AI Spotlight on PKG
Company Description
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.
This segment sells its corrugated products through a direct sales and marketing organization, independent brokers, and distribution partners.The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers, and printing and converting papers.This segment sells white papers through its sales and marketing organization.
Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.
Market Data
Last Price | 214.9 |
Change Percentage | 0.31% |
Open | 212.91 |
Previous Close | 214.24 |
Market Cap ( Millions) | 19299 |
Volume | 153136 |
Year High | 250.82 |
Year Low | 159.57 |
M A 50 | 235.84 |
M A 200 | 207.38 |
Financial Ratios
FCF Yield | 3.06% |
Dividend Yield | 2.33% |
ROE | 18.79% |
Debt / Equity | 64.60% |
Net Debt / EBIDTA | 130.66% |
Price To Book | 4.49 |
Price Earnings Ratio | 24.82 |
Price To FCF | 32.72 |
Price To sales | 2.36 |
EV / EBITDA | 13.44 |
News
- Jan -29 - Packaging Corporation of America (PKG) Q4 2024 Earnings Conference Call Transcript
- Jan -29 - Packaging Corp. Q4 Earnings Miss, Sales Rise Y/Y on Higher Volumes
- Jan -29 - Packaging Corp. Is Worst Stock in S&P 500 After Earnings. Here's Why.
- Jan -29 - Packaging Corp Of America: Valuation Appears Too High Given Margin Pressure
- Jan -28 - Packaging Corp. (PKG) Q4 Earnings Lag Estimates
- Jan -28 - SON or PKG: Which Is the Better Value Stock Right Now?
- Jan -24 - 3 Reasons Growth Investors Will Love Packaging Corp. (PKG)
- Jan -23 - Packaging Corp Gears Up to Report Q4 Earnings: What to Expect?
- Jan -23 - Stay Ahead of the Game With Packaging Corp. (PKG) Q4 Earnings: Wall Street's Insights on Key Metrics
- Jan -23 - The Zacks Analyst Blog Alcoa, EnerSys, Chart Industries and Packaging Corp
- Jan -22 - 4 Stocks to Gain From a Steady Rebound in Manufacturing Activity
- Jan -08 - Here is Why Growth Investors Should Buy Packaging Corp. (PKG) Now
- Dec -20 - Are Industrial Products Stocks Lagging Packaging Corporation of America (PKG) This Year?
- Dec -19 - Packaging Corp. (PKG) Loses -6.1% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner
- Dec -18 - 3 Packaging Stocks Likely to Continue Their Winning Streaks in 2025
- Dec -17 - 3 Dividend Leaders Set for Strong Growth in 2025
- Dec -12 - Packaging Corporation of America Schedules Conference Call to Discuss Fourth Quarter and Full Year 2024 Operating Results
- Dec -11 - Dividend Investing: 5 Must-Have High-Yield S&P 500 Stocks for 2025
- Nov -22 - New Strong Buy Stocks for November 22nd
- Nov -20 - 3 Packaging Stocks to Keep an Eye on Despite Industry Challenges
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Packaging
Expected Growth : 4.0 %
What the company do ?
Packaging Corporation of America provides packaging solutions, including containerboard, corrugated containers, and packaging supplies for various industries.
Why we expect these perspectives ?
Packaging Corporation of America's 4.0% growth is driven by increasing e-commerce demand, rising online shopping, and growing need for sustainable packaging solutions. Additionally, the company's strategic acquisitions, operational efficiencies, and product innovations in specialty packaging also contribute to its growth momentum.
Segment nΒ°2 -> Paper
Expected Growth : 3.5 %
What the company do ?
Paper from Packaging Corporation of America refers to a range of paper products, including containerboard, kraft paper, and specialty papers, used for packaging and other industrial applications.
Why we expect these perspectives ?
Packaging Corporation of America's 3.5% growth is driven by increasing e-commerce demand, rising online shopping trends, and growing need for sustainable packaging solutions. Additionally, the company's strategic acquisitions, operational efficiencies, and cost savings initiatives contribute to its growth momentum.
Segment nΒ°3 -> Corporate and Other Segment
Expected Growth : 2.5 %
What the company do ?
The Corporate and Other Segment from Packaging Corporation of America includes costs associated with corporate offices, manufacturing support, and other miscellaneous operations.
Why we expect these perspectives ?
The 2.5% growth in Corporate and Other Segment of Packaging Corporation of America is driven by increased sales of specialty packaging products, higher pricing, and cost savings from operational efficiencies. Additionally, strategic acquisitions and investments in emerging markets have contributed to the segment's growth.
Packaging Corporation Of America Products
Product Range | What is it ? |
---|---|
Containerboard | A type of paperboard used to manufacture corrugated containers, such as boxes and cases. |
Kraft Paper | A type of paper made from wood pulp, used for packaging, wrapping, and crafting. |
Corrugated Containers | Boxes and cases made from corrugated paperboard, used for shipping and storing goods. |
Specialty Packaging | Customized packaging solutions for specific products, such as food, beverages, and pharmaceuticals. |
Bleached Paperboard | A type of paperboard used in packaging, printing, and converting applications. |
Recycled Paper | Paper products made from recycled fibers, used in packaging, printing, and writing applications. |
Packaging Corporation of America's Porter Forces
Threat Of Substitutes
Packaging Corporation of America faces moderate threat from substitutes due to the availability of alternative packaging materials and sustainable options.
Bargaining Power Of Customers
Customers have limited bargaining power due to the company's diversified customer base and lack of concentration.
Bargaining Power Of Suppliers
Suppliers have moderate bargaining power due to the company's dependence on a few key suppliers for raw materials.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.
Intensity Of Rivalry
The intensity of rivalry is high due to the competitive nature of the packaging industry, with several established players competing for market share.
Capital Structure
Value | |
---|---|
Debt Weight | 42.48% |
Debt Cost | 3.95% |
Equity Weight | 57.52% |
Equity Cost | 8.01% |
WACC | 6.28% |
Leverage | 73.86% |
Packaging Corporation of America : Quality Control
Packaging Corporation of America passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
GPK | Graphic Packaging Holding Company, together with its subsidiaries, provides fiber-based packaging solutions to food, beverage, foodservice, and other consumer products companies. It operates through three segments: Paperboard Mills, Americas Paperboard β¦ |
GEF | Greif, Inc. engages in the production and sale of industrial packaging products and services worldwide. It operates in three segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management. β¦ |
WRK | WestRock Company, together with its subsidiaries, provides fiber-based paper and packaging solutions in North America, South America, Europe, Asia, and Australia. It operates through two segments, Corrugated Packaging and Consumer β¦ |
REYN | Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking β¦ |
SON | Sonoco Products Company, together with its subsidiaries, manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company operates through two segments: β¦ |