Packaging Corp of America Stock Analysis, Valuation (NYSE:PKG)

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$121.18 $0.85 (0.71%) PKG stock closing price May 18, 2018 (Closing)
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Packaging Corp of America
Updated on : May 18, 2018
previous close
PKG 121.2 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Containers-Paper-Plastic
Sector :
Industrial Products
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
17.6%
Operating Profit
Operating Margin:
14.3%
Sector Average:
8.3%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.5B
Debt/Equity Ratio:
 1.1
Compared to the industry
Cash Flow
Operating cash flow:
$202.5M
Net Income:
$140.1M
Dividend Yield
PKG dividend yield:
2.08%
PROS      CONS
Long Term Growth
Operating Margins
Net Margins
ROE
FCF Margin
PE Valuation
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PKG PS :
1.7
Industry PS :
1.5
Sector:   Industrial Products.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
33.8%
Free Cash Flow Margin:
5.6%
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PKG Stock Analysis

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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 3.4/5

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 2018 Q1 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?

  • The company saw a significant growth in revenue with a 5 year CAGR of 17.6%.
  • Packaging Corp of America had a healthy average operating margin of 14.3% over the last 4 quarters.
  • Net margins stood at a healthy 10.5% (average) for Packaging Corp of America in the Trailing Twelve Months.
  • The price to earnings multiple of 19.2 is attractive when compared with the industry average PE ratio of 20.9.
  • The LTM ROE of 33.8% for Packaging Corp of America is attractive.
  • Packaging Corp of America has a healthy FCF (Free Cash Flow) margin of 5.6%.

Should you sell PKG stock?

  • With a debt/equity ratio of  1.1, Packaging Corp of America is highly leveraged in comparison to Industrial Products peers.

Comments on this video and Packaging Corp of America stock

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.