Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States.
Established dividend payer and good value.
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.
7 Day Return
1 Year Return
Return vs Industry: PKG underperformed the US Packaging industry which returned 12.1% over the past year.
Return vs Market: PKG underperformed the US Market which returned 20.1% over the past year.
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
1 week ago | Simply Wall StTrade Alert: The Independent Director Of Packaging Corporation of America (NYSE:PKG), Robert Lyons, Has Just Spent US$97k Buying Shares
2 weeks ago | Simply Wall StPackaging Corporation of America Just Released Its Annual Earnings: Here's What Analysts Think
2 weeks ago | Simply Wall StPackaging Corporation of America (NYSE:PKG) Delivered A Better ROE Than Its Industry
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 ($98.94) is trading below our estimate of fair value ($110.54)
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 good value based on its PE Ratio (13.4x) compared to the Packaging industry average (19.9x).
PE vs Market: PKG is good value based on its PE Ratio (13.4x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: PKG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PKG is good value based on its PB Ratio (3.1x) compared to the US Packaging industry average (3.2x).
How is Packaging Corporation of America forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PKG's earnings are forecast to decline over the next 3 years (-6.8% per year).
Earnings vs Market: PKG's earnings are forecast to decline over the next 3 years (-6.8% per year).
High Growth Earnings: PKG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PKG's revenue is expected to decline over the next 3 years (-1% per year).
High Growth Revenue: PKG's revenue is forecast to decline over the next 3 years (-1% 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 (17.7%).
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 (9.9%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: PKG's earnings have grown by 16.4% 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 (-5.6%) over the past year, making it difficult to compare to the Packaging industry average (-6.5%).
Return on Equity
High ROE: PKG's Return on Equity (22.9%) is considered high.
Return on Assets
Return on Capital Employed
How is Packaging Corporation of America's financial position?
Financial Position Analysis
Short Term Liabilities: PKG's short term assets ($2.5B) exceed its short term liabilities ($770.7M).
Long Term Liabilities: PKG's short term assets ($2.5B) do not cover its long term liabilities ($3.4B).
Debt to Equity History and Analysis
Debt Level: PKG's debt to equity ratio (81.9%) is considered high.
Reducing Debt: PKG's debt to equity ratio has reduced from 154.8% to 81.9% over the past 5 years.
Debt Coverage: PKG's debt is well covered by operating cash flow (49.2%).
Interest Coverage: PKG's interest payments on its debt are well covered by EBIT (11.6x coverage).
Inventory Level: PKG has a high level of physical assets or inventory.
Debt Coverage by Assets: PKG's debt is covered by short term assets (assets are 1x debt).
What is Packaging Corporation of America's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PKG's dividend (3.19%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: PKG's dividend (3.19%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: PKG's dividends per share have been stable in the past 10 years.
Growing Dividend: PKG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.9%), PKG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PKG's dividends in 3 years are forecast to be covered by earnings (67.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Kowlzan (63yo)
Mr. Mark W. Kowlzan has been the Chief Executive Officer of Packaging Corporation of America since July 2010. Mr. Kowlzan served as Senior Vice President of Containerboard at Packaging Corporation of Ameri ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD10.27M) is above average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
|Chairman of the Board & CEO||9.6yrs||US$10.27m||0.41% $38.4m|
|Executive VP & CFO||4.4yrs||US$3.25m||0.033% $3.1m|
|Senior Vice President of Containerboard Mill Operations||6.6yrs||US$2.59m||0.041% $3.8m|
|Senior Vice President of Environmental Health||0.7yrs||no data||0.019% $1.8m|
|Senior VP of Finance||0.8yrs||no data||0.045% $4.2m|
|Senior VP & Chief Information Officer||0.7yrs||no data||0.051% $4.8m|
|Senior VP||12.7yrs||US$1.85m||0.051% $4.7m|
|Executive Vice President of Corrugated Products||10.4yrs||US$8.13m||0.27% $25.0m|
|Senior Vice President of Sales & Marketing - Corrugated Products||10.3yrs||US$1.63m||0.040% $3.7m|
|Senior Vice President of Corporate Engineering & Process Technology||0.7yrs||no data||0.019% $1.8m|
Experienced Management: PKG's management team is seasoned and experienced (5.5 years average tenure).
|Chairman of the Board & CEO||9.6yrs||US$10.27m||0.41% $38.4m|
|Lead Director||0yrs||US$245.05k||0.34% $31.7m|
|Independent Director||9.4yrs||US$230.05k||0.011% $989.8k|
|Independent Director||11.8yrs||US$245.05k||0.013% $1.2m|
|Independent Director||14.8yrs||US$245.05k||0.020% $1.8m|
|Independent Director||8.5yrs||US$230.05k||0.0098% $907.1k|
|Independent Director||11.8yrs||US$230.05k||0.0099% $923.8k|
|Independent Director||10.8yrs||US$245.05k||0.012% $1.1m|
|Independent Director||5.8yrs||US$230.05k||0.0061% $564.1k|
Experienced Board: PKG's board of directors are seasoned and experienced ( 10.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PKG insiders have sold more shares than they have bought 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 company bio, 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$9.294b
- Shares outstanding: 93.93m
- Website: https://www.packagingcorp.com
Number of Employees
- Packaging Corporation of America
- 1 North Field Court
- Lake Forest
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PKG||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 2000|
|PKA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 2000|
|0KEZ||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 2000|
|P1KG34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 COM||BR||BRL||Jan 2020|
Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States. The company’s Packaging segment offers various 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. It also produces packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization, independent brokers, and distribution partners. Its Paper segment manufactures and sells white papers comprising commodity and specialty papers with various features, such as colors, coatings, high brightness, and recycled content. The white papers also consist of communication papers, including cut-size office papers, and printing and converting papers. This segment sells white papers through the company’s own sales personnel. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/17 23:45|
|End of Day Share Price||2020/02/14 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.