PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
NYSE:PKG - US6951561090 - Common Stock
212.74 USD
+2.39 (+1.14%)
212.74 USD
0 (0%)
Overall PKG gets a fundamental rating of 7 out of 10. We evaluated PKG against 22 industry peers in the Containers & Packaging industry. PKG gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, PKG is valued expensive at the moment. These ratings could make PKG a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
PKG had positive earnings in the past year.
PKG had a positive operating cash flow in the past year.
In the past 5 years PKG has always been profitable.
In the past 5 years PKG always reported a positive cash flow from operatings.
1.2 Ratios
PKG has a better Return On Assets (9.94%) than 100.00% of its industry peers.
PKG has a better Return On Equity (19.39%) than 86.36% of its industry peers.
PKG's Return On Invested Capital of 11.81% is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
PKG had an Average Return On Invested Capital over the past 3 years of 12.69%. This is significantly above the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.94% | ||
| ROE | 19.39% | ||
| ROIC | 11.81% |
ROA(3y)10.19%
ROA(5y)9.47%
ROE(3y)21.67%
ROE(5y)20.45%
ROIC(3y)12.69%
ROIC(5y)12.31%
1.3 Margins
PKG has a better Profit Margin (10.40%) than 95.45% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.65%, PKG belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
PKG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 22.13%, PKG is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Gross Margin of PKG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.65% | ||
| PM (TTM) | 10.4% | ||
| GM | 22.13% |
OM growth 3Y-6.17%
OM growth 5Y-2.42%
PM growth 3Y-4.05%
PM growth 5Y-0.79%
GM growth 3Y-4.25%
GM growth 5Y-2.06%
2. Health
2.1 Basic Checks
PKG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for PKG has been increased compared to 1 year ago.
Compared to 5 years ago, PKG has less shares outstanding
Compared to 1 year ago, PKG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.96 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG's Altman-Z score of 4.96 is amongst the best of the industry. PKG outperforms 100.00% of its industry peers.
PKG has a debt to FCF ratio of 3.98. This is a good value and a sign of high solvency as PKG would need 3.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.98, PKG belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that PKG is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.54, PKG belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.44
WACC8.18%
2.3 Liquidity
PKG has a Current Ratio of 3.54. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.54, PKG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
PKG has a Quick Ratio of 2.32. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of PKG (2.32) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
PKG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.35%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.40% on average over the past years.
PKG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.98%.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)22.35%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%12.73%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%4.63%
3.2 Future
Based on estimates for the next years, PKG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.21% on average per year.
The Revenue is expected to grow by 6.89% on average over the next years.
EPS Next Y14.87%
EPS Next 2Y13.35%
EPS Next 3Y10.73%
EPS Next 5Y12.21%
Revenue Next Year6.56%
Revenue Next 2Y7.36%
Revenue Next 3Y6.45%
Revenue Next 5Y6.89%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.47, PKG is valued on the expensive side.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.24. PKG is valued slightly cheaper when compared to this.
PKG is valuated rather expensively with a Price/Forward Earnings ratio of 18.32.
Based on the Price/Forward Earnings ratio, PKG is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, PKG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 18.32 |
4.2 Price Multiples
PKG's Enterprise Value to EBITDA is on the same level as the industry average.
PKG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.71 | ||
| EV/EBITDA | 11.39 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)6.32
EPS Next 2Y13.35%
EPS Next 3Y10.73%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.14, PKG has a dividend in line with its industry peers.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of PKG is nicely growing with an annual growth rate of 9.64%!
PKG has paid a dividend for at least 10 years, which is a reliable track record.
PKG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.64%
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
50.02% of the earnings are spent on dividend by PKG. This is a bit on the high side, but may be sustainable.
