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PKG

S&P 500
Neutral · 43/100

Packaging Corporation of America

Materials
Paper & Plastic Packaging Products & Materials

$234.03

2.2%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 23.0% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$20.41B

P/E

27.69x

Forward P/E (est.)

32.2x

ROE

16.0%

Revenue Growth

7.9%

EPS Growth

-14.0%

Profit Margin

8.0%

FCF Yield

6.3%

Debt / Equity

0.86x

ROIC

10.0%

Interest Coverage

Current Ratio

3.07x

Dividend Yield

2.6%

Implied Growth (rev. DCF)

5.2%

Rating Score

43/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what PKG's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. PKG trades near $234.03, above its 50-day average ($217.49) and 200-day average ($214.12). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 62 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. PKG's is $6.32 (~2.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month PKG found buyers near $205.11 (support) and sellers near $233.19 (resistance); its 52-week range is $184.76–$249.51. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Packaging Corporation of America (PKG) is a large-cap company in the Paper & Plastic Packaging Products & Materials industry, part of the Materials sector of the S&P 500, with a market value around $20.41B.

In its latest reported year it generated about $8.99B in revenue and $774.10M in net profit.

Our model rates PKG Neutral (43/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

3.8%

Revenue moved from $7.73B in 2021 to $8.99B in 2025, a 3.8% compound annual growth rate. The most recent year grew a steady 7.9% year over year. Slower, mature growth is common for established businesses.

Profitability
Research

Gross Margin

21.0%

Operating Margin

12.3%

Net Margin

8.6%

ROE

16.0%

Packaging Corporation of America keeps about 8.0% of each sales dollar as net profit, with a 21.0% gross margin and 12.3% operating margin. Return on equity is 16.0% and return on invested capital about 10.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

$3.99B

Net Debt

$3.60B

Net Debt / EBITDA

3.25x

Debt / Equity

0.86x

Leverage: debt-to-equity is 0.9x, with a current ratio of 3.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $3.99B of total debt against $397.10M of cash.

Cash Flow Analysis
Research

Operating CF

$1.56B

Free Cash Flow

$728.60M

FCF Margin

8.1%

In the latest year Packaging Corporation of America produced about $1.56B of operating cash flow and $728.60M of free cash flow after capital spending. That is a free-cash-flow yield of about 6.3% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research

P/E

27.69x

P/S

2.29x

P/B

4.03x

EV / EBITDA

13.67x

PKG trades at 27.7x trailing earnings (about 32.2x on estimated forward earnings), 2.3x sales, and 4.0x book value. Reverse-engineering today's price implies the market expects roughly 5.2% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
27.7xExpensive
Forward P/E
32.2xExpensive
P/S ratio
2.3xFair
Revenue growth
7.9%Strong
EPS growth
-14.0%Weak
Gross margin
21.0%Weak
Net margin
8.0%Average
ROE
16.0%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How PKG stacks up against its Materials peers — valuation, profitability, and growth versus the sector median.

In the Materials sector (26 S&P 500 companies), PKG ranks #17 of 26 by our overall rating. It trades at roughly in line versus the sector on earnings (27.7x P/E vs. 27.7x median) with a higher return on equity (16.0% vs. 14.1%) and faster revenue growth (7.9% vs. 4.9%).

P/E vs sector

27.7x

median 27.7x

ROE vs sector

16.0%

median 14.1%

Growth vs sector

7.9%

median 4.9%

Sector rank

#17

of 26 by rating

CompanyP/ERev Gr.Rating
PKGThis stock27.7x7.9%Neutral· 43
IP-5.8%Weak· 26
AMCR27.8x64.8%Neutral· 52
SW61.4x-20.7%Weak· 12
AVY17.6x2.9%Neutral· 50
IFF23.1x-5.6%Neutral· 45
DD-22.5%Weak· 29
LYB-22.0%Weak· 20
Materials median27.7x4.9%50/100

Valuation vs. quality map

sector medianAMCRSWAVYIFFPKGP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Materials companies by sub-industry and size. Sector median is across all 26 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$226.81$373.57

vs. $234.03 today · expected CAGR -1%10%

Metric20262027202820292030
Revenue$9.71B$10.49B$11.32B$12.23B$13.21B
Net income$873.76M$943.66M$1.02B$1.10B$1.19B
EPS$9.81$10.59$11.44$12.35$13.34
Share price (low)$166.71$180.05$194.45$210.01$226.81
Share price (high)$274.59$296.55$320.28$345.90$373.57
CAGR (low–high)-29% / 17%-12% / 13%-6% / 11%-3% / 10%-1% / 10%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for PKG:

  • Strong return on equity (16.0%) shows capital is put to work well.
  • Healthy free-cash-flow yield (~6.3%) funds buybacks and dividends.
  • Pays a 2.6% dividend on top of any price gains.
Bear Case

The case against PKG:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Packaging Corporation of America is a large-cap materials business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at 27.7x earnings, which our model scores Neutral (43/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.