PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
206.23 USD
-2.03 (-0.97%)
206.23 USD
0 (0%)
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. PKG has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PKG is quite expensive at the moment. It does show a decent growth rate. PKG also has an excellent dividend rating. These ratings would make PKG suitable for dividend and 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.
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 8.08%, PKG belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
The Return On Equity of PKG (18.66%) is better than 81.82% of its industry peers.
PKG has a Return On Invested Capital of 9.72%. This is amongst the best in the industry. PKG outperforms 81.82% of its industry peers.
PKG had an Average Return On Invested Capital over the past 3 years of 12.69%. This 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.
In the last couple of years the Profit Margin of PKG has remained more or less at the same level.
The Operating Margin of PKG (14.49%) is better 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.
In the last couple of years the Gross Margin of PKG has declined.
| 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.
PKG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PKG has been reduced compared to 5 years ago.
The debt/assets ratio for PKG has been reduced compared to a year ago.
2.2 Solvency
PKG has an Altman-Z score of 3.75. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
PKG has a Altman-Z score of 3.75. This is amongst the best in the industry. PKG outperforms 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.
The Debt to FCF ratio of PKG (5.50) is better than 90.91% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that PKG is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.84, PKG is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.15
WACC8.46%
2.3 Liquidity
A Current Ratio of 3.16 indicates that PKG has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.16, PKG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
A Quick Ratio of 2.00 indicates that PKG has no problem at all paying its short term obligations.
The Quick ratio of PKG (2.00) is better than 90.91% 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.
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 7.30% 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)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
3.2 Future
Based on estimates for the next years, PKG will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.96% on average per year.
PKG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.36% yearly.
EPS Next Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.96%
Revenue Next Year8.5%
Revenue Next 2Y10.83%
Revenue Next 3Y8.26%
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
A Price/Earnings ratio of 20.64 indicates a rather expensive valuation of PKG.
Based on the Price/Earnings ratio, PKG is valued a bit more expensive than 68.18% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, PKG is valued a bit cheaper.
With a Price/Forward Earnings ratio of 17.75, PKG is valued on the expensive side.
63.64% of the companies in the same industry are cheaper than PKG, based on the Price/Forward Earnings ratio.
PKG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
PKG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PKG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.67 | ||
| EV/EBITDA | 11.81 |
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 decent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.85
PEG (5Y)6.08
EPS Next 2Y13.38%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.41%, PKG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.52, PKG has a dividend in line with its industry peers.
PKG's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
On average, the dividend of PKG grows each year by 9.64%, 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)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.
The dividend of PKG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.65%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
206.23
-2.03 (-0.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.36%
Inst Owner Change6.89%
Ins Owners1.58%
Ins Owner Change-1.65%
Market Cap18.56B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target227.89 (10.5%)
Short Float %3.6%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP50.65%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
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)-0.74%
PT rev (3m)4.87%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.24%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 17.75 | ||
| P/S | 2.12 | ||
| P/FCF | 25.67 | ||
| P/OCF | 12.92 | ||
| P/B | 3.9 | ||
| P/tB | 6.48 | ||
| EV/EBITDA | 11.81 |
EPS(TTM)9.99
EY4.84%
EPS(NY)11.62
Fwd EY5.64%
FCF(TTM)8.04
FCFY3.9%
OCF(TTM)15.96
OCFY7.74%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.85
PEG (5Y)6.08
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 | 3.75 |
F-Score5
WACC8.46%
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 Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.96%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.5%
Revenue Next 2Y10.83%
Revenue Next 3Y8.26%
Revenue Next 5Y7.36%
EBIT growth 1Y14.88%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year65.51%
EBIT Next 3Y26.99%
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 for PKG stock?
ChartMill assigns a valuation rating of 2 / 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.
What are the PE and PB ratios of PACKAGING CORP OF AMERICA (PKG) stock?
The Price/Earnings (PE) ratio for PACKAGING CORP OF AMERICA (PKG) is 20.64 and the Price/Book (PB) ratio is 3.9.
How financially healthy is PACKAGING CORP OF AMERICA?
The financial health rating of PACKAGING CORP OF AMERICA (PKG) is 8 / 10.