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Graphic Packaging Holding

Market Cap

US$5.5b

Last Updated

2021/05/09 22:04 UTC

Data Sources

Company Financials +

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

Good value with reasonable growth potential.


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

Volatility Over Time: GPK's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.4%

GPK

3.3%

US Packaging

0.2%

US Market


1 Year Return

43.3%

GPK

65.4%

US Packaging

49.9%

US Market

Return vs Industry: GPK underperformed the US Packaging industry which returned 65.4% over the past year.

Return vs Market: GPK underperformed the US Market which returned 49.9% over the past year.


Shareholder returns

GPKIndustryMarket
7 Day4.4%3.3%0.2%
30 Day6.7%8.8%1.5%
90 Day18.0%17.4%3.3%
1 Year46.2%43.3%68.7%65.4%52.4%49.9%
3 Year45.1%36.1%63.1%51.4%63.7%53.4%
5 Year62.7%46.6%115.3%90.5%130.6%104.9%

Long-Term 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

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 ($19.36) is trading below our estimate of fair value ($57.9)

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


Price To Earnings Ratio

PE vs Industry: GPK is good value based on its PE Ratio (22.8x) compared to the US Packaging industry average (26.8x).

PE vs Market: GPK is poor value based on its PE Ratio (22.8x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: GPK is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: GPK's PB Ratio (3.6x) 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 13 analysts?

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GPK's forecast earnings growth (24.2% per year) is above the savings rate (2%).

Earnings vs Market: GPK's earnings (24.2% per year) are forecast to grow faster than the US market (15.1% per year).

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

Revenue vs Market: GPK's revenue (2.1% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: GPK's revenue (2.1% 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?

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GPK has high quality earnings.

Growing Profit Margin: GPK's current net profit margins (3.5%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: GPK's earnings have declined by 6.2% per year over the past 5 years.

Accelerating Growth: GPK's earnings growth over the past year (72.4%) exceeds its 5-year average (-6.2% per year).

Earnings vs Industry: GPK earnings growth over the past year (72.4%) exceeded the Packaging industry 9.3%.


Return on Equity

High ROE: GPK's Return on Equity (16.4%) is considered low.


Financial Health

How is Graphic Packaging Holding's financial position?


Financial Position Analysis

Short Term Liabilities: GPK's short term assets ($1.9B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: GPK's short term assets ($1.9B) do not cover its long term liabilities ($4.7B).


Debt to Equity History and Analysis

Debt Level: GPK's debt to equity ratio (209.6%) is considered high.

Reducing Debt: GPK's debt to equity ratio has increased from 208.7% to 209.6% over the past 5 years.

Debt Coverage: GPK's debt is well covered by operating cash flow (26.3%).

Interest Coverage: GPK's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Dividend

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

1.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GPK's dividend (1.55%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: GPK's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (3.4%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.3%), 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 well covered by earnings (21% payout ratio).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Mike Doss (54 yo)

5.33yrs

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 also serves as Pre...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD8.01M) is about average for companies of similar size in the US market ($USD6.51M).

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 considered experienced (4.3 years average tenure).


Board Members

Experienced Board: GPK's board of directors are considered experienced (5.5 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: GPK
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$5.502b
  • Shares outstanding: 284.20m
  • Website: https://www.graphicpkg.com

Number of Employees


Location

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

Listings


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 Analysis2021/05/09 22:04
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
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.