PACKAGING CORP OF AMERICA (PKG)
US6951561090 - Common Stock
Overall PKG gets a fundamental rating of 6 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. PKG is quite expensive at the moment. It does show a decent growth rate.
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.
PKG had positive earnings in each of the past 5 years.
Each year in the past 5 years PKG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.09%, PKG belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
With an excellent Return On Equity value of 17.77%, PKG belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.59%, PKG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
PKG had an Average Return On Invested Capital over the past 3 years of 13.62%. This is significantly above the industry average of 7.81%.
| Industry Rank | Sector 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
PKG has a better Profit Margin (9.18%) than 95.45% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
The Operating Margin of PKG (13.41%) is better than 90.91% of its industry peers.
In the last couple of years the Operating Margin of PKG has declined.
PKG has a Gross Margin of 20.98%. This is in the better half of the industry: PKG outperforms 63.64% 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 Rank | Sector 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%
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 about the same amount of shares outstanding.
The number of shares outstanding for PKG has been reduced compared to 5 years ago.
PKG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.26 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG has a Altman-Z score of 4.26. This is amongst the best in the industry. PKG outperforms 95.45% of its industry peers.
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 95.45% of the companies in the same industry.
A Debt/Equity ratio of 0.62 indicates that PKG is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.62, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.62 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.31
WACC8.06%
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.
PKG's Current ratio of 2.46 is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
A Quick Ratio of 1.74 indicates that PKG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, PKG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The earnings per share for PKG have decreased strongly by -16.41% 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.
Looking at the last year, PKG shows a decrease in Revenue. The Revenue has decreased by -1.29% in the last year.
PKG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.15% yearly.
EPS 1Y (TTM)-16.41%
EPS 3Y14.56%
EPS 5Y1.59%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y5.43%
Revenue growth 5Y2.15%
Sales Q2Q%6.31%
3.2 Future
The Earnings Per Share is expected to grow by 7.35% on average over the next years.
Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 3.64% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.57, PKG is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of PKG indicates a slightly more expensive valuation: PKG is more expensive than 68.18% of the companies listed in the same industry.
PKG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.77, which indicates a rather expensive current valuation of PKG.
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.
When comparing the Price/Forward Earnings ratio of PKG to the average of the S&P500 Index (20.59), we can say PKG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 19.77 |
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 77.27% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.81 | ||
| EV/EBITDA | 11.93 |
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)30.56
PEG (5Y)15.43
EPS Next 2Y7.63%
EPS Next 3Y7.16%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.91, PKG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, PKG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
The dividend of PKG is nicely growing with an annual growth rate of 12.01%!
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)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.
The dividend of PKG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP62.66%
EPS Next 2Y7.63%
EPS Next 3Y7.16%
PACKAGING CORP OF AMERICA
NYSE:PKG (7/26/2024, 7:04:00 PM)
After market: 199 0 (0%)199
+4.76 (+2.45%)
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 Cap17.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.57 | ||
| Fwd PE | 19.77 | ||
| 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)30.56
PEG (5Y)15.43
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)-16.41%
EPS 3Y14.56%
EPS 5Y
EPS Q2Q%
EPS Next Y0.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.29%
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