PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - NYSE:PKG - US6951561090 - Common Stock
204.83 USD
-8.43 (-3.95%)
204.83 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to PKG. 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 not valued too expensively and it also shows a decent growth rate. With these ratings, PKG could be worth investigating further 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.
In the past 5 years PKG has always been profitable.
PKG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PKG has a Return On Assets of 9.94%. This is amongst the best in the industry. PKG outperforms 100.00% of its industry peers.
PKG has a Return On Equity of 19.39%. This is amongst the best in the industry. PKG outperforms 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.
Measured over the past 3 years, the Average Return On Invested Capital for PKG is significantly above the industry average of 7.26%.
| 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
The Profit Margin of PKG (10.40%) is better than 95.45% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
PKG has a Operating Margin of 14.65%. This is amongst the best in the industry. PKG outperforms 95.45% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
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.
PKG's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, PKG has more shares outstanding
PKG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PKG has an improved debt to assets ratio.
2.2 Solvency
PKG has an Altman-Z score of 4.96. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PKG (4.96) is better than 95.45% of its industry peers.
The Debt to FCF ratio of PKG is 3.98, which is a good value as it means it would take PKG, 3.98 years of fcf income to pay off all of its debts.
PKG's Debt to FCF ratio of 3.98 is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
PKG has a Debt/Equity ratio of 0.54. This is a neutral value indicating PKG is somewhat dependend on debt financing.
PKG has a Debt to Equity ratio of 0.54. This is amongst the best in the industry. PKG outperforms 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 3.98 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.4
WACC8.45%
2.3 Liquidity
A Current Ratio of 3.54 indicates that PKG has no problem at all paying 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.
Looking at the Quick ratio, with a value of 2.32, PKG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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 14.83%, which is quite good.
PKG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.40% yearly.
The Revenue has been growing slightly by 7.45% in the past 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)7.45%
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 12.21% yearly.
Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 6.89% on average per year.
EPS Next Y14.85%
EPS Next 2Y16.01%
EPS Next 3Y12.83%
EPS Next 5Y12.21%
Revenue Next Year8.2%
Revenue Next 2Y10.27%
Revenue Next 3Y8.22%
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.
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
Based on the Price/Earnings ratio of 20.50, the valuation of PKG can be described as rather expensive.
63.64% 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 26.91, PKG is valued a bit cheaper.
PKG is valuated correctly with a Price/Forward Earnings ratio of 16.84.
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.
The average S&P500 Price/Forward Earnings ratio is at 22.92. PKG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 16.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PKG is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.57 | ||
| EV/EBITDA | 11.42 |
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.
A more expensive valuation may be justified as PKG's earnings are expected to grow with 12.83% in the coming years.
PEG (NY)1.38
PEG (5Y)6.04
EPS Next 2Y16.01%
EPS Next 3Y12.83%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.40%.
PKG's Dividend Yield is comparable with the industry average which is at 3.34.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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
PKG pays out 50.02% of its income as dividend. 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.
DP50.02%
EPS Next 2Y16.01%
EPS Next 3Y12.83%
204.83
-8.43 (-3.95%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners93.63%
Inst Owner Change-0.31%
Ins Owners1.58%
Ins Owner Change-1.29%
Market Cap18.43B
Revenue(TTM)8.38B
Net Income(TTM)898.30M
Analysts72.5
Price Target220.04 (7.43%)
Short Float %2.94%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
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)1.25%
PT rev (3m)4.47%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)0.13%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.5 | ||
| Fwd PE | 16.84 | ||
| P/S | 2.13 | ||
| P/FCF | 29.57 | ||
| P/OCF | 14.27 | ||
| P/B | 3.98 | ||
| P/tB | 5.21 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)9.99
EY4.88%
EPS(NY)12.17
Fwd EY5.94%
FCF(TTM)6.93
FCFY3.38%
OCF(TTM)14.35
OCFY7.01%
SpS96.03
BVpS51.48
TBVpS39.3
PEG (NY)1.38
PEG (5Y)6.04
Graham Number107.57
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%
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-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
WACC8.45%
ROIC/WACC1.4
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 Y14.85%
EPS Next 2Y16.01%
EPS Next 3Y12.83%
EPS Next 5Y12.21%
Revenue 1Y (TTM)7.45%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.2%
Revenue Next 2Y10.27%
Revenue Next 3Y8.22%
Revenue Next 5Y6.89%
EBIT growth 1Y22.32%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year64.72%
EBIT Next 3Y24.72%
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%
PACKAGING CORP OF AMERICA / PKG FAQ
What is the fundamental rating for PKG stock?
ChartMill assigns a fundamental rating of 7 / 10 to PKG.
What is the valuation status of PACKAGING CORP OF AMERICA (PKG) stock?
ChartMill assigns a valuation rating of 4 / 10 to PACKAGING CORP OF AMERICA (PKG). This can be considered as Fairly Valued.
What is the profitability of PKG stock?
PACKAGING CORP OF AMERICA (PKG) has a profitability rating of 8 / 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 14.85% 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 50.02%.