Packaging Corporation of America
- Open
- 234.77
- Day high
- 235.53
- Day low
- 227.91
- Prev close
- 233.07
- Volume
- 484K
- Mkt cap
- $20.4B
- P/E (TTM)
- 27.7
- EPS (TTM)
- $8.25
- P/B
- 4.4
- P/S
- 2.2
- Yield
- 2.30%
- Per share
- $5.25
- ▼Insiders net selling -$2.0M over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Packaging Corporation of America (PKG) is a Consumer Cyclical company listed on NYSE. The stock is up 13% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Packaging Corporation of America (PKG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 7 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PKG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $2.17 | $2.40 | +10.6% | $2.4B | -2.4% |
| Jan 27, 2026 | $2.41 | $2.32 | -3.7% | $2.4B | -2.1% |
| Oct 22, 2025 | $2.82 | $2.73 | -3.2% | $2.3B | +0.4% |
| Jul 23, 2025 | $2.44 | $2.48 | +1.6% | $2.2B | -0.8% |
| Apr 22, 2025 | $2.21 | $2.31 | +4.5% | $2.1B | +1.5% |
| Jan 28, 2025 | $2.53 | $2.47 | -2.4% | $2.1B | +0.7% |
| Oct 22, 2024 | $2.50 | $2.65 | +6.0% | $2.2B | +4.2% |
| Jul 23, 2024 | $2.14 | $2.20 | +2.8% | $2.1B | +2.5% |
| Jan 24, 2024 | $1.83 | $2.13 | +16.4% | $1.9B | +1.6% |
| Jul 24, 2023 | $1.92 | $2.31 | +20.3% | $2.0B | -0.1% |
| Jan 25, 2023 | $2.23 | $2.35 | +5.4% | $2.0B | -3.1% |
| Jul 25, 2022 | $2.85 | $3.23 | +13.3% | $2.2B | +4.5% |
PKG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 28, 2026 | KOWLZAN MARK Wdirector, officer: Chairman & CEO | Sell | 9,266 | $217.08 |
| May 13, 2026 | MENCOFF SAMUEL Mdirector | Grant | 591 | — |
| May 12, 2026 | GOWLAND KAREN Edirector | Grant | 591 | — |
| May 12, 2026 | SOULELES THOMAS Sdirector | Grant | 591 | — |
| May 12, 2026 | Farrington Duane Cdirector | Grant | 591 | — |
| May 12, 2026 | BEEBE CHERYL Kdirector | Grant | 591 | — |
| May 12, 2026 | LYONS ROBERT Cdirector | Grant | 591 | — |
| May 12, 2026 | Harman Donna A.director | Grant | 591 | — |
| May 12, 2026 | PORTER ROGER Bdirector | Grant | 591 | — |
| Mar 31, 2026 | Pflederer Kent A.officer: EVP & CFO | Grant | 428 | — |
| Mar 31, 2026 | KOWLZAN MARK Wdirector, officer: Chairman & CEO | Grant | 3,292 | — |
| Mar 31, 2026 | KOWLZAN MARK Wdirector, officer: Chairman & CEO | Tax | 20,513 | $212.25 |
| Mar 31, 2026 | Shirley Donald R.officer: Exec. VP | Grant | 6,254 | — |
| Mar 31, 2026 | Carter Charles J.officer: EVP-Mill Ops. | Grant | 634 | — |
| Mar 31, 2026 | Olivier Darla J.officer: SVP | Grant | 173 | — |
Source: PKG SEC Form 4 filings, latest May 28, 2026. For informational purposes only — not investment advice.
See the full PKG insider & 13F page →Packaging Corporation of America company profile
Overview
Packaging Corporation of America (NYSE:PKG) is one of the largest producers of containerboard and corrugated packaging products in the United States. Founded in 1867 and headquartered in Lake Forest, Illinois, the company went public in 2000. PCA operates as a vertically integrated packaging manufacturer, producing both the raw materials (containerboard) and finished corrugated products used to ship and protect goods across various industries. The company has grown through strategic acquisitions and capital investments to become a major player in the American packaging industry, serving customers ranging from e-commerce companies to food processors.
Business
Packaging Corporation of America operates in the packaging and containers industry, which provides essential materials for shipping, storing, and protecting manufactured goods. The company's business is divided into two main segments that together form a vertically integrated operation. The Packaging segment represents approximately 92% of total revenue and manufactures containerboard and corrugated packaging products. Containerboard is the heavy-duty paper material used to make corrugated boxes - think of the brown cardboard boxes used for shipping everything from Amazon packages to grocery store deliveries. The company produces linerboard (the flat outer layers) and medium (the wavy middle layer that provides cushioning). These materials are then converted into finished corrugated products including conventional shipping containers, multi-color retail display boxes, and specialized packaging for industries like food processing, agriculture, and e-commerce. The corrugated manufacturing process involves running large sheets of containerboard through corrugating machines that create the familiar fluted structure, then cutting and folding these sheets into boxes of various sizes and specifications. The Paper segment accounts for the remaining 8% of revenue and produces commodity and specialty papers, including office papers, printing papers, and converting papers used in various commercial applications. This segment leverages the company's papermaking infrastructure and expertise to serve markets beyond packaging. PCA operates seven containerboard mills with a combined annual production capacity of approximately 5.2 million tons, along with numerous corrugated converting facilities strategically located near customer concentrations. This vertical integration allows the company to control quality and costs from raw material production through finished product delivery.
