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Packaging Corporation of America

NYSE:PKG
Snowflake Description

Adequate balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PKG
NYSE
$11B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States. The last earnings update was 13 days ago. More info.


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PKG Share Price and Events
7 Day Returns
-0%
NYSE:PKG
0.1%
US Packaging
0.4%
US Market
1 Year Returns
17.5%
NYSE:PKG
14%
US Packaging
13.1%
US Market
PKG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Packaging Corporation of America (PKG) -0% 5.4% 11.5% 17.5% 30.1% 54.9%
US Packaging 0.1% 4.6% 6.1% 14% 21.1% 30.8%
US Market 0.4% 4% 7.4% 13.1% 38.6% 44.6%
1 Year Return vs Industry and Market
  • PKG outperformed the Packaging industry which returned 14% over the past year.
  • PKG outperformed the Market in United States of America which returned 13.1% over the past year.
Price Volatility
PKG
Industry
5yr Volatility vs Market

Value

 Is Packaging Corporation of America undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Packaging Corporation of America to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Packaging Corporation of America.

NYSE:PKG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PKG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Packaging Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.856 (1 + (1- 21%) (25.88%))
1.021
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.02
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.021 * 5.96%)
8.81%

Discounted Cash Flow Calculation for NYSE:PKG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Packaging Corporation of America is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:PKG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.81%)
2020 725.50 Analyst x4 666.74
2021 697.00 Analyst x2 588.67
2022 684.71 Est @ -1.76% 531.46
2023 681.87 Est @ -0.42% 486.38
2024 685.47 Est @ 0.53% 449.35
2025 693.62 Est @ 1.19% 417.87
2026 705.07 Est @ 1.65% 390.37
2027 719.00 Est @ 1.97% 365.84
2028 734.83 Est @ 2.2% 343.61
2029 752.17 Est @ 2.36% 323.23
Present value of next 10 years cash flows $4,563.00
NYSE:PKG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $752.17 × (1 + 2.73%) ÷ (8.81% – 2.73%)
$12,702.91
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,702.91 ÷ (1 + 8.81%)10
$5,458.84
NYSE:PKG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,563.00 + $5,458.84
$10,021.84
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $10,021.84 / 93.93
$106.69
NYSE:PKG Discount to Share Price
Calculation Result
Value per share (USD) From above. $106.69
Current discount Discount to share price of $112.92
= -1 x ($112.92 - $106.69) / $106.69
-5.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Packaging Corporation of America is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Packaging Corporation of America's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Packaging Corporation of America's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PKG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $8.09
NYSE:PKG Share Price ** NYSE (2019-11-14) in USD $112.92
United States of America Packaging Industry PE Ratio Median Figure of 16 Publicly-Listed Packaging Companies 18.03x
United States of America Market PE Ratio Median Figure of 2,917 Publicly-Listed Companies 18.19x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Packaging Corporation of America.

NYSE:PKG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PKG Share Price ÷ EPS (both in USD)

= 112.92 ÷ 8.09

13.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Packaging Corporation of America is good value based on earnings compared to the US Packaging industry average.
  • Packaging Corporation of America is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Packaging Corporation of America's expected growth come at a high price?
Raw Data
NYSE:PKG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-6.4%per year
United States of America Packaging Industry PEG Ratio Median Figure of 14 Publicly-Listed Packaging Companies 1.13x
United States of America Market PEG Ratio Median Figure of 2,028 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NYSE:PKG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.95x ÷ -6.4%

-2.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Packaging Corporation of America earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Packaging Corporation of America's assets?
Raw Data
NYSE:PKG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $32.31
NYSE:PKG Share Price * NYSE (2019-11-14) in USD $112.92
United States of America Packaging Industry PB Ratio Median Figure of 20 Publicly-Listed Packaging Companies 3.5x
United States of America Market PB Ratio Median Figure of 5,070 Publicly-Listed Companies 1.73x
NYSE:PKG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PKG Share Price ÷ Book Value per Share (both in USD)

