Packaging Corporation of America (PKG) 10-Year Financial Performance & Capital Metrics

PKG • • Industrial / General

Consumer CyclicalPackagingPaper & Fiber PackagingCorrugated Packaging

AboutPackaging 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.Show more

Revenue $8.38B +7.4%
EBITDA $1.63B +2.1%
Net Income $805M +5.2%
EPS (Diluted) 8.93 +5.3%
Gross Margin 21.27% -2.3%
EBITDA Margin 19.41% -4.9%
Operating Margin 13.14% -4.7%
Net Margin 9.6% -2.1%
ROE 19.17% -4.0%
ROIC 12.69% -0.3%
Debt/Equity 0.63 -20.7%
Interest Coverage 26.60 +31.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 22.5%
✓Strong Piotroski F-Score: 8/9
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 2.3%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y3.66%

5Y3.78%

3Y2.74%

TTM7.3%

Profit (Net Income) CAGR

10Y7.45%

5Y2.94%

3Y-1.45%

TTM15.55%

EPS CAGR

10Y8.39%

5Y3.97%

3Y0.38%

TTM15.4%

ROCE

10Y Avg16.65%

5Y Avg16.21%

3Y Avg16.47%

Latest14.45%

Peer Comparison

Corrugated Packaging

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SWSmurfit Westrock Plc	22.32B	42.74	54.10	86.02%	2.47%	3.89%	0.08%	0.78
IPInternational Paper Company	22.62B	42.84	27.29	-1.57%	-5.45%	-7.39%	3.35%	0.72
PKGPackaging Corporation of America	19.79B	219.96	24.63	7.45%	10.18%	18.78%	2.63%	0.63

