Packaging Corporation of America (PKG)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Packaging Corporation of America (PKG) trades at $238.20 with AI Score 69/100 (Grade B+). Packaging Corporation of America (PKG) is a leading manufacturer of containerboard and corrugated packaging products in the United States. Market cap: $21.22B, Sector: Consumer cyclical.
Price live · AI analysis from May 10, 2026PKG stock analysis for 2026: Analysts have set a consensus price target of $231.90 for Packaging Corporation of America, suggesting 2.6% downside from the current price of $238.20. The AI MoonshotScore is 69/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
PKG: 5/8 perspectives are bullish. Dominant signal: Ken Griffin bullish.
How is this calculated? →Packaging Corporation of America (PKG) Consumer Business Overview
Packaging Corporation of America (PKG) provides containerboard and corrugated packaging solutions, operating in the consumer cyclical sector. With a focus on the U.S. market, the company serves diverse industries through its Packaging and Paper segments, leveraging direct sales and distribution partnerships while competing with major players like Smurfit Westrock.
What Is the Investment Thesis for PKG?
Packaging Corporation of America (PKG) presents a compelling investment case based on its established market position and consistent financial performance. With a market capitalization of $21.22B and a P/E ratio of 27.4, PKG demonstrates financial stability. The company's 8.0% profit margin and 20.5% gross margin reflect efficient operations. A dividend yield of 2.23% offers an attractive income stream for investors. Growth catalysts include increasing demand for sustainable packaging solutions and expansion within the e-commerce sector. Potential risks include fluctuations in raw material costs and increased competition. The company's beta of 0.92 indicates lower volatility compared to the broader market, making it a relatively stable investment option.
Based on FMP financials and quantitative analysis
PKG Key Highlights
- Market Cap of $21.22B reflects substantial investor confidence in Packaging Corporation of America's market position.
- P/E ratio of 27.4 indicates the price investors are willing to pay for each dollar of Packaging Corporation of America's earnings.
- Profit Margin of 8.0% demonstrates Packaging Corporation of America's ability to generate profit from its revenue.
- Gross Margin of 20.5% shows the percentage of revenue exceeding the cost of goods sold, highlighting Packaging Corporation of America's production efficiency.
- Dividend Yield of 2.23% provides investors with a steady income stream, enhancing the attractiveness of Packaging Corporation of America's stock.
Who Are PKG's Competitors?
PKG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| SW Smurfit Westrock Plc | $45.93 | -0.35% | $24.09B | 53 |
| AMCR Amcor plc | $45.00 | +3.12% | $20.81B | 44 |
| BURL Burlington Stores, Inc. | $313.18 | -0.57% | $19.71B | 61 |
| DKS DICK'S Sporting Goods, Inc. | $236.18 | +2.79% | $20.18B | 62 |
| YUMC Yum China Holdings, Inc. | $41.70 | +1.81% | $14.56B | 46 |
| IP International Paper Company | $38.79 | +1.17% | $20.54B | 64 |
| SON Sonoco Products Company | $57.42 | +2.26% | $5.68B | 59 |
| FFHL Fuwei Films (Holdings) Co., Ltd. | $8.30 | +0.00% | $695.42M | 59 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PKG's Key Strengths?
- Integrated manufacturing operations provide cost advantages.
- Diverse product portfolio caters to various industries.
- Strong distribution network ensures broad market reach.
- Established relationships with a diverse customer base.
What Are PKG's Weaknesses?
- Exposure to fluctuations in raw material costs.
- Dependence on the North American market.
- Vulnerability to economic downturns affecting consumer spending.
- Limited international presence compared to global competitors.
What Could Drive PKG Stock Higher?
- Increasing demand for sustainable packaging solutions driven by consumer preferences and regulatory requirements.
- Expansion of e-commerce driving demand for corrugated packaging for shipping and delivery.
- Potential acquisitions of smaller packaging companies to expand market reach and capabilities.
- Investments in research and development of innovative packaging technologies and materials.
What Are the Key Risks for PKG?
- Insider selling — insiders were net sellers of roughly $4.9M recently.
- Fluctuations in raw material costs, particularly for containerboard and paper, impacting profitability.
- Increased competition from larger global packaging companies.
- Economic slowdowns impacting demand for packaging products.
- Regulatory changes related to environmental standards and packaging requirements.
What Are the Growth Opportunities for PKG?
- Expansion in E-commerce Packaging: The rapid growth of e-commerce presents a significant opportunity for Packaging Corporation of America. As online retail continues to expand, the demand for corrugated packaging for shipping and delivery will increase. PKG can capitalize on this trend by developing innovative and sustainable e-commerce packaging solutions. The global e-commerce packaging market is projected to reach $61.55 billion by 2028, growing at a CAGR of 14.2% from 2021. By focusing on this segment, PKG can enhance its revenue streams and market share.