= 112.92 ÷ 32.31

3.5x

* Primary Listing of Packaging Corporation of America.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Packaging Corporation of America is good value based on assets compared to the US Packaging industry average.
X
Value checks
We assess Packaging Corporation of America's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check)
  5. Packaging Corporation of America has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Packaging Corporation of America expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-6.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Packaging Corporation of America expected to grow at an attractive rate?
  • Packaging Corporation of America's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Packaging Corporation of America's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Packaging Corporation of America's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PKG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PKG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -6.4%
NYSE:PKG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts -0.3%
United States of America Packaging Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
United States of America Packaging Industry Revenue Growth Rate Market Cap Weighted Average 3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PKG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PKG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 6,954 996 674 4
2020-12-31 6,898 1,055 658 12
2019-12-31 6,956 1,170 721 12
2019-11-14
NYSE:PKG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 6,991 1,224 759
2019-06-30 7,050 1,185 786
2019-03-31 7,058 1,214 779
2018-12-31 7,015 1,180 732
2018-09-30 6,952 1,107 796
2018-06-30 6,783 1,004 729
2018-03-31 6,599 895 686
2017-12-31 6,445 856 663
2017-09-30 6,237 797 506
2017-06-30 6,081 816 486
2017-03-31 5,915 780 459
2016-12-31 5,779 807 445

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Packaging Corporation of America's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Packaging Corporation of America's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PKG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Packaging Corporation of America Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PKG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 6.91 7.27 6.35 3.00
2020-12-31 6.85 7.22 6.35 8.00
2019-12-31 7.62 7.69 7.60 7.00
2019-11-14
NYSE:PKG Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 8.09
2019-06-30 8.38
2019-03-31 8.31
2018-12-31 7.82
2018-09-30 8.50
2018-06-30 7.79
2018-03-31 7.33
2017-12-31 7.09
2017-09-30 5.42
2017-06-30 5.21
2017-03-31 4.92
2016-12-31 4.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Packaging Corporation of America is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Packaging Corporation of America's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Packaging Corporation of America has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Packaging Corporation of America performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Packaging Corporation of America's growth in the last year to its industry (Packaging).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Packaging Corporation of America's year on year earnings growth rate has been positive over the past 5 years.
  • Packaging Corporation of America's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Packaging Corporation of America's 1-year earnings growth is negative, it can't be compared to the US Packaging industry average.
Earnings and Revenue History
Packaging Corporation of America's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Packaging Corporation of America Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PKG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 6,990.80 759.00 556.70
2019-06-30 7,050.10 785.60 552.50
2019-03-31 7,057.70 778.70 545.00
2018-12-31 7,014.60 732.30 538.40
2018-09-30 6,952.40 796.00 541.70
2018-06-30 6,782.50 728.90 537.50
2018-03-31 6,599.00 685.60 528.80
2017-12-31 6,444.90 663.00 521.20
2017-09-30 6,237.20 506.00 512.90
2017-06-30 6,081.10 486.20 499.40
2017-03-31 5,914.50 459.00 484.60
2016-12-31 5,779.00 445.20 471.50
2016-09-30 5,693.30 438.50 451.40
2016-06-30 5,680.10 446.70 447.20
2016-03-31 5,717.00 444.60 448.30
2015-12-31 5,741.70 431.60 451.30
2015-09-30 5,784.70 425.80 456.40
2015-06-30 5,832.90 402.40 463.40
2015-03-31 5,847.00 387.80 470.30
2014-12-31 5,852.60 386.90 469.50
2014-09-30 5,683.12 517.77 458.99
2014-06-30 5,009.56 499.45 416.39
2014-03-31 4,341.39 467.71 367.82
2013-12-31 3,665.30 441.30 326.60
2013-09-30 3,137.46 274.26 299.50
2013-06-30 3,015.49 229.37 290.92
2013-03-31 2,927.73 208.27 287.30
2012-12-31 2,843.90 160.20 280.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Packaging Corporation of America has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Packaging Corporation of America used its assets more efficiently than the US Packaging industry average last year based on Return on Assets.
  • Packaging Corporation of America has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Packaging Corporation of America's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Packaging Corporation of America has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Packaging Corporation of America's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Packaging Corporation of America's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Packaging Corporation of America is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Packaging Corporation of America's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Packaging Corporation of America's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Packaging Corporation of America Company Filings, last reported 1 month ago.

