Essential Considerations Before Investing in PKG

By Naomi Wentworth • Thursday, July 23 10:49 • Permanent Link

Packaging logged a 1.5% change during today's morning session, and is now trading at a price of $231.59 per share. The S&P 500 index moved -1.0%. PKG's trading volume is 338,154 compared to the stock's average volume of 694,614.

Packaging trades -5.93% away from its average analyst target price of $246.2 per share. The 10 analysts following the stock have set target prices ranging from $167.0 to $272.0, and on average have given Packaging a rating of buy.

If you are considering an investment in PKG, you'll want to know the following:

Packaging's current price is 132.7% above its Graham number of $99.53, which implies that at its current valuation it does not offer a margin of safety
Packaging has moved 10.8% over the last year, and the S&P 500 logged a change of 17.8%
Based on its trailing earnings per share of 8.24, Packaging has a trailing 12 month Price to Earnings (P/E) ratio of 28.1 while the S&P 500 average is 29.3
PKG has a forward P/E ratio of 18.3 based on its forward 12 month price to earnings (EPS) of $12.62 per share
The company has a price to earnings growth (PEG) ratio of 1.74 — a number near or below 1 signifying that Packaging is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 4.47 compared to its sector average of 2.93
Packaging Corporation of America manufactures and sells containerboard and uncoated freesheet (UFS) paper products in North America.
Based in Lake Forest, the company has 16,800 full time employees and a market cap of $20.63 Billion. Packaging currently returns an annual dividend yield of 1.1%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.