- Sustainable Packaging Solutions: The increasing focus on sustainability and environmental concerns drives demand for eco-friendly packaging. Packaging Corporation of America can leverage this trend by offering sustainable packaging options made from recycled materials or renewable resources. The global sustainable packaging market is expected to reach $440.3 billion by 2030, growing at a CAGR of 8.4% from 2021. By investing in research and development of sustainable materials and technologies, PKG can attract environmentally conscious customers and gain a competitive advantage.
- Geographic Expansion within the U.S.: While Packaging Corporation of America primarily operates in the United States, there are opportunities to expand its geographic reach within the country. By establishing new facilities or acquiring existing packaging companies in underserved regions, PKG can tap into new markets and increase its customer base. This expansion can be achieved through strategic partnerships and targeted marketing efforts, allowing PKG to strengthen its presence and market share across the U.S.
- Product Innovation and Diversification: Packaging Corporation of America can drive growth by investing in product innovation and diversifying its packaging offerings. This includes developing new types of corrugated packaging, such as specialized containers for specific industries or innovative designs that enhance product protection and presentation. By expanding its product portfolio, PKG can cater to a wider range of customer needs and differentiate itself from competitors. Continuous innovation will ensure PKG remains competitive and relevant in the evolving packaging market.
- Strategic Acquisitions and Partnerships: Packaging Corporation of America can pursue strategic acquisitions and partnerships to expand its capabilities and market reach. Acquiring smaller packaging companies or forming alliances with complementary businesses can provide access to new technologies, markets, and customer segments. These strategic moves can accelerate PKG's growth and strengthen its competitive position in the packaging industry. Careful selection of acquisition targets and partnership opportunities is crucial for maximizing the benefits of these strategies.
What Opportunities Does PKG Have?
- Expansion in e-commerce packaging solutions.
- Growth in sustainable packaging market.
- Geographic expansion within the United States.
- Strategic acquisitions and partnerships.
What Threats Does PKG Face?
- Intense competition from larger global packaging companies.
- Changing consumer preferences and packaging trends.
- Regulatory changes related to environmental standards.
- Economic slowdowns impacting demand for packaging products.
What Are PKG's Competitive Advantages?
- Integrated Operations: PKG's integrated business model, encompassing both containerboard and corrugated packaging production, provides cost efficiencies and supply chain control.
- Established Customer Relationships: Long-standing relationships with a diverse customer base provide recurring revenue and stability.
- Extensive Distribution Network: A well-established direct sales force, broker network, and distribution partnerships ensure broad market access.
- Product Diversification: A wide range of packaging and paper products caters to diverse customer needs, reducing reliance on any single market segment.
What Does PKG Do?
Packaging Corporation of America (PKG), founded in 1867 and headquartered in Lake Forest, Illinois, is a major player in the packaging and container industry. The company specializes in manufacturing and selling containerboard and corrugated packaging products within the United States. PKG operates through two primary segments: Packaging and Paper. The Packaging segment offers a wide array of products, including conventional shipping containers, multi-color boxes and displays for retail merchandising, and specialized honeycomb protective packaging. These products cater to various sectors, including meat, fresh produce, processed food, beverages, and other industrial and consumer goods. The Paper segment focuses on producing and selling commodity and specialty papers, including communication papers like cut-size office papers, and printing and converting papers. PKG utilizes a direct sales and marketing organization, along with independent brokers and distribution partners, to reach its customer base. With a long history and a comprehensive product portfolio, Packaging Corporation of America maintains a strong position in the competitive packaging market, emphasizing sustainable and innovative solutions for its diverse clientele.
What Products and Services Does PKG Offer?
- Manufactures and sells containerboard products.
- Produces corrugated packaging products.
- Offers conventional shipping containers for transporting goods.
- Creates multi-color boxes and displays for retail merchandising.
- Provides honeycomb protective packaging.
- Manufactures commodity and specialty papers.
- Produces communication papers, including office and printing papers.
How Does PKG Make Money?
- Manufactures containerboard and paper products.
- Converts these materials into corrugated packaging solutions.
- Sells packaging and paper products through direct sales, brokers, and distribution partners.
What Industry Does PKG Operate In?
