Packaging Corporation of America
Market Cap
US$13.2b
Last Updated
2021/01/21 23:21 UTC
Data Sources
Company Financials +
Executive Summary
Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States. More Details
Rewards
Risk Analysis
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PKG's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.7%
PKG
0.2%
US Packaging
1.4%
US Market
1 Year Return
31.3%
PKG
19.6%
US Packaging
22.6%
US Market
Return vs Industry: PKG exceeded the US Packaging industry which returned 20% over the past year.
Return vs Market: PKG exceeded the US Market which returned 22.8% over the past year.
Shareholder returns
| PKG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | 0.2% | 1.4% |
| 30 Day | 5.0% | 2.1% | 4.9% |
| 90 Day | 17.9% | 9.7% | 14.6% |
| 1 Year | 35.6%31.3% | 22.2%19.6% | 25.4%22.6% |
| 3 Year | 22.4%11.9% | 25.7%16.6% | 46.8%37.0% |
| 5 Year | 233.1%187.5% | 126.1%100.8% | 132.0%106.1% |
Long-Term 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 St
We're Watching These Trends At Packaging Corporation of America (NYSE:PKG)2 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine Packaging Corporation of America (NYSE:PKG)?4 weeks ago | Simply Wall St
A Look At Packaging Corporation of America's (NYSE:PKG) CEO RemunerationValuation
Is Packaging Corporation of America undervalued compared to its fair value and its price relative to the market?
24.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PKG ($140.55) is trading below our estimate of fair value ($185.43)
Significantly Below Fair Value: PKG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PKG is poor value based on its PE Ratio (28.1x) compared to the US Packaging industry average (24.2x).
PE vs Market: PKG is poor value based on its PE Ratio (28.1x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: PKG is poor value based on its PEG Ratio (1.4x)
Price to Book Ratio
PB vs Industry: PKG is overvalued based on its PB Ratio (4.1x) compared to the US Packaging industry average (3.3x).
Next Steps
Future Growth
How is Packaging Corporation of America forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
19.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PKG's forecast earnings growth (19.6% per year) is above the savings rate (2%).
Earnings vs Market: PKG's earnings (19.6% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: PKG's earnings are forecast to grow, but not significantly.
Revenue vs Market: PKG's revenue (3.1% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: PKG's revenue (3.1% 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 (18.9%).
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 (-8.9%).
Return on Equity
High ROE: PKG's Return on Equity (14.8%) 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 ($775.4M).
Long Term Liabilities: PKG's short term assets ($2.7B) do not cover its long term liabilities ($3.4B).
Debt to Equity History and Analysis
Debt Level: PKG's debt to equity ratio (77.3%) is considered high.
Reducing Debt: PKG's debt to equity ratio has reduced from 143.9% to 77.3% over the past 5 years.
Debt Coverage: PKG's debt is well covered by operating cash flow (44%).
Interest Coverage: PKG's interest payments on its debt are well covered by EBIT (7.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Packaging Corporation of America current dividend yield, its reliability and sustainability?
2.85%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PKG's dividend (2.85%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: PKG's dividend (2.85%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 covered by earnings (51.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Mark Kowlzan (64 yo)
10.5yrs
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 ($USD10.55M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 10.5yrs | US$10.34m | 0.44% $ 58.2m | |
| Executive VP & CFO | 5.33yrs | US$3.06m | 0.040% $ 5.3m | |
| Executive Vice President of Corrugated Products | 11.33yrs | US$8.05m | 0.26% $ 34.1m | |
| Senior Vice President of Containerboard Mill Operations | 7.5yrs | US$2.37m | 0.047% $ 6.3m | |
| Senior Vice President of Corporate Engineering & Process Technology | 1.67yrs | US$2.25m | 0.022% $ 2.9m | |
| Senior Vice President of Environmental Health | 1.58yrs | no data | 0.017% $ 2.3m | |
| Senior VP of Finance | 1.67yrs | no data | 0.046% $ 6.1m | |
| Senior VP & Chief Information Officer | 1.67yrs | no data | 0.036% $ 4.8m | |
| Senior VP | 13.58yrs | US$2.06m | 0.054% $ 7.2m | |
| Senior Vice President of Sales & Marketing - Corrugated Products | 11.25yrs | US$1.63m | 0.034% $ 4.5m | |
| Senior Vice President of Corrugated Products | 0.67yr | no data | no data |
5.3yrs
Average Tenure
59yo
Average Age
Experienced Management: PKG's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | 10.5yrs | US$10.34m | 0.44% $ 58.2m | |
| Independent Lead Director | no data | US$249.95k | 0.34% $ 45.0m | |
| Director | 21.83yrs | US$292.47k | 0.041% $ 5.5m | |
| Independent Director | 10.33yrs | US$234.95k | 0.011% $ 1.4m | |
| Independent Director | 12.67yrs | US$249.95k | 0.013% $ 1.8m | |
| Independent Director | 15.67yrs | US$249.95k | 0.020% $ 2.7m | |
| Independent Director | 9.42yrs | US$234.95k | 0.011% $ 1.4m | |
| Independent Director | 1.08yrs | US$76.22k | 0.0012% $ 164.1k | |
| Independent Director | 12.67yrs | US$234.95k | 0.0099% $ 1.3m | |
| Independent Director | 11.67yrs | US$249.95k | 0.013% $ 1.7m | |
| Independent Director | 5.42yrs | US$234.95k | 0.0040% $ 524.1k | |
| Independent Director | 6.67yrs | US$234.95k | 0.0069% $ 906.5k |
10.3yrs
Average Tenure
64yo
Average Age
Experienced Board: PKG's board of directors are seasoned and experienced ( 10.3 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 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$13.234b
- 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
| 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 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:21 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.