NYSE:PKG

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has Packaging of America's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

NYSE:PKG

1.8%

US Packaging

2.1%

US Market


1 Year Return

-8.2%

NYSE:PKG

4.5%

US Packaging

-0.04%

US Market

PKG underperformed the Packaging industry which returned 4.2% over the past year.

PKG underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

PKGIndustryMarket
7 Day1.1%1.8%2.1%
30 Day-0.1%-3.5%-3.2%
90 Day11.1%4.9%2.8%
1 Year-5.2%-8.2%7.3%4.5%2.2%-0.04%
3 Year39.5%28.5%22.8%15.0%41.5%32.3%
5 Year73.8%50.5%44.4%27.7%55.0%37.8%

Price Volatility Vs. Market

How volatile is Packaging of America's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Packaging of America undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Packaging of America's share price is below the future cash flow value, and at a moderate discount (> 20%).

Packaging of America's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Packaging of America is good value based on earnings compared to the US Packaging industry average.

Packaging of America is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Packaging of America earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Packaging of America is good value based on assets compared to the US Packaging industry average.


Next Steps

Future Growth

How is Packaging of America expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

-4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Packaging of America's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Packaging of America's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Packaging of America's revenue growth is positive but not above the United States of America market average.

Packaging of America's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Packaging of America's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Packaging of America is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

14.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Packaging of America's year on year earnings growth rate has been positive over the past 5 years.

Packaging of America's 1-year earnings growth is less than its 5-year average (7.8% vs 14.6%)

Packaging of America's earnings growth has exceeded the US Packaging industry average in the past year (7.8% vs -1.4%).


Return on Equity

Packaging of America has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Packaging of America used its assets more efficiently than the US Packaging industry average last year based on Return on Assets.


Return on Capital Employed

Packaging of America has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Packaging of America's financial position?


Financial Position Analysis

Packaging of America is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Packaging of America's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Packaging of America's level of debt (85.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (163.9% vs 85.1% today).

Debt is well covered by operating cash flow (47.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

3.14%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Packaging of America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Packaging of America's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).


Next Steps

Management

What is the CEO of Packaging of America's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Mark Kowlzan (63yo)

9.1yrs

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

Mark's remuneration is higher than average for companies of similar size in United States of America.

Mark's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.0yrs

Average Tenure

59yo

Average Age

The average tenure for the Packaging of America management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.3yrs

Average Tenure

63yo

Average Age

The average tenure for the Packaging of America board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Packaging of America individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$601,04108 Aug 19
Thomas W. Walton
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Sales & Marketing - Corrugated Products
Shares6,000
Max PriceUS$100.17
SellUS$507,41830 Jul 19
Donald Shirley
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Engineering & Process Technology
Shares5,000
Max PriceUS$101.48

Ownership Breakdown


Management Team

  • Mark Kowlzan (63yo)

    Chairman of the Board & CEO

    • Tenure: 9.1yrs
    • Compensation: US$10.27m
  • Tom Hassfurther (63yo)

    Executive Vice President of Corrugated Products

    • Tenure: 9.9yrs
    • Compensation: US$8.13m
  • Kent Pflederer (48yo)

    Senior VP

    • Tenure: 12.2yrs
    • Compensation: US$1.85m
  • Bob Mundy (57yo)

    Executive VP & CFO

    • Tenure: 3.9yrs
    • Compensation: US$3.25m
  • Jack Carter (59yo)

    Senior Vice President of Containerboard Mill Operations

    • Tenure: 6.1yrs
    • Compensation: US$2.59m
  • Tom Walton (59yo)

    Senior Vice President of Sales & Marketing - Corrugated Products

    • Tenure: 9.8yrs
    • Compensation: US$1.63m
  • Pamela Barnes (54yo)

    Senior VP of Finance

    • Tenure: 0.3yrs
  • Bruce Ridley

    Senior Vice President of Environmental Health

    • Tenure: 0.2yrs
  • Donald Shirley

    Senior Vice President of Corporate Engineering & Process Technology

    • Tenure: 0.2yrs
  • Robert Schneider

    Senior VP & Chief Information Officer

    • Tenure: 0.2yrs

Board Members

  • Sam Mencoff (63yo)

    Lead Director

    • Tenure: 0.0yrs
    • Compensation: US$245.05k
  • Paul Stecko (75yo)

    Director

    • Tenure: 20.4yrs
    • Compensation: US$246.59k
  • Thomas Souleles (50yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$230.05k
  • Mark Kowlzan (63yo)

    Chairman of the Board & CEO

    • Tenure: 9.1yrs
    • Compensation: US$10.27m
  • Cheryl Beebe (63yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$245.05k
  • Roger Porter (72yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$245.05k
  • Robert Lyons (55yo)

    Independent Director

    • Tenure: 8.0yrs
    • Compensation: US$230.05k
  • Hasan Jameel (64yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$230.05k
  • James Woodrum (56yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$245.05k
  • Thomas Maurer (68yo)

    Independent Director

    • Tenure: 5.3yrs
    • 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$9.498b
  • Shares outstanding: 93.92m
  • Website: https://www.packagingcorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2000
PKADB (Deutsche Boerse AG)YesCommon StockDEEURJan 2000
0KEZLSE (London Stock Exchange)YesCommon StockGBUSDJan 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:41
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.