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	5.74B	5.78B	6.44B	7.01B	6.96B	6.66B	7.73B	8.48B	7.8B	8.38B
Revenue Growth %	-0.02%	0.01%	0.12%	0.09%	-0.01%	-0.04%	0.16%	0.1%	-0.08%	0.07%
Cost of Goods Sold+	4.53B	4.5B	4.97B	5.37B	5.32B	5.27B	5.86B	6.39B	6.1B	6.6B
COGS % of Revenue	0.79%	0.78%	0.77%	0.77%	0.76%	0.79%	0.76%	0.75%	0.78%	0.79%
Gross Profit+	1.21B	1.28B	1.47B	1.65B	1.64B	1.39B	1.87B	2.09B	1.7B	1.78B
Gross Margin %	0.21%	0.22%	0.23%	0.23%	0.24%	0.21%	0.24%	0.25%	0.22%	0.21%
Gross Profit Growth %	-0.02%	0.06%	0.15%	0.12%	-0%	-0.16%	0.35%	0.12%	-0.19%	0.05%
Operating Expenses+	458M	492.8M	538.3M	577.6M	590.3M	544.7M	589.7M	669.9M	623.8M	681.8M
OpEx % of Revenue	0.08%	0.09%	0.08%	0.08%	0.08%	0.08%	0.08%	0.08%	0.08%	0.08%
Selling, General & Admin	451.3M	468.5M	519.9M	536.4M	557.6M	524.1M	562.3M	608.6M	580.9M	610.3M
SG&A % of Revenue	0.08%	0.08%	0.08%	0.08%	0.08%	0.08%	0.07%	0.07%	0.07%	0.07%
Research & Development	0	0	0	0	0	15.5M	14.5M	0	0	0
R&D % of Revenue	-	-	-	-	-	0%	0%	-	-	-
Other Operating Expenses	6.7M	24.3M	18.4M	41.2M	32.7M	5.1M	12.9M	61.3M	42.9M	71.5M
Operating Income+	750M	783.3M	932.5M	1.07B	1.05B	841.6M	1.28B	1.42B	1.08B	1.1B
Operating Margin %	0.13%	0.14%	0.14%	0.15%	0.15%	0.13%	0.17%	0.17%	0.14%	0.13%
Operating Income Growth %	0.07%	0.04%	0.19%	0.14%	-0.01%	-0.2%	0.52%	0.11%	-0.24%	0.02%
EBITDA+	1.11B	1.14B	1.32B	1.48B	1.44B	1.25B	1.7B	1.88B	1.59B	1.63B
EBITDA Margin %	0.19%	0.2%	0.21%	0.21%	0.21%	0.19%	0.22%	0.22%	0.2%	0.19%
EBITDA Growth %	0.02%	0.03%	0.16%	0.12%	-0.03%	-0.13%	0.36%	0.1%	-0.15%	0.02%
D&A (Non-Cash Add-back)	356.5M	358M	391.4M	410.9M	387.5M	409.9M	417.5M	456.8M	517.7M	525.6M
EBIT	750M	783.3M	931.2M	1.07B	1.05B	726.2M	1.26B	1.44B	1.07B	1.11B
Net Interest Income+	-85.5M	-94.8M	-102.6M	-95.1M	-128.8M	-93.5M	-152.4M	-70.4M	-53.3M	-41.4M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	85.5M	91.8M	102.6M	95.1M	128.8M	93.5M	152.4M	70.4M	53.3M	41.4M
Other Income/Expense	-85.5M	-94.8M	-103.9M	-97.2M	-136.7M	-208.9M	-174.6M	-55.9M	-61M	-36.9M
Pretax Income+	664.5M	688.5M	828.6M	970.5M	917M	632.7M	1.11B	1.36B	1.01B	1.06B
Pretax Margin %	0.12%	0.12%	0.13%	0.14%	0.13%	0.1%	0.14%	0.16%	0.13%	0.13%
Income Tax+	227.7M	238.9M	160M	232.5M	220.6M	171.7M	267.6M	335M	248.9M	259.3M
Effective Tax Rate %	0.66%	0.65%	0.81%	0.76%	0.76%	0.73%	0.76%	0.75%	0.75%	0.76%
Net Income+	436.8M	449.6M	668.6M	738M	696.4M	461M	841.1M	1.03B	765.2M	805.1M
Net Margin %	0.08%	0.08%	0.1%	0.11%	0.1%	0.07%	0.11%	0.12%	0.1%	0.1%
Net Income Growth %	0.11%	0.03%	0.49%	0.1%	-0.06%	-0.34%	0.82%	0.22%	-0.26%	0.05%
Net Income (Continuing)	436.8M	449.6M	668.6M	738M	696.4M	461M	841.1M	1.03B	765.2M	805.1M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	4.47	4.75	7.07	7.86	7.35	4.85	8.83	11.02	8.48	8.93
EPS Growth %	0.12%	0.06%	0.49%	0.11%	-0.06%	-0.34%	0.82%	0.25%	-0.23%	0.05%
EPS (Basic)	4.47	4.76	7.09	7.88	7.37	4.86	8.87	11.07	8.52	8.97
Diluted Shares Outstanding	97.72M	93.7M	93.7M	93.9M	94.1M	94.4M	94.5M	92.7M	89.5M	89.5M
Basic Shares Outstanding	96.6M	93.53M	93.51M	93.64M	93.8M	94.1M	94.1M	92.3M	89.1M	89.1M
Dividend Payout Ratio	0.46%	0.48%	0.36%	0.36%	0.43%	0.65%	0.45%	0.41%	0.59%	0.56%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.55B	1.7B	1.92B	2.12B	2.48B	2.75B	2.73B	2.51B	3.25B	3.23B
