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PKG

Packaging Corporation of AmericaNYSE:PKG Stock Report

Market Cap

US$13.3b

7D

-0.7%

1Y

36.8%

Updated

23 Sep, 2021

Data

Company Financials +
PKG fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends5/6

PKG Overview

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

Packaging Corporation of America Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Packaging Corporation of America
Historical stock prices
Current Share PriceUS$142.69
52 Week HighUS$102.76
52 Week LowUS$156.54
Beta0.90
1 Month Change-3.49%
3 Month Change5.49%
1 Year Change36.85%
3 Year Change29.08%
5 Year Change78.99%
Change since IPO1,089.08%

Recent News & Updates

Aug 15
Estimating The Fair Value Of Packaging Corporation of America (NYSE:PKG)

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...

Aug 01
Should You Think About Buying Packaging Corporation of America (NYSE:PKG) Now?

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...

Shareholder Returns

PKGUS PackagingUS Market
7D-0.7%-0.8%-0.5%
1Y36.8%36.7%37.5%

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.

Price Volatility

Is PKG's price volatile compared to industry and market?
PKG volatility
PKG Beta0.90
Industry Beta0.94
Market Beta1

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

FoundedEmployeesCEOWebsite
186715,200Mark Kowlzanhttps://www.packagingcorp.com

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

How do Packaging Corporation of America's earnings and revenue compare to its market cap?
PKG fundamental statistics
Market CapUS$13.27b
Earnings (TTM)US$631.60m
Revenue (TTM)US$7.09b

21.3x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PKG income statement (TTM)
RevenueUS$7.09b
Cost of RevenueUS$5.55b
Gross ProfitUS$1.55b
ExpensesUS$913.70m
EarningsUS$631.60m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 25, 2021

Earnings per share (EPS)6.70
Gross Margin21.78%
Net Profit Margin8.90%
Debt/Equity Ratio72.0%

How did PKG perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

57%

Payout Ratio

Valuation

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

10.0%

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).


Future Growth

How is Packaging Corporation of America forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.2%

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%)


Past Performance

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

3.2%

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.


Financial Health

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).


Balance Sheet


Dividend

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

2.80%

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).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Mark Kowlzan (65 yo)

11.17yrs

Tenure

US$10,443,674

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 ($USD10.44M) is about average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: PKG's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: PKG's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Packaging Corporation of America's 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$13.274b
  • Shares outstanding: 94.32m
  • Website: https://www.packagingcorp.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 22:54
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.