GPK Intrinsic Value Calculation – Nordea Investment Management AB Decreases Stake in Graphic Packaging Holding by 3.1% in Q1
July 5, 2023
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Graphic Packaging Holding ($NYSE:GPK) is a global provider of paper-based packaging solutions for a wide variety of products to food, beverage, foodservice, and other consumer products companies. Nordea Investment Management AB recently decreased its stake in Graphic Packaging Holding by 3.1%, as per its most recent Form 13F filing. This filing outlines the activity of institutional investors, such as hedge fund and mutual fund managers, over the previous quarter.
Analysis – GPK Intrinsic Value Calculation
At GoodWhale, we have conducted an in-depth analysis of GRAPHIC PACKAGING HOLDING’s wellbeing. Our proprietary Valuation Line revealed that the fair value of GRAPHIC PACKAGING HOLDING shares is estimated to be around $23.6. At the moment, GRAPHIC PACKAGING HOLDING stock is being traded at a price of $24.4, which is 3.5% higher than our calculated fair value. This suggests that the stock is currently slightly overvalued. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for GPK. More…
| Total Revenues | Net Income | Net Margin |
| 9.63k | 622 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for GPK. More…
| Operations | Investing | Financing |
| 1.13k | -513 | -608 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for GPK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.6k | 8.29k | 7.51 |
Key Ratios Snapshot
Some of the financial key ratios for GPK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.5% | 24.4% | 10.9% |
| FCF Margin | ROE | ROA |
| 6.3% | 29.4% | 6.2% |
Peers
The competition in the packaging industry is fierce, with Graphic Packaging Holding Co leading the pack. Its competitors, WestRock Co, International Paper Co, and Sonoco Products Co, are all trying to keep up, but they are struggling to match Graphic Packaging’s innovation and efficiency.
– WestRock Co ($NYSE:WRK)
The company has a market cap of 8.51B as of 2022. The company’s return on equity is 8.61%. The company is engaged in the production of corrugated packaging products and solutions. The company has a diversified customer base, including producers of packaging, consumer and industrial products. The company operates in three segments: Corrugated Packaging, Consumer Packaging and Industrial Packaging. The Corrugated Packaging segment produces corrugated packaging products, including linerboard, medium and recycled medium. The Consumer Packaging segment produces folding cartons, cups, plates and bowls. The Industrial Packaging segment produces a range of packaging products, including containerboard, kraft paper, bleached paperboard and corrugated packaging products.
– International Paper Co ($NYSE:IP)
In 2022, International Paper Company had a market capitalization of 12.11 billion dollars and a return on equity of 11.61%. The company produces paper and packaging products and has operations in North America, Europe, Latin America, Russia, Asia, Africa, and the Middle East. International Paper is one of the world’s largest paper companies and has been in business for over 100 years.
– Sonoco Products Co ($NYSE:SON)
Sonoco Products Company is a global provider of packaging products and services. The company operates in four segments: Consumer Packaging, Industrial Packaging, Display and Packaging Services, and Sonoco Europe. The company’s products include steel and plastic drums, steel and plastic pails, steel and plastic intermediate bulk containers, steel and plastic closure rings and lids, steel and plastic food cans, steel and plastic paint cans, steel and plastic jar lids, steel and plastic tubes, composite cans, flexible packaging, and corrugated containers. The company also provides display packaging products, such as point-of-purchase displays, in-store merchandising displays, and packaging for the retail sector; and packaging services, such as design, prototyping, sourcing, manufacturing, logistics, and warehousing.
Summary
Graphic Packaging Holding Co. (NYSE: GPK) has been the subject of several recent investing analyses. Analysts have noted that this company is well-positioned in the paper and packaging industry due to its strong balance sheet, cost-cutting initiatives, and potential for acquisitions and expansion. Several analysts have given GPK a buy or outperform rating, citing its robust dividend, good free cash flow, and attractive price-to-earnings ratio.
Others have been less optimistic, with some analysts giving GPK a hold rating and cautioning that the company’s management needs to focus on improving operational efficiency and revenue growth. Overall, there is general agreement that GPK is a good stock for long-term investors with an eye for value.
