Packaging Corporation of America (PKG) Financial Ratios
28 years of historical data (1998–2025) · Consumer Cyclical · Packaging & Containers
EV/EBITDA
↑
12.61
↑+20% vs avg
5yr avg: 10.51
30Y Low4.9·High13.7
P/FCF
↓
27.77
+11% vs avg
5yr avg: 25.05
30Y Low8.2·High97.9
P/B Ratio
↑
4.42
+16% vs avg
5yr avg: 3.81
30Y Low2.0·High5.2
ROE
↓
17.1%
↑-22% vs avg
5yr avg: 21.8%
30Y Low-2%·High38%
Debt/EBITDA
↑
2.29
↑+26% vs avg
5yr avg: 1.82
30Y Low0.1·High4.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PKG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Packaging Corporation of America trades at 26.4x earnings, 38% above its 5-year average of 19.1x, sitting at the 84th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.6x, the stock trades at a premium of 35%. On a free-cash-flow basis, the stock trades at 27.8x P/FCF, 11% above the 5-year average of 25.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.2B | $18.5B | $20.1B | $14.6B | $11.9B | $12.9B | $13.0B | $10.5B | $7.8B | $11.3B | $7.9B |
| Enterprise Value | $24.1B | $22.3B | $22.2B | $17.1B | $14.3B | $15.0B | $14.8B | $12.6B | $10.0B | $13.7B | $10.4B |
| P/E Ratio → | 26.44 | 24.04 | 25.21 | 19.21 | 11.61 | 15.42 | 28.44 | 15.24 | 10.62 | 17.05 | 17.86 |
| P/S Ratio | 2.25 | 2.06 | 2.40 | 1.87 | 1.40 | 1.66 | 1.96 | 1.51 | 1.12 | 1.75 | 1.38 |
| P/B Ratio | 4.42 | 4.02 | 4.58 | 3.65 | 3.23 | 3.57 | 4.01 | 3.43 | 2.93 | 5.18 | 4.52 |
| P/FCF | 27.77 | 25.36 | 38.64 | 17.25 | 17.68 | 26.31 | 21.29 | 13.04 | 12.47 | 22.01 | 15.08 |
| P/OCF | 12.99 | 11.86 | 16.91 | 11.09 | 7.93 | 11.76 | 12.61 | 8.73 | 6.64 | 13.19 | 9.92 |
P/E links to full P/E history page with 30-year chart
PKG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Packaging Corporation of America's enterprise value stands at 12.6x EBITDA, 20% above its 5-year average of 10.5x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 11% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.48 | 2.65 | 2.19 | 1.69 | 1.94 | 2.22 | 1.81 | 1.42 | 2.13 | 1.80 |
| EV / EBITDA | 12.61 | 11.69 | 13.67 | 10.74 | 7.63 | 8.81 | 11.81 | 8.74 | 6.75 | 10.37 | 9.09 |
| EV / EBIT | 19.17 | 20.16 | 20.11 | 16.03 | 9.98 | 11.88 | 20.36 | 12.04 | 9.36 | 14.74 | 13.25 |
| EV / FCF | — | 30.63 | 42.64 | 20.23 | 21.36 | 30.63 | 24.17 | 15.59 | 15.87 | 26.76 | 19.69 |
PKG Profitability
Margins and return-on-capital ratios measuring operating efficiency
Packaging Corporation of America earns an operating margin of 14.0%, above the Consumer Cyclical sector average of 2.9%. ROE of 17.1% indicates solid capital efficiency, compared to the sector median of 5.6%. ROIC of 12.6% represents solid returns on invested capital versus a sector median of 5.8%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.0% | 21.0% | 21.3% | 21.8% | 24.7% | 24.2% | 20.8% | 23.6% | 23.5% | 22.8% | 22.1% |
