ScoreWhy is Packaging Corporation of America ?
1
Poor long term growth as Operating profit has grown by an annual rate 6.44% of over the last 5 years
2
Negative results in Jun 25
- INTEREST(HY) At USD 26 MM has Grown at 30%
3
Below par performance in long term as well as near term
- Along with generating -13.97% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Packaging Corporation of America should be less than 10%
- Overall Portfolio exposure to Packaging should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Packaging Corporation of America for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Packaging Corporation of America
12.76%
0.40
28.21%
S&P 500
15.76%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.19%
EBIT Growth (5y)
8.11%
EBIT to Interest (avg)
17.77
Debt to EBITDA (avg)
1.07
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
1.14
Tax Ratio
24.68%
Dividend Payout Ratio
58.26%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
20.92%
ROE (avg)
20.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
4.12
EV to EBIT
18.24
EV to EBITDA
11.91
EV to Capital Employed
2.78
EV to Sales
2.49
PEG Ratio
8.32
Dividend Yield
2.37%
ROCE (Latest)
15.23%
ROE (Latest)
18.05%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,624.1 MM
NET SALES(Q)
Highest at USD 2,489.9 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 69.89%
INVENTORY TURNOVER RATIO(HY)
Highest at 6.33 times
DIVIDEND PER SHARE(HY)
Highest at USD 7.14
OPERATING PROFIT(Q)
Highest at USD 496.9 MM
-15What is not working for the Company
INTEREST(HY)
At USD 65.9 MM has Grown at 153.46%
ROCE(HY)
Lowest at 14.79%
RAW MATERIAL COST(Y)
Grown by 7.82% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.14 times
OPERATING PROFIT MARGIN(Q)
Lowest at 19.96 %
Here's what is working for Packaging Corporation of America
Operating Cash Flow
Highest at USD 1,624.1 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 2,489.9 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD 496.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Inventory Turnover Ratio
Highest at 6.33 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at USD 7.14
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 69.89%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Packaging Corporation of America
Interest
At USD 65.9 MM has Grown at 153.46%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 19.96 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 7.14 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 7.82% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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