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Upturn AI SWOT - About
PKG 
Packaging Corp of America (PKG)
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Upturn Advisory Summary
03/27/2025: PKG (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 7.22% | Avg. Invested days 54 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 17.92B USD | Price to earnings Ratio 22.33 | 1Y Target Price 228.69 |
Price to earnings Ratio 22.33 | 1Y Target Price 228.69 | ||
Volume (30-day avg) 971989 | Beta 0.79 | 52 Weeks Range 164.86 - 247.82 | Updated Date 03/27/2025 |
52 Weeks Range 164.86 - 247.82 | Updated Date 03/27/2025 | ||
Dividends yield (FY) 2.51% | Basic EPS (TTM) 8.88 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 9.6% | Operating Margin (TTM) 14.81% |
Management Effectiveness
Return on Assets (TTM) 8.26% | Return on Equity (TTM) 19.17% |
Valuation
Trailing PE 22.33 | Forward PE 18.38 | Enterprise Value 19899844387 | Price to Sales(TTM) 2.14 |
Enterprise Value 19899844387 | Price to Sales(TTM) 2.14 | ||
Enterprise Value to Revenue 2.37 | Enterprise Value to EBITDA 12.2 | Shares Outstanding 89801200 | Shares Floating 87531136 |
Shares Outstanding 89801200 | Shares Floating 87531136 | ||
Percent Insiders 1.44 | Percent Institutions 92.96 |
Analyst Ratings
Rating 3.8 | Target Price 236.32 | Buy - | Strong Buy 5 |
Buy - | Strong Buy 5 | ||
Hold 4 | Sell - | Strong Sell 1 | |
Strong Sell 1 |
Upturn AI SWOT
Packaging Corp of America
Company Overview
History and Background
Packaging Corporation of America (PCA) was founded in 1959. It initially focused on containerboard production and has since expanded into a leading manufacturer of packaging products and paper. PCA has grown through acquisitions and organic expansion.
Core Business Areas
- Packaging: Manufactures corrugated packaging products, including boxes, displays, and protective packaging.
- Paper: Produces uncoated freesheet paper used for printing, writing, and converting applications.
Leadership and Structure
Mark W. Kowlzan serves as the Chairman and CEO. The company has a hierarchical structure with various divisions and departments reporting to executive leadership.
Top Products and Market Share
Key Offerings
- Competitors: International Paper,WestRock,Smurfit Kappa
- Corrugated Packaging: Corrugated boxes and containers for shipping, retail display, and other applications. Market share data is difficult to pinpoint exactly, but PCA is a major player in the North American market. Competitors include International Paper, WestRock, and Smurfit Kappa.
- Market Share: 25
- Competitors: Domtar,Resolute Forest Products
- Market Share: 10
- Uncoated Freesheet Paper: Paper used for printing, writing, and converting purposes. This is a smaller part of their revenue mix than corrugated packaging. Competitors include Domtar and Resolute Forest Products.
Market Dynamics
Industry Overview
The packaging industry is driven by e-commerce growth, demand for sustainable packaging, and the need for efficient supply chains. The paper industry faces challenges from digital alternatives and fluctuating raw material costs.
Positioning
PCA is a vertically integrated company with a strong presence in both packaging and paper markets. Its competitive advantages include its scale, integrated operations, and focus on customer service.
Total Addressable Market (TAM)
The global packaging market is estimated to be worth hundreds of billions of dollars. PCA is well-positioned to capture a portion of this TAM through its diverse product portfolio and established customer base.
Upturn SWOT Analysis
Strengths
- Vertically integrated operations
- Strong customer relationships
- Diverse product portfolio
- Efficient manufacturing processes
- Sustainable practices
Weaknesses
- Exposure to cyclicality in paper and packaging markets
- Dependence on raw material costs
- Potential for disruptions in supply chain
- High capital expenditure requirements
- Geographic concentration in North America
Opportunities
- Growth in e-commerce packaging demand
- Expansion into new geographic markets
- Development of innovative and sustainable packaging solutions
- Acquisition of complementary businesses
- Increased demand for recycled and recyclable packaging
Threats
- Increased competition from domestic and international players
- Fluctuations in raw material costs
- Changes in consumer preferences and regulations
- Economic downturns
- Disruptions from climate change and environmental regulations
Competitors and Market Share
Key Competitors
- IP
- WRK
- SMFKY
Competitive Landscape
PCA competes on the basis of price, product quality, and customer service. They focus on offering customers competitive prices. They are also dedicated to providing high quality products for their customers.
Major Acquisitions
Boise Packaging
- Year: 2013
- Acquisition Price (USD millions): 2060
- Strategic Rationale: Expanded PCA's geographic footprint and packaging capabilities.
Growth Trajectory and Initiatives
Historical Growth: PCA's growth has been driven by acquisitions and organic expansion.
Future Projections: Analyst estimates vary, but PCA is expected to benefit from growth in the packaging market.
Recent Initiatives: Recent initiatives include investments in sustainable packaging and expansion of manufacturing capacity.
Summary
PCA is a strong company in the packaging and paper industry, benefiting from its vertically integrated operations and diverse product portfolio. The company's strengths lie in its customer relationships and focus on sustainability. PCA needs to watch out for fluctuations in raw material costs and increased competition.
Similar Companies
- IP
- WRK
- SON
- GD
- BCC
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Industry Reports
- Financial News Outlets
- Company Website
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Packaging Corp of America
Exchange NYSE | Headquaters Lake Forest, IL, United States | ||
IPO Launch date 2000-01-27 | Chairman of the Board & CEO Mr. Mark W. Kowlzan | ||
Sector Consumer Cyclical | Industry Packaging & Containers | Full time employees 15400 | Website https://www.packagingcorp.com |
Full time employees 15400 | Website https://www.packagingcorp.com | ||
Packaging Corporation of America manufactures and sells containerboard and uncoated freesheet (UFS) paper products in North America. The company operates through Packaging and Paper segments. The Packaging segment offers various containerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization. The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers, and printing and converting papers; and white papers. This segment sells papers through its sales and marketing organization. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.
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