NYSE:PKG

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Packaging Corporation of America

Executive Summary

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Packaging Corporation of America's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.0%

PKG

-4.9%

US Packaging

-5.3%

US Market


1 Year Return

2.9%

PKG

7.9%

US Packaging

10.4%

US Market

Return vs Industry: PKG underperformed the US Packaging industry which returned 9.1% over the past year.

Return vs Market: PKG underperformed the US Market which returned 12% over the past year.


Shareholder returns

PKGIndustryMarket
7 Day-4.0%-4.9%-5.3%
30 Day6.4%5.4%-2.1%
90 Day19.1%15.4%1.7%
1 Year6.2%2.9%10.4%7.9%12.9%10.4%
3 Year8.0%-1.1%16.0%7.8%34.3%25.4%
5 Year98.2%70.8%62.5%42.3%73.7%54.3%

Price Volatility Vs. Market

How volatile is Packaging Corporation of America's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Packaging Corporation of America undervalued compared to its fair value and its price relative to the market?

10.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PKG ($114.49) is trading below our estimate of fair value ($127.88)

Significantly Below Fair Value: PKG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PKG is poor value based on its PE Ratio (22.9x) compared to the US Packaging industry average (20.6x).

PE vs Market: PKG is poor value based on its PE Ratio (22.9x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: PKG is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: PKG is overvalued based on its PB Ratio (3.4x) compared to the US Packaging industry average (2.8x).


Next Steps

Future Growth

How is Packaging Corporation of America forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKG's forecast earnings growth (15.6% per year) is above the savings rate (2.2%).

Earnings vs Market: PKG's earnings (15.6% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: PKG's earnings are forecast to grow, but not significantly.

Revenue vs Market: PKG's revenue (2.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PKG's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PKG's Return on Equity is forecast to be low in 3 years time (16.7%).


Next Steps

Past Performance

How has Packaging Corporation of America performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PKG has high quality earnings.

Growing Profit Margin: PKG's current net profit margins (7.1%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: PKG's earnings have grown by 9.5% per year over the past 5 years.

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

Earnings vs Industry: PKG had negative earnings growth (-38%) over the past year, making it difficult to compare to the Packaging industry average (-9.2%).


Return on Equity

High ROE: PKG's Return on Equity (15.1%) is considered low.


Next Steps

Financial Health

How is Packaging Corporation of America's financial position?


Financial Position Analysis

Short Term Liabilities: PKG's short term assets ($2.7B) exceed its short term liabilities ($683.6M).

Long Term Liabilities: PKG's short term assets ($2.7B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: PKG's debt to equity ratio (79.1%) is considered high.

Reducing Debt: PKG's debt to equity ratio has reduced from 143.9% to 79.1% over the past 5 years.

Debt Coverage: PKG's debt is well covered by operating cash flow (45.7%).

Interest Coverage: PKG's interest payments on its debt are well covered by EBIT (7.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Packaging Corporation of America current dividend yield, its reliability and sustainability?

2.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PKG's dividend (2.76%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: PKG's dividend (2.76%) is low compared to the top 25% of dividend payers in the US market (4.78%).


Stability and Growth of Payments

Stable Dividend: PKG's dividends per share have been stable in the past 10 years.

Growing Dividend: PKG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.2%), PKG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PKG's dividends in 3 years are forecast to be well covered by earnings (35.5% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Mark Kowlzan (64 yo)

10.25yrs

Tenure

US$10,338,117

Compensation

Mr. Mark W. Kowlzan has been the Chief Executive Officer of Packaging Corporation of America since July 2010. Mr. Kowlzan served as Senior Vice President of Containerboard at Packaging Corporation of Ameri ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD10.34M) is about average for companies of similar size in the US market ($USD11.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Kowlzan
Chairman of the Board & CEO10.25yrsUS$10.34m0.44%
$ 47.6m
Robert Mundy
Executive VP & CFO5yrsUS$3.06m0.040%
$ 4.3m
Thomas Hassfurther
Executive Vice President of Corrugated Products11yrsUS$8.05m0.29%
$ 31.3m
Charles Carter
Senior Vice President of Containerboard Mill Operations7.25yrsUS$2.37m0.047%
$ 5.1m
Donald Shirley
Senior Vice President of Corporate Engineering & Process Technology1.42yrsUS$2.25m0.022%
$ 2.4m
Bruce Ridley
Senior Vice President of Environmental Health1.25yrsno data0.020%
$ 2.1m
Pamela Barnes
Senior VP of Finance1.42yrsno data0.046%
$ 5.0m
Robert Schneider
Senior VP & Chief Information Officer1.42yrsno data0.052%
$ 5.6m
Kent Pflederer
Senior VP13.25yrsUS$2.06m0.054%
$ 5.9m
Thomas W. Walton
Senior Vice President of Sales & Marketing - Corrugated Products11yrsUS$1.63m0.045%
$ 4.8m
Jeffery Kaser
Senior Vice President of Corrugated Products0.42yrno datano data

5.0yrs

Average Tenure

59yo

Average Age

Experienced Management: PKG's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Kowlzan
Chairman of the Board & CEO10.25yrsUS$10.34m0.44%
$ 47.6m
Samuel Mencoff
Independent Lead Directorno dataUS$249.95k0.34%
$ 36.7m
Paul Stecko
Director21.58yrsUS$292.47k0.041%
$ 4.5m
Thomas Souleles
Independent Director10yrsUS$234.95k0.011%
$ 1.1m
Cheryl Beebe
Independent Director12.42yrsUS$249.95k0.013%
$ 1.4m
Roger Porter
Independent Director15.42yrsUS$249.95k0.020%
$ 2.2m
Robert Lyons
Independent Director9.17yrsUS$234.95k0.011%
$ 1.1m
Donna Harman
Independent Director0.83yrUS$76.22k0.0012%
$ 134.0k
Hasan Jameel
Independent Director12.42yrsUS$234.95k0.0099%
$ 1.1m
James Woodrum
Independent Director11.42yrsUS$249.95k0.013%
$ 1.4m
Duane Farrington
Independent Director5.17yrsUS$234.95k0.0040%
$ 428.0k
Thomas Maurer
Independent Director6.42yrsUS$234.95k0.0069%
$ 740.3k

10.0yrs

Average Tenure

64yo

Average Age

Experienced Board: PKG's board of directors are seasoned and experienced ( 10 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

Packaging Corporation of America's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Packaging Corporation of America
  • Ticker: PKG
  • Exchange: NYSE
  • Founded: 1867
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$10.808b
  • Shares outstanding: 94.16m
  • Website: https://www.packagingcorp.com

Number of Employees


Location

  • Packaging Corporation of America
  • 1 North Field Court
  • Lake Forest
  • Illinois
  • 60045
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2000
PKADB (Deutsche Boerse AG)YesCommon StockDEEURJan 2000
0KEZLSE (London Stock Exchange)YesCommon StockGBUSDJan 2000
P1KG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States. The company operates through Packaging and Paper segments. The Packaging segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:34
End of Day Share Price2020/10/30 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.