Skip to Content

Packaging Corp of America PKG

Morningstar Rating
$171.54 +1.93 (1.14%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Packaging Corp Earnings: Resilient End Market Demand and Moderating Destocking Offset Lower Prices

No-moat-rated Packaging Corporation of America reported strong fourth-quarter results as the company finished the year on a high note. During the quarter, the company benefited from additional improvements in end market demand and continued easing in destocking activities that had weighed heavily on volumes for much of the year. Management noted that demand improved through the quarter and has carried over into January, which is an encouraging development given the challenges experienced in 2023. As such, we've raised our fair value estimate to $121 from $114 per share due to increased near-term revenue and profitability in our forecast.

Price vs Fair Value

PKG is trading at a 40% premium.
Price
$169.61
Fair Value
$965.00
Uncertainty
Medium
1-Star Price
$124.26
5-Star Price
$93.20
Economic Moat
Snqp
Capital Allocation
Ggvnzqpz

Bulls Say, Bears Say

Bulls

Packaging Corp’s focus on specialized products and regional customers will enable the firm to continue earning stronger returns than its competitors.

Bears

Despite a period of attractive margin expansion in containerboard production, the best days are behind Packaging Corp as new capacity weighs on linerboard prices.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if PKG is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$169.61
Day Range
$169.50171.65
52-Week Range
$122.20172.27
Bid/Ask
$168.44 / $174.53
Market Cap
$15.37 Bil
Volume/Avg
688,417 / 667,129

Key Statistics

Price/Earnings (Normalized)
18.56
Price/Sales
1.90
Dividend Yield (Trailing)
2.95%
Dividend Yield (Forward)
2.95%
Total Yield
5.83%

Company Profile

Packaging Corp of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 4 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. The firm differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.
Sector
Consumer Cyclical
Industry
Packaging & Containers
Stock Style Box
Mid Core
Total Number of Employees
15,100

Competitors

Valuation

Metric
PKG
IP
WRK
Price/Earnings (Normalized)
18.5613.1315.96
Price/Book Value
3.811.431.08
Price/Sales
1.900.640.55
Price/Cash Flow
11.026.576.89
Price/Earnings
PKG
IP
WRK

Financial Strength

Metric
PKG
IP
WRK
Quick Ratio
1.351.160.74
Current Ratio
2.171.671.55
Interest Coverage
19.191.46−2.44
Quick Ratio
PKG
IP
WRK

Profitability

Metric
PKG
IP
WRK
Return on Assets (Normalized)
9.92%3.18%2.44%
Return on Equity (Normalized)
21.10%8.88%6.68%
Return on Invested Capital (Normalized)
12.87%6.56%5.65%
Return on Assets
PKG
IP
WRK
See how this stock stacks up to its competitors with Morningstar Investor

Packaging & Containers Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BALL
Ball CorpTfbpsk$19.5 Bil
AVY
Avery Dennison CorpKjmzsc$16.9 Bil
AMCR
Amcor PLC Ordinary SharesYcnrvgz$13.2 Bil
IP
International Paper CoWzmj$12.4 Bil
WRK
WestRock CoGtb$11.3 Bil
CCK
Crown Holdings IncCsdnr$8.8 Bil
SON
Sonoco Products CoLzrjz$5.5 Bil
SEE
Sealed Air CorpVtkzwv$5.3 Bil
SLGN
Silgan Holdings IncQbb$4.7 Bil

Sponsor Center