NYSE:PKG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 3,034.70 2,486.30 738.30
2019-06-30 2,921.20 2,485.40 569.40
2019-03-31 2,794.60 2,484.60 442.40
2018-12-31 2,672.40 2,483.70 361.50
2018-09-30 2,530.20 2,482.90 293.80
2018-06-30 2,388.00 2,482.10 199.60
2018-03-31 2,273.80 2,481.20 102.40
2017-12-31 2,182.60 2,630.40 216.90
2017-09-30 1,994.20 2,612.80 370.50
2017-06-30 1,906.60 2,613.80 321.00
2017-03-31 1,824.70 2,614.90 254.00
2016-12-31 1,759.80 2,645.80 239.30
2016-09-30 1,730.00 2,651.60 279.80
2016-06-30 1,662.30 2,294.60 213.60
2016-03-31 1,590.80 2,295.80 162.30
2015-12-31 1,633.30 2,296.90 184.20
2015-09-30 1,615.00 2,325.80 186.90
2015-06-30 1,591.00 2,352.30 163.70
2015-03-31 1,556.30 2,353.90 126.40
2014-12-31 1,521.40 2,355.40 124.90
2014-09-30 1,552.04 2,356.98 154.32
2014-06-30 1,482.62 2,431.94 161.99
2014-03-31 1,417.58 2,481.89 185.71
2013-12-31 1,356.80 2,547.80 191.00
2013-09-30 1,099.13 782.41 396.60
2013-06-30 1,051.29 786.15 370.06
2013-03-31 1,001.82 789.89 268.04
2012-12-31 969.46 793.63 207.39
  • Packaging Corporation of America's level of debt (81.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (151.9% vs 81.9% today).
  • Debt is well covered by operating cash flow (49.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.2x coverage).
X
Financial health checks
We assess Packaging Corporation of America's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Packaging Corporation of America has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Packaging Corporation of America's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.8%
Current annual income from Packaging Corporation of America dividends. Estimated to be 2.79% next year.
If you bought $2,000 of Packaging Corporation of America shares you are expected to receive $56 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Packaging Corporation of America's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Packaging Corporation of America's dividend is below the markets top 25% of dividend payers in United States of America (3.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PKG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United States of America Packaging Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1949 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PKG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 3.33 4.00
2020-12-31 3.14 9.00
2019-12-31 3.08 9.00
2019-11-14
NYSE:PKG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-08-21 3.160 2.987
2019-05-10 3.160 3.257
2019-05-08 3.160 3.221
2019-04-25 3.160 3.193
2018-12-06 3.160 3.350
2018-08-30 3.160 3.167
2018-05-15 3.160 2.744
2018-02-27 2.520 2.185
2017-12-14 2.520 2.068
2017-08-25 2.520 2.191
2017-05-17 2.520 2.338
2017-03-02 2.520 2.671
2016-12-13 2.520 2.798
2016-08-31 2.520 3.060
2016-05-18 2.200 3.095
2016-02-25 2.200 3.699
2015-12-15 2.200 4.053
2015-08-31 2.200 3.349
2015-05-13 2.200 3.234
2015-02-26 2.200 2.918
2014-12-09 1.600 2.025
2014-08-28 1.600 2.336
2014-05-15 1.600 2.344
2014-02-27 1.600 2.309
2013-12-12 1.600 2.457
2013-08-28 1.600 2.714
2013-05-01 1.600 3.145
2013-01-14 1.250 2.963
2012-12-06 1.000 2.646
2012-09-05 1.000 2.850
2012-05-10 1.000 3.443
2012-02-21 1.000 3.411
2011-12-09 0.800 3.007
2011-08-31 0.800 3.152
2011-05-11 0.800 3.008
2011-02-22 0.800 2.837
2010-12-07 0.600 2.175
2010-09-01 0.600 2.465
2010-05-14 0.600 2.641
2010-02-26 0.600 2.449
2009-12-08 0.600 2.641
2009-09-04 0.600 2.963
2009-05-28 0.600 3.421
2009-02-26 0.600 4.469
2008-12-04 1.200 9.023

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Packaging Corporation of America's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Packaging Corporation of America's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Packaging Corporation of America afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Packaging Corporation of America has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Packaging Corporation of America's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Kowlzan
COMPENSATION $10,265,569
AGE 63
TENURE AS CEO 9.3 years
CEO Bio

