NYSE:GPK

Stock Analysis Report

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.

Snowflake

Fundamentals

Undervalued with mediocre balance sheet.


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


Market Performance


7 Day Return

3.5%

NYSE:GPK

1.3%

US Packaging

0.9%

US Market


1 Year Return

-6.5%

NYSE:GPK

4.1%

US Packaging

0.3%

US Market

GPK underperformed the Packaging industry which returned 4.1% over the past year.

GPK underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

GPKIndustryMarket
7 Day3.5%1.3%0.9%
30 Day-7.3%-1.6%-1.9%
90 Day3.9%3.5%1.6%
1 Year-4.3%-6.5%6.8%4.1%2.6%0.3%
3 Year-2.1%-8.3%25.5%17.6%41.0%31.8%
5 Year14.0%4.4%47.0%30.0%55.2%38.0%

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

Valuation

Is Graphic Packaging Holding undervalued based on future cash flows and its price relative to the stock market?

46%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Graphic Packaging Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).

Graphic Packaging Holding's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Graphic Packaging Holding is good value based on earnings compared to the US Packaging industry average.

Graphic Packaging Holding is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Graphic Packaging Holding is poor value based on expected growth next year.


Price Based on Value of Assets

Graphic Packaging Holding is good value based on assets compared to the US Packaging industry average.


Next Steps

Future Growth

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

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Graphic Packaging Holding's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

Graphic Packaging Holding's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

Graphic Packaging Holding's revenue growth is positive but not above the United States of America market average.

Graphic Packaging Holding's earnings growth is positive but not above the United States of America market average.

Graphic Packaging Holding's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Graphic Packaging Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

16.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Graphic Packaging Holding's year on year earnings growth rate has been positive over the past 5 years.

Graphic Packaging Holding's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Graphic Packaging Holding's 1-year earnings growth is negative, it can't be compared to the US Packaging industry average.


Return on Equity

Graphic Packaging Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Graphic Packaging Holding used its assets less efficiently than the US Packaging industry average last year based on Return on Assets.


Return on Capital Employed

Graphic Packaging Holding's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Graphic Packaging Holding's financial position?


Financial Position Analysis

Graphic Packaging Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Graphic Packaging Holding's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Graphic Packaging Holding's level of debt (125.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (217.5% vs 125.5% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


Next Steps

Dividend

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

2.72%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Graphic Packaging Holding before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Graphic Packaging Holding's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Graphic Packaging Holding's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).

Whilst dividend payments have been stable, Graphic Packaging Holding has been paying a dividend for less than 10 years.

Dividend payments have increased, but Graphic Packaging Holding only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of Graphic Packaging Holding's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Mike Doss (53yo)

3.6yrs

Tenure

US$7,264,270

Compensation

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


CEO Compensation Analysis

Mike's remuneration is higher than average for companies of similar size in United States of America.

Mike's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

53yo

Average Age

The tenure for the Graphic Packaging Holding management team is about average.


Board Age and Tenure

4.3yrs

Average Tenure

61yo

Average Age

The tenure for the Graphic Packaging Holding board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$183,75028 Feb 19
Robert Hagemann
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$12.25
BuyUS$264,69325 Oct 18
Larry Venturelli
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$10.59

Ownership Breakdown


Management Team

  • Debbie Frank (59yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 0.0yrs
  • Lauren Tashma (53yo)

    Executive VP

    • Tenure: 5.5yrs
    • Compensation: US$1.73m
  • Mike Doss (53yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$7.26m
  • Paul McCann

    Senior Vice President of Supply Chain

    • Tenure: 1.0yrs
  • Joe Yost (52yo)

    Executive VP & President of Americas

    • Tenure: 10.6yrs
    • Compensation: US$2.13m
  • Steve Scherger (55yo)

    Executive VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$2.68m
  • Hilde Van Moeseke (49yo)

    Senior VP & President of EMEA

    • Tenure: 2.1yrs
  • Mike Farrell (52yo)

    Executive Vice President of Mills Division

    • Tenure: 1.6yrs
  • Alex Ovshey

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Stacey Panayiotou

    Executive Vice President of Human Resources

    • Tenure: 0.3yrs

Board Members

  • Laurie Brlas (61yo)

    Director

    • Tenure: 0.6yrs
  • Dean Scarborough (64yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$38.77k
  • Bob Hagemann (62yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$212.52k
  • Phil Martens (59yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$350.00k
  • David Campbell (69yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$200.00k
  • Lynn Wentworth (61yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$220.00k
  • Paul Carrico (68yo)

    Director

    • Tenure: 4.9yrs
    • Compensation: US$200.00k
  • Larry Venturelli (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$200.00k
  • Mike Doss (53yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$7.26m

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: 1992
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$3.877b
  • Shares outstanding: 293.97m
  • 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 Analysis2019/08/21 00:00
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.