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Packaging Corp Of America
PKG
Paperboard Containers & Boxes
Mkt Cap
$16.1BPE
22.47Debt
$2.873BCash
$692.4MEV
$18.28BFCF
$861.1MP/E Ratio
22.47Debt
$2.873BCash
$692.4MEV
$18.28BFCF
$861.1MCharts data: {"Earnings":[{"time":"2014-12-30","value":386900000},{"time":"2015-12-30","value":431600000},{"time":"2016-12-30","value":445200000},{"time":"2017-12-30","value":663000000},{"time":"2018-12-30","value":732300000},{"time":"2019-12-30","value":691200000},{"time":"2020-12-30","value":457400000},{"time":"2021-12-30","value":834700000},{"time":"2022-12-30","value":1021900000},{"time":"2023-12-30","value":759000000}],"Sales":[{"time":"2014-12-30","value":5852600000},{"time":"2015-12-30","value":5741700000},{"time":"2016-12-30","value":5779000000},{"time":"2017-12-30","value":6444900000},{"time":"2018-12-30","value":7014600000},{"time":"2019-12-30","value":6964300000},{"time":"2020-12-30","value":6658200000},{"time":"2021-12-30","value":7730300000},{"time":"2022-12-30","value":8478000000},{"time":"2023-12-30","value":7802400000}],"Net Margins":[{"time":"2014-12-30","value":0.0661073710829375},{"time":"2015-12-30","value":0.07516937492380306},{"time":"2016-12-30","value":0.07703754974909154},{"time":"2017-12-30","value":0.10287203835590933},{"time":"2018-12-30","value":0.10439654435035498},{"time":"2019-12-30","value":0.09924902718148271},{"time":"2020-12-30","value":0.06869724550178727},{"time":"2021-12-30","value":0.10797769814884287},{"time":"2022-12-30","value":0.12053550365652277},{"time":"2023-12-30","value":0.09727776068901876}],"Assets":[{"time":"2014-12-30","value":5348500000},{"time":"2015-12-30","value":5284600000},{"time":"2016-12-30","value":5777000000},{"time":"2017-12-30","value":6197500000},{"time":"2018-12-30","value":6569700000},{"time":"2019-12-30","value":7235800000},{"time":"2020-12-30","value":7433200000},{"time":"2021-12-30","value":7836800000},{"time":"2022-12-30","value":8003800000},{"time":"2023-12-30","value":8681100000}],"Stockholders Equity":[{"time":"2014-12-30","value":1521400000},{"time":"2015-12-30","value":1633300000},{"time":"2016-12-30","value":1759800000},{"time":"2017-12-30","value":2182600000},{"time":"2018-12-30","value":2672400000},{"time":"2019-12-30","value":3071000000},{"time":"2020-12-30","value":3246300000},{"time":"2021-12-30","value":3607200000},{"time":"2022-12-30","value":3667100000},{"time":"2023-12-30","value":3997300000}],"ROE":[{"time":"2014-12-30","value":0.25430524516892333},{"time":"2015-12-30","value":0.2642502908222617},{"time":"2016-12-30","value":0.2529832935560859},{"time":"2017-12-30","value":0.30376615046275085},{"time":"2018-12-30","value":0.27402334979793447},{"time":"2019-12-30","value":0.22507326603712147},{"time":"2020-12-30","value":0.14089886948217972},{"time":"2021-12-30","value":0.23139831448214682},{"time":"2022-12-30","value":0.27866706661939955},{"time":"2023-12-30","value":0.18987816776324018}],"ROA":[{"time":"2014-12-30","value":0.13138263064410582},{"time":"2015-12-30","value":0.14192181054384437},{"time":"2016-12-30","value":0.13507010559113727},{"time":"2017-12-30","value":0.15025413473174667},{"time":"2018-12-30","value":0.16251883647655144},{"time":"2019-12-30","value":0.1456231515520053},{"time":"2020-12-30","value":0.09738739708335575},{"time":"2021-12-30","value":0.15840649244589627},{"time":"2022-12-30","value":0.17750318598665635},{"time":"2023-12-30","value":0.12384375251984195}]}
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.
Sector
DCF
Discounted Cash Flow Valuation of Packaging Corp Of America
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $861.1M | $915.8M | $972.6M | $1.031B | $1.092B | $1.155B | $1.22B | $1.286B | $1.354B | $1.424B | $1.495B | $14.95B |
| DCF | $796.3M | $735.4M | $678.2M | $624.5M | $574.3M | $527.3M | $483.6M | $442.8M | $404.8M | $369.6M | $3.696B | |
| Value | $9.333B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 8.6%
Earnings Stability 54%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 7.5% | 7.7% | 10% | 10% | 9.9% | 6.9% | 11% | 12% | 9.7% | 9.2% |
| ROA | 14% | 14% | 15% | 16% | 15% | 9.7% | 16% | 18% | 12% | 11% |
| ROE | 26% | 25% | 30% | 27% | 23% | 14% | 23% | 28% | 19% | 18% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +9.97%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is +0.19%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +14.42%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -0.1%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +22.33%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -0.48%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | 5.17 | 5.09 | 5.45 | 3.97 | 3.09 | 4.08 | 5.09 | 3.71 | 3.89 | 3.34 |
| Debt Equity | 1.42 | 1.53 | 1.28 | 0.93 | 0.81 | 0.77 | 0.69 | 0.68 | 0.82 | 0.71 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 100% | 66% | 100% | 100% | 98% | 66% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 3.34.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.07.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.66.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
|---|---|---|---|---|---|
| Revenue | 4.4% | 2.2% | 5.4% | -8% | -0.022% |
| Net Income | 7.9% | 0.72% | 18% | -26% | -1.1% |
| Stockholders Equity | 12% | 8.4% | 7.2% | 9% | -0.9% |
| FCF | 7% | 6.1% | 11% | 26% | -1.4% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +2.15%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.02%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is +0.72%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -1.14%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +8.39%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.9%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +6.1%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -1.44%.