PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
192.55 USD
-10.69 (-5.26%)
192.85 USD
+0.3 (+0.16%)
Taking everything into account, PKG scores 6 out of 10 in our fundamental rating. PKG was compared to 22 industry peers in the Containers & Packaging industry. Both the health and profitability get an excellent rating, making PKG a very profitable company, without any liquidiy or solvency issues. PKG is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make PKG suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year PKG was profitable.
In the past year PKG had a positive cash flow from operations.
Each year in the past 5 years PKG has been profitable.
Each year in the past 5 years PKG had a positive operating cash flow.
1.2 Ratios
PKG's Return On Assets of 8.08% is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
With an excellent Return On Equity value of 18.66%, PKG belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
PKG has a better Return On Invested Capital (9.72%) than 81.82% 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 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 18.66% | ||
| ROIC | 9.72% |
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
With an excellent Profit Margin value of 10.12%, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
PKG's Profit Margin has been stable in the last couple of years.
PKG has a better Operating Margin (14.49%) than 95.45% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
PKG's Gross Margin of 21.79% is in line compared to the rest of the industry. PKG outperforms 59.09% of its industry peers.
PKG's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.49% | ||
| PM (TTM) | 10.12% | ||
| GM | 21.79% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PKG is still creating some value.
Compared to 1 year ago, PKG has more shares outstanding
Compared to 5 years ago, PKG has less shares outstanding
PKG has a better debt/assets ratio than last year.
2.2 Solvency
PKG has an Altman-Z score of 3.73. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PKG (3.73) is better than 90.91% of its industry peers.
PKG has a debt to FCF ratio of 5.50. This is a neutral value as PKG would need 5.50 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 5.50, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that PKG is somewhat dependend on debt financing.
PKG's Debt to Equity ratio of 0.84 is fine compared to the rest of the industry. PKG outperforms 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.15
WACC8.49%
2.3 Liquidity
A Current Ratio of 3.16 indicates that PKG has no problem at all paying its short term obligations.
PKG has a Current ratio of 3.16. This is amongst the best in the industry. PKG outperforms 95.45% of its industry peers.
PKG has a Quick Ratio of 2.00. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
PKG's Quick ratio of 2.00 is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
PKG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.83%, which is quite good.
The Earnings Per Share has been growing slightly by 3.40% on average over the past years.
Looking at the last year, PKG shows a small growth in Revenue. The Revenue has grown by 7.30% in the last year.
The Revenue has been growing slightly by 3.78% on average over the past years.
EPS 1Y (TTM)14.83%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%3.02%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
3.2 Future
PKG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.96% yearly.
Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 7.36% on average per year.
EPS Next Y11.68%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
EPS Next 5Y11.96%
Revenue Next Year8.61%
Revenue Next 2Y11.05%
Revenue Next 3Y8.41%
Revenue Next 5Y7.36%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.27, which indicates a rather expensive current valuation of PKG.
PKG's Price/Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 63.64% of the companies in the same industry.
PKG's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
Based on the Price/Forward Earnings ratio of 16.40, the valuation of PKG can be described as correct.
PKG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. PKG is more expensive than 72.73% of the companies in the same industry.
PKG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PKG is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
PKG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.96 | ||
| EV/EBITDA | 11.66 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)5.68
EPS Next 2Y13.96%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
PKG's Dividend Yield is comparable with the industry average which is at 3.34.
Compared to an average S&P500 Dividend Yield of 2.32, PKG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
5.2 History
On average, the dividend of PKG grows each year by 9.64%, which is quite nice.
PKG has been paying a dividend for at least 10 years, so it has 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
50.65% of the earnings are spent on dividend by PKG. This is a bit on the high side, but may be sustainable.
PKG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.65%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
192.55
-10.69 (-5.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change6.88%
Ins Owners1.58%
Ins Owner Change-1.65%
Market Cap17.33B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target229.58 (19.23%)
Short Float %2.78%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.65%
Div Incr Years0
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.53%
Min EPS beat(2)-3.83%
Max EPS beat(2)0.77%
EPS beat(4)2
Avg EPS beat(4)-0.73%
Min EPS beat(4)-3.83%
Max EPS beat(4)3.62%
EPS beat(8)6
Avg EPS beat(8)2.54%
EPS beat(12)9
Avg EPS beat(12)3.75%
EPS beat(16)12
Avg EPS beat(16)5.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.71%
Max Revenue beat(2)-0.5%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-1.71%
Max Revenue beat(4)0.56%
Revenue beat(8)5
Avg Revenue beat(8)0.76%
Revenue beat(12)5
Avg Revenue beat(12)-0.88%
Revenue beat(16)8
Avg Revenue beat(16)-0.19%
PT rev (1m)0.25%
PT rev (3m)6.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)-2.76%
EPS NY rev (3m)-2.77%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)7.24%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.27 | ||
| Fwd PE | 16.4 | ||
| P/S | 1.98 | ||
| P/FCF | 23.96 | ||
| P/OCF | 12.06 | ||
| P/B | 3.64 | ||
| P/tB | 6.05 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)9.99
EY5.19%
EPS(NY)11.74
Fwd EY6.1%
FCF(TTM)8.04
FCFY4.17%
OCF(TTM)15.96
OCFY8.29%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.65
PEG (5Y)5.68
Graham Number108.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 18.66% | ||
| ROCE | 12.87% | ||
| ROIC | 9.72% | ||
| ROICexc | 10.5% | ||
| ROICexgc | 13.23% | ||
| OM | 14.49% | ||
| PM (TTM) | 10.12% | ||
| GM | 21.79% | ||
| FCFM | 8.24% |
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%
ROICexgc growth 3Y-8.84%
ROICexgc 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-Score5
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 125.76% | ||
| Cap/Sales | 8.13% | ||
| Interest Coverage | 13.66 | ||
| Cash Conversion | 78.15% | ||
| Profit Quality | 81.48% | ||
| Current Ratio | 3.16 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 3.73 |
F-Score5
WACC8.49%
ROIC/WACC1.15
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)14.83%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%3.02%
EPS Next Y11.68%
EPS Next 2Y13.96%
EPS Next 3Y11.53%
EPS Next 5Y11.96%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.61%
Revenue Next 2Y11.05%
Revenue Next 3Y8.41%
Revenue Next 5Y7.36%
EBIT growth 1Y14.88%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year64.72%
EBIT Next 3Y24.72%
EBIT Next 5Y18.55%
FCF growth 1Y-11.97%
FCF growth 3Y2.17%
FCF growth 5Y-8.36%
OCF growth 1Y2.6%
OCF growth 3Y2.87%
OCF growth 5Y-0.27%
PACKAGING CORP OF AMERICA / PKG FAQ
What is the fundamental rating for PKG stock?
ChartMill assigns a fundamental rating of 6 / 10 to PKG.
What is the valuation status of PACKAGING CORP OF AMERICA (PKG) stock?
ChartMill assigns a valuation rating of 3 / 10 to PACKAGING CORP OF AMERICA (PKG). This can be considered as Overvalued.
What is the profitability of PKG stock?
PACKAGING CORP OF AMERICA (PKG) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for PKG stock?
The Earnings per Share (EPS) of PACKAGING CORP OF AMERICA (PKG) is expected to grow by 11.68% in the next year.
Is the dividend of PACKAGING CORP OF AMERICA sustainable?
The dividend rating of PACKAGING CORP OF AMERICA (PKG) is 6 / 10 and the dividend payout ratio is 50.65%.