PKG
Packaging Corp of America (NYSE: PKG) reported strong revenue growth and a higher EBITDA margin of 22% in...
Article Summary
HOLD- Packaging Corp of America (NYSE: PKG) reported strong revenue growth and a higher EBITDA margin of 22% in its Packaging business, driven by record containerboard production and operational efficiency at Jackson and Wallula mills.
- Paper margins declined slightly due to higher labor and operating costs in the Paper segment, while freight costs and higher transportation expenses pressured earnings.
- Packaging Corp Of America repurchased 266,000 shares at an average price of $220.78, reflecting ongoing buybacks and ongoing cost-control initiatives.
- Guidance calls for modest earnings growth in the second quarter, though higher taxes and interest payments could weigh on cash flow.
- While bookings and billings are up, the company is moving business within the system and expects price increases in both Packaging and Paper, which could support earnings in the coming quarters.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 7.9% | 25% | 35.0 ptsBelow Screener (7.9%) - Weak growth |
| EPS Growth Next 5Y ? | 9.2% | 25% | 20.0 ptsWeak (9.2%) - Low expectations |
| Target Price Upside ? | 9.0% | 20% | 35.0 ptsBelow Screener (9.0%) - Target: $234.33 vs Current: $215.02 |
| Gross Margin % ? | 20.5% | 15% | 40.0 ptsModerate (20.5%) - Adequate margins |
| Drawdown from 52-Wk High ? | -13.8% | 15% | 40.0 ptsMild Pullback (-13.8%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About PKG
- Packaging Corporation of America manufactures and sells containerboard and uncoated freesheet (UFS) paper products in North America.
- The company operates through Packaging and Paper segments.
- The Packaging segment offers various linerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products.
- This segment sells its corrugated products through a direct sales and marketing organization.
- The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers, and printing and converting papers; and white papers.
- This segment sells papers through its sales and marketing organization.
- Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.