Packaging Corporation of AmericaPKG
NYSE•Consumer Cyclical•Packaging & Containers
Packaging Corporation of America manufactures and sells containerboard and uncoated freesheet (UFS) paper products in North America. The company operates through Packaging and Paper segments. The Packaging segment offers various linerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization. The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers, and printing and converting papers; and white papers. This segment sells papers through its sales and marketing organization. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.
Packaging Corporation of Americ (PKG) reported trailing twelve months revenue of $9.22B as of March 2026, a 7.9% increase year-over-year. Quarterly revenue reached $2.37B, reflecting continued top-line momentum.
Packaging Corporation of Americ generated $741.20M in TTM net income, with quarterly EBITDA of $476.50M. The operating margin contracted from 13.1% to 10.6%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (10.6%) and net margin (7.2%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 9.5% a year ago, reflecting increased costs or interest expense.
PKG trades at a P/E of 25.0x (in line with broad market averages) and a P/S of 2.0x. The price-to-book ratio of 4.0x reflects a moderate premium to book value.
The company generated $164.60M in free cash flow over the trailing twelve months, a 13.8% decrease year-over-year, indicating cash generation ability. The balance sheet shows $10.78B in total assets with $3.97B in long-term debt against $4.59B in stockholders equity for a debt-to-equity ratio of 0.9. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~12.8% on average, but show some variability — pricing power may be sensitive to market conditions.
Consistently high ROE averaging 18.0% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~16.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 15.0% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
Debt-to-equity has risen 57.3% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation