Packaging Corporation of America [NYSE: PKG] stock went down by -2.35% or -2.34 points down from its previous closing price of $99.35. The stock reached $97.01 during the last trading session. During the course of the last 5 trading session in the week, PKG share price went up during 2 out of 5 days, that way losing -2.64% in the period of the last 7 days.
PKG had two major price movements with the latest trading session as the price jumped to a high of $98.33, at one point touching $96.32. The latest high is set lower that the high price recorded in the period of the last 52 weeks, set at $98.33. The 52-week high currently stands at $118.88 distance from the present share price, noting recovery -12.84% after the recent low of $77.90.
Packaging Corporation of America [NYSE:PKG]: Analyst Rating and Earnings
Pro stock traders frequently make sure to pay attention what expert market analysts are saying about a potential stock buy. Regarding Packaging Corporation of America [PKG] right now, the most recent ratings from Wall St. analysts that we can see right now is regarding the quarter that’s slated to end in December. On average, stock market experts give PKG an Outperform rating. Its stock price has been found in the range of 77.90 to 118.88. This is compared to its latest closing price of $99.35.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Packaging Corporation of America [PKG] is sitting at 2.50. This is compared to 1 month ago, when its average rating was 2.43.
For the quarter ending in Mar-19 Packaging Corporation of America [PKG] generated $1.73 billion in sales. That’s 2.15% lower than the average estimate of $1.77 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on Wed 24 Jul (In 9 Days).
Fundamental Analysis of Packaging Corporation of America [PKG]
Now let’s turn to look at profitability: with a current Operating Margin for Packaging Corporation of America [PKG] sitting at +15.71 and its Gross Margin at +23.46, this company’s Net Margin is now 11.00%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 22.03, and its Return on Invested Capital has reached 16.10%. Its Return on Equity is 30.17, and its Return on Assets is 11.47. These metrics all suggest that Packaging Corporation of America is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Packaging Corporation of America [PKG] has generated a Total Debt to Total Equity ratio of 93.65. Similarly, its Total Debt to Total Capital is 48.36, while its Total Debt to Total Assets stands at 38.09. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 93.60, and its Long-Term Debt to Total Capital is 48.33. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 7.64 and its Total Debt to EBITDA Value is 1.65. The Enterprise Value to Sales for this firm is now 1.64, and its Total Debt to Enterprise Value stands at 0.25. Packaging Corporation of America [PKG] has a Price to Book Ratio of 2.95, a Price to Cash Flow Ratio of 6.64 and P/E Ratio of 11.72. These metrics all suggest that Packaging Corporation of America is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Packaging Corporation of America [PKG] earns $467,640 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.71 and its Total Asset Turnover is 1.10. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.90 and its Current Ratio is 3.05. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Packaging Corporation of America [PKG] has 95.54M shares outstanding, amounting to a total market cap of $9.49B. Its stock price has been found in the range of 77.90 to 118.88. At its current price, it has moved down by -18.39% from its 52-week high, and it has moved up 24.54% from its 52-week low.
This stock’s Relative Strength Index (RSI) is at 49.74. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Packaging Corporation of America [PKG] a Reliable Buy?
Shares of Packaging Corporation of America [PKG], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.