Packaging Corporation of America
Market Cap
US$10.1b
Last Updated
2020/01/23 23:42 UTC
Data Sources
Company Financials +
Executive Summary
Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -6.3% per year for the next 3 years
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
-1.9%
PKG
-0.3%
US Packaging
-0.09%
US Market
1 Year Return
16.0%
PKG
17.7%
US Packaging
23.9%
US Market
Return vs Industry: PKG underperformed the US Packaging industry which returned 19.4% over the past year.
Return vs Market: PKG underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| PKG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -0.3% | -0.09% |
| 30 Day | -4.6% | 0.8% | 3.1% |
| 90 Day | -3.5% | 3.6% | 10.4% |
| 1 Year | 19.6%16.0% | 20.6%17.7% | 26.6%23.9% |
| 3 Year | 23.5%13.9% | 23.6%15.3% | 50.9%41.2% |
| 5 Year | 62.3%40.1% | 47.9%28.8% | 78.1%58.5% |
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
3 days ago | Simply Wall St
Investors Who Bought Packaging Corporation of America (NYSE:PKG) Shares Five Years Ago Are Now Up 34%2 weeks ago | Simply Wall St
Is It Too Late To Consider Buying Packaging Corporation of America (NYSE:PKG)?1 month ago | Simply Wall St
Packaging Corporation of America (NYSE:PKG) Looks Interesting, And It's About To Pay A DividendValuation
Is Packaging Corporation of America undervalued compared to its fair value and its price relative to the market?
13.23x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PKG ($106.65) is trading above our estimate of fair value ($101.44)
Significantly Below Fair Value: PKG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PKG is good value based on its PE Ratio (13.2x) compared to the Packaging industry average (18.8x).
PE vs Market: PKG is good value based on its PE Ratio (13.2x) compared to the US market (18.9x).
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 (3.3x) compared to the US Packaging industry average (3.4x).
Next Steps
Future Growth
How is Packaging Corporation of America forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
-6.3%
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 (-6.3% per year).
Earnings vs Market: PKG's earnings are forecast to decline over the next 3 years (-6.3% 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 (-0.4% per year).
High Growth Revenue: PKG's revenue is forecast to decline over the next 3 years (-0.4% 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 (18.1%).
Next Steps
Past Performance
How has Packaging Corporation of America performed over the past 5 years?
15.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PKG has high quality earnings.
Growing Profit Margin: PKG's current net profit margins (10.9%) are lower than last year (11.4%).
Past Earnings Growth Analysis
Earnings Trend: PKG's earnings have grown by 15.8% 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 (-4.6%) over the past year, making it difficult to compare to the Packaging industry average (-18.3%).
Return on Equity
High ROE: PKG's Return on Equity (25.2%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Packaging Corporation of America's financial position?
Financial Position Analysis
Short Term Liabilities: PKG's short term assets ($2.5B) 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 151.9% 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 (15.2x coverage).
Balance Sheet
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).
Next Steps
Dividend
What is Packaging Corporation of America's current dividend yield, its reliability and sustainability?
2.95%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PKG's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: PKG's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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 (39%), 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 well covered by earnings (49% payout ratio).
Next Steps
Management
What is the CEO of Packaging Corporation of America's salary, the management and board of directors tenure and is there insider trading?
5.4yrs
Average management tenure
CEO
Mark Kowlzan (63yo)
9.5yrs
Tenure
US$10,265,569
Compensation
Mr. Mark W. Kowlzan has been the Chief Executive Officer of Packaging Corporation of America since July 2010. Mr. Kowlzan served as Senior Vice President of Containerboard at Packaging Corporation of Ameri ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD10.27M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.4yrs
Average Tenure
59yo
Average Age
Experienced Management: PKG's management team is seasoned and experienced (5.4 years average tenure).
Board Age and Tenure
10.7yrs
Average Tenure
63yo
Average Age
Experienced Board: PKG's board of directors are seasoned and experienced ( 10.7 years average tenure).
Insider Trading
Insider Buying: PKG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Operating Officer Senior Vice President of Environmental Health |
| Shares | 1,900 |
| Max Price | US$112.92 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Sales & Marketing - Corrugated Products |
| Shares | 6,000 |
| Max Price | US$100.17 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Corporate Engineering & Process Technology |
| Shares | 5,000 |
| Max Price | US$101.48 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Mark Kowlzan (63yo)
Chairman of the Board & CEO
- Tenure: 9.5yrs
- Compensation: US$10.27m
Tom Hassfurther (63yo)
Executive Vice President of Corrugated Products
- Tenure: 10.3yrs
- Compensation: US$8.13m
Kent Pflederer (48yo)
Senior VP
- Tenure: 12.6yrs
- Compensation: US$1.85m
Bob Mundy (57yo)
Executive VP & CFO
- Tenure: 4.3yrs
- Compensation: US$3.25m
Jack Carter (59yo)
Senior Vice President of Containerboard Mill Operations
- Tenure: 6.5yrs
- Compensation: US$2.59m
Tom Walton (59yo)
Senior Vice President of Sales & Marketing - Corrugated Products
- Tenure: 10.3yrs
- Compensation: US$1.63m
Pamela Barnes (54yo)
Senior VP of Finance
- Tenure: 0.7yrs
Bruce Ridley
Senior Vice President of Environmental Health
- Tenure: 0.6yrs
Donald Shirley
Senior Vice President of Corporate Engineering & Process Technology
- Tenure: 0.6yrs
Robert Schneider
Senior VP & Chief Information Officer
- Tenure: 0.6yrs
Board Members
Sam Mencoff (63yo)
Lead Director
- Compensation: US$245.05k
Paul Stecko (75yo)
Director
- Tenure: 20.8yrs
- Compensation: US$246.59k
Thomas Souleles (50yo)
Independent Director
- Tenure: 9.3yrs
- Compensation: US$230.05k
Mark Kowlzan (63yo)
Chairman of the Board & CEO
- Tenure: 9.5yrs
- Compensation: US$10.27m
Cheryl Beebe (63yo)
Independent Director
- Tenure: 11.7yrs
- Compensation: US$245.05k
Roger Porter (72yo)
Independent Director
- Tenure: 14.7yrs
- Compensation: US$245.05k
Robert Lyons (55yo)
Independent Director
- Tenure: 8.4yrs
- Compensation: US$230.05k
Hasan Jameel (64yo)
Independent Director
- Tenure: 11.7yrs
- Compensation: US$230.05k
James Woodrum (56yo)
Independent Director
- Tenure: 10.7yrs
- Compensation: US$245.05k
Thomas Maurer (68yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: US$230.05k
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$10.057b
- Shares outstanding: 93.93m
- Website: https://www.packagingcorp.com
Number of Employees
Location
- Packaging Corporation of America
- 1 North Field Court
- Lake Forest
- Illinois
- 60045
- United States
Listings
| 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 |
Biography
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 | 2020/01/23 23:42 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.