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NYSE: PKG · Paper & Plastic Packaging Products & Materials

Packaging Corporation of America

Packaging Corporation of America (PCA), based in Lake Forest, Illinois, is the third-largest producer of containerboard products and a leading producer of uncoated freesheet (UFS) paper in North America. Its Packaging segment ($8,294 million, 92% of 2025 revenue) runs containerboard mills that mostly supply its own corrugated products plants, which make boxes for food, beverage, retail and industrial customers within regional markets; its Paper segment ($615 million) sells office and printing papers, with ODP (Office Depot) its largest paper customer. On September 2, 2025 PCA bought Greif’s containerboard business (two mills with about 800,000 tons of capacity and eight plants) for $1.8 billion in cash, lifting debt to about $4.0 billion. 2025 revenue was $8,989 million and net income $774 million. Second-quarter 2026 revenue rose to $2,490 million, but net income fell to $192 million. PCA pays a $1.50 quarterly dividend. It is a defendant in a 2025 containerboard antitrust class action.

Last updated

Analysis last edited: October 31, 2026 · Financial data fetched: October 31, 2026 02:26 (SEC EDGAR) · Source 10-K filed: February 26, 2026

Built on10-K FY2025 · filed 2026-02-2610-Q (quarter ended 2026-09-30) · filed 2026-11-05Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
6.2%

Higher than 34% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
12.3%

Higher than 31% of 311 non-financial companies

Latest fiscal year (FY2025)

ROIC minus WACC
+2.9 pts

Higher than 48% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
1.9x

Higher than 52% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
2.01x

Higher than 74% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
0 of 5

Years the dividend per share rose, of the last 5

P/E today
31.7x

Latest close 2026-11-04; trailing 12 months to 2026-09-30

Beta
0.70

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$258.03close on 2026-11-04

Market cap$23.02B

P/E today
31.7x

At FY2025 year-end: 24.0x

Earnings: trailing 12 months to 2026-09-30

P/B today
5.0x

At FY2025 year-end: 4.0x

Book value at FY2025 year-end

EV/EBITDA today
15.0x

At FY2025 year-end: 12.4x

EBITDA for FY2025

FCF yield today
3.2%

At FY2025 year-end: 4.0%

Free cash flow for FY2025

Dividend yield today
1.9%

Dividends per share for FY2025

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Sep 30, 2026.

  • Revenue↑ +12.5%$2.31B → $2.6B (vs. a year earlier)
  • Operating margin↑ +0.8 pts14.0% → 14.8% (vs. a year earlier)
  • Net income↑ +15.6%$227M → $262M (vs. a year earlier)
  • Diluted EPS↑ +16.7%$2.51 → $2.93 (vs. a year earlier)
  • Cash↑ +20.7%$443M → $535M (vs. previous quarter-end)
  • Long-term debt→ +0.0%$3.97B → $3.97B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Oct 22, 2026.

Management outlook • Issued

Expects Q4 earnings of $2.81 per share, excluding special items. Source sentence
Considering these items, we expect fourth quarter earnings of $2.81 per share, excluding special items.”

Key changes

  • Corrugated shipments down 0.5% per day. Source sentence
    In the legacy packaging business, corrugated products shipments were down 0.5% per day and in total compared to the third quarter of 2025, with the same number of shipping days in each period.
  • Paper volume down 2.5%. Source sentence
    In the Paper segment, sales volume was down 2.5% from the third quarter of 2025.

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
PACKAGING CORP OF AMERICA
Headquarters
LAKE FOREST, IL
Fiscal year end
12/31
Exchange & ticker
NYSE: PKG
Industry
Paper & Plastic Packaging Products & Materials
CIK
75677

Workforce (as of FY2025 year-end)

  • Employees

    16,800

Source: Form 10-K (FY2025) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q4 FY2026

