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PACKAGING CORP OF AMERICA (PKG) Stock Fundamental Analysis

NYSE:PKG - New York Stock Exchange, Inc. - US6951561090 - Common Stock - Currency: USD

193.57  -0.87 (-0.45%)

After market: 193.57 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 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. While showing a medium growth rate, PKG is valued expensive at the moment. With these ratings, PKG could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

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7

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.
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.
PKG Yearly Net Income VS EBIT VS OCF VS FCFPKG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B

1.2 Ratios

PKG has a better Return On Assets (9.05%) than 100.00% of its industry peers.
With a decent Return On Equity value of 18.15%, PKG is doing good in the industry, outperforming 77.27% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.09%, PKG belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
PKG had an Average Return On Invested Capital over the past 3 years of 12.69%. This is significantly above the industry average of 7.48%.
Industry RankSector Rank
ROA 9.05%
ROE 18.15%
ROIC 11.09%
ROA(3y)10.19%
ROA(5y)9.47%
ROE(3y)21.67%
ROE(5y)20.45%
ROIC(3y)12.69%
ROIC(5y)12.31%
PKG Yearly ROA, ROE, ROICPKG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 9.54%, 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 Profit Margin of PKG has remained more or less at the same level.
With an excellent Operating Margin value of 13.71%, PKG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
PKG's Operating Margin has declined in the last couple of years.
PKG's Gross Margin of 21.27% is in line compared to the rest of the industry. PKG outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of PKG has declined.
Industry RankSector Rank
OM 13.71%
PM (TTM) 9.54%
GM 21.27%
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%
PKG Yearly Profit, Operating, Gross MarginsPKG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

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8

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
Compared to 5 years ago, PKG has less shares outstanding
The debt/assets ratio for PKG has been reduced compared to a year ago.
PKG Yearly Shares OutstandingPKG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
PKG Yearly Total Debt VS Total AssetsPKG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

An Altman-Z score of 4.65 indicates that PKG is not in any danger for bankruptcy at the moment.
PKG's Altman-Z score of 4.65 is amongst the best of the industry. PKG outperforms 95.45% of its industry peers.
The Debt to FCF ratio of PKG is 4.78, which is a neutral value as it means it would take PKG, 4.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PKG (4.78) is better than 95.45% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that PKG is somewhat dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.56, PKG belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 4.78
Altman-Z 4.65
ROIC/WACC1.34
WACC8.29%
PKG Yearly LT Debt VS Equity VS FCFPKG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

PKG has a Current Ratio of 3.23. This indicates that PKG is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.23, PKG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 2.10 indicates that PKG has no problem at all paying its short term obligations.
PKG has a Quick ratio of 2.10. This is amongst the best in the industry. PKG outperforms 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.23
Quick Ratio 2.1
PKG Yearly Current Assets VS Current LiabilitesPKG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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5

3. Growth

3.1 Past

PKG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.30%, 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.
PKG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.47%.
Measured over the past years, PKG shows a small growth in Revenue. The Revenue has been growing by 3.78% on average per year.
EPS 1Y (TTM)17.3%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%34.3%
Revenue 1Y (TTM)9.47%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%8.16%

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 9.21% yearly.
PKG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y14.59%
EPS Next 2Y12.19%
EPS Next 3Y9.62%
EPS Next 5Y9.21%
Revenue Next Year5.69%
Revenue Next 2Y4.56%
Revenue Next 3Y4.21%
Revenue Next 5Y4.09%

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 stable.
PKG Yearly Revenue VS EstimatesPKG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B 10B
PKG Yearly EPS VS EstimatesPKG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.10, the valuation of PKG can be described as rather expensive.
PKG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, PKG is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.01 indicates a rather expensive valuation of PKG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PKG indicates a slightly more expensive valuation: PKG is more expensive than 72.73% of the companies listed in the same industry.
PKG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.43.
Industry RankSector Rank
PE 20.1
Fwd PE 17.01
PKG Price Earnings VS Forward Price EarningsPKG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

PKG's Enterprise Value to EBITDA is on the same level as the industry average.
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 RankSector Rank
P/FCF 33.5
EV/EBITDA 11.39
PKG Per share dataPKG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PKG may justify a higher PE ratio.
PEG (NY)1.38
PEG (5Y)5.92
EPS Next 2Y12.19%
EPS Next 3Y9.62%

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6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.62%, PKG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.20, PKG pays a bit more dividend than its industry peers.
PKG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 2.62%

5.2 History

The dividend of PKG is nicely growing with an annual growth rate of 9.64%!
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 Years13
Div Non Decr Years14
PKG Yearly Dividends per sharePKG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

