Packaging Corporation Intrinsic Value Calculation – PACKAGING CORPORATION Reports Second Quarter Earnings Results for FY2023 on July 25
July 27, 2023
🌥️Earnings Overview
On July 25 2023, PACKAGING CORPORATION ($NYSE:PKG) reported their earnings results for the second quarter of FY2023, ending June 30 2023. The company saw a drop in total revenue of 12.7%, amounting to USD 1952.1 million, compared to the same period the previous year. Net income also decreased by 32.8%, totaling USD 202.7 million.
Market Price
The company reported an impressive 10.1% increase in their stock price from the prior closing price of 138.7, opening at $145.1 and closing at $152.6. This is a testament to the success of the company’s quarter two performance. Analysts and investors are already speculating on what this could mean for the company going forward and what strategies they have implemented to generate these strong results. The company is also anticipating further success this month as their earnings report was seen as a positive indicator for their upcoming performances. With PACKAGING CORPORATION‘s already strong track record, investors and analysts expect the company to continue to produce strong earnings within the upcoming quarters.
Furthermore, with their newly implemented strategies, the company is likely to experience further growth and success in the near future. Overall, the second quarter earnings report is an indication of many positive things to come for PACKAGING CORPORATION. The stock opened at $145.1 and closed at $152.6, soaring 10.1% from prior closing price of 138.7, which is an indication that the company has implemented the correct strategies to succeed in the market. It will be interesting to see how PACKAGING CORPORATION continues to perform in the months ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Packaging Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 8.03k | 863.6 | 11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Packaging Corporation. More…
| Operations | Investing | Financing |
| 1.45k | -833.7 | -960 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Packaging Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.05k | 4.29k | 41.78 |
Key Ratios Snapshot
Some of the financial key ratios for Packaging Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.1% | 10.7% | 15.0% |
| FCF Margin | ROE | ROA |
| 9.0% | 20.1% | 9.4% |
Analysis – Packaging Corporation Intrinsic Value Calculation
GoodWhale recently conducted an analysis of PACKAGING CORPORATION‘s wellbeing. Our proprietary Valuation Line tool calculated the fair value of their share to be around $151.8. Currently, PACKAGING CORPORATION stock is traded at $152.6, which is a fair price. This means that the true market value of the stock is close to our estimated fair value. More…
Peers
Packaging Corp of America is one of the largest packaging companies in the world. Its competitors include Tomypak Holdings Bhd, PT Sriwahana Adityakarta Tbk, and Shanghai Xintonglian Packing Co Ltd.
– Tomypak Holdings Bhd ($KLSE:7285)
Tomypak Holdings Bhd is a Malaysian company that is involved in the packaging and manufacturing of food products. The company has a market capitalization of 168.14 million as of 2022 and a return on equity of -0.75%. The company’s products are sold in Malaysia, Singapore, Indonesia, and the Philippines.
– PT Sriwahana Adityakarta Tbk ($IDX:SWAT)
Sriwahana Adityakarta Tbk is an Indonesian holding company with interests in a range of businesses, including banking, finance, property development, and mining. The company has a market capitalization of $172.09 billion as of 2022 and a return on equity of 9.34%. Sriwahana Adityakarta Tbk is a publicly traded company listed on the Indonesia Stock Exchange.
– Shanghai Xintonglian Packing Co Ltd ($SHSE:603022)
Shanghai Xintonglian Packing Co Ltd is a company that manufactures and sells packaging products. The company has a market cap of 2.02B as of 2022 and a return on equity of 3.94%. The company’s products include plastic bags, paper bags, and other packaging products. The company’s products are used in a variety of industries, including food, beverage, and pharmaceutical.
Summary
Analysts are keeping a close eye on PACKAGING CORPORATION after their second quarter earnings report for FY2023 revealed a drop in total revenue by 12.7%, and a fall in net income of 32.8%. The stock price rose the same day, however investors are looking more closely at the company’s outlook in order to determine whether this is a good investment opportunity. While the immediate financial results have been disappointing, analysts are evaluating the company’s strategic decisions in the long-term to determine if it is a viable investment.
