A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
PACKAGING CORP OF AMERICA
PKG
$22.8B
Mkt Cap
$254.39
+8.76%
PACKAGING CORP OF AMERICA (PKG) has a current P/E ratio of 29.6, compared to its historical median P/E of 13.5. The stock is currently considered Expensive based on its historical valuation range.
PACKAGING CORP OF AMERICA (PKG) has a 5-year average return on invested capital (ROIC) of 15.2%. This indicates strong capital allocation and a potential competitive advantage.
PACKAGING CORP OF AMERICA (PKG) has a market capitalization of $22.7B. It is classified as a large-cap stock.
Yes, PACKAGING CORP OF AMERICA (PKG) pays a dividend with a trailing twelve-month yield of 1.98%. The company also returns capital through share buybacks, with a buyback yield of 0.68%.
Based on historical P/E analysis, PACKAGING CORP OF AMERICA (PKG) appears expensive. The current P/E of 29.6 is 119% above its historical median of 13.5. The estimated fair value CAGR (P/E method) is 5.8%.
PACKAGING CORP OF AMERICA (PKG) operates in the Paperboard Containers & Boxes industry, within the Materials sector.
Packaging Corporation of America is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America, operating ten mills and 91 corrugated products plants across the United States. The company operates through three segments: Packaging, which manufactures linerboard and corrugating medium at containerboard mills and converts these materials into corrugated shipping containers, multi-color displays, and protective packaging for food, beverages, and industrial customers; Paper, which produces commodity and specialty uncoated freesheet papers from a single mill in Minnesota; and Corporate and Other. The Packaging segment generates revenue through direct sales to approximately 12,000 customers across roughly 27,000 locations, with about 70% from regional and local accounts and 30% from national accounts, with no single customer exceeding 10% of segment sales. The company's containerboard mills produce approximately 5.2 million tons annually with total capacity of 5.8 million tons, while corrugated plants sold 71 billion square feet of products in 2025; corrugated operations are located within 150-mile radii of customers to minimize freight costs. The business model relies on integrated vertical integration—mills supply containerboard to internal converting plants and external customers—with fiber as the largest raw material cost, supplemented by purchased fuels and chemicals; the company sources fiber from renewable resources including virgin wood, recycled fiber, and certified sustainable forestry programs. In September 2025, PCA completed the $1.8 billion acquisition of Greif's containerboard business, adding two mills with approximately 800,000 tons of capacity and eight sheet feeder and corrugated plants, expanding total containerboard capacity to 5.8 million tons and corrugated facilities to 91 plants. The company's competitive position is built on regional and local market presence, quality, service, product design, and innovation, competing primarily against International Paper, Smurfit WestRock, Georgia-Pacific, and Pratt Industries on a national level while facing regional competition from approximately 370 U.S. corrugated producers operating roughly 1,080 plants.
【Strong demand and capacity constraints】 Management expects demand in the Packaging segment to remain strong with corrugated volume increasing sequentially, supported by seasonal improvement and the acquired Greif operations ramping from their seasonally weak first quarter. The company is running its containerboard mills at full capacity to support customer demand, with management noting the system is "tightening up" and will require continued exceptional mill performance to meet customer needs. Price increases for containerboard and corrugated products are being implemented with benefits expected to flow through in the second quarter and beyond, while the Paper segment is expected to operate at full capacity with flat volume and higher prices as previously announced increases are implemented. Integration of the Greif acquisition is progressing on schedule with systems integration expected to complete by the end of the third quarter, and the company is targeting $30 million in run-rate synergies by year-end 2026, with sequential earnings accretion expected to improve through the year as seasonality strengthens and integration benefits layer in.
| Metric | Target | Period |
|---|---|---|
| Dividend payments | $450 million | FY2026 |
| Interest expense | approximately $139 million | FY2026 |
| Net cash interest payment | about $147 million | FY2026 |
| Book effective tax rate | 25% | FY2026 |
Dividend payments (FY2026): “Regarding full-year estimates of certain key items for the upcoming year, we currently estimate dividend payments of $450 million”
Interest expense (FY2026): “Our full-year interest expense in 2026 is expected to be approximately $139 million”
Net cash interest payment (FY2026): “and net cash interest payment should be about $147 million.”