Quarter end: December 2026. In past years, Q4 results were released 25–29 days after quarter end (Jan 28, 2026; Jan 29, 2025; Jan 25, 2024). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around December 31.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 22–29 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q3 FY2026Sep 30, 2026Oct 22, 2026 (+22 days)Nov 5, 2026 10-Q (+36 days)
Q2 FY2026Jun 30, 2026Jul 23, 2026 (+23 days)Aug 7, 2026 10-Q (+38 days)
Q1 FY2026Mar 31, 2026Apr 23, 2026 (+23 days)May 8, 2026 10-Q (+38 days)
Q4 FY2025Dec 31, 2025Jan 28, 2026 (+28 days)Feb 26, 2026 10-K (+57 days)
Q3 FY2025Sep 30, 2025Oct 23, 2025 (+23 days)Nov 6, 2025 10-Q (+37 days)
Q2 FY2025Jun 30, 2025Jul 24, 2025 (+24 days)Aug 7, 2025 10-Q (+38 days)
Q1 FY2025Mar 31, 2025Apr 23, 2025 (+23 days)May 8, 2025 10-Q (+38 days)
Q4 FY2024Dec 31, 2024Jan 29, 2025 (+29 days)Feb 27, 2025 10-K (+58 days)
Q3 FY2024Sep 30, 2024Oct 23, 2024 (+23 days)Nov 7, 2024 10-Q (+38 days)
Q2 FY2024Jun 30, 2024Jul 24, 2024 (+24 days)Aug 8, 2024 10-Q (+39 days)
Q1 FY2024Mar 31, 2024Apr 23, 2024 (+23 days)May 8, 2024 10-Q (+38 days)
Q4 FY2023Dec 31, 2023Jan 25, 2024 (+25 days)Feb 29, 2024 10-K (+60 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Packaging

    Corrugated products

    Boxes, displays and protective packaging made in 91 plants, sold mainly to regional and local accounts.

  • Packaging

    Containerboard

    Linerboard and corrugating medium, mostly used internally.

  • Paper

    Uncoated freesheet

    Office and printing papers; ODP is the largest customer.

From the Form 10-K, FY2025.

U.S. and worldwide share of flagship products/services

PCA calls itself the third-largest producer of containerboard products and a leading UFS producer in North America but gives no market-share percentages.

Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)

07

Recent strategic focusSite analysis

Recent developments.

  1. Second quarter 2026

    Revenue $2,490M versus $2,171M; net income $192M ($2.15 per share) versus $242M ($2.67).

    Source: Form 10-Q (quarter ended 2026-06-30)

  2. Dividend

    Quarterly dividend $1.50 per share in 2026 versus $1.25 a year earlier.

    Source: Form 10-Q (quarter ended 2026-06-30)

  3. Greif acquisition

    Completed September 2, 2025 for $1.8B cash.

    Source: Form 10-K (FY2025)

Capex ÷ D&A (FY2025)

1.27x

Roughly matches depreciation — mostly maintenance/replacement

formulacapital expenditures ÷ depreciation & amortization

e.g.$829M ÷ $653M = 1.27x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

M&A spend (6-year total)

$2B

Latest year: $1.8B

Cash-flow-statement spending on acquisitions, net of cash acquired

Where the money goes, over time

Unit: $M. Capex went from $421M in FY2020 to $829M in FY2025

  • Capex
  • R&D
  • M&A spend

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26

08

Key figures at a glanceFrom SEC data

FY2020–FY2025, 6 years.

Revenue (FY2025)

$8.99B

As reported in the 10-K

Revenue CAGR (5 years)

+6.2%▲favorable

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($8,989M ÷ $6,658M) ^ (1÷5) − 1 = 6.2%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2025)

12.3%▲favorable

+1.4pt vs. 5 years ago

formulaoperating income ÷ revenue × 100

e.g.$1,107M ÷ $8,989M × 100 = 12.3%

termsOperating income · Revenue (net sales)

ROE (FY2025)

17.2%▲favorable

6-year average: 20.6%

As reported in the 10-K

P/B (FY2025 end)

4.00x

formulafiscal year-end closing price ÷ book value per share

e.g.$206.23 ÷ $51.55 = 4.00x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2025 end)

12.4x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($18,396M + $3,993M − $529M) ÷ ($1,107M + $653M) = 12.4x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ▲

    Revenue grew +6.2% a year over 5 years (strong growth)

    From $6.66B in FY2020