Packaging Corporation of America (PKG) Stock

Packaging Corporation of America trades at a P/E ratio of 21.73, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.92 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.60 indicates reasonable value when growth is considered.

With a beta of 0.88, Packaging Corporation of America is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.20 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Packaging Corporation of America achieves a profit margin of 10.50%, meaning it retains $10.50 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 20.60% and ROA at 8.83%, the company generates strong returns on invested capital.

Packaging Corporation of America's revenue grew by 4.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 20.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against PACKAGING & CONTAINERS industry averages for proper context.

Packaging Corporation of America offers a dividend yield of 2.31%, paying $5.00 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Sep 15, 2025.

The dividend sustainability can be assessed through the payout ratio - Packaging Corporation of America pays $5.00 per share in dividends against earnings of $10.03 per share, resulting in a payout ratio of 49.85%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Oct 15, 2025.

Packaging Corporation of America has a market capitalization of $19.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 89.98M shares outstanding, the company's ownership is relatively concentrated. As a participant in the PACKAGING & CONTAINERS industry, it competes with other firms in this sector.

Packaging Corporation of America's book value per share is $51.83, while the current stock price is $196.65, resulting in a price-to-book (P/B) ratio of 3.79. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

10 analysts cover PKG with 40% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $218.70 implies 11.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:04 Buy, 5 Hold, 1 Sell, 0The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.