Book effective tax rate (FY2026): “The estimate, the estimate for our book, 2026 book effective tax rate is 25%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.2B | 9.0B | 8.4B | 7.8B | 8.5B | 7.7B |
| Net Income | 736M | 769M | 800M | 759M | 1.0B | 835M |
| EPS | $8.21 | $8.58 | $8.93 | $8.48 | $11.03 | $8.83 |
| Free Cash Flow | 702M | 729M | 522M | 845M | 671M | 489M |
| ROIC | 10.0% | 11.5% | 13.8% | 13.8% | 18.8% | 18.3% |
| Gross Margin | 20.5% | 21.0% | 21.3% | 21.8% | 24.7% | 24.2% |
| Debt/Equity | 0.87 | 0.95 | 0.63 | 0.79 | 0.76 | 0.75 |
| Dividends/Share | $5.04 | $5.00 | $5.00 | $5.00 | $4.75 | $4.00 |
| Operating Income | 1.1B | 1.1B | 1.1B | 1.1B | 1.4B | 1.2B |
| Operating Margin | 11.7% | 12.3% | 13.1% | 13.8% | 16.8% | 16.1% |
| ROE | 16.0% | 17.1% | 19.0% | 19.8% | 28.1% | 24.4% |
| Shares Outstanding | 89M | 90M | 90M | 90M | 93M | 95M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 5.9B | 5.7B | 5.8B | 6.4B | 7.0B | 7.0B | 6.7B | 7.7B | 8.5B | 7.8B | 8.4B | 9.0B | 9.2B |
| Gross Margin | 21.0% | 21.0% | 22.1% | 22.8% | 23.5% | 23.6% | 20.6% | 24.2% | 24.7% | 21.8% | 21.3% | 21.0% | 20.5% |
| R&D | 12M | 13M | 13M | 13M | 14M | 16M | 16M | 15M | N/A | N/A | N/A | N/A | N/A |
| SG&A | 470M | 451M | 469M | 520M | 536M | 558M | 540M | 577M | 609M | 581M | 610M | 634M | 653M |
| EBIT | 703M | 750M | 783M | 933M | 1.1B | 1.1B | 724M | 1.2B | 1.4B | 1.1B | 1.1B | 1.1B | 1.1B |
| Op. Margin | 12.0% | 13.1% | 13.6% | 14.5% | 15.2% | 15.1% | 10.9% | 16.1% | 16.8% | 13.8% | 13.1% | 12.3% | 11.7% |
| Net Income | 387M | 432M | 445M | 663M | 732M | 691M | 457M | 835M | 1.0B | 759M | 800M | 769M | 736M |
| Net Margin | 6.6% | 7.5% | 7.7% | 10.3% | 10.4% | 9.9% | 6.9% | 10.8% | 12.1% | 9.7% | 9.5% | 8.6% | 8.0% |
| Non-Recurring | -2.8M | -6.9M | -12M | 3.0M | -14M | -25M | 29M | -39M | -38M | -30M | -32M | -41M | -41M |
| Returns on Capital | |||||||||||||
| ROIC | 12.0% | 13.2% | 12.9% | 17.2% | 17.3% | 16.3% | 10.9% | 18.3% | 18.8% | 13.8% | 13.8% | 11.5% | 10.0% |
| ROE | 26.9% | 27.4% | 26.2% | 33.6% | 30.2% | 24.1% | 14.5% | 24.4% | 28.1% | 19.8% | 19.0% | 17.1% | 16.0% |
| ROA | 7.4% | 8.2% | 8.1% | 11.1% | 11.5% | 10.0% | 6.2% | 10.9% | 12.9% | 9.1% | 9.1% | 7.9% | 6.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 736M | 769M | 807M | 856M | 1.2B | 1.2B | 1.0B | 1.1B | 1.5B | 1.3B | 1.2B | 1.6B | 1.5B |
| Free Cash Flow | 316M | 454M | 533M | 513M | 629M | 808M | 612M | 489M | 671M | 845M | 522M | 729M | 702M |
| Owner Earnings | 340M | 394M | 429M | 444M | 746M | 790M | 593M | 641M | 1.0B | 757M | 617M | 860M | 765M |
| CapEx | 420M | 315M | 274M | 343M | 551M | 400M | 421M | 605M | 824M | 470M | 670M | 829M | 845M |
| Maint. CapEx | 381M | 357M | 358M | 391M | 411M | 388M | 410M | 418M | 457M | 518M | 526M | 653M | 740M |
| Growth CapEx | 39M | 0 | 0 | 0 | 141M | 12M | 11M | 188M | 367M | 0 | 144M | 176M | 105M |
| D&A | 381M | 357M | 358M | 391M | 411M | 388M | 410M | 418M | 457M | 518M | 526M | 653M | 740M |
| CapEx/OCF | 57.1% | 41.2% | 34.0% | 40.1% | 46.7% | 33.1% | 40.8% | 55.3% | 55.1% | 35.7% | 56.2% | 53.2% | 54.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 157M | 201M | 216M | 238M | 268M | 299M | 300M | 380M | 420M | 449M | 449M | 450M | 449M |
