NYSE:KS

Stock Analysis Report

KapStone Paper and Packaging

Executive Summary

KapStone Paper and Packaging Corporation produces and sells a range of containerboards, corrugated products, and specialty paper products in the United States and internationally.

Snowflake

Fundamentals

Outstanding track record with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

10.4%

KS

1.5%

US Forestry

-0.02%

US Market


1 Year Return

52.8%

KS

-19.1%

US Forestry

1.6%

US Market

KS outperformed the Forestry industry which returned 25.5% over the past year.

KS outperformed the Market in United States of America which returned 10.3% over the past year.


Share holder returns

KSIndustryMarket
7 Day10.4%1.5%-0.02%
30 Day3.3%4.9%2.7%
90 Day0.3%-5.2%1.4%
1 Year54.8%52.8%-16.3%-19.1%3.8%1.6%
3 Year68.4%59.2%15.7%7.7%45.2%35.8%
5 Year45.6%35.4%12.3%0.5%61.8%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

1 year ago | Simply Wall St

How Has KapStone Paper and Packaging Corporation's (NYSE:KS) Earnings Fared Against The Long Term Trend

Valuation

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

9.84x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

KapStone Paper and Packaging's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

KapStone Paper and Packaging's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

KapStone Paper and Packaging is overvalued based on earnings compared to the US Forestry industry average.

KapStone Paper and Packaging is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

KapStone Paper and Packaging is poor value based on expected growth next year.


Price Based on Value of Assets

KapStone Paper and Packaging is overvalued based on assets compared to the US Forestry industry average.


Next Steps

Future Growth

How is KapStone Paper and Packaging expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

KapStone Paper and Packaging's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

KapStone Paper and Packaging's earnings are expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).

KapStone Paper and Packaging's revenue growth is positive but not above the United States of America market average.

KapStone Paper and Packaging's earnings growth is positive but not above the United States of America market average.

KapStone Paper and Packaging's earnings growth is positive but not above the low risk savings rate of 3%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has KapStone Paper and Packaging performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

KapStone Paper and Packaging's year on year earnings growth rate has been positive over the past 5 years.

KapStone Paper and Packaging's 1-year earnings growth exceeds its 5-year average (366.9% vs 13.2%)

KapStone Paper and Packaging's earnings growth has exceeded the US Forestry industry average in the past year (366.9% vs 165.2%).


Return on Equity

KapStone Paper and Packaging has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

KapStone Paper and Packaging used its assets more efficiently than the US Forestry industry average last year based on Return on Assets.


Return on Capital Employed

KapStone Paper and Packaging has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is KapStone Paper and Packaging's financial position?


Financial Position Analysis

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

KapStone Paper and Packaging's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

KapStone Paper and Packaging's level of debt (109.9%) 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 (210.3% vs 109.9% today).

Debt is well covered by operating cash flow (24%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.9x 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 KapStone Paper and Packaging's current dividend yield, its reliability and sustainability?

1.21%

Expected Dividend Yield


Dividend Yield and Payments Analysis

KapStone Paper and Packaging's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.35%).

KapStone Paper and Packaging's dividend is below the markets top 25% of dividend payers in United States of America (3.52%).

Whilst dividend payments have been stable, KapStone Paper and Packaging has been paying a dividend for less than 10 years.

KapStone Paper and Packaging has only been paying a dividend for 4 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (8.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6.1x coverage).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Matt Kaplan (61yo)

1.8yrs

Tenure

US$4,518,346

Compensation

Mr. Matthew Kaplan, also known as Matt, has been the President of KapStone Paper and Packaging Corporation since April 15, 2005 and has been its Chief Executive Officer since January 01, 2017. Mr. Kaplan s ...


CEO Compensation Analysis

Matt's remuneration is about average for companies of similar size in United States of America.

Matt's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.2yrs

Average Tenure

58yo

Average Age

The average tenure for the KapStone Paper and Packaging management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.1yrs

Average Tenure

62.5yo

Average Age

The tenure for the KapStone Paper and Packaging board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Roger Stone (83yo)

    Executive Chairman

    • Tenure: 13.6yrs
    • Compensation: US$3.79m
  • Matt Kaplan (61yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$4.52m
  • Andrea Tarbox (67yo)

    Executive VP & CFO

    • Tenure: 11.8yrs
    • Compensation: US$1.65m
  • Randy Nebel (61yo)

    Executive Vice President of Integrated Packaging

    • Tenure: 1.8yrs
    • Compensation: US$1.81m
  • Bill Kessinger (56yo)

    VP & GM of Mill System

    • Tenure: 6.2yrs
    • Compensation: US$1.09m
  • Michael Murphy (45yo)

    Vice President of Strategic Planning and Initiatives

    • Tenure: 4.1yrs
  • Antionette Meyers (55yo)

    Vice President of Container Board and Kraft Paper Sales & Marketing

    • Tenure: 5.2yrs
  • Mark Niehus (60yo)

    VP & Corporate Controller

    • Tenure: 11.8yrs
  • Kathryn Ingraham (49yo)

    VP, General Counsel & Secretary

    • Tenure: 3.5yrs
  • Patrick Ortiz (54yo)

    Vice President of the Corrugated Container System and GM of the Corrugated Container System

    • Tenure: 5.8yrs

Board Members

  • John Chapman (58yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$161.27k
  • Jonathon Furer (61yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$176.27k
  • David Storch (65yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$161.27k
  • Bob Bahash (73yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$160.01k
  • Dave Gabriel (59yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$161.27k
  • Brian Gamache (60yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$171.27k
  • Roger Stone (83yo)

    Executive Chairman

    • Tenure: 13.6yrs
    • Compensation: US$3.79m
  • Matthew Paull (67yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$176.27k
  • Matt Kaplan (61yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$4.52m
  • Yossi Reznik (64yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$160.01k

Company Information

KapStone Paper and Packaging Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KapStone Paper and Packaging Corporation
  • Ticker: KS
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$3.423b
  • Shares outstanding: 97.95m
  • Website: https://www.kapstonepaper.com

Number of Employees


Location

  • KapStone Paper and Packaging Corporation
  • 1101 Skokie Boulevard
  • Suite 300
  • Northbrook
  • Illinois
  • 60062
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KSNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2005
KTUDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2005

Biography

KapStone Paper and Packaging Corporation produces and sells a range of containerboards, corrugated products, and specialty paper products in the United States and internationally. The company operates in t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2018/11/04 21:21
End of Day Share Price2018/11/02 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.