Mr. Mark W. Kowlzan has been the Chief Executive Officer of Packaging Corporation of America since July 2010. Mr. Kowlzan served as Senior Vice President of Containerboard at Packaging Corporation of America since March 2002 and as Vice President from April 1999 to March 2002. From 1998 to April 1999, he served as a Vice President and General Manager - container board at Tenneco Packaging Inc. and an Operations Manager and Mill Manager of the Counce Mill from May 1996 to 1998. Prior to joining Tenneco Packaging, Mr. Kowlzan spent 15 years at International Paper Company, where he held a series of operational positions within its mill organization. He has been the Chairman of Packaging Corporation of America since January 2016. He has been a Director of Packaging Corp. of America since July 2010 and American Forest & Paper Association Inc. since February 2011. He received a Bachelor of Arts degree in Natural Science from Assumption College in 1977 and Bachelors of Science in Chemical Engineering and Pulp and Paper Engineering from the University of Massachusetts Lowell in 1980. Mr. Kowlzan also received a Master of Science in Pulp and Paper Engineering from University of Massachusetts Lowell in 1981 and a Master of Business Administration from the University of Louisiana at Monroe in 1985.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Packaging Corporation of America management team in years:

5.3
Average Tenure
59
Average Age
  • The average tenure for the Packaging Corporation of America management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Mark Kowlzan

TITLE
Chairman of the Board & CEO
COMPENSATION
$10M
AGE
63
TENURE
9.3 yrs

Bob Mundy

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
57
TENURE
4.2 yrs

Jack Carter

TITLE
Senior Vice President of Containerboard Mill Operations
COMPENSATION
$3M
AGE
59
TENURE
6.3 yrs

Bruce Ridley

TITLE
Senior Vice President of Environmental Health
TENURE
0.4 yrs

Pamela Barnes

TITLE
Senior VP of Finance
AGE
54
TENURE
0.5 yrs

Robert Schneider

TITLE
Senior VP & Chief Information Officer
TENURE
0.4 yrs

Kent Pflederer

TITLE
Senior VP
COMPENSATION
$2M
AGE
48
TENURE
12.4 yrs

Tom Hassfurther

TITLE
Executive Vice President of Corrugated Products
COMPENSATION
$8M
AGE
63
TENURE
10.2 yrs

Tom Walton

TITLE
Senior Vice President of Sales & Marketing - Corrugated Products
COMPENSATION
$2M
AGE
59
TENURE
10.1 yrs

Donald Shirley

TITLE
Senior Vice President of Corporate Engineering & Process Technology
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Packaging Corporation of America board of directors in years:

10.5
Average Tenure
63
Average Age
  • The average tenure for the Packaging Corporation of America board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Mark Kowlzan

TITLE
Chairman of the Board & CEO
COMPENSATION
$10M
AGE
63
TENURE
3.8 yrs

Roger Porter

TITLE
Independent Director
COMPENSATION
$245K
AGE
72
TENURE
14.5 yrs

Cheryl Beebe

TITLE
Independent Director
COMPENSATION
$245K
AGE
63
TENURE
11.5 yrs

James Woodrum

TITLE
Independent Director
COMPENSATION
$245K
AGE
56
TENURE
10.5 yrs

Sam Mencoff

TITLE
Lead Director
COMPENSATION
$245K
AGE
63

Paul Stecko

TITLE
Director
COMPENSATION
$247K
AGE
75
TENURE
20.7 yrs

Thomas Souleles

TITLE
Independent Director
COMPENSATION
$230K
AGE
50
TENURE
9.2 yrs

Hasan Jameel

TITLE
Independent Director
COMPENSATION
$230K
AGE
64
TENURE
11.5 yrs

Robert Lyons

TITLE
Independent Director
COMPENSATION
$230K
AGE
55
TENURE
8.3 yrs

Thomas Maurer

TITLE
Independent Director
COMPENSATION
$230K
AGE
68
TENURE
5.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Aug 19 Sell Thomas W. Walton Individual 07. Aug 19 07. Aug 19 -6,000 $100.17 $-601,041
30. Jul 19 Sell Donald Shirley Individual 26. Jul 19 26. Jul 19 -5,000 $101.48 $-507,418
X
Management checks
We assess Packaging Corporation of America's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Packaging Corporation of America has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's What Packaging Corporation of America's (NYSE:PKG) ROCE Can Tell Us

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Packaging of America: 0.18 = US$1.2b ÷ (US$7.1b - US$730m) (Based on the trailing twelve months to June 2019.) Therefore, Packaging of America has an ROCE of 18%. … Packaging of America's Current Liabilities And Their Impact On Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is Packaging Corporation of America's (NYSE:PKG) P/E Ratio Really That Good?

