Packaging Corporation of America PKG
Packaging Corporation of America is an integrated producer of paper and corrugated cardboard packaging, operating paper mills and conversion plants to serve industrial and consumer clients in the United States. Packaging Corporation of America shows solid financial health (ND/EBITDA of 1.91, liquidity of 2.94) and revenue growth of 14.7%, but the decline in earnings (-19.5%) and weak cash conversion (21.65%) hurt its quality and growth, leaving the valuation (P/E 30.76) demanding.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Packaging Corporation of America is an integrated producer of paper and corrugated cardboard packaging, operating paper mills and conversion plants to serve industrial and consumer clients in the United States. Packaging Corporation of America shows solid financial health (ND/EBITDA of 1.91, liquidity of 2.94) and revenue growth of 14.7%, but the decline in earnings (-19.5%) and weak cash conversion (21.65%) hurt its quality and growth, leaving the valuation (P/E 30.76) demanding.
Score by category
| Category | Score |
|---|---|
| Financial health | 6.7 |
| Quality / Moat | 4.7 |
| Valuation | 5.5 |
| Growth | 4.5 |
| Dividend | 6.5 |
| Momentum | 5.8 |
| Risk & Context | 7.4 |
OVERALL SCORE: 5.7/10
Context and risks
No material exposure to relevant macro factors (oil, rates, geopolitics). The paper packaging business is oriented to the domestic US market and its industrial consumption, without dependence on conflict maritime routes or energy commodities.
News considered in the analysis
- 2 Unpopular Stocks That Should Get More Attention and 1 We Avoid — Listículo sin información nueva sobre la empresa.
- 3 Profitable Stocks We Steer Clear Of — Opinión genérica sin datos concretos que afecten a la valoración.
- Is Smurfit Westrock Set to Gain From Its Recent Portfolio Actions? — Noticia sobre un competidor, sin impacto directo en PKG.
- What Happens to Your IP Dividend When the Split Closes — Noticia sobre International Paper, no sobre PKG.
- Is Packaging Corporation Underperforming the Nasdaq? — Comparativa de rendimiento sin información fundamental nueva.
Verdict: Hold; wait for the earnings decline to reverse and cash conversion to improve before considering an entry.
Main risk: The weak conversion of earnings to free cash flow (21.65%) and negative earnings growth (-19.5%) suggest the business may be facing cost or demand pressures that could prove non-temporary.
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