(PKG) Packaging of America - NYSE
Sector: Consumer Cyclical | Industry: Packaging & Containers | Exchange: NYSE (USA) | Market Cap: 20.335m USD | Total Return: 24.4% in 12m
Avg Turnover: 142M
EPS Trend: 60.0%
Qual. Beats: 1
Rev. Trend: 93.9%
Qual. Beats: -2
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Packaging Corporation of America (PKG) is a major North American producer of containerboard and uncoated freesheet paper. The company operates through two primary divisions: Packaging and Paper. The Packaging segment focuses on corrugated shipping containers and protective honeycomb materials, while the Paper segment produces commodity and specialty communication papers, such as office and printing stock.
The company utilizes an integrated business model where it manages both the raw material production and the conversion into finished goods. In the corrugated packaging sector, demand is heavily influenced by e-commerce volumes and industrial production levels, as these containers are essential for the logistics of both consumer and industrial goods. PKG maintains a direct sales and marketing organization to manage its distribution across diverse end markets, including food, beverage, and retail sectors.
Investors can further analyze these segment trends and valuation metrics on ValueRay. Founded in 1867 and based in Lake Forest, Illinois, the company remains a central player in the Paper & Plastic Packaging industry.
- Containerboard price hikes and volume growth drive core packaging segment revenue
- E-commerce demand and industrial production levels dictate corrugated box shipment volumes
- Fluctuating energy and recycled fiber costs significantly impact quarterly operating margins
- Uncoated freesheet paper demand declines as digital transformation reduces office paper use
- Strategic capital allocation toward mill conversions and containerboard capacity expansion projects
| Net Income: 740.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.62 > 1.0 |
| NWC/Revenue: 23.84% < 20% (prev 26.86%; Δ -3.02% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.55b > Net Income 740.4m |
| Net Debt (4.22b) to EBITDA (1.82b): 2.32 < 3 |
| Current Ratio: 3.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (89.1m) vs 12m ago -0.56% < -2% |
| Gross Margin: 20.48% > 18% (prev 21.85%; Δ -1.37% > 0.5%) |
| Asset Turnover: 93.34% > 50% (prev 95.26%; Δ -1.92% > 0%) |
| Interest Coverage Ratio: 10.92 > 6 (EBIT TTM 1.08b / Interest Expense TTM 98.8m) |
| A: 0.20 (Total Current Assets 3.26b - Total Current Liabilities 1.06b) / Total Assets 10.8b |
| B: 0.36 (Retained Earnings 3.91b / Total Assets 10.8b) |
| C: 0.11 (EBIT TTM 1.08b / Avg Total Assets 9.87b) |
| D: 0.74 (Book Value of Equity 4.59b / Total Liabilities 6.19b) |
| Altman-Z'' = 4.03 = AA |
| DSRI: 1.08 (Receivables 1.35b/1.16b, Revenue 9.22b/8.54b) |
| GMI: 1.07 (GM 21.85% / 20.48%) |
| AQI: 1.40 (AQ_t 0.20 / AQ_t-1 0.14) |
| SGI: 1.08 (Revenue 9.22b / 8.54b) |
| TATA: -0.07 (NI 740.4m - CFO 1.55b) / TA 10.8b) |
| Beneish M = -2.62 (Cap -4..+1) = A |
As of June 16, 2026, the stock is trading at USD 229.96 with a total of 435,058 shares traded.
Over the past week, the price has changed by +5.49%,
over one month by +9.15%,
over three months by +7.69% and
over the past year by +24.37%.
Packaging of America has received a consensus analysts rating of 4.09. Therefore, it is recommended to buy PKG.
- StrongBuy: 6
- Buy: 1
- Hold: 3
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 235.9 | 2.6% |
P/E Trailing = 27.6978
P/E Forward = 21.3675
P/S = 2.2065
P/B = 4.358
P/EG = 1.7097
Revenue TTM = 9.22b USD
EBIT TTM = 1.08b USD
EBITDA TTM = 1.82b USD
Long Term Debt = 3.97b USD (from longTermDebt, last quarter)
Short Term Debt = 104.4m USD (from shortTermDebt, last quarter)
Debt = 4.77b USD (from shortLongTermDebtTotal, last quarter) + Leases 398.8m
Net Debt = 4.22b USD (calculated: Debt 4.77b - CCE 543.7m)
Enterprise Value = 24.6b USD (20.3b + Debt 4.77b - CCE 543.7m)
Interest Coverage Ratio = 10.92 (Ebit TTM 1.08b / Interest Expense TTM 98.8m)
EV/FCF = 34.97x (Enterprise Value 24.6b / FCF TTM 702.2m)
FCF Yield = 2.86% (FCF TTM 702.2m / Enterprise Value 24.6b)
FCF Margin = 7.62% (FCF TTM 702.2m / Revenue TTM 9.22b)
Net Margin = 8.03% (Net Income TTM 740.4m / Revenue TTM 9.22b)
Gross Margin = 20.48% ((Revenue TTM 9.22b - Cost of Revenue TTM 7.33b) / Revenue TTM)
Gross Margin QoQ = 19.13% (prev 18.93%)
Tobins Q-Ratio = 2.28 (Enterprise Value 24.6b / Total Assets 10.8b)
Interest Expense / Debt = 2.07% (Interest Expense 98.8m / Debt 4.77b)
Taxrate = 24.39% (239.1m / 980.2m)
NOPAT = 815.8m (EBIT 1.08b * (1 - 24.39%))
Current Ratio = 3.07 (Total Current Assets 3.26b / Total Current Liabilities 1.06b)
Debt / Equity = 1.04 (Debt 4.77b / totalStockholderEquity, last quarter 4.59b)
Debt / EBITDA = 2.32 (Net Debt 4.22b / EBITDA 1.82b)
Debt / FCF = 6.01 (Net Debt 4.22b / FCF TTM 702.2m)
Total Stockholder Equity = 4.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.50% (Net Income 740.4m / Total Assets 10.8b)
RoE = 15.95% (Net Income TTM 740.4m / Total Stockholder Equity 4.64b)
RoCE = 12.53% (EBIT 1.08b / Capital Employed (Equity 4.64b + L.T.Debt 3.97b))
RoIC = 8.72% (NOPAT 815.8m / Invested Capital 9.36b)
WACC = 7.01% (E(20.3b)/V(25.1b) * Re(8.29%) + D(4.77b)/V(25.1b) * Rd(2.07%) * (1-Tc(0.24)))
Discount Rate = 8.29% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 11.37 | Cagr: -0.26%
[DCF] Terminal Value 77.97% ; FCFF base≈632.7m ; Y1≈725.3m ; Y5≈1.07b
[DCF] Fair Price = 132.9 (EV 16.1b - Net Debt 4.22b = Equity 11.8b / Shares 89.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 59.96 | EPS CAGR: 5.22% | SUE: 3.03 | # QB: 1
Revenue Correlation: 93.88 | Revenue CAGR: 6.22% | SUE: -0.84 | # QB: -2
EPS current Quarter (2026-06-30): EPS=2.35 | Chg30d=+0.30% | Revisions=+33% | Analysts=8
EPS next Quarter (2026-09-30): EPS=2.94 | Chg30d=+0.38% | Revisions=+0% | Analysts=8
EPS current Year (2026-12-31): EPS=10.38 | Chg30d=+0.62% | Revisions=+0% | GrowthEPS=+5.5% | GrowthRev=+11.3%
EPS next Year (2027-12-31): EPS=12.25 | Chg30d=+0.87% | Revisions=+43% | GrowthEPS=+18.0% | GrowthRev=+4.9%
[Analyst] Revisions Ratio: +43%