PACKAGING CORP OF AMERICA (PKG)

US6951561090 - Common Stock

173.92  +3.04 (+1.78%)

After market: 173.92 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to PKG. PKG was compared to 23 industry peers in the Containers & Packaging industry. PKG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PKG is quite expensive at the moment. It does show a decent growth rate.



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8

1. Profitability

1.1 Basic Checks

PKG had positive earnings in the past year.
In the past year PKG had a positive cash flow from operations.
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

Looking at the Return On Assets, with a value of 8.74%, PKG belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
The Return On Equity of PKG (18.99%) is better than 82.61% of its industry peers.
PKG's Return On Invested Capital of 11.36% is amongst the best of the industry. PKG outperforms 91.30% of its industry peers.
PKG had an Average Return On Invested Capital over the past 3 years of 13.62%. This is significantly above the industry average of 8.25%.
Industry RankSector Rank
ROA 8.74%
ROE 18.99%
ROIC 11.36%
ROA(3y)10.72%
ROA(5y)9.57%
ROE(3y)23.33%
ROE(5y)21.32%
ROIC(3y)13.62%
ROIC(5y)12.59%

1.3 Margins

PKG has a better Profit Margin (9.73%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of PKG has remained more or less at the same level.
PKG has a Operating Margin of 14.31%. This is amongst the best in the industry. PKG outperforms 95.65% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
PKG's Gross Margin of 21.77% is fine compared to the rest of the industry. PKG outperforms 65.22% of its industry peers.
PKG's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.31%
PM (TTM) 9.73%
GM 21.77%
OM growth 3Y4.22%
OM growth 5Y-1.85%
PM growth 3Y12.29%
PM growth 5Y-1.4%
GM growth 3Y1.5%
GM growth 5Y-1.48%

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PKG is creating some value.
The number of shares outstanding for PKG remains at a similar level compared to 1 year ago.
PKG has less shares outstanding than it did 5 years ago.
PKG has a worse debt/assets ratio than last year.

2.2 Solvency

PKG has an Altman-Z score of 4.15. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
PKG has a better Altman-Z score (4.15) than 95.65% of its industry peers.
PKG has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as PKG would need 3.42 years to pay back of all of its debts.
PKG's Debt to FCF ratio of 3.42 is amongst the best of the industry. PKG outperforms 91.30% of its industry peers.
PKG has a Debt/Equity ratio of 0.62. This is a neutral value indicating PKG is somewhat dependend on debt financing.
PKG's Debt to Equity ratio of 0.62 is amongst the best of the industry. PKG outperforms 82.61% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.42
Altman-Z 4.15
ROIC/WACC1.38
WACC8.24%

2.3 Liquidity

A Current Ratio of 2.57 indicates that PKG has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.57, PKG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
PKG has a Quick Ratio of 1.77. This is a normal value and indicates that PKG is financially healthy and should not expect problems in meeting its short term obligations.
PKG has a better Quick ratio (1.77) than 91.30% of its industry peers.
Industry RankSector Rank
Current Ratio 2.57
Quick Ratio 1.77

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4

3. Growth

3.1 Past

The earnings per share for PKG have decreased strongly by -21.92% in the last year.
The Earnings Per Share has been growing slightly by 1.59% on average over the past years.
PKG shows a decrease in Revenue. In the last year, the revenue decreased by -7.97%.
PKG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.15% yearly.
EPS 1Y (TTM)-21.92%
EPS 3Y14.56%
EPS 5Y1.59%
EPS growth Q2Q-9.36%
Revenue 1Y (TTM)-7.97%
Revenue growth 3Y5.43%
Revenue growth 5Y2.15%
Revenue growth Q2Q-2.05%

3.2 Future

PKG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
PKG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.11% yearly.
EPS Next Y3.24%
EPS Next 2Y9.49%
EPS Next 3Y7.62%
EPS Next 5Y4.3%
Revenue Next Year2.67%
Revenue Next 2Y3.03%
Revenue Next 3Y3.16%
Revenue Next 5Y3.11%

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.

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 20.01, PKG is valued on the expensive side.
PKG's Price/Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 60.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, PKG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.39, PKG is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PKG is valued a bit more expensive than the industry average as 65.22% of the companies are valued more cheaply.
PKG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.01
Fwd PE 19.39

4.2 Price Multiples

PKG's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PKG is more expensive than 60.87% of the companies in the same industry.
60.87% of the companies in the same industry are cheaper than PKG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.52
EV/EBITDA 10.31

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PKG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.18
PEG (5Y)12.57
EPS Next 2Y9.49%
EPS Next 3Y7.62%

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6

5. Dividend

5.1 Amount

PKG has a Yearly Dividend Yield of 2.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.01, PKG pays a bit more dividend than its industry peers.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 2.93%

5.2 History

On average, the dividend of PKG grows each year by 12.01%, which is quite nice.
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)12.01%
Div Incr Years13
Div Non Decr Years14

5.3 Sustainability

59.15% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP59.15%
EPS Next 2Y9.49%
EPS Next 3Y7.62%

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PACKAGING CORP OF AMERICA

NYSE:PKG (4/24/2024, 7:23:06 PM)

After market: 173.92 0 (0%)

173.92

+3.04 (+1.78%)

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 Cap15.61B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.93%
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 RankSector Rank
PE 20.01
Fwd PE 19.39
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)6.18
PEG (5Y)12.57
Profitability
Industry RankSector Rank
ROA 8.74%
ROE 18.99%
ROCE
ROIC
ROICexc
ROICexgc
OM 14.31%
PM (TTM) 9.73%
GM 21.77%
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 Turnover0.9
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.57
Quick Ratio 1.77
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)
Growth
EPS 1Y (TTM)-21.92%
EPS 3Y14.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.97%
Revenue growth 3Y5.43%
Revenue growth 5Y
Revenue growth 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