PACKAGING CORP OF AMERICA (PKG)

US6951561090 - Common Stock

183.33  -2.12 (-1.14%)

After market: 183.33 0 (0%)

Fundamental Rating

6

Taking everything into account, PKG scores 6 out of 10 in our fundamental rating. PKG was compared to 23 industry peers in the Containers & Packaging industry. PKG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PKG is valied quite expensively at the moment, while it does show a decent growth rate.



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

The Return On Assets of PKG (8.09%) is better than 95.65% of its industry peers.
Looking at the Return On Equity, with a value of 17.77%, PKG belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
The Return On Invested Capital of PKG (10.59%) is better than 91.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PKG is significantly above the industry average of 7.56%.
Industry RankSector Rank
ROA 8.09%
ROE 17.77%
ROIC 10.59%
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

The Profit Margin of PKG (9.18%) is better than 95.65% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 13.41%, PKG belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
In the last couple of years the Operating Margin of PKG has declined.
The Gross Margin of PKG (20.98%) is better than 65.22% of its industry peers.
In the last couple of years the Gross Margin of PKG has remained more or less at the same level.
Industry RankSector Rank
OM 13.41%
PM (TTM) 9.18%
GM 20.98%
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%

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.
Compared to 5 years ago, PKG has less shares outstanding
PKG has a worse debt/assets ratio than last year.

2.2 Solvency

PKG has an Altman-Z score of 4.17. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.17, PKG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
The Debt to FCF ratio of PKG is 3.36, which is a good value as it means it would take PKG, 3.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.36, PKG belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that 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 91.30% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF 3.36
Altman-Z 4.17
ROIC/WACC1.33
WACC7.98%

2.3 Liquidity

PKG has a Current Ratio of 2.46. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.46, PKG belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
PKG has a Quick Ratio of 1.74. 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 (1.74) than 91.30% of its industry peers.
Industry RankSector Rank
Current Ratio 2.46
Quick Ratio 1.74

4

3. Growth

3.1 Past

The earnings per share for PKG have decreased strongly by -22.62% in the last year.
PKG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.59% yearly.
PKG shows a decrease in Revenue. In the last year, the revenue decreased by -6.16%.
The Revenue has been growing slightly by 2.15% on average over the past years.
EPS 1Y (TTM)-22.62%
EPS 3Y14.56%
EPS 5Y1.59%
EPS Q2Q%-21.82%
Revenue 1Y (TTM)-6.16%
Revenue growth 3Y5.43%
Revenue growth 5Y2.15%
Sales Q2Q%0.16%

3.2 Future

The Earnings Per Share is expected to grow by 7.35% on average over the next years.
The Revenue is expected to grow by 3.64% on average over the next years.
EPS Next Y0.8%
EPS Next 2Y7.63%
EPS Next 3Y7.16%
EPS Next 5Y7.35%
Revenue Next Year4.21%
Revenue Next 2Y4.14%
Revenue Next 3Y3.96%
Revenue Next 5Y3.64%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 22.33, which indicates a rather expensive current valuation of PKG.
60.87% of the companies in the same industry are cheaper than PKG, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.63, PKG is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.21, the valuation of PKG can be described as rather expensive.
73.91% of the companies in the same industry are cheaper than PKG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.22. PKG is around the same levels.
Industry RankSector Rank
PE 22.33
Fwd PE 18.21

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, PKG is valued a bit more expensive than 78.26% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
Industry RankSector Rank
P/FCF 19.17
EV/EBITDA 11.43

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PKG does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)27.78
PEG (5Y)14.02
EPS Next 2Y7.63%
EPS Next 3Y7.16%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.70%, PKG has a reasonable but not impressive dividend return.
PKG's Dividend Yield is a higher than the industry average which is at 2.95.
Compared to an average S&P500 Dividend Yield of 2.38, PKG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.7%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.01%
Div Incr Years13
Div Non Decr Years14

5.3 Sustainability

62.66% of the earnings are spent on dividend by PKG. This is not a sustainable payout ratio.
PKG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.66%
EPS Next 2Y7.63%
EPS Next 3Y7.16%

PACKAGING CORP OF AMERICA

NYSE:PKG (6/21/2024, 7:18:19 PM)

After market: 183.33 0 (0%)

183.33

-2.12 (-1.14%)

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 Cap16.46B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
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)
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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 22.33
Fwd PE 18.21
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)27.78
PEG (5Y)14.02
Profitability
Industry RankSector Rank
ROA 8.09%
ROE 17.77%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.41%
PM (TTM) 9.18%
GM 20.98%
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 Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.62
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.46
Quick Ratio 1.74
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)-22.62%
EPS 3Y14.56%
EPS 5Y
EPS Q2Q%
EPS Next Y0.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.16%
Revenue growth 3Y5.43%
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