TopFunds

Packaging Corporation of America

NYSE: PKG

Stock price

246.54 USD

(+0%) TODAY

Paper & Plastic Packaging Products & MaterialsPackaging & Containers

Financial Performance

Share

5Y price score: 91

Help

The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 261.8%

DATE RANGE:

US$ Per
Share

    Time scale:

    By default your notes are visible only to you.

    191.5

    52-week range

    259.9

    246.54

    Your model inputs

    Required return / cost of capital
    %
    FCFF terminal growth rate
    %

    Your fair value & Margin of safety

    To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

    Forecast:

    Valuation

    Free Cash Flow Yield

    Help
    FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

    3.4 %

    Dividend Yield TTM

    2.1 %

    Market cap $

    $ 21,966

    Price / Earnings TTM

    Help
    P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

    32

    Price / Book TTM

    4.7

    PEG TTM

    Help
    Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

    (1.6)

    Earnings growth and return

    LTM

    5YR

    10YR

    Total return (price & dividends)

    18.5 %

    80.3 %

    261.8 %

    Free cash flow per share growth

    32 %

    25.5 %

    77.3 %

    Earnings per share growth

    (19.5) %

    76.9 %

    91.9 %

    Founded: 1,959

    Employees: 15,400

    Business Summary:Packaging Corporation of America (PCA) is a U.S.-based enterprise specializing in the production and sale of containerboard and corrugated packaging materials. Its operations are organized into two primary divisions: Packaging and Paper. The Packaging division offers an extensive array of containerboard and corrugated solutions. These encompass conventional shipping containers designed for safeguarding and transporting manufactured goods, vibrant multi-color boxes and point-of-sale displays aimed at enhancing product merchandising in retail environments, and honeycomb protective packaging. This segment also provides specialized packaging for perishable goods like meat and fresh produce, processed foods, beverages, and a broad spectrum of other industrial and consumer products. Its corrugated offerings reach customers through a multi-channel approach, utilizing a dedicated direct sales and marketing team, independent brokers, and various distribution partners. Meanwhile, the Paper segment focuses on manufacturing and distributing a range of commodity and specialty papers. This includes communication papers, such as standard cut-size office paper, along with specialized printing and converting papers. Sales of its white paper products are managed directly by its internal sales and marketing organization. Tracing its origins back to 1867, Packaging Corporation of America maintains its corporate headquarters in Lake Forest, Illinois.

    Fair Value Reference Estimate

    Latest Earnings Call Takeaways

    2026 Q2 (Jul 23, 2026)

    1) Financial Performance Overview
    - Q2 2026 net income was $192 million or $2.15 per share; excluding special items, net income was $210 million or $2.35 per share (down from $224 million or $2.48 per share in Q2 2025).
    - Net sales increased to $2.5 billion from $2.2 billion YoY.
    - EBITDA (excluding special items) rose to $486 million in Q2 2026 from $451 million in Q2 2025.
    - Special items included a $0.20 per share expense related to facility closures and restructuring charges.

    2) Segment Results and Operational Highlights
    - Packaging segment EBITDA (excluding special items) was $489 million with sales of $2.3 billion, yielding a margin of 21.1% (compared to 22.6% margin in Q2 2025).
    - Containerboard production totaled 1.42 million tons, with legacy mills producing 1.21 million tons.
    - The newly acquired Greif business contributed positively, with strong volumes in corrugated products and improved operational performance.
    - Paper segment EBITDA was $39 million with a margin of 24.9%, up from 20.8% YoY.

    3) Challenges and Headwinds
    - Legacy business earnings decreased by $0.27 per share due to higher freight costs ($0.26), increased corporate expenses, and lower pricing/mix in the packaging business.
    - Production interruptions from utility power outages affected operational performance, emphasizing the need for gas turbine projects to reduce grid reliance.
    - Elevated costs for recycled fiber, freight, and employee benefits impacted overall profitability.

    4) Guidance and Future Outlook
    - Q3 2026 earnings are expected to be $2.91 per share, excluding special items, driven by strong demand and price increases in the packaging segment.
    - Anticipated improvements in operating performance and lower maintenance outage expenses in the packaging segment.
    - Continued focus on integrating Greif assets and optimizing production across the mill system.
    - CapEx guidance remains at $840 million to $870 million for the year, with ongoing investments in operational efficiency and capacity enhancements.

    5) Investor Considerations
    - The call did not provide specific updates on potential tariffs affecting the industry or detailed projections for 2027 CapEx.
    - There was a strong emphasis on the company's ability to manage costs and maintain margins despite inflationary pressures.

    Bottom line: Packaging Corporation of America demonstrated solid financial results in Q2 2026, with growth in sales and EBITDA, despite challenges from rising costs and operational disruptions. The company is well-positioned for continued demand in the packaging segment, supported by strategic investments and integration of acquired assets, making it an attractive option for shareholders.

    Annual Reports, Presentations And IR Contacts

    Go to the website
    Annual report links (10K)
    202520242023202220212020201920182017

    Packaging Corporation of America — Financial Overview, Stock Price, Market Cap

    Packaging Corporation of America is a company. Founded in 1959. As of August 26, 2026, the company's market capitalization is $21966380431 with a current stock price of $246.54.