Packaging Corporation of America (PKG) Stock

Packaging Corporation of America trades at a P/E ratio of 19.69, 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 18.38 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.39 indicates a premium valuation even accounting for growth.

With a beta of 0.86, 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 3.79 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 10.10%, meaning it retains $10.10 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 13.80% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 20.20% and ROA at 8.68%, the company generates strong returns on invested capital.

Packaging Corporation of America's revenue grew by 8.20% 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 38.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against PAPERBOARD CONTAINERS & BOXES industry averages for proper context.

Packaging Corporation of America offers a dividend yield of 2.64%, 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 6/13/2025.

The dividend sustainability can be assessed through the payout ratio - Packaging Corporation of America pays $5.00 per share in dividends against earnings of $9.57 per share, resulting in a payout ratio of 52.25%. 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 7/15/2025.

Packaging Corporation of America has a market capitalization of $16.96B, 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 PAPERBOARD CONTAINERS & BOXES industry, it competes with other firms in this sector.

Packaging Corporation of America's book value per share is $50.39, while the current stock price is $205.90, resulting in a price-to-book (P/B) ratio of 4.09. 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 50% 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 $197.75 implies -4.0% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:05 Buy, 4 Hold, 01 Strong Sell. The 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.

RSI data is not available for this stock.

MACD and moving average data are not available for this stock.