PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
221.33 USD
-0.63 (-0.28%)
221.33 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. 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. PKG also has an excellent dividend rating. These ratings could make PKG a good candidate for dividend and quality investing.
1. Profitability
1.1 Basic Checks
- PKG had positive earnings in the past year.
- PKG had a positive operating cash flow in the past year.
- 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.
- PKG's Return On Equity of 18.66% is amongst the best of the industry. PKG outperforms 81.82% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.72%, PKG belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- 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
- Looking at the Profit Margin, with a value of 10.12%, PKG belongs to the top 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.
- 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 has a Gross Margin (21.79%) which is in line with 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
- The number of shares outstanding for PKG has been reduced compared to 5 years ago.
- PKG has a better debt/assets ratio than last year.
2.2 Solvency
- PKG has an Altman-Z score of 3.88. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
- PKG has a Altman-Z score of 3.88. This is amongst the best in the industry. PKG outperforms 90.91% of its industry peers.
- The Debt to FCF ratio of PKG is 5.50, which is a neutral value as it means it would take PKG, 5.50 years of fcf income to pay off 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.
- The Debt to Equity ratio of PKG (0.84) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.5 | ||
| Altman-Z | 3.88 |
ROIC/WACC1.13
WACC8.61%
2.3 Liquidity
- PKG has a Current Ratio of 3.16. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of PKG (3.16) is better than 90.91% 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 has a better Quick ratio (2.00) 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.
- The Earnings Per Share has been growing slightly by 3.40% on average over the past years.
- The Revenue has been growing slightly by 7.30% in the past year.
- PKG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.78% yearly.
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 11.90% on average per year.
- Based on estimates for the next years, PKG will show a small growth in Revenue. The Revenue will grow by 6.98% on average per year.
EPS Next Y11.13%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
EPS Next 5Y11.9%
Revenue Next Year8.61%
Revenue Next 2Y10.73%
Revenue Next 3Y8.28%
Revenue Next 5Y6.98%
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
- A Price/Earnings ratio of 22.16 indicates a rather expensive valuation of PKG.
- 68.18% of the companies in the same industry are cheaper than PKG, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of PKG to the average of the S&P500 Index (27.38), we can say PKG is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 19.05, the valuation of PKG can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PKG is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, PKG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 19.05 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PKG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.55 | ||
| EV/EBITDA | 12.55 |
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)1.99
PEG (5Y)6.52
EPS Next 2Y13.38%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
- PKG has a Yearly Dividend Yield of 2.25%.
- PKG's Dividend Yield is comparable with the industry average which is at 2.35.
- PKG's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
- PKG pays out 50.65% 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.
DP50.65%
EPS Next 2Y13.38%
EPS Next 3Y11.85%
221.33
-0.63 (-0.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)01-27 2026-01-27/amc
Inst Owners96.28%
Inst Owner Change0.1%
Ins Owners1.58%
Ins Owner Change-1.65%
Market Cap19.92B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target231.18 (4.45%)
Short Float %3.6%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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)0.78%
PT rev (3m)5.06%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-8.86%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.03%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 19.05 | ||
| P/S | 2.27 | ||
| P/FCF | 27.55 | ||
| P/OCF | 13.87 | ||
| P/B | 4.19 | ||
| P/tB | 6.95 | ||
| EV/EBITDA | 12.55 |
EPS(TTM)9.99
EY4.51%
EPS(NY)11.62
Fwd EY5.25%
FCF(TTM)8.04
FCFY3.63%
OCF(TTM)15.96
OCFY7.21%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.99
PEG (5Y)6.52
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 | 3.88 |
F-Score5
WACC8.61%
ROIC/WACC1.13
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 5Y11.9%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%6%
Revenue Next Year8.61%
Revenue Next 2Y10.73%
Revenue Next 3Y8.28%
Revenue Next 5Y6.98%
EBIT growth 1Y14.88%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year65.51%
EBIT Next 3Y26.99%
EBIT Next 5Y18.48%
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 22.16 and the Price/Book (PB) ratio is 4.19.
How financially healthy is PACKAGING CORP OF AMERICA?
The financial health rating of PACKAGING CORP OF AMERICA (PKG) is 8 / 10.