| Operating Margin | 14.0% | 14.0% | 13.1% | 13.8% | 16.8% | 16.6% | 12.6% | 15.1% | 15.2% | 14.5% | 13.6% |
| Net Profit Margin | 8.6% | 8.6% | 9.6% | 9.8% | 12.1% | 10.9% | 6.9% | 10.0% | 10.5% | 10.4% | 7.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.1% | 17.1% | 19.2% | 20.0% | 28.3% | 24.5% | 14.6% | 24.3% | 30.4% | 33.9% | 26.5% |
| ROA | 7.8% | 7.8% | 9.2% | 9.2% | 13.0% | 11.0% | 6.3% | 10.1% | 11.6% | 11.2% | 8.1% |
| ROIC | 12.6% | 12.6% | 12.7% | 12.7% | 18.0% | 17.9% | 12.5% | 15.9% | 17.0% | 15.9% | 14.8% |
| ROCE | 14.2% | 14.2% | 14.4% | 14.8% | 20.2% | 18.9% | 12.8% | 17.0% | 19.0% | 17.7% | 15.9% |
PKG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Packaging Corporation of America carries a Debt/EBITDA ratio of 2.3x, which is manageable (48% below the sector average of 4.4x). Net debt stands at $3.8B ($4.4B total debt minus $529M cash). Interest coverage of 14.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.95 | 0.95 | 0.63 | 0.79 | 0.76 | 0.76 | 0.84 | 0.89 | 0.94 | 1.21 | 1.52 |
| Debt / EBITDA | 2.29 | 2.29 | 1.70 | 1.99 | 1.49 | 1.61 | 2.19 | 1.90 | 1.69 | 2.00 | 2.34 |
| Net Debt / Equity | — | 0.83 | 0.47 | 0.63 | 0.67 | 0.59 | 0.54 | 0.67 | 0.80 | 1.12 | 1.38 |
| Net Debt / EBITDA | 2.01 | 2.01 | 1.28 | 1.59 | 1.32 | 1.24 | 1.41 | 1.43 | 1.45 | 1.84 | 2.13 |
| Debt / FCF | — | 5.26 | 4.00 | 2.99 | 3.69 | 4.32 | 2.88 | 2.54 | 3.41 | 4.74 | 4.61 |
| Interest Coverage | 13.99 | 13.99 | 26.71 | 20.03 | 20.39 | 8.27 | 7.77 | 8.12 | 11.21 | 9.08 | 8.53 |
PKG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Packaging Corporation of America's current ratio of 3.17x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.94x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 2.57x to 3.17x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.17 | 3.17 | 3.23 | 2.57 | 2.86 | 3.09 | 3.51 | 3.42 | 3.05 | 2.30 | 2.71 |
| Quick Ratio | 1.94 | 1.94 | 2.10 | 1.77 | 1.75 | 2.07 | 2.51 | 2.33 | 1.90 | 1.38 | 1.56 |
| Cash Ratio | 0.59 | 0.59 | 0.79 | 0.90 | 0.46 | 0.80 | 1.38 | 1.06 | 0.52 | 0.26 | 0.38 |
| Asset Turnover | — | 0.82 | 0.95 | 0.90 | 1.06 | 0.99 | 0.90 | 0.96 | 1.07 | 1.04 | 1.00 |
| Inventory Turnover | 5.71 | 5.71 | 5.87 | 6.02 | 6.54 | 6.49 | 6.69 | 6.70 | 6.75 | 6.52 | 6.22 |
| Days Sales Outstanding | — | 52.13 | 50.25 | 48.53 | 45.96 | 50.92 | 45.91 | 45.71 | 47.80 | 50.98 | 44.41 |
PKG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Packaging Corporation of America returns 3.0% to shareholders annually — split between a 2.2% dividend yield and 0.8% buyback yield. A payout ratio of 58.5% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 3.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 2.4% | 2.2% | 3.1% | 3.5% | 3.0% | 2.3% | 2.8% | 3.4% | 2.1% | 2.7% |
