PACTIV EVERGREEN INC (PTVE)
US69526K1051 - Common Stock
We assign a fundamental rating of 3 out of 10 to PTVE. PTVE was compared to 23 industry peers in the Containers & Packaging industry. PTVE has a bad profitability rating. Also its financial health evaluation is rather negative. PTVE is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PTVE was profitable.
PTVE had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PTVE reported negative net income in multiple years.
In the past 5 years PTVE always reported a positive cash flow from operatings.
1.2 Ratios
PTVE has a Return On Assets of -3.53%. This is amonst the worse of the industry: PTVE underperforms 91.30% of its industry peers.
PTVE's Return On Equity of -16.80% is on the low side compared to the rest of the industry. PTVE is outperformed by 86.96% of its industry peers.
The Return On Invested Capital of PTVE (2.39%) is worse than 82.61% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PTVE is significantly below the industry average of 8.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.53% | ||
| ROE | -16.8% | ||
| ROIC | 2.39% |
ROA(3y)0.38%
ROA(5y)0.26%
ROE(3y)1.84%
ROE(5y)1.48%
ROIC(3y)2.73%
ROIC(5y)2.57%
1.3 Margins
PTVE has a worse Operating Margin (3.56%) than 78.26% of its industry peers.
In the last couple of years the Operating Margin of PTVE has declined.
PTVE has a worse Gross Margin (13.30%) than 86.96% of its industry peers.
In the last couple of years the Gross Margin of PTVE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.56% | ||
| PM (TTM) | N/A | ||
| GM | 13.3% |
OM growth 3Y-6.61%
OM growth 5Y-16.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.67%
GM growth 5Y-3.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PTVE is destroying value.
The number of shares outstanding for PTVE has been increased compared to 1 year ago.
Compared to 5 years ago, PTVE has more shares outstanding
PTVE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.55, we must say that PTVE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.55, PTVE is in line with its industry, outperforming 43.48% of the companies in the same industry.
PTVE has a debt to FCF ratio of 14.40. This is a negative value and a sign of low solvency as PTVE would need 14.40 years to pay back of all of its debts.
PTVE has a worse Debt to FCF ratio (14.40) than 60.87% of its industry peers.
A Debt/Equity ratio of 2.66 is on the high side and indicates that PTVE has dependencies on debt financing.
The Debt to Equity ratio of PTVE (2.66) is worse than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | 14.4 | ||
| Altman-Z | 1.55 |
ROIC/WACC0.33
WACC7.22%
2.3 Liquidity
A Current Ratio of 2.00 indicates that PTVE should not have too much problems paying its short term obligations.
The Current ratio of PTVE (2.00) is better than 78.26% of its industry peers.
A Quick Ratio of 0.93 indicates that PTVE may have some problems paying its short term obligations.
PTVE's Quick ratio of 0.93 is in line compared to the rest of the industry. PTVE outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The earnings per share for PTVE have decreased strongly by -94.92% in the last year.
PTVE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.41%.
Measured over the past years, PTVE shows a small growth in Revenue. The Revenue has been growing by 0.75% on average per year.
EPS 1Y (TTM)-94.92%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q120%
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y5.53%
Revenue growth 5Y0.75%
Revenue growth Q2Q-13.69%
3.2 Future
The Earnings Per Share is expected to grow by 161.22% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.81% on average over the next years.
EPS Next Y1199.13%
EPS Next 2Y295.52%
EPS Next 3Y161.22%
EPS Next 5YN/A
Revenue Next Year-2.45%
Revenue Next 2Y-0.2%
Revenue Next 3Y0.81%
Revenue Next 5YN/A
3.3 Evolution
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.
4. Valuation
4.1 Price/Earnings Ratio
PTVE is valuated quite expensively with a Price/Earnings ratio of 147.33.
Based on the Price/Earnings ratio, PTVE is valued expensively inside the industry as 86.96% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 27.73, PTVE is valued quite expensively.
A Price/Forward Earnings ratio of 11.34 indicates a reasonable valuation of PTVE.
Based on the Price/Forward Earnings ratio, PTVE is valued a bit cheaper than the industry average as 78.26% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PTVE to the average of the S&P500 Index (20.41), we can say PTVE is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.33 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
PTVE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PTVE is cheaper than 82.61% of the companies in the same industry.
PTVE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PTVE is cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.54 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as PTVE's earnings are expected to grow with 161.22% in the coming years.
PEG (NY)0.12
PEG (5Y)N/A
EPS Next 2Y295.52%
EPS Next 3Y161.22%
5. Dividend
5.1 Amount
PTVE has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 2.84, PTVE pays a bit more dividend than its industry peers.
PTVE's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
PTVE has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
PTVE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-31.42%
EPS Next 2Y295.52%
EPS Next 3Y161.22%
PACTIV EVERGREEN INC
NASDAQ:PTVE (5/6/2024, 9:05:56 AM)
13.26
-0.31 (-2.28%)
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 Cap2.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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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)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 147.33 | ||
| Fwd PE | 11.34 | ||
| 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)0.12
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.53% | ||
| ROE | -16.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.56% | ||
| PM (TTM) | N/A | ||
| GM | 13.3% | ||
| 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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.66 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2 | ||
| Quick Ratio | 0.93 | ||
| 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)
Growth
EPS 1Y (TTM)-94.92%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y1199.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-11.41%
Revenue growth 3Y5.53%
Revenue growth 5Y
Revenue growth 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