PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PKG - US6951561090 - Common Stock
217.9 USD
+4.02 (+1.88%)
We assign a fundamental rating of 6 out of 10 to PKG. PKG was compared to 22 industry peers in the Containers & Packaging industry. PKG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
PKG had a positive operating cash flow in the past year.
PKG had positive earnings in each of the past 5 years.
PKG had a positive operating cash flow in each of the past 5 years.
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.
PKG has a Return On Equity of 18.66%. This is amongst the best in the industry. PKG outperforms 81.82% of its industry peers.
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
PKG has a Profit Margin of 10.12%. This is amongst the best in the industry. PKG outperforms 90.91% of its industry peers.
PKG's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 14.49%, PKG belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
In the last couple of years the Operating Margin of PKG has declined.
PKG has a Gross Margin (21.79%) which is comparable to the rest of the industry.
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.
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.
The debt/assets ratio for PKG has been reduced compared to a year ago.
2.2 Solvency
PKG has an Altman-Z score of 3.82. This indicates that PKG is financially healthy and has little risk of bankruptcy at the moment.
PKG has a better Altman-Z score (3.82) than 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.
The Debt to FCF ratio of PKG (5.50) is better than 90.91% of its industry peers.
PKG has a Debt/Equity ratio of 0.84. This is a neutral value indicating 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 | 3.82 |
ROIC/WACC1.15
WACC8.43%
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.
A Quick Ratio of 2.00 indicates that PKG has no problem at all paying its short term obligations.
PKG's Quick ratio of 2.00 is amongst the best of the industry. PKG outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.16 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.83% over the past year.
The Earnings Per Share has been growing slightly by 3.40% on average over the past years.
PKG shows a small growth in Revenue. In the last year, the Revenue has grown by 7.30%.
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 11.96% 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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 21.81, which indicates a rather expensive current valuation of PKG.
68.18% of the companies in the same industry are cheaper than PKG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.00. PKG is around the same levels.
With a Price/Forward Earnings ratio of 18.75, PKG is valued on the expensive side.
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 23.70, PKG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.75 |
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 | 27.12 | ||
| EV/EBITDA | 12.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.96
PEG (5Y)6.42
EPS Next 2Y13.38%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
PKG has a Yearly Dividend Yield of 2.42%.
Compared to an average industry Dividend Yield of 2.52, PKG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, PKG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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 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.
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%
NYSE:PKG (1/9/2026, 2:43:09 PM)
217.9
+4.02 (+1.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners96.28%
Inst Owner Change0%
Ins Owners1.58%
Ins Owner Change-1.65%
Market Cap19.61B
Revenue(TTM)8.77B
Net Income(TTM)887.30M
Analysts72.5
Price Target227.89 (4.58%)
Short Float %3.6%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
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)3.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.43%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-3.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.72%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.75 | ||
| P/S | 2.24 | ||
| P/FCF | 27.12 | ||
| P/OCF | 13.65 | ||
| P/B | 4.12 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 12.19 |
EPS(TTM)9.99
EY4.58%
EPS(NY)11.62
Fwd EY5.33%
FCF(TTM)8.04
FCFY3.69%
OCF(TTM)15.96
OCFY7.33%
SpS97.49
BVpS52.85
TBVpS31.84
PEG (NY)1.96
PEG (5Y)6.42
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 | 3.82 |
F-Score5
WACC8.43%
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 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.
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 21.81 and the Price/Book (PB) ratio is 4.12.
How financially healthy is PACKAGING CORP OF AMERICA?
The financial health rating of PACKAGING CORP OF AMERICA (PKG) is 8 / 10.