CALPERS Trims Graphic Packaging Holding by 1.6% in Fourth Quarter
May 20, 2023
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Graphic Packaging Holding ($NYSE:GPK) is a leading provider of paper-based packaging solutions for a wide variety of products to food, beverage, and other consumer products companies. Graphic Packaging Holding has a long history of successful innovation and has developed strong customer relationships over the decades. The recent decision by CalPERS to reduce its stake has raised some questions about the company’s future prospects.
However, Graphic Packaging Holding has consistently reported positive financial results in recent years, while making strategic investments to innovate and strengthen its market position. The company’s commitment to sustainability initiatives and operational excellence further reinforces its competitive advantage in the market. It remains to be seen whether or not CalPERS’ recent decision will have a lasting impact on Graphic Packaging Holding. In the meantime, the company continues to focus on delivering innovative packaging solutions and value to its customers.
Analysis
GoodWhale provides comprehensive financial analysis to help inform investors about potential investments. GRAPHIC PACKAGING HOLDING is a medium risk investment according to GoodWhale’s Risk Rating. This means that based on its financial and business aspects, GRAPHIC PACKAGING HOLDING presents some risk to investors. To further understand the risks associated with this investment, GoodWhale’s analysts have identified 1 risk warnings in the income sheet. To access this risk warning, please register on GoodWhale.com. Our in-depth analysis of GRAPHIC PACKAGING HOLDING and other stocks can help you make more informed decisions about your investments. 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 is a US-based paper and packaging solutions provider. This indicates that CalPERS is not as bullish on the stock as it used to be, though it still maintains a strong presence in the company. Investing analysis suggests that investors should do further research into the fundamentals of the company to ensure that its performance outlook is sound before investing. This includes looking at financial statements, customer service ratings, product demand in the marketplace, competitive threats, and any potential risks associated with the stock.