The dividend of PKG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.02%
EPS Next 2Y13.35%
EPS Next 3Y10.73%
212.74
+2.39 (+1.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners92.22%
Inst Owner Change-2.71%
Ins Owners1.61%
Ins Owner Change8.08%
Market Cap19.14B
Analysts72
Price Target215.28 (1.19%)
Short Float %1.89%
Short Ratio2.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.02%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.2%
Min EPS beat(2)0.77%
Max EPS beat(2)3.62%
EPS beat(4)3
Avg EPS beat(4)1.46%
Min EPS beat(4)-3.46%
Max EPS beat(4)4.9%
EPS beat(8)7
Avg EPS beat(8)3.67%
EPS beat(12)9
Avg EPS beat(12)4.04%
EPS beat(16)13
Avg EPS beat(16)7.09%
Revenue beat(2)1
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)0.56%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)3.19%
Revenue beat(8)5
Avg Revenue beat(8)0.35%
Revenue beat(12)5
Avg Revenue beat(12)-1.18%
Revenue beat(16)9
Avg Revenue beat(16)0%
PT rev (1m)2.21%
PT rev (3m)-0.17%
EPS NQ rev (1m)-2.89%
EPS NQ rev (3m)-5.42%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-1.38%
Revenue NQ rev (3m)-1.76%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 18.32 | ||
| P/S | 2.22 | ||
| P/FCF | 30.71 | ||
| P/OCF | 14.83 | ||
| P/B | 4.13 | ||
| P/tB | 5.41 | ||
| EV/EBITDA | 11.39 |
EPS(TTM)9.91
EY4.66%
EPS(NY)11.61
Fwd EY5.46%
FCF(TTM)6.93
FCFY3.26%
OCF(TTM)14.35
OCFY6.75%
SpS96.03
BVpS51.48
TBVpS39.3
PEG (NY)1.44
PEG (5Y)6.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.94% | ||
| ROE | 19.39% | ||
| ROCE | 15.63% | ||
| ROIC | 11.81% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 15.62% | ||
| OM | 14.65% | ||
| PM (TTM) | 10.4% | ||
| GM | 22.13% | ||
| FCFM | 7.21% |
ROA(3y)10.19%
ROA(5y)9.47%
ROE(3y)21.67%
ROE(5y)20.45%
ROIC(3y)12.69%
ROIC(5y)12.31%
ROICexc(3y)14.1%
ROICexc(5y)13.85%
ROICexgc(3y)17.07%
ROICexgc(5y)16.99%
ROCE(3y)16.8%
ROCE(5y)16.3%
ROICexcg growth 3Y-8.84%
ROICexcg growth 5Y-4.23%
ROICexc growth 3Y-7.38%
ROICexc growth 5Y-2.79%
OM growth 3Y-6.17%
OM growth 5Y-2.42%
PM growth 3Y-4.05%
PM growth 5Y-0.79%
GM growth 3Y-4.25%
GM growth 5Y-2.06%
F-Score8
Asset Turnover0.96
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 122.04% | ||
| Cap/Sales | 7.73% | ||
| Interest Coverage | 12.6 | ||
| Cash Conversion | 71.22% | ||
| Profit Quality | 69.39% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | 4.96 |
F-Score8
WACC8.18%
ROIC/WACC1.44
Cap/Depr(3y)133.6%
Cap/Depr(5y)130.1%
Cap/Sales(3y)7.95%
Cap/Sales(5y)7.63%
Profit Quality(3y)80.36%
Profit Quality(5y)86.35%
High Growth Momentum
Growth
EPS 1Y (TTM)22.35%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%12.73%
EPS Next Y14.87%
EPS Next 2Y13.35%
EPS Next 3Y10.73%
EPS Next 5Y12.21%
Revenue 1Y (TTM)8.98%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%4.63%
Revenue Next Year6.56%
Revenue Next 2Y7.36%
Revenue Next 3Y6.45%
Revenue Next 5Y6.89%
EBIT growth 1Y22.32%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year64.02%
EBIT Next 3Y23.91%
EBIT Next 5Y18.12%
FCF growth 1Y-23.96%
FCF growth 3Y2.17%
FCF growth 5Y-8.36%
OCF growth 1Y-13.4%
OCF growth 3Y2.87%
OCF growth 5Y-0.27%