Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States.
Packaging Corporation of America Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$142.69|
|52 Week High||US$102.76|
|52 Week Low||US$156.54|
|1 Month Change||-3.49%|
|3 Month Change||5.49%|
|1 Year Change||36.85%|
|3 Year Change||29.08%|
|5 Year Change||78.99%|
|Change since IPO||1,089.08%|
Recent News & Updates
Estimating The Fair Value Of Packaging Corporation of America (NYSE:PKG)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Packaging Corporation...
Should You Think About Buying Packaging Corporation of America (NYSE:PKG) Now?
Today we're going to take a look at the well-established Packaging Corporation of America ( NYSE:PKG ). The company's...
|PKG||US Packaging||US Market|
Return vs Industry: PKG exceeded the US Packaging industry which returned 35.6% over the past year.
Return vs Market: PKG matched the US Market which returned 36.2% over the past year.
Stable Share Price: PKG is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: PKG's weekly volatility (2%) has been stable over the past year.
About the Company
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 segment offers various containerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products.
Packaging Corporation of America Fundamentals Summary
|PKG fundamental statistics|
Is PKG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PKG income statement (TTM)|
|Cost of Revenue||US$5.55b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Oct 25, 2021
|Earnings per share (EPS)||6.70|
|Net Profit Margin||8.90%|
How did PKG perform over the long term?See historical performance and comparison
2.8%Current Dividend Yield
Is Packaging Corporation of America undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PKG ($142.69) is trading below our estimate of fair value ($158.58)
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 (21.3x) compared to the US Packaging industry average (19.3x).
PE vs Market: PKG is poor value based on its PE Ratio (21.3x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: PKG is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: PKG is overvalued based on its PB Ratio (3.9x) compared to the US Packaging industry average (3.3x).
How is Packaging Corporation of America forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PKG's forecast earnings growth (10.2% per year) is above the savings rate (2%).
Earnings vs Market: PKG's earnings (10.2% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: PKG's earnings are forecast to grow, but not significantly.
Revenue vs Market: PKG's revenue (2.2% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: PKG's revenue (2.2% 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 high in 3 years time (20.2%)
How has Packaging Corporation of America performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PKG has high quality earnings.
Growing Profit Margin: PKG's current net profit margins (8.9%) are higher than last year (7.6%).
Past Earnings Growth Analysis
Earnings Trend: PKG's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: PKG's earnings growth over the past year (23.8%) exceeds its 5-year average (3.2% per year).
Earnings vs Industry: PKG earnings growth over the past year (23.8%) underperformed the Packaging industry 41%.
Return on Equity
High ROE: PKG's Return on Equity (18.5%) is considered low.
How is Packaging Corporation of America's financial position?
Financial Position Analysis
Short Term Liabilities: PKG's short term assets ($3.0B) exceed its short term liabilities ($816.8M).
Long Term Liabilities: PKG's short term assets ($3.0B) do not cover its long term liabilities ($3.4B).
Debt to Equity History and Analysis
Debt Level: PKG's debt to equity ratio (72%) is considered high.
Reducing Debt: PKG's debt to equity ratio has reduced from 138.2% to 72% over the past 5 years.
Debt Coverage: PKG's debt is well covered by operating cash flow (39.9%).
Interest Coverage: PKG's interest payments on its debt are well covered by EBIT (10.2x coverage).
What is Packaging Corporation of America current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PKG's dividend (2.8%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: PKG's dividend (2.8%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: PKG's dividends per share have been stable in the past 10 years.
Growing Dividend: PKG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (56.5%), PKG's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PKG's dividends in 3 years are forecast to be well covered by earnings (45.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Kowlzan (65 yo)
Mr. Mark W. Kowlzan has been the Chief Executive Officer of Packaging Corporation of America since July 2010. Mr. Kowlzan served as Senior Vice President of Containerboard at Packaging Corporation of Ameri...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD10.44M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Experienced Management: PKG's management team is seasoned and experienced (6 years average tenure).
Experienced Board: PKG's board of directors are seasoned and experienced ( 11 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PKG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Packaging Corporation of America's employee growth, exchange listings and data sources
- Name: Packaging Corporation of America
- Ticker: PKG
- Exchange: NYSE
- Founded: 1867
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: US$13.274b
- Shares outstanding: 94.32m
- Website: https://www.packagingcorp.com
Number of Employees
- Packaging Corporation of America
- 1 North Field Court
- Lake Forest
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/23 22:54|
|End of Day Share Price||2021/09/23 00:00|
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.