| Dividend Yield | 3.3% | 4.1% | 4.4% | 3.1% | 3.3% | 3.9% | 3.6% | 3.3% | 3.6% | 3.8% | 2.7% | 2.5% | 2.0% |
| Share Buybacks | 0 | 155M | 100M | 0 | 0 | 0 | 0 | 193M | 523M | 42M | 0 | 153M | 153M |
| Buyback Yield | N/A | 3.3% | 1.6% | N/A | N/A | N/A | N/A | 1.7% | 4.8% | 0.3% | N/A | 0.8% | 0.7% |
| Stock-Based Comp | 16M | 18M | 20M | 21M | 24M | 30M | 30M | 36M | 36M | 40M | 49M | 45M | 43M |
| Debt Repayment | 593M | 48M | 38M | 1.0B | 151M | 923M | 1.5M | 758M | 1.7M | 1.9M | 402M | 2.2M | 2.2M |
| Balance Sheet | |||||||||||||
| Net Debt | 2.2B | 2.1B | 2.4B | 2.4B | 2.1B | 1.9B | 1.6B | 2.0B | 2.4B | 2.0B | 2.0B | 3.8B | 3.5B |
| Cash & Equiv. | 125M | 184M | 239M | 217M | 362M | 680M | 975M | 619M | 320M | 648M | 685M | 529M | 447M |
| Long-Term Debt | 2.3B | 2.3B | 2.6B | 2.5B | 2.5B | 2.5B | 2.5B | 2.5B | 2.5B | 2.5B | 2.5B | 4.0B | 4.0B |
| Debt/Equity | 1.55 | 1.41 | 1.50 | 1.21 | 0.93 | 0.88 | 0.84 | 0.75 | 0.76 | 0.79 | 0.63 | 0.95 | 0.87 |
| Interest Coverage | 468.5 | 468.8 | 522.2 | 9.1 | 11.2 | 8.2 | 7.7 | 8.1 | 20.2 | 20.2 | 26.6 | 14.0 | 14.0 |
| Equity | 1.5B | 1.6B | 1.8B | 2.2B | 2.7B | 3.1B | 3.2B | 3.6B | 3.7B | 4.0B | 4.4B | 4.6B | 4.6B |
| Total Assets | 5.3B | 5.3B | 5.8B | 6.2B | 6.6B | 7.2B | 7.4B | 7.8B | 8.0B | 8.7B | 8.8B | 10.7B | 10.8B |
| Total Liabilities | 647M | 648M | 636M | 4.0B | 3.9B | 4.2B | 4.2B | 4.2B | 4.3B | 4.7B | 4.4B | 6.1B | -39M |
| Intangibles | 294M | 271M | 367M | 410M | 378M | 339M | 296M | 308M | 268M | 230M | 192M | 602M | 584M |
| Retained Earnings | 1.2B | 1.3B | 1.4B | 1.9B | 2.3B | 2.7B | 2.8B | 3.1B | 3.2B | 3.4B | 3.8B | 3.9B | 3.9B |
| Working Capital | 892M | 993M | 1.1B | 1.1B | 1.4B | 1.8B | 2.0B | 1.8B | 1.6B | 2.0B | 2.2B | 2.2B | 2.2B |
| Current Assets | 1.5B | 1.6B | 1.7B | 1.9B | 2.1B | 2.5B | 2.8B | 2.7B | 2.5B | 3.3B | 3.2B | 3.2B | 3.3B |
| Current Liabilities | 611M | 562M | 625M | 833M | 694M | 724M | 783M | 885M | 876M | 1.3B | 1.0B | 1.0B | 1.1B |
| Per Share Data | |||||||||||||
| EPS | 3.99 | 4.47 | 4.75 | 7.07 | 7.80 | 7.34 | 4.84 | 8.83 | 11.03 | 8.48 | 8.93 | 8.58 | 8.21 |
| Owner EPS | 3.50 | 4.08 | 4.58 | 4.74 | 7.94 | 8.38 | 6.27 | 6.78 | 10.82 | 8.46 | 6.89 | 9.59 | 8.59 |
| Book Value | 15.69 | 16.92 | 18.78 | 23.27 | 28.46 | 32.61 | 34.35 | 38.16 | 39.58 | 44.66 | 49.19 | 51.31 | 51.49 |
| Cash Flow/Share | 7.59 | 7.96 | 8.61 | 9.13 | 12.57 | 12.82 | 10.93 | 11.57 | 16.14 | 14.69 | 13.31 | 17.38 | 16.57 |
| Dividends/Share | 1.60 | 2.20 | 2.36 | 2.52 | 3.00 | 3.16 | 3.37 | 4.00 | 4.75 | 5.00 | 5.00 | 5.00 | 5.04 |
| Shares Out. | 97.0M | 96.6M | 93.7M | 93.8M | 93.9M | 94.2M | 94.5M | 94.5M | 92.6M | 89.5M | 89.5M | 89.6M | 89.1M |
| Valuation | |||||||||||||
| P/E Ratio | 14.2 | 10.6 | 13.7 | 13.4 | 8.5 | 12.6 | 24.2 | 13.3 | 10.5 | 18.2 | 24.7 | 24.2 | 31.0 |
| P/FCF | 17.4 | 10.1 | 11.5 | 17.3 | 9.9 | 10.8 | 18.1 | 22.7 | 16.0 | 16.4 | 37.8 | 25.5 | 32.3 |
| EV/EBIT | 10.9 | 8.8 | 10.7 | 12.1 | 7.5 | 10.0 | 17.4 | 10.4 | 9.1 | 14.9 | 19.6 | 20.0 | 24.3 |
| Price/Book | 3.7 | 2.8 | 3.5 | 4.1 | 2.3 | 2.9 | 3.4 | 3.1 | 3.0 | 3.5 | 4.5 | 4.1 | 4.9 |
| Price/Sales | 0.8 | 0.9 | 0.9 | 1.2 | 1.2 | 1.1 | 1.3 | 1.5 | 1.4 | 1.5 | 2.0 | 2.0 | 2.5 |
| FCF Yield | 5.7% | 9.8% | 8.6% | 5.7% | 10.0% | 9.2% | 5.5% | 4.4% | 6.2% | 6.1% | 2.6% | 3.9% | 3.1% |
