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 sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Packaging Corporation of America for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Packaging Corporation of America
6.32%
0.40
28.21%
S&P 500
16.12%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.19%
EBIT Growth (5y)
8.27%
EBIT to Interest (avg)
17.77
Debt to EBITDA (avg)
1.07
Net Debt to Equity (avg)
0.38
Sales to Capital Employed (avg)
899.97
Tax Ratio
24.68%
Dividend Payout Ratio
58.26%
Pledged Shares
0
Institutional Holding
99.78%
ROCE (avg)
20.92%
ROE (avg)
20.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
NA
EV to EBIT
15.50
EV to EBITDA
10.15
EV to Capital Employed
NA
EV to Sales
2.13
PEG Ratio
NA
Dividend Yield
2.34%
ROCE (Latest)
NA
ROE (Latest)
NA
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
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 110.78%
NET SALES(Q)
Highest at USD 2,363.6 MM
OPERATING PROFIT(Q)
Highest at USD 503.8 MM
-32What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 1,110.9 MM
ROCE(HY)
Lowest at 0%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,490.53
RAW MATERIAL COST(Y)
Grown by 14.17% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 0 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
INTEREST(Q)
Highest at USD 33.8 MM
PRE-TAX PROFIT(Q)
Lowest at USD 134.6 MM
NET PROFIT(Q)
Lowest at USD 101.1 MM
EPS(Q)
Lowest at USD 1.13
Here's what is working for Packaging Corporation of America
Net Sales
Highest at USD 2,363.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 503.8 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Dividend Payout Ratio
Highest at 110.78%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 221.6 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 221.6 MM has Grown at 45.22%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Packaging Corporation of America
Pre-Tax Profit
At USD 134.6 MM has Fallen at -54.03%
over average net sales of the previous four periods of USD 292.82 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 101.1 MM has Fallen at -53.89%
over average net sales of the previous four periods of USD 219.27 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Operating Cash Flow
Lowest at USD 1,110.9 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 33.8 MM has Grown at 75.13%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,490.53
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 33.8 MM
in the last five periods and Increased by 75.13% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Pre-Tax Profit
Lowest at USD 134.6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 101.1 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 1.13
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 0 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 14.17% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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