PKG pays out 56.14% of its income as dividend. This is a bit on the high side, but may be sustainable.
PKG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.14%
EPS Next 2Y12.19%
EPS Next 3Y9.62%
PKG Yearly Income VS Free CF VS DividendPKG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
PKG Dividend Payout.PKG Dividend Payout, showing the Payout Ratio.PKG Dividend Payout.PayoutRetained Earnings

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PACKAGING CORP OF AMERICA

NYSE:PKG (5/20/2025, 8:27:12 PM)

After market: 193.57 0 (0%)

193.57

-0.87 (-0.45%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)04-22 2025-04-22/amc
Earnings (Next)07-21 2025-07-21/amc
Inst Owners92.46%
Inst Owner Change0.86%
Ins Owners1.53%
Ins Owner Change5.98%
Market Cap17.41B
Analysts77.14
Price Target215.65 (11.41%)
Short Float %1.84%
Short Ratio1.67
Dividend
Industry RankSector Rank
Dividend Yield 2.62%
Yearly Dividend5
Dividend Growth(5Y)9.64%
DP56.14%
Div Incr Years13
Div Non Decr Years14
Ex-Date06-13 2025-06-13 (1.25)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.72%
Min EPS beat(2)-3.46%
Max EPS beat(2)4.9%
EPS beat(4)3
Avg EPS beat(4)1.21%
Min EPS beat(4)-3.46%
Max EPS beat(4)4.9%
EPS beat(8)6
Avg EPS beat(8)4.99%
EPS beat(12)9
Avg EPS beat(12)5.27%
EPS beat(16)13
Avg EPS beat(16)9.38%
Revenue beat(2)1
Avg Revenue beat(2)1.48%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)3.19%
Revenue beat(4)3
Avg Revenue beat(4)1.78%
Min Revenue beat(4)-0.23%
Max Revenue beat(4)3.19%
Revenue beat(8)4
Avg Revenue beat(8)-0.6%
Revenue beat(12)6
Avg Revenue beat(12)-0.48%
Revenue beat(16)10
Avg Revenue beat(16)0.63%
PT rev (1m)-11.98%
PT rev (3m)-15.46%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-0.68%
EPS NY rev (1m)-3.41%
EPS NY rev (3m)-4.24%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-1.07%
Valuation
Industry RankSector Rank
PE 20.1
Fwd PE 17.01
P/S 2.08
P/FCF 33.5
P/OCF 14.61
P/B 3.95
P/tB 5.29
EV/EBITDA 11.39
EPS(TTM)9.63
EY4.97%
EPS(NY)11.38
Fwd EY5.88%
FCF(TTM)5.78
FCFY2.98%
OCF(TTM)13.25
OCFY6.84%
SpS93.22
BVpS48.97
TBVpS36.58
PEG (NY)1.38
PEG (5Y)5.92
Profitability
Industry RankSector Rank
ROA 9.05%
ROE 18.15%
ROCE 14.68%
ROIC 11.09%
ROICexc 12.33%
ROICexgc 14.65%
OM 13.71%
PM (TTM) 9.54%
GM 21.27%
FCFM 6.2%
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%
ROICexcg growth 3Y-8.84%
ROICexcg 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-Score7
Asset Turnover0.95
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 4.78
Debt/EBITDA 1.48
Cap/Depr 127.78%
Cap/Sales 8.01%
Interest Coverage 10.67
Cash Conversion 71.11%
Profit Quality 65%
Current Ratio 3.23
Quick Ratio 2.1
Altman-Z 4.65
F-Score7
WACC8.29%
ROIC/WACC1.34
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)17.3%
EPS 3Y-1.26%
EPS 5Y3.4%
EPS Q2Q%34.3%
EPS Next Y14.59%
EPS Next 2Y12.19%
EPS Next 3Y9.62%
EPS Next 5Y9.21%
Revenue 1Y (TTM)9.47%
Revenue growth 3Y2.74%
Revenue growth 5Y3.78%
Sales Q2Q%8.16%
Revenue Next Year5.69%
Revenue Next 2Y4.56%
Revenue Next 3Y4.21%
Revenue Next 5Y4.09%
EBIT growth 1Y2.96%
EBIT growth 3Y-3.6%
EBIT growth 5Y1.26%
EBIT Next Year67.42%
EBIT Next 3Y22.94%
EBIT Next 5Y15.53%
FCF growth 1Y-38.35%
FCF growth 3Y2.17%
FCF growth 5Y-8.36%
OCF growth 1Y-9.42%
OCF growth 3Y2.87%
OCF growth 5Y-0.27%