Packaging Corporation of America operates in the packaging and containers industry, which is influenced by consumer spending, e-commerce growth, and sustainability trends. The market is competitive, with major players like Smurfit Westrock Plc and Amcor plc vying for market share. The increasing demand for eco-friendly packaging solutions is driving innovation and creating opportunities for companies that can offer sustainable alternatives. The industry is also affected by fluctuations in raw material costs, particularly for containerboard and paper. Packaging Corporation of America's integrated business model and focus on the U.S. market position it to capitalize on these trends while managing competitive pressures.
Who Are PKG's Key Customers?
- Manufacturers of various goods requiring shipping containers.
- Retailers needing packaging for product display and merchandising.
- Companies in the food and beverage industry requiring specialized packaging.
- Businesses needing paper products for communication and printing.
Net buyingInsider Activity
Over the past six months, Packaging Corporation of America insiders filed 15 SEC Form 4 transactions — 3 sales and 12 purchases. On net that is roughly 16K shares acquired (about $4.9M) — insiders putting money in tends to read as conviction.
FY2026 estForward Outlook
Wall Street analysts project Packaging Corporation of America revenue of about $9.97B for fiscal 2026, with EPS near $10.35. The estimate reflects 8 contributing analysts.
5/8 beatsEarnings Track Record
Packaging Corporation of America has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.2% above estimates on average.
F-Score 5/9Financial Health
Packaging Corporation of America's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.01 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE 16%Key Financial Metrics
Return on equity for Packaging Corporation of America stands at 15.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.9%, showing how much profit it generates from its asset base. PKG trades at a trailing price-to-earnings ratio of 27.36, below the Consumer Cyclical sector average of ~39x. Its free cash flow yield is 3.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.07 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.5%, the inverse of the P/E and a quick read on earnings relative to price.
Packaging Corporation of America (PKG) Valuation Context
Valued at $21.22B, PKG is classified as a large-cap stock. Relative to its peer group, PKG's quantitative score of 69/100 is above the peer average of 53/100.
PKG Revenue & Earnings Trend
In Q1 2026, PKG generated $2.37B in top-line revenue, marking a sequential increase of 0.2%. The company recorded net income of $170.9M, with diluted EPS of $1.92. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Consumer Cyclical company. Across the four most recent quarters, PKG averaged $2.06 in diluted EPS.
Company Profile
Packaging Corporation of America operates in the Packaging & Containers industry within the Consumer Cyclical sector. It is headquartered in Lake Forest, US. The company is led by CEO Mark W. Kowlzan. PKG has traded publicly since 2000.
PKG Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future prospects, a signal that those closest to the business see value.
- The community sentiment appears optimistic, with many members discussing potential growth opportunities in sustainable packaging solutions.
- Market perception indicates a growing demand for eco-friendly packaging, which could benefit Packaging Corporation of America given their focus on paper-based products.
- Positive discussions within the community highlight the company's consistent dividend payouts, attracting income-focused investors.
Bear Case
- Some insiders have been selling shares, potentially signaling a lack of long-term confidence or a need to rebalance portfolios.
- Community sentiment reveals concerns about rising raw material costs impacting profit margins, a worry echoed by several members.
- Market perception suggests increasing competition from alternative packaging materials like plastics, which could erode Packaging Corporation of America's market share.
- Bearish community views point to potential challenges in maintaining pricing power amid economic uncertainties, impacting revenue projections.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
From the Earnings Call
“We continue to forecast $840 million to $870 million of CapEx and $700 million of DD&A for the year.”
— Kent Pflederer
“In the legacy business, corrugated shipments per day were up 2.8% versus last year's first quarter, a new record on a per day basis.”
— Thomas Hassfurther
PKG Q1 FY2026 earnings call transcript · 2026-04-23
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.37B | $171M | $1.92 |
| Q4 2025 | $2.36B | $101M | $1.13 |
| Q3 2025 | $2.31B | $227M | $2.51 |
| Q2 2025 | $2.17B | $242M | $2.69 |
Based on FMP financials and quantitative analysis
PKG Latest News
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Is International Paper Stock Underperforming the Nasdaq?
Yahoo! Finance: PKG News · Jun 18, 2026
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1 Industrials Stock for Long-Term Investors and 2 That Underwhelm
Yahoo! Finance: PKG News · Jun 16, 2026
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Packaging Corporation of America (PKG) Presents at 16th Annual Wells Fargo Industrials & Materials Conference Transcript
seekingalpha.com · Jun 10, 2026
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A Look At Packaging Corporation Of America (PKG) Valuation After Recent Mixed Share Performance
Yahoo! Finance: PKG News · Jun 8, 2026
PKG Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PKG.
Price Targets
Consensus target: $231.90
PKG MoonshotScore
What does this score mean?
The MoonshotScore rates PKG's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Classification
Industry Packaging & ContainersLatest News
Is International Paper Stock Underperforming the Nasdaq?
