📊 PKG Key Takeaways
Is Packaging Corp. Of America (PKG) a Good Investment?
Despite generating $2.4B in revenue with extraordinary YoY growth, PKG's net income grew only 0.7% YoY with declining diluted EPS (-3.9%), suggesting severe acquisition integration challenges or revenue quality deterioration. Weak returns on capital (ROE 3.7%, ROA 1.6%) combined with thin profitability margins (7.2% net margin) indicate structural inefficiency in a mature, cyclical packaging industry with limited pricing power.
Packaging Corp of America shows solid core fundamentals with healthy margins, strong operating cash generation, and a conservative liquidity profile that supports ongoing capital investment and debt service. However, earnings growth appears muted, EPS declined, and the extreme reported revenue growth strongly suggests a comparability or data-quality issue, which reduces confidence in the apparent growth trajectory.
Packaging Corp. Of America Key Strengths (PKG)
- Strong liquidity position with 3.07x current ratio and $397M cash reserves
- Positive free cash flow generation of $164.6M despite capital intensity
- Moderate leverage with 0.86x debt-to-equity ratio provides financial flexibility
- Strong profitability with 21.0% gross margin, 12.3% operating margin, and 16.8% ROE
- Healthy cash generation with $1.56B operating cash flow and $728.6M free cash flow after heavy capex
- Solid balance sheet liquidity with 3.17x current ratio and manageable 0.87x debt-to-equity
PKG Stock Risks: Packaging Corp. Of America Investment Risks
- Massive revenue growth (11,464% YoY) decoupled from profit growth signals poor acquisition integration or unsustainable revenue quality
- Extremely low returns on capital (3.7% ROE, 1.6% ROA) indicate inefficient capital deployment and poor operational efficiency
- Cyclical commodity industry with limited pricing power, thin 19.1% gross margins, and structural margin pressure
- Reported revenue growth of +11464.5% YoY is likely distorted by data inconsistency, making growth quality hard to assess
- Net income grew only 0.7% while diluted EPS fell 3.9%, indicating limited per-share earnings momentum
- Leverage is meaningful with $3.99B long-term debt, while total liabilities and interest coverage are unavailable
Key Metrics to Watch
- Net income and EPS growth decoupling from revenue growth - signals deteriorating unit economics
- Operating margin trajectory and free cash flow sustainability
- Debt reduction progress and return on incremental capital invested
- Free cash flow conversion and capital expenditure intensity
- Packaging segment volume/mix and margin stability
Packaging Corp. Of America (PKG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.07x current ratio provides a solid financial cushion.
PKG Profit Margin, ROE & Profitability Analysis
PKG vs Materials Sector: How Packaging Corp. Of America Compares
How Packaging Corp. Of America compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Packaging Corp. Of America Stock Overvalued? PKG Valuation Analysis 2026
Based on fundamental analysis, Packaging Corp. Of America has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Packaging Corp. Of America Balance Sheet: PKG Debt, Cash & Liquidity
PKG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Packaging Corp. Of America's revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $8.48 reflects profitable operations.
PKG Revenue Growth, EPS Growth & YoY Performance
PKG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.1B | $170.9M | $1.91 |
| Q3 2025 | $2.2B | $226.9M | $2.51 |
| Q2 2025 | $2.1B | $198.9M | $2.21 |
| Q1 2025 | $2.0B | $146.9M | $1.63 |
| Q3 2024 | $1.9B | $183.2M | $2.03 |
| Q2 2024 | $2.0B | $198.9M | $2.21 |
| Q1 2024 | $2.0B | $146.9M | $1.63 |
| Q3 2023 | $1.9B | $183.2M | $2.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Packaging Corp. Of America Dividends, Buybacks & Capital Allocation
PKG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Packaging Corp. Of America (CIK: 0000075677)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PKG
What is the AI rating for PKG?
Packaging Corp. Of America (PKG) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are PKG's key strengths?
Claude: Strong liquidity position with 3.07x current ratio and $397M cash reserves. Positive free cash flow generation of $164.6M despite capital intensity. ChatGPT: Strong profitability with 21.0% gross margin, 12.3% operating margin, and 16.8% ROE. Healthy cash generation with $1.56B operating cash flow and $728.6M free cash flow after heavy capex.
What are the risks of investing in PKG?
Claude: Massive revenue growth (11,464% YoY) decoupled from profit growth signals poor acquisition integration or unsustainable revenue quality. Extremely low returns on capital (3.7% ROE, 1.6% ROA) indicate inefficient capital deployment and poor operational efficiency. ChatGPT: Reported revenue growth of +11464.5% YoY is likely distorted by data inconsistency, making growth quality hard to assess. Net income grew only 0.7% while diluted EPS fell 3.9%, indicating limited per-share earnings momentum.
What is PKG's revenue and growth?
Packaging Corp. Of America reported revenue of $2.4B.
Does PKG pay dividends?
Packaging Corp. Of America pays dividends, with $111.9M distributed to shareholders in the trailing twelve months.
Where can I find PKG SEC filings?
Official SEC filings for Packaging Corp. Of America (CIK: 0000075677) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PKG's EPS?
Packaging Corp. Of America has a diluted EPS of $1.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PKG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Packaging Corp. Of America has a C grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PKG stock overvalued or undervalued?
Valuation metrics for PKG: ROE of 3.7% (sector avg: 14%), net margin of 7.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is PKG's AI grade for 2026?
Our dual AI analysis gives Packaging Corp. Of America a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PKG's free cash flow?
Packaging Corp. Of America's operating cash flow is $329.3M, with capital expenditures of $164.7M. FCF margin is 7.0%.
How does PKG compare to other Materials stocks?
Vs Materials sector averages: Net margin 7.2% (avg: 10%), ROE 3.7% (avg: 14%), current ratio 3.07 (avg: 1.6).