# Packaging Corporation of America (PKG) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Basic Materials / Packaging. Price $254.95, market value $22.7 billion.

## Valuation
- **P/E (trailing): 31.4×** (5-yr avg 18.0×, 3-yr avg 22.0×). Packaging Corporation of America trades at 31.4× trailing earnings, well above its own five-year average of 18.0×: investors are paying up relative to the company's past. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 17.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.4×**. Each dollar of revenue is priced at 2.4×.
- **Price / book: 4.8×**. The shares trade at 4.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 14.4×**. Enterprise value is 14.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 3.3%** (5-yr avg 4.7%). Free cash flow equals 3.3% of the market value, below its five-year average of 4.7%, so the shares are pricier on cash than usual.
- **Earnings yield: 3.2%**. The inverse of the P/E: 3.2% of the price is earned each year.

## Profitability
- **Gross margin: 20.1%**. Packaging Corporation of America keeps 20.1% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 10.9%**. 10.9% of revenue is left after running the business.
- **Net margin: 8.6%**. 8.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.8%**. 16.8% on shareholders' equity is solid.
- **Return on invested capital: 10.2%**. Return on all capital, debt included, is 10.2%.
- **Return on assets: 6.5%**. Each dollar of assets produces 6.5% of profit.

## Growth
- **Revenue growth (1 yr): 7.2%** (3-yr 2.0%/yr, 5-yr 6.2%/yr). Revenue grew 7.2% over the last year, against 6.2% a year compounded over five years.
- **EPS growth (1 yr): -3.9%** (3-yr -8.0%/yr, 5-yr 12.1%/yr). Earnings per share fell 3.9%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 2.8%/yr**. Free cash flow has compounded at 2.8% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.86**. Debt is 0.86 times equity, moderate leverage.
- **Net debt / EBITDA: 1.9×**. It would take 1.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 3.17** (quick 3.17). Current assets cover the next year's liabilities 3.17 times.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 2.35%** ($1.25 per share, trailing). Packaging Corporation of America yields 2.35%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 58%** (60% of free cash flow). 58% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 16**. 16 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 8.2%/yr** (1-yr 0.0%). The dividend has grown 8.2% a year over five years.

## Analyst view
- **Analyst consensus: buy** (9 analysts). 9 analysts cover Packaging Corporation of America; the consensus is buy, with an average price target of $269.22 (+6% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 34.6%** (YTD 27.0%, 3-mo 3.0%). The shares are up 34.6% over twelve months including dividends.
- **From 52-week high: -2.0%** (33.1% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 71**. An RSI of 71 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.68** (volatility 28%). Beta of 0.68 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PKG · Page: https://foliofundamentals.com/stocks/pkg

Not investment advice.