ||
| 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 Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.58 | ||
| 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)2.23%
EPS 3Y38.04%
EPS 5Y
EPS Q2Q%
EPS Next Y-7.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.93%
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