DB:4W8

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Graphic Packaging Holding

Executive Summary

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, foodservice, and other consumer products companies. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Graphic Packaging Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4W8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

4W8

-3.7%

DE Packaging

-4.7%

DE Market


1 Year Return

-18.8%

4W8

6.7%

DE Packaging

-3.8%

DE Market

Return vs Industry: 4W8 underperformed the German Packaging industry which returned 6.9% over the past year.

Return vs Market: 4W8 underperformed the German Market which returned -3.8% over the past year.


Shareholder returns

4W8IndustryMarket
7 Day-1.8%-3.7%-4.7%
30 Day-5.1%0.5%-2.4%
90 Day-5.1%4.5%-4.4%
1 Year-17.1%-18.8%9.0%6.7%-0.8%-3.8%
3 Year-11.2%-16.8%8.5%-1.4%-4.5%-12.9%
5 Year-2.1%-11.7%41.5%21.4%15.5%-1.0%

Price Volatility Vs. Market

How volatile is Graphic Packaging Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Graphic Packaging Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4W8 (€11.7) is trading below our estimate of fair value (€45.06)

Significantly Below Fair Value: 4W8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4W8 is poor value based on its PE Ratio (29.2x) compared to the XE Packaging industry average (15x).

PE vs Market: 4W8 is poor value based on its PE Ratio (29.2x) compared to the German market (21.8x).


Price to Earnings Growth Ratio

PEG Ratio: 4W8 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 4W8 is overvalued based on its PB Ratio (2.7x) compared to the XE Packaging industry average (1.7x).


Next Steps

Future Growth

How is Graphic Packaging Holding forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

44.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4W8's forecast earnings growth (44.7% per year) is above the savings rate (0.2%).

Earnings vs Market: 4W8's earnings (44.7% per year) are forecast to grow faster than the German market (26.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 4W8's revenue (1.6% per year) is forecast to grow slower than the German market (6% per year).

High Growth Revenue: 4W8's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4W8's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

How has Graphic Packaging Holding performed over the past 5 years?

-4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4W8 has a large one-off loss of $87.2M impacting its September 30 2020 financial results.

Growing Profit Margin: 4W8's current net profit margins (2.1%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: 4W8's earnings have declined by 4.9% per year over the past 5 years.

Accelerating Growth: 4W8's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4W8 had negative earnings growth (-38.5%) over the past year, making it difficult to compare to the Packaging industry average (19.5%).


Return on Equity

High ROE: 4W8's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is Graphic Packaging Holding's financial position?


Financial Position Analysis

Short Term Liabilities: 4W8's short term assets ($2.0B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: 4W8's short term assets ($2.0B) do not cover its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: 4W8's debt to equity ratio (190.4%) is considered high.

Reducing Debt: 4W8's debt to equity ratio has increased from 180.1% to 190.4% over the past 5 years.

Debt Coverage: 4W8's debt is well covered by operating cash flow (21.6%).

Interest Coverage: 4W8's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Graphic Packaging Holding current dividend yield, its reliability and sustainability?

2.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 4W8's dividend (2.15%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: 4W8's dividend (2.15%) is low compared to the top 25% of dividend payers in the German market (3.74%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 4W8 has been paying a dividend for less than 10 years.

Growing Dividend: 4W8's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.6%), 4W8's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 4W8's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Mike Doss (54 yo)

4.75yrs

Tenure

US$9,154,192

Compensation

Mr. Michael P. Doss, also known as Mike, has been an Independent Director of Sealed Air Corporation since May 21, 2020. Mr. Doss has been the Chief Executive Officer and President of Graphic Packaging Hold ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD9.15M) is above average for companies of similar size in the German market ($USD2.87M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Doss
President4.75yrsUS$9.15m0.41%
$ 13.1m
Stephen Scherger
Executive VP & CFO5.75yrsUS$3.23m0.13%
$ 4.0m
Lauren Tashma
Executive VP6.67yrsUS$1.94m0.034%
$ 1.1m
Stacey J. Panayiotou
Executive Vice President of Human Resources1.5yrsUS$2.15m0.0044%
$ 139.2k
Joseph Yost
Executive VP & President of Americas11.75yrsUS$2.66m0.045%
$ 1.4m
Charles Lischer
Senior VP & Chief Accounting Officerno datano data0.0024%
$ 77.1k
Melanie Skijus
Vice President of Investor Relations1.75yrsno datano data
Michael Farrell
Executive Vice President of Mills Division2.75yrsno data0.0037%
$ 117.3k
Alex Ovshey
Head & VP of Finance at FP&A1.17yrsno datano data
Paul McCann
Senior Vice President of Supply Chain2.17yrsno datano data
Bradford Ankerholz
VP & Treasurer10.67yrsno datano data
Jean-Francois Roche
Senior VP & President of EMEA of Graphic Packaging International LLC0.58yrno data0.0051%
$ 161.8k

2.8yrs

Average Tenure

53yo

Average Age

Experienced Management: 4W8's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Doss
President4.75yrsUS$9.15m0.41%
$ 13.1m
Mary Brlas
Independent Director1.75yrsUS$215.82k0.0067%
$ 213.8k
Dean Scarborough
Independent Director2.25yrsUS$218.29k0.0067%
$ 213.8k
Robert Hagemann
Independent Director6.42yrsUS$237.54k0.031%
$ 978.8k
Philip Martens
Independent Chairman4.42yrsUS$368.29k0.021%
$ 662.6k
David Campbell
Independent Director8.67yrsUS$218.29k0.032%
$ 1.0m
Lynn Wentworth
Independent Director10.92yrsUS$242.52k0.042%
$ 1.3m
Paul Carrico
Independent Director6.08yrsUS$218.29k0.018%
$ 562.3k
Larry Venturelli
Independent Director4.42yrsUS$218.29k0.028%
$ 880.8k

5.4yrs

Average Tenure

63yo

Average Age

Experienced Board: 4W8's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Graphic Packaging Holding Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Graphic Packaging Holding Company
  • Ticker: 4W8
  • Exchange: DB
  • Founded:
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$3.729b
  • Listing Market Cap: US$3.172b
  • Shares outstanding: 270.78m
  • Website: https://www.graphicpkg.com

Number of Employees


Location

  • Graphic Packaging Holding Company
  • 1500 Riveredge Parkway
  • Suite 100
  • Atlanta
  • Georgia
  • 30328
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GPKNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2003
4W8DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2003

Biography

Graphic Packaging Holding Company, together with its subsidiaries, provides paper-based packaging solutions to food, beverage, foodservice, and other consumer products companies. It operates through three ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 21:41
End of Day Share Price2020/10/28 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.