| Payout Ratio | 58.5% | 58.5% | 55.7% | 58.7% | 40.8% | 45.2% | 65.0% | 42.9% | 36.3% | 35.5% | 48.1% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 4.2% | 4.0% | 5.2% | 8.6% | 6.5% | 3.5% | 6.6% | 9.4% | 5.9% | 5.6% |
| FCF Yield | 3.6% | 3.9% | 2.6% | 5.8% | 5.7% | 3.8% | 4.7% | 7.7% | 8.0% | 4.5% | 6.6% |
| Buyback Yield | 0.8% | 0.8% | 0.1% | 0.4% | 4.5% | 1.6% | 0.1% | 0.1% | 0.1% | 0.1% | 1.4% |
| Total Shareholder Yield | 3.0% | 3.3% | 2.4% | 3.5% | 8.1% | 4.6% | 2.4% | 2.9% | 3.5% | 2.2% | 4.1% |
| Shares Outstanding | — | $90M | $90M | $90M | $93M | $95M | $94M | $94M | $94M | $94M | $94M |
Peer Comparison
Compare PKG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PKGYou | $20B | 26.4 | 12.6 | 27.8 | 21.0% | 14.0% | 17.1% | 12.6% | 2.3 |
 IP | $18B | -5.0 | 1305.1 | — | 29.5% | -11.3% | -30.6% | -11.3% | 514.4 |
 GPK | $3B | 7.6 | 6.1 | — | 18.7% | 10.1% | 14.0% | 7.7% | 4.0 |
 SON | $5B | 13.1 | 7.8 | 13.1 | 20.9% | 9.5% | 13.4% | 6.2% | 3.9 |
 CLW | $229M | -11.5 | 5.8 | — | 7.4% | 1.2% | -2.4% | 1.2% | 3.8 |
 SEE | $6B | 12.3 | 14.3 | 13.5 | 29.8% | 13.5% | 54.3% | 11.2% | 5.9 |
 SLGN | $4B | 15.0 | 8.0 | 10.1 | 17.7% | 10.2% | 13.5% | 8.7% | 4.7 |
 ATR | $8B | 20.9 | 11.3 | 26.4 | 29.6% | 13.6% | 15.1% | 10.7% | 1.9 |
 WY | $17B | 53.4 | 23.0 | 197.0 | 7.5% | 6.7% | 3.4% | 2.4% | 5.7 |
 PCH | $3B | 149.0 | 140.5 | 47.9 | 11.0% | 3.1% | 1.0% | 0.8% | 35.3 |
 RYN | $3B | 48.2 | 17.6 | 15.9 | 32.5% | 17.2% | 23.2% | 2.4% | 5.4 |
| Consumer Cyclical Median | — | 19.6 | 11.4 | 15.0 | 36.9% | 2.9% | 5.6% | 5.8% | 4.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full PKG Stock Analysis
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Start ComparisonPKG — Frequently Asked Questions
Quick answers to the most common questions about buying PKG stock.
What is Packaging Corporation of America's P/E ratio?
Packaging Corporation of America's current P/E ratio is 26.4x. The historical average is 19.8x. This places it at the 84th percentile of its historical range.
What is Packaging Corporation of America's EV/EBITDA?
Packaging Corporation of America's current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.9x.
What is Packaging Corporation of America's ROE?
Packaging Corporation of America's return on equity (ROE) is 17.1%. The historical average is 19.8%.
Is PKG stock overvalued?
Based on historical data, Packaging Corporation of America is trading at a P/E of 26.4x. This is at the 84th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Packaging Corporation of America's dividend yield?
Packaging Corporation of America's current dividend yield is 2.21% with a payout ratio of 58.5%.
What are Packaging Corporation of America's profit margins?
Packaging Corporation of America has 21.0% gross margin and 14.0% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Packaging Corporation of America have?
Packaging Corporation of America's Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.