Reading the tape
NYSE: PKG
Packaging Corporation of America
Consumer Cyclical · Packaging & Containers
Market Cap
$19.93B
52w High
$249.51
52w Low
$178.32
P/E
26.69
Volume
507.60K
Outstanding Shares
89.21M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inModerate confidence
1Y Price: 24.13%Revenue (TTM): 7.86%FCF (TTM): 40.17%P/FCF: 87th pct
What changed
The stock rose 24.13% over the last year. Revenue grew 7.86% over the trailing twelve months. Operating margin moved from 13.88% to 13.16%. Free cash flow grew 40.17% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (87th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 13.16% — continued expansion would be needed to justify the premium. Revenue growth of 7.86% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States.
CEOMark W. Kowlzan
SectorConsumer Cyclical
IndustryPackaging & Containers
Employees15,400
IPO dateJan 28, 2000
Valuation
Forward P/E—
EV/EBITDA12.73
Enterprise value$22.4B
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Revenue growth10.59%
Gross margin20.48%▼1.17%vs FY2024
Operating margin13.16%▲6.31%vs FY2024
ROE16.72%▼8.53%vs FY2024
Analyst consensus
RatingHold
Target price$247.75▲10.88%
8
Buy
16
Hold
2
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 22, 2026
Q3 FY26 · EPS est $2.36 · Revenue est $2.48B
View
Dividends
$5.00/shareQuarterlyDividend Achiever · 16yrAdequatePKG pays a dividend with a 2.24% dividend yield, 16 consecutive years of growth, growing at 6.91% annually, covered 1.6× by free cash flow.
Dividend Yield
2.24%
Annual Div / Share
$5.00
5yr CAGR
+6.91%
Doubles every ~10.4yr
Payout Ratio
60.72%
Adequate
Dividend Growth Rate
3yr CAGR
+0%
5yr CAGR
+6.91%
10yr CAGR
+8.56%
Dividend Safety
6/10Adequate
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$5.00+0.0%
2024$5.00+0.0%
2023$5.00+0.0%
2022$5.00+25.0%
2021$4.00+11.7%
2020$3.58+13.3%
2019$3.16+0.0%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$22/yr
$2/mo
In 5 yrs
$31/yr+40%
$3/mo
In 10 yrs
$44/yr+95%
$4/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$22/yr $2/mo | $31/yr+40% $3/mo | $44/yr+95% $4/mo |
Yield-on-cost grows from 2.24% → 4.37% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
PKG has raised its dividend for 16 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 1.6× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 6.91% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.
Congressional Activity
Congress Trades in PKG
STOCK Act disclosures from senators and representatives.
April Delaney
MDhouseDemocratPurchase2026-04-29$1,001 - $15,000+8d to discloseApril Delaney
MDhouseDemocratPurchase2026-04-24$1,001 - $15,000+13d to discloseApril Delaney
MDhouseDemocratPurchase2026-03-20$1,001 - $15,000+19d to discloseApril Delaney
MDhouseDemocratPurchase2026-03-17$1,001 - $15,000+22d to disclose