1 Industrials Stock for Long-Term Investors and 2 That Underwhelm
Packaging Corporation of America (PKG) Presents at 16th Annual Wells Fargo Industrials & Materials Conference Transcript
A Look At Packaging Corporation Of America (PKG) Valuation After Recent Mixed Share Performance
Latest Packaging Corporation of America Analysis
Leadership: Mark W. Kowlzan
CEO
Mark W. Kowlzan serves as the CEO of Packaging Corporation of America, leading a workforce of 15,400 employees. His extensive background in the paper and packaging industry includes various leadership roles. Kowlzan's experience spans operations, sales, and strategic planning, providing him with a comprehensive understanding of the business. His expertise in optimizing manufacturing processes and driving revenue growth has been instrumental in PKG's success. Kowlzan's leadership is characterized by a focus on innovation, sustainability, and customer satisfaction.
Track Record: Under Mark W. Kowlzan's leadership, Packaging Corporation of America has achieved significant milestones, including strategic acquisitions and expansions. He has overseen the implementation of sustainable practices and the development of innovative packaging solutions. Kowlzan's focus on operational efficiency has resulted in improved profitability and enhanced shareholder value. His strategic vision has positioned PKG as a leading player in the packaging industry.
PKG Consumer Cyclical Stock FAQ
What does Packaging Corporation of America do?
Packaging Corporation of America (PKG) is a leading manufacturer of containerboard and corrugated packaging products in the United States. The company operates through its Packaging and Paper segments, providing a wide range of packaging solutions for various industries, including food and beverage, retail, and industrial sectors. PKG's products include conventional shipping containers, multi-color boxes, and specialized packaging for specific applications. The company focuses on delivering sustainable and innovative packaging solutions to meet the evolving needs of its customers while maintaining a strong market position in the competitive packaging industry.
What do analysts say about PKG stock?
Analyst consensus on Packaging Corporation of America (PKG) reflects a generally positive outlook, citing the company's strong market position and consistent financial performance. Key valuation metrics, such as the P/E ratio of 27.4 and a dividend yield of 2.23%, are closely monitored. Growth considerations include the increasing demand for sustainable packaging and the expansion of e-commerce, which drives the need for corrugated packaging. Analysts also consider potential risks, such as fluctuations in raw material costs and increased competition. These factors contribute to the overall assessment of PKG's investment potential, providing investors with a balanced perspective on the company's prospects.
What are the main risks for PKG?
The main risks for Packaging Corporation of America (PKG) include fluctuations in raw material costs, particularly for containerboard and paper, which can impact profitability. Increased competition from larger global packaging companies poses a threat to market share. Economic slowdowns can reduce demand for packaging products, affecting revenue. Regulatory changes related to environmental standards and packaging requirements can also create challenges. These risks require careful monitoring and proactive management to mitigate their potential impact on PKG's financial performance and competitive position. Effective risk management strategies are crucial for sustaining long-term growth and profitability in the dynamic packaging industry.
How does Packaging Corporation of America adapt to changing consumer preferences?
Packaging Corporation of America adapts to changing consumer preferences by focusing on product innovation and sustainability. The company invests in research and development to create new packaging solutions that meet evolving consumer demands, such as eco-friendly materials and designs. PKG also monitors consumer trends and preferences through market research and customer feedback, allowing it to anticipate and respond to changing needs. By prioritizing innovation and sustainability, Packaging Corporation of America ensures its products remain relevant and appealing to consumers in the dynamic consumer cyclical sector.
How is Packaging Corporation of America addressing sustainability concerns in its operations and product offerings?
Packaging Corporation of America is addressing sustainability concerns through various initiatives focused on reducing its environmental footprint and offering eco-friendly packaging solutions. The company utilizes recycled materials in its production processes, promotes responsible forestry practices, and invests in energy-efficient technologies. PKG also offers a range of sustainable packaging options, including recyclable and biodegradable materials, to meet the growing demand for environmentally responsible products. By integrating sustainability into its operations and product offerings, Packaging Corporation of America aims to minimize its impact on the environment and contribute to a more sustainable future.
What are the key factors to evaluate for PKG?
Packaging Corporation of America (PKG) holds an AI score of 69/100 (moderate). P/E: 27.4x vs the S&P 500's ~20-25x. Analysts target $231.90 (-3%). Not financial advice.
How frequently does PKG data refresh on this page?
PKG prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven PKG's recent stock price performance?
Packaging Corporation of America (PKG) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Integrated manufacturing operations provide cost advantages. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and market analysis as of May 10, 2026. Future events and market conditions may impact the accuracy of this information.