Packaging Corporation of America (PKG) AI Stock Analysis

Headquartered in Lake Forest, Illinois, Packaging Corporation of America manufactures and distributes containerboard and corrugated packaging products across the United States. It operates through two primary segments: Packaging and Paper. The Packaging segment produces containerboard, corrugated packaging, and retail displays designed to protect and transport industrial goods and perishable foods like fruits, vegetables, and meat. The Paper segment manufactures commodity and specialty papers, including office and communication printing papers. Founded in 1867, the company reaches customers via direct sales, independent brokers, and partner distribution networks.

Between FY2021 and FY2025, annual revenue increased from $7.73B to $8.99B, reflecting a 5-year revenue CAGR of 6.2%. Revenue rose 7.2% in FY2025, following 7.4% growth in FY2024 and an 8.0% drop in FY2023. Operating margin stood at 14.0% in FY2025, compared with 16.6% in FY2021 and 13.1% in FY2024. FY2025 net income was $768.9M, yielding diluted EPS of $9.84. In the trailing twelve months, revenue reached $9.53B with a net profit margin of 7.3%. For the latest quarter ended June 30, 2026, revenue increased 14.7% year-over-year, while quarterly earnings declined 19.5%.

As of June 30, 2026, Packaging Corporation of America held $593.8M in cash and short-term investments against $4.40B in total debt, resulting in net debt of $3.81B. Shareholders' equity was $4.66B, bringing the debt-to-equity ratio to 0.94, supported by a current ratio of 2.94. Total assets reached $11.02B. In FY2025, operating cash flow was $1.56B, which funded $828.9M in capital expenditures, $449.6M in dividends paid, and $153.0M in share buybacks. The 5-year share count change was -5.9%.

At a closing price of $236.00, the company has a market capitalization of $21.03B and an enterprise value of $25.04B. Packaging Corporation of America trades at a trailing P/E of 30.7x and a forward P/E of 18.7x, both higher than the median of its S&P 500 Consumer Cyclical peers at 19.7x and 15.6x, respectively. Its EV/EBITDA stands at 13.8x compared to the peer median of 13.2x. Over the past year, the stock returned 17.8%, slightly ahead of the S&P 500 return of 16.8%, while its 5-year gain of 104.5% outperformed the index return of 83.0%.

Packaging Corporation of America pays an annualized forward dividend of $6.00 per share, which equates to a 2.54% dividend yield. The dividend is distributed quarterly and is backed by a 56.1% payout ratio. The company has paid dividends for 24 consecutive years, recording an annualized 5-year dividend growth rate of 8.2%. The last ex-dividend date was September 15, 2026.

Wall Street coverage includes 6 Strong Buy, 1 Buy, 3 Hold, 0 Sell, and 1 Strong Sell recommendations. The mean price target is $261.10, representing 10.6% upside from the last close of $236.00. For the fiscal year ending December 31, 2026, consensus estimates anticipate revenue of $10.08B and EPS of $10.45. For the subsequent year, 9 analysts project revenue of $10.90B and EPS of $13.56. Over the last four quarters, the company beat EPS estimates 2 times. The next earnings date is October 21, 2026.

This page is an AI-written research summary of Packaging Corporation of America (PKG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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