Packaging Corp. of America Lags Behind Competitors Despite Daily Gains on Tuesday
November 16, 2023
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Packaging ($NYSE:PKG) Corp. of America (PCA) is a leading producer of containerboard and corrugated packaging products. On Tuesday, PCA experienced daily gains in their stock, but it was not enough to compete with the performance of their competitors. While other stocks experienced larger jumps, PCA failed to meet expectations and instead lagged behind other stocks in the industry.
The company has been undergoing a transformation in recent years, investing in new technology and expanding its business operations to keep up with the changing markets and evolving customer demands. PCA is confident that their investments will pay off in the long run, allowing them to gain ground on their competitors and improve the performance of their stock.
Market Price
PACKAGING CORPORATION of America stock saw limited gains on Tuesday, with the stock opening at $158.1 and closing at $158.4, just 0.3% above the prior closing price of $157.9. This gain was overshadowed however, by the impressive performance of the company’s competitors. When compared to other packaging corporations, PACKAGING CORPORATION of America lagged behind, with its daily gain being considerably lower than that of its competitors. Looking ahead, investors will be hoping for a stronger performance from PACKAGING CORPORATION of America in the future in order to keep up with the competition. 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 |
| 7.84k | 786.1 | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Packaging Corporation. More…
| Operations | Investing | Financing |
| 1.49k | -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 |
| 8.11k | 4.26k | 42.8 |
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 |
| 5.6% | 9.8% | 14.0% |
| FCF Margin | ROE | ROA |
| 10.5% | 17.9% | 8.5% |
Analysis
At GoodWhale, we have conducted an examination of PACKAGING CORPORATION‘s wellbeing, and based on our Star Chart, it has a high health score of 10/10 with regard to its cashflows and debt, which demonstrates its capability to pay off debt and fund future operations. Furthermore, PACKAGING CORPORATION receives strong ratings in asset, dividend, and profitability, and medium in growth. By evaluating these findings, we have classified PACKAGING CORPORATION as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Given the attractive qualities of PACKAGING CORPORATION, we believe that it would be of interest to investors who are looking for consistent and reliable returns from their investments. In addition, the company’s strong asset performance and high credit score suggests that it is a safe and secure investment choice for those who prefer a low-risk approach to investing. 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
Investors should be cautious when considering investing in Packaging Corporation of America (PCA). The stock underperformed on Tuesday, despite daily gains across its competitors. Analysts suggest that investors should focus on the company’s fundamentals and performance on a macro level. PCA’s financial health has been strong, with stable gross margins and operating income, and a debt-to-equity ratio below the industry median.
In addition, its dividend yield is higher than average, making it an attractive income investment. Despite its strong fundamentals, investors should take into account other factors such as macroeconomic conditions, political climate, and competition when deciding whether to invest in PCA stock.