Cash & Short-Term Investments	184.2M	239.3M	216.9M	361.5M	767.4M	1.08B	704.8M	405.2M	1.14B	787M
Cash Only	184.2M	239.3M	216.9M	361.5M	679.5M	974.6M	618.7M	320M	648M	685M
Short-Term Investments	0	0	0	0	87.9M	105.6M	86.1M	85.2M	493.5M	102M
Accounts Receivable	664.7M	703.1M	900.2M	918.6M	872.1M	837.5M	1.08B	1.07B	1.04B	1.15B
Days Sales Outstanding	42.26	44.41	50.98	47.8	45.71	45.91	50.92	45.96	48.53	50.25
Inventory	676.8M	723.6M	762.5M	795.6M	794.1M	787.9M	902.5M	977.3M	1.01B	1.12B
Days Inventory Outstanding	54.49	58.65	55.95	54.08	54.48	54.55	56.24	55.85	60.59	62.21
Other Current Assets	0	0	0	0	0	0	0	58.3M	62.3M	166.9M
Total Non-Current Assets+	3.73B	4.08B	4.28B	4.45B	4.76B	4.68B	5.1B	5.5B	5.43B	5.6B
Property, Plant & Equipment	2.83B	2.9B	2.92B	3.11B	3.39B	3.43B	3.77B	4.2B	4.14B	4.32B
Fixed Asset Turnover	2.03x	2.00x	2.20x	2.26x	2.06x	1.94x	2.05x	2.02x	1.88x	1.94x
Goodwill	544M	737.9M	883.2M	917.3M	918.7M	863.5M	923.5M	922.4M	922.4M	922.4M
Intangible Assets	270.8M	367.1M	410M	378.2M	338.8M	295.9M	308.4M	267.9M	229.6M	191.9M
Long-Term Investments	-347M	0	-239.5M	-285.2M	58.1M	42.7M	60M	64.9M	64.1M	65.2M
Other Non-Current Assets	70.9M	80M	64.3M	50.5M	55.8M	53.2M	44.9M	42M	67.2M	104.8M
Total Assets+	5.28B	5.78B	6.2B	6.57B	7.24B	7.43B	7.84B	8B	8.68B	8.83B
Asset Turnover	1.09x	1.00x	1.04x	1.07x	0.96x	0.90x	0.99x	1.06x	0.90x	0.95x
Asset Growth %	-0.01%	0.09%	0.07%	0.06%	0.1%	0.03%	0.05%	0.02%	0.08%	0.02%
Total Current Liabilities+	561.9M	625.4M	832.7M	693.6M	723.8M	782.6M	884.8M	875.5M	1.27B	1B
Accounts Payable	294.2M	323.8M	402.9M	382.2M	351.9M	387M	452.4M	410.4M	402.4M	430.3M
Days Payables Outstanding	23.69	26.25	29.56	25.98	24.14	26.79	28.19	23.45	24.06	23.8
Short-Term Debt	6.5M	25.8M	150M	0	0	0	0	0	399.6M	0
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	152.7M	158.6M	158.5M	171.4M	159.9M	160.7M	190.7M	191.7M	187.8M	300.4M
Current Ratio	2.77x	2.71x	2.30x	3.05x	3.42x	3.51x	3.09x	2.86x	2.57x	3.23x
Quick Ratio	1.56x	1.56x	1.38x	1.90x	2.33x	2.51x	2.07x	1.75x	1.77x	2.10x
Cash Conversion Cycle	73.06	76.81	77.37	75.9	76.04	73.67	78.97	78.35	85.06	88.67
Total Non-Current Liabilities+	3.09B	3.39B	3.18B	3.2B	3.44B	3.4B	3.34B	3.46B	3.42B	3.43B
Long-Term Debt	2.29B	2.62B	2.48B	2.48B	2.48B	2.48B	2.47B	2.47B	2.47B	2.47B
Capital Lease Obligations	21.6M	20.3M	19M	17.6M	193.6M	188M	192M	245.4M	220.8M	214.7M
Deferred Tax Liabilities	347M	334.7M	239.5M	285.2M	340.1M	379.4M	465.9M	543M	558M	561.9M
Other Non-Current Liabilities	418.1M	416.8M	443.3M	417.2M	430.5M	357.5M	215.4M	199.2M	167.1M	176.8M
Total Liabilities	3.65B	4.02B	4.01B	3.9B	4.16B	4.19B	4.23B	4.34B	4.68B	4.43B
Total Debt+	2.32B	2.67B	2.65B	2.5B	2.73B	2.74B	2.73B	2.79B	3.17B	2.77B
Net Debt	2.14B	2.43B	2.43B	2.14B	2.06B	1.76B	2.11B	2.47B	2.53B	2.09B
Debt / Equity	1.42x	1.52x	1.21x	0.94x	0.89x	0.84x	0.76x	0.76x	0.79x	0.63x
Debt / EBITDA	2.10x	2.34x	2.00x	1.69x	1.90x	2.19x	1.61x	1.49x	1.99x	1.70x
Net Debt / EBITDA	1.93x	2.13x	1.84x	1.45x	1.43x	1.41x	1.24x	1.32x	1.59x	1.28x
Interest Coverage	8.77x	8.53x	9.09x	11.23x	8.18x	9.00x	8.42x	20.18x	20.17x	26.60x
Total Equity+	1.63B	1.76B	2.18B	2.67B	3.07B	3.25B	3.61B	3.67B	4B	4.4B
Equity Growth %	0.07%	0.08%	0.24%	0.22%	0.15%	0.06%	0.11%	0.02%	0.09%	0.1%
