PKGPackaging Corporation of America
Is the business good?
The checks split: earnings fully cash-backed (2.1×), but 3 of 9 health tests passed and margins compressing.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PKG?
Packaging Corporation of America earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 1.2 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Packaging & Containers median 4.7% · 12 months to Q2 2026
- Cash conversion
- 2.08×
Cash conversion · 1.38× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.78%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 11% |
| FY2021 | 16% |
| FY2022 | 17% |
| FY2023 | 14% |
| FY2024 | 13% |
| FY2025 | 12% |
Details›
- Gross margin12 months to Q2 2026
- 20%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 7.2%
- Free cash flow margin
- 7.8%
- Revenue, trailing twelve months
- $9.53B
- Free cash flow, trailing twelve months
- $742M
- Net income, trailing twelve months
- $692M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Packaging & Containers
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