| Market Cap | 5.6B | 4.6B | 6.2B | 8.9B | 6.3B | 8.8B | 11.2B | 11.2B | 10.8B | 13.9B | 19.9B | 18.7B | 22.7B |
| Avg. Price | 48.63 | 51.20 | 52.41 | 81.01 | 87.63 | 82.06 | 88.25 | 120.74 | 125.07 | 132.70 | 187.85 | 199.01 | 254.39 |
| Year-End Price | 56.64 | 47.59 | 65.11 | 94.62 | 66.20 | 92.67 | 117.14 | 117.59 | 115.98 | 154.46 | 220.20 | 207.69 | 254.39 |
PACKAGING CORP OF AMERICA passes 5 of 9 quality checks, suggesting mixed fundamentals.
PACKAGING CORP OF AMERICA trades at 29.6x trailing earnings, compared to its 15-year median P/E of 13.5x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 15.2% with a gross margin of 22.6%. Total shareholder yield (dividends + buybacks) is 2.7%. At current prices, the estimated annualized return to fair value is -18.2%.
PACKAGING CORP OF AMERICA (PKG) reported annual revenue of $9.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
PACKAGING CORP OF AMERICA (PKG) has a net profit margin of 8.6%. This is a modest margin.
PACKAGING CORP OF AMERICA (PKG) generated $729 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PACKAGING CORP OF AMERICA (PKG) has a debt-to-equity ratio of 0.95. This indicates moderate leverage.
PACKAGING CORP OF AMERICA (PKG) reported earnings per share (EPS) of $8.58 in its most recent fiscal year.
PACKAGING CORP OF AMERICA (PKG) has a return on equity (ROE) of 17.1%. This indicates the company generates strong returns for shareholders.
PACKAGING CORP OF AMERICA (PKG) has a 5-year average gross margin of 22.6%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 18 years of financial data for PACKAGING CORP OF AMERICA (PKG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PACKAGING CORP OF AMERICA (PKG) has a book value per share of $51.31, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects demand in the Packaging segment to remain strong with corrugated volume increasing sequentially, supported by seasonal improvement and the acquired Greif operations ramping from their seasonally weak first quarter. The company is running its containerboard mills at full capacity to support customer demand, with management noting the system is "tightening up" and will require continued exceptional mill performance to meet customer needs. Price increases for containerboard and corrugated products are being implemented with benefits expected to flow through in the second quarter and beyond, while the Paper segment is expected to operate at full capacity with flat volume and higher prices as previously announced increases are implemented. Integration of the Greif acquisition is progressing on schedule with systems integration expected to complete by the end of the third quarter, and the company is targeting $30 million in run-rate synergies by year-end 2026, with sequential earnings accretion expected to improve through the year as seasonality strengthens and integration benefits layer in.
Based on recent SEC filings and earnings calls, PACKAGING CORP OF AMERICA (PKG) has provided the following forward guidance: Dividend payments: $450 million (FY2026); Interest expense: approximately $139 million (FY2026); Net cash interest payment: about $147 million (FY2026); Book effective tax rate: 25% (FY2026).