Book Value per Share	16.71	18.78	23.29	28.46	32.64	34.39	38.17	39.56	44.66	49.21
Total Shareholders' Equity	1.63B	1.76B	2.18B	2.67B	3.07B	3.25B	3.61B	3.67B	4B	4.4B
Common Stock	1M	900K	900K	900K	900K	900K	900K	900K	900K	900K
Retained Earnings	1.32B	1.45B	1.87B	2.32B	2.7B	2.84B	3.1B	3.19B	3.45B	3.78B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-124.9M	-139.6M	-156.9M	-138.8M	-159.5M	-144.5M	-75.2M	-102.4M	-70.9M	-43.4M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	762.6M	801.2M	856.1M	1.18B	1.21B	1.03B	1.09B	1.5B	1.32B	1.19B
Operating CF Margin %	0.13%	0.14%	0.13%	0.17%	0.17%	0.16%	0.14%	0.18%	0.17%	0.14%
Operating CF Growth %	0.04%	0.05%	0.07%	0.38%	0.02%	-0.14%	0.06%	0.37%	-0.12%	-0.09%
Net Income	436.8M	449.6M	668.6M	738M	696.4M	461M	841.1M	1.03B	765.2M	805.1M
Depreciation & Amortization	364.3M	334.8M	391.4M	417.1M	382.8M	408.5M	429.2M	456.8M	517.7M	525.6M
Stock-Based Compensation	18.2M	19.7M	20.6M	23.5M	30.4M	30M	35.5M	35.6M	40M	48.8M
Deferred Taxes	1.7M	-4M	-84.5M	38.7M	60.3M	34.7M	59.4M	86M	5.2M	0
Other Non-Cash Items	11.4M	1.9M	6.1M	15.7M	28.2M	20.8M	16.3M	-28.1M	-6.2M	22.3M
Working Capital Changes	-69.8M	-800K	-146.1M	-52.9M	9.3M	77.8M	-287.4M	-85.1M	-6.8M	-210.6M
Change in Receivables	9.5M	-3.6M	-115.1M	-56.1M	56.4M	13.2M	-227.2M	39.3M	-1.4M	-110.7M
Change in Inventory	-11.9M	-25.7M	-21M	-35.6M	1.4M	6.3M	-105.5M	-75.2M	-35.8M	-111.8M
Change in Payables	-37.3M	16.6M	41M	-17.6M	-32.4M	39.7M	12.2M	-18.1M	11.4M	18.3M
Cash from Investing+	-298.1M	-769.6M	-609.1M	-608.2M	-546.6M	-426.1M	-794.4M	-833.7M	-875.1M	-277.8M
Capital Expenditures	-314.5M	-274.3M	-343M	-551.4M	-399.5M	-421.2M	-605.1M	-824.2M	-469.7M	-671.6M
CapEx % of Revenue	0.05%	0.05%	0.05%	0.08%	0.06%	0.06%	0.08%	0.1%	0.06%	0.08%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-6.6M	-9.9M	7.7M	-500K	-1M	-6.4M	6.1M	-4.3M	-1M	0
Cash from Financing+	-405.2M	23.5M	-269.4M	-427.3M	-342.8M	-311.6M	-655.6M	-960M	-112M	-876.4M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-200.8M	-216.1M	-237.6M	-268.1M	-298.7M	-299.6M	-379.8M	-420.3M	-448.9M	-448.8M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	6.6M	3.6M	-6.9M	0	-1.5M	0	-2.4M	-15.4M	-1.1M	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	448.1M	526.9M	513.1M	628.7M	807.9M	611.6M	489M	670.8M	845.4M	521.5M
FCF Margin %	0.08%	0.09%	0.08%	0.09%	0.12%	0.09%	0.06%	0.08%	0.11%	0.06%
FCF Growth %	0.42%	0.18%	-0.03%	0.23%	0.29%	-0.24%	-0.2%	0.37%	0.26%	-0.38%
FCF per Share	4.59	5.62	5.48	6.70	8.59	6.48	5.17	7.24	9.45	5.83
FCF Conversion (FCF/Net Income)	1.75x	1.78x	1.28x	1.60x	1.73x	2.24x	1.30x	1.45x	1.72x	1.48x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	27.69%	26.5%	33.92%	30.4%	24.25%	14.59%	24.55%	28.31%	19.97%	19.17%
Return on Invested Capital (ROIC)	14.91%	14.77%	15.89%	16.98%	15.9%	12.46%	17.94%	17.97%	12.74%	12.69%
Gross Margin	21.04%	22.08%	22.82%	23.46%	23.61%	20.82%	24.23%	24.66%	21.77%	21.27%
Net Margin	7.61%	7.78%	10.37%	10.52%	10%	6.92%	10.88%	12.15%	9.81%	9.6%
Debt / Equity	1.42x	1.52x	1.21x	0.94x	0.89x	0.84x	0.76x	0.76x	0.79x	0.63x
Interest Coverage	8.77x	8.53x	9.09x	11.23x	8.18x	9.00x	8.42x	20.18x	20.17x	26.60x
FCF Conversion	1.75x	1.78x	1.28x	1.60x	1.73x	2.24x	1.30x	1.45x	1.72x	1.48x
Revenue Growth	-1.89%	0.65%	11.52%	8.84%	-0.72%	-4.4%	16.1%	9.67%	-7.97%	7.45%