Packaging of America has a price to earnings ratio of 12.09, based on the last twelve months. … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Packaging of America: P/E of 12.09 = $101.28 ÷ $8.38 (Based on the year to June 2019.) Is A High P/E Ratio Good? … Packaging of America's earnings per share grew by -7.5% in the last twelve months.

Simply Wall St -

Is Now The Time To Put Packaging of America (NYSE:PKG) On Your Watchlist?

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Packaging of America (NYSE:PKG). … Check out our latest analysis for Packaging of America How Fast Is Packaging of America Growing? … We would not expect to see insiders owning a large percentage of a US$9.5b company like Packaging of America.

Simply Wall St -

These 4 Measures Indicate That Packaging of America (NYSE:PKG) Is Using Debt Reasonably Well

We note that Packaging Corporation of America (NYSE:PKG) does have debt on its balance sheet. … NYSE:PKG Historical Debt, July 11th 2019 How Healthy Is Packaging of America's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching Packaging of America's balance sheet over time.

Simply Wall St -

Why Packaging Corporation of America (NYSE:PKG) Could Have A Place In Your Portfolio

PKG's has produced operating cash levels of 0.48x total debt over the past year, which implies that PKG's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. … According to my intrinsic value of the stock, which is driven by analyst consensus forecast of PKG's earnings, investors now have the opportunity to buy into the stock to reap capital gains. … Also, relative to the rest of its peers with similar levels of earnings, PKG's share price is trading below the group's average.

Simply Wall St -

What Is Packaging Corporation of America's (NYSE:PKG) Share Price Doing?

Packaging Corporation of America (NYSE:PKG), which is in the packaging business, and is based in United States, saw significant share price movement during recent months on the NYSE, rising to highs of $103.33 and falling to the lows of $88.82. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. … However, given that Packaging of America’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future.

Simply Wall St -

How Should Investors Feel About Packaging Corporation of America's (NYSE:PKG) CEO Pay?

According to our data, Packaging Corporation of America has a market capitalization of US$8.5b, and pays its CEO total annual compensation worth US$10m. … Boasting a total shareholder return of 45% over three years, Packaging Corporation of America has done well by shareholders. … We examined the amount Packaging Corporation of America pays its CEO, and compared it to the amount paid by similar sized companies.

Simply Wall St -

Do You Know What Packaging Corporation of America's (NYSE:PKG) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Packaging Corporation of America's (NYSE:PKG) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does Packaging of America's (NYSE:PKG) Share Price Gain of 51% Match Its Business Performance?

For example, the Packaging Corporation of America (NYSE:PKG) share price is up 51% in the last five years, slightly above the market return. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Over half a decade, Packaging of America managed to grow its earnings per share at 11% a year.

Simply Wall St -

Are Investors Undervaluing Packaging Corporation of America (NYSE:PKG) By 34%?

We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

Company Info

Description

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States. The company’s Packaging segment offers various 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. It also produces 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. Its Paper segment manufactures and sells white papers comprising commodity and specialty papers with various features, such as colors, coatings, high brightness, and recycled content. The white papers also consist of communication papers, including cut-size office papers, and printing and converting papers. This segment sells white papers through the company’s own sales personnel. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.

Details
Name: Packaging Corporation of America
PKG
Exchange: NYSE
Founded: 1867
$10,592,899,514
93,933,666
Website: http://www.packagingcorp.com
Address: Packaging Corporation of America
1 North Field Court,
Lake Forest,
Illinois, 60045,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PKG Common Stock New York Stock Exchange US USD 28. Jan 2000
DB PKA Common Stock Deutsche Boerse AG DE EUR 28. Jan 2000
LSE 0KEZ Common Stock London Stock Exchange GB USD 28. Jan 2000
Number of employees
Current staff
Staff numbers
15,000
Packaging Corporation of America employees.
Industry
Paper Packaging
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/14 23:40
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/14
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.