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GPK

Graphic Packaging HoldingNYSE:GPK Stock Report

Last Price

US$18.69

Market Cap

US$5.7b

7D

-4.1%

1Y

8.5%

Updated

21 Jan, 2022

Data

Company Financials +
GPK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends3/6

GPK Stock Overview

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

Graphic Packaging Holding Competitors

International Paper

NYSE:IP

US$18.3b

Avery Dennison

NYSE:AVY

US$16.6b

Packaging Corporation of America

NYSE:PKG

US$12.7b

WestRock

NYSE:WRK

US$11.5b

Price History & Performance

Summary of all time highs, changes and price drops for Graphic Packaging Holding
Historical stock prices
Current Share PriceUS$18.69
52 Week HighUS$21.56
52 Week LowUS$15.36
Beta1.19
1 Month Change0.76%
3 Month Change-9.49%
1 Year Change8.54%
3 Year Change53.57%
5 Year Change49.52%
Change since IPO355.85%

Recent News & Updates

Jan 13
Here's What's Concerning About Graphic Packaging Holding's (NYSE:GPK) Returns On Capital

Here's What's Concerning About Graphic Packaging Holding's (NYSE:GPK) Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...

Dec 27
Should You Investigate Graphic Packaging Holding Company (NYSE:GPK) At US$18.67?

Should You Investigate Graphic Packaging Holding Company (NYSE:GPK) At US$18.67?

Graphic Packaging Holding Company ( NYSE:GPK ), is not the largest company out there, but it received a lot of...

Dec 21

Graphic Packaging: Much Ado About Nothing For Three Years

Packing names including GPK plunged on Verso's acquisition by Billerud of Sweden. A conversion of Verso's coated paper capacity to paperboard wouldn't happen for late 2024 at the earliest. Market pricing in a large capacity increase and commensurate severe pricing pressure without considering underlying market increases or potential pricing discipline by Billerud. GPK can generate $8+ of free cash in the meantime.

Nov 23
Graphic Packaging Holding (NYSE:GPK) Will Pay A Dividend Of US$0.075

Graphic Packaging Holding (NYSE:GPK) Will Pay A Dividend Of US$0.075

Graphic Packaging Holding Company ( NYSE:GPK ) has announced that it will pay a dividend of US$0.075 per share on the...

Shareholder Returns

GPKUS PackagingUS Market
7D-4.1%-3.7%-6.1%
1Y8.5%2.9%4.2%

Return vs Industry: GPK exceeded the US Packaging industry which returned 4.7% over the past year.

Return vs Market: GPK exceeded the US Market which returned 6.6% over the past year.

Price Volatility

Is GPK's price volatile compared to industry and market?
GPK volatility
GPK Average Weekly Movement3.7%
Packaging Industry Average Movement3.9%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

Stable Share Price: GPK is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GPK's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200718,775Mike Dosshttps://www.graphicpkg.com

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 segments: Paperboard Mills, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers coated unbleached kraft (CUK), coated recycled paperboard (CRB), and solid bleached sulfate paperboard (SBS) to various paperboard packaging converters and brokers; and paperboard packaging products, such as folding cartons, cups, lids, and food containers primarily to consumer packaged goods, quick-service restaurants, and foodservice companies; and barrier packaging products that protect against moisture, hot and cold temperature, grease, oil, oxygen, sunlight, insects, and other potential product-damaging factors.

Graphic Packaging Holding Fundamentals Summary

How do Graphic Packaging Holding's earnings and revenue compare to its market cap?
GPK fundamental statistics
Market CapUS$5.74b
Earnings (TTM)US$229.30m
Revenue (TTM)US$6.82b

25.0x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GPK income statement (TTM)
RevenueUS$6.82b
Cost of RevenueUS$5.76b
Gross ProfitUS$1.06b
ExpensesUS$834.90m
EarningsUS$229.30m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 17, 2022

Earnings per share (EPS)0.75
Gross Margin15.60%
Net Profit Margin3.36%
Debt/Equity Ratio216.8%

How did GPK perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

38%

Payout Ratio

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: GPK ($18.69) is trading below our estimate of fair value ($58.03)

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


Price To Earnings Ratio

PE vs Industry: GPK is poor value based on its PE Ratio (25x) compared to the US Packaging industry average (22x).

PE vs Market: GPK is poor value based on its PE Ratio (25x) compared to the US market (16.7x).


Price to Earnings Growth Ratio

PEG Ratio: GPK is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: GPK's PB Ratio (3.1x) is in line with the US Packaging industry average.


Future Growth

How is Graphic Packaging Holding forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPK's forecast earnings growth (26.3% per year) is above the savings rate (2%).

Earnings vs Market: GPK's earnings (26.3% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: GPK's revenue (8.2% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: GPK's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GPK's Return on Equity is forecast to be high in 3 years time (24.5%)


Past Performance

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

-5.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPK has a large one-off loss of $111.3M impacting its September 30 2021 financial results.

Growing Profit Margin: GPK's current net profit margins (3.4%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: GPK's earnings have declined by 5.3% per year over the past 5 years.

Accelerating Growth: GPK's earnings growth over the past year (68.6%) exceeds its 5-year average (-5.3% per year).

Earnings vs Industry: GPK earnings growth over the past year (68.6%) exceeded the Packaging industry 48.8%.


Return on Equity

High ROE: GPK's Return on Equity (13.7%) is considered low.


Financial Health

How is Graphic Packaging Holding's financial position?


Financial Position Analysis

Short Term Liabilities: GPK's short term assets ($2.0B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: GPK's short term assets ($2.0B) do not cover its long term liabilities ($4.9B).


Debt to Equity History and Analysis

Debt Level: GPK's net debt to equity ratio (213.2%) is considered high.

Reducing Debt: GPK's debt to equity ratio has increased from 202.3% to 216.8% over the past 5 years.

Debt Coverage: GPK's debt is well covered by operating cash flow (22.3%).

Interest Coverage: GPK's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


Dividend

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

1.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPK's dividend (1.61%) is higher than the bottom 25% of dividend payers in the US market (1.36%).

High Dividend: GPK's dividend (1.61%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

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

Growing Dividend: GPK's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), GPK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GPK's dividends in 3 years are forecast to be thoroughly covered by earnings (13.9% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Mike Doss (55 yo)

6yrs

Tenure

US$8,009,101

Compensation

Mr. Michael P. Doss, also known as Mike, has been the Chief Executive Officer of Graphic Packaging Holding Company since January 1, 2016 and serves as its Director since May 20, 2015. He serves as Presiden...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD8.01M) is about average for companies of similar size in the US market ($USD6.45M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GPK's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: GPK's board of directors are considered experienced (7 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 been diluted in the past year, with total shares outstanding growing by 13.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: Graphic Packaging Holding Company
  • Ticker: GPK
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Paper Packaging
  • Sector: Materials
  • Implied Market Cap: US$5.740b
  • Shares outstanding: 307.10m
  • Website: https://www.graphicpkg.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:34
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.