Revenue by Segment

	2014	2015	2017	2018	2019	2020	2021	2022	2023	2024
Packaging	4.54B	4.48B	5.31B	-	-	-	-	-	-	7.69B
Packaging Growth	-	-1.39%	18.65%	-	-	-	-	-	-	-
Paper	1.2B	1.14B	1.05B	-	-	-	-	-	-	624.7M
Paper Growth	-	-4.85%	-7.99%	-	-	-	-	-	-	-
Corporate and Other Operating Segment	-	-	-	-	-	-	-	-	-	89.7M
Corporate and Other Operating Segment Growth	-	-	-	-	-	-	-	-	-	-
Trade	-	-	-	7.01B	6.96B	6.66B	7.73B	8.48B	7.8B	-
Trade Growth	-	-	-	-	-0.72%	-4.40%	16.10%	9.67%	-7.97%	-

Frequently Asked Questions

Valuation & Price

Packaging Corporation of America (PKG) has a price-to-earnings (P/E) ratio of 24.6x. This is roughly in line with market averages.

Growth & Financials

Packaging Corporation of America (PKG) reported $8.77B in revenue for fiscal year 2024. This represents a 235% increase from $2.62B in 2011.

Packaging Corporation of America (PKG) grew revenue by 7.4% over the past year. This is steady growth.

Yes, Packaging Corporation of America (PKG) is profitable, generating $893.3M in net income for fiscal year 2024 (9.6% net margin).

Dividend & Returns

Yes, Packaging Corporation of America (PKG) pays a dividend with a yield of 2.28%. This makes it attractive for income-focused investors.

Packaging Corporation of America (PKG) has a return on equity (ROE) of 19.2%. This is reasonable for most industries.

Packaging Corporation of America (PKG) generated $725.1M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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