Packaging Corp of America Stock Analysis, Valuation (NYSE:PKG)
PKG Stock Analysis
Investors can watch the Amigobulls Packaging Corp of America stock analysis video here. Our PKG analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Packaging Corp Of America Stock Rating 3.8/5
Amigobulls PKG stock analysis takes into account various financial ratios like relative valuation, Packaging Corp of America revenue, growth and return on equity based on latest quarter 2017 Q4 financial statements. We also check Packaging Corp of America dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Packaging Corp of America valuation analysis. Packaging Corp of America stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy PKG stock?
- Revenue growth has been tremendous with a compounded annual growth of 17.8% over the last 5 years.
- Packaging Corp of America had a healthy average operating margin of 14.5% over the last 4 quarters.
- LTM Net margins were good at 10.4% for Packaging Corp of America.
- The Packaging Corp of America stock currently trades at a price to earnings ratio of 19.9. We rate this as a positive, compared to the industry average of 23.
- Packaging Corp of America's return on invested capital of 15.9% is good.
- Packaging Corp of America has a good Return On Equity (ROE) of 34.6%.
- The company has a healthy free cash flow margin of 10%.
Investors can use Amigobulls Packaging Corp of America stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.
While doing a study of the company financials, Packaging Corp of America revenue growth and profit or net income are two main metrics which help in identifying whether PKG stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Packaging Corp of America stock.