Revenue model
Packaging Corporation of America generates revenue primarily through direct product sales to customers across multiple industries. The company sells containerboard both internally to its own converting operations and externally to independent box manufacturers. For finished corrugated products, PCA sells directly to end-users through its sales organization, independent brokers, and distribution partners. The company's customers span diverse sectors including e-commerce companies (like Amazon fulfillment operations), food and beverage processors, agricultural producers, retail chains, and industrial manufacturers. Revenue is generated when customers purchase containerboard by the ton or corrugated products by volume, typically under contracts that may include pricing mechanisms tied to industry indices or negotiated fixed terms. Several factors significantly impact PCA's profitability margins. Input costs represent a major variable, particularly old corrugated containers (OCC) - recycled cardboard that serves as a key raw material - along with energy, chemicals, and transportation costs. When OCC prices rise due to supply constraints or export demand, margins compress unless the company can pass through price increases. Demand cyclicality affects both pricing power and volume utilization - during economic downturns, customers reduce inventory levels and delay purchases, pressuring both prices and plant utilization rates. Pricing dynamics in the containerboard industry have historically followed published indices, but PCA has been working to move away from this system toward more stable customer-specific pricing arrangements. The company's ability to implement price increases depends on market conditions, capacity utilization across the industry, and the strength of customer relationships. Operational efficiency improvements through capital investments in newer equipment, plant optimization, and process automation help offset inflationary pressures and maintain competitiveness.
Competitive moat
Packaging Corporation of America possesses a moderate but meaningful economic moat built primarily on operational scale, vertical integration, and customer switching costs. The company's integrated model - controlling both containerboard production and corrugated converting - provides cost advantages and supply chain reliability that many smaller competitors cannot match. This integration allows PCA to optimize production scheduling, maintain quality consistency, and respond quickly to customer needs without relying on external suppliers. The company's geographic footprint and logistics network create local competitive advantages, as corrugated products are expensive to ship long distances due to their bulk relative to value. PCA's strategic placement of converting facilities near customer concentrations creates natural barriers for distant competitors. Additionally, the capital-intensive nature of the business - requiring hundreds of millions in investments for new mills or major equipment - limits new entrant threats. However, PCA's moat faces several challenges. The containerboard industry is relatively commoditized with limited product differentiation, making customers price-sensitive and willing to switch suppliers for better terms. Large integrated competitors like International Paper and WestRock possess similar scale advantages, while substitute materials including plastic packaging and reusable containers compete in certain applications. The industry's cyclical nature can rapidly erode pricing power during downturns when excess capacity emerges. The company's strongest moat elements lie in its customer relationships and service reliability. Many customers value consistent supply, quality, and technical support over pure price competition, particularly in mission-critical applications like food packaging where supply disruptions carry significant costs. PCA's track record of operational excellence and continuous capital investment helps maintain these relationships, though the moat remains moderate given the industry's competitive dynamics.
Risks & safety
PCA demonstrates a solid margin of safety with strong financial fundamentals, though valuation appears fairly priced rather than deeply discounted. • Balance sheet strength: Current ratio of 3.2x, quick ratio of 2.1x, and $685 million cash provide substantial liquidity cushion • Debt management: Debt-to-equity ratio of 0.63x is manageable for a capital-intensive business, with strong cash generation supporting debt service • Cash generation: Operating cash flow of $1.2 billion and free cash flow of $522 million in 2024 demonstrate consistent cash production • Valuation metrics: Trading at 22.7x P/E and 12.6x EV/EBITDA - not expensive but not cheap for a cyclical business • Dividend sustainability: Strong free cash flow supports dividend payments with room for continuation through cycles • Cyclical considerations: As a cyclical business, current margins and earnings may not be sustainable through a downturn, requiring assessment of trough earnings power
Recent development
Over the past few years, PCA has executed several major strategic initiatives focused on capacity expansion and operational optimization. The most significant project was the Jackson mill conversion, a $450+ million investment completed in phases that converted the facility to produce high-performance lightweight linerboard, ultimately increasing the mill's annual capacity and improving product quality. This project exemplifies PCA's strategy of investing in existing assets rather than building new facilities from scratch. The company has also pursued an aggressive corrugated converting expansion program, installing 69 new converting machines since 2019, replacing or upgrading 25 corrugators, and building four new plants in strategic locations including Marshfield, Richland, Landisville, and Salt Lake City. Additional facilities are under construction in Glendale, Arizona and Newark, Ohio. This expansion strategy focuses on growing with existing customers and capturing market share in high-growth segments like e-commerce packaging. Pricing strategy evolution represents another key development, with management working to move away from industry index-based pricing toward more stable, customer-specific arrangements. This shift aims to reduce earnings volatility and better capture the value of PCA's integrated service offering. The company has also maintained disciplined capital allocation, consistently returning significant cash to shareholders through dividends and share repurchases while funding growth investments. Recent operational achievements include record production levels, improved plant utilization rates, and successful implementation of price increases across both packaging and paper segments, demonstrating the company's ability to execute its strategic plan while maintaining strong customer relationships.
PKG company profile · for informational purposes only — not investment advice.
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