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Packaging Corporation of America

NYSE: PKG

Stock price

248.54 USD

(+85.49%) 5 years

Paper & Plastic Packaging Products & MaterialsPackaging & Containers

Financial Performance

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5Y price score: 125

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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: 251.6%

DATE RANGE:

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  • Free cash flow per share

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191.5

52-week range

259.9

248.535

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Required return / cost of capital
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FCFF terminal growth rate
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Your fair value & Margin of safety

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Forecast:

Valuation

Free Cash Flow Yield

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

2.1 %

Dividend Yield TTM

2.2 %

Market cap $

$ 22,144

Price / Earnings TTM

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

30.6

Price / Book TTM

4.7

PEG TTM

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

(7.8)

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

21.5 %

103.2 %

251.6 %

Free cash flow per share growth

(38.3) %

25.5 %

77.3 %

Earnings per share growth

16.7 %

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.

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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q3 (Oct 22, 2026)

1) Financial Results Overview
- Q3 2026 net income was $262 million or $2.93 per share, up from $247 million or $2.73 per share in Q3 2025.
- Excluding special items, net income was $272 million or $3.40 per share.
- Net sales increased to $2.6 billion from $2.3 billion YoY.
- EBITDA, excluding special items, rose to $577 million from $503 million YoY.
- Special items included costs related to facility closures and a fire incident, impacting earnings by $0.11 per share.

2) Segment Performance
- Packaging Segment:
- Q3 EBITDA was $578 million with sales of $2.4 billion, yielding a margin of 23.9%, up from 23.1% YoY.
- Containerboard production reached 1.489 million tons, with legacy mills producing 1.28 million tons.
- Paper Segment:
- Q3 EBITDA was $34 million with sales of $163 million, resulting in a margin of 20.6%, down from 24.9% YoY.
- Sales volume was 0.9% above Q2 2026 but 2.5% below Q3 2025.

3) Operational Challenges and Cost Pressures
- Increased costs were noted in labor, freight, recycled fiber, and maintenance, totaling $0.28 per share impact on earnings.
- The company faced operational disruptions due to a fire at the Palmyra facility and annual maintenance outages at three containerboard mills.
- Despite these challenges, operational performance improved significantly compared to Q2 2026.

4) Guidance and Future Outlook
- Q4 2026 earnings are expected to be around $2.81 per share, excluding special items.
- Anticipated solid demand for corrugated products, with seasonal improvements expected.
- Price realization from previous increases is expected to continue into Q1 2027, with a split of the $70 increase between Q4 and Q1.
- The company is focused on capitalizing on synergies from the Greif acquisition, with a run rate of $40 million to $50 million in synergies, exceeding previous expectations.

5) Investor Considerations
- The earnings call did not provide specific guidance for 2027 CapEx or detailed projections beyond Q1 2027.
- There was a focus on ongoing operational improvements and capital projects, but no new major initiatives were disclosed.

Bottom line: Packaging Corporation of America demonstrated strong financial growth in Q3 2026, driven by improved pricing and operational efficiencies, despite facing cost pressures and operational challenges. The outlook for Q4 remains positive, with expectations for continued demand and price realization, positioning the company favorably for future growth.

Annual Reports, Presentations And IR Contacts

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Annual report links (10K)
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Packaging Corporation of America — Financial Overview, Stock Price, Market Cap

Packaging Corporation of America is a company. Founded in 1959. As of October 23, 2026, the company's market capitalization is $22144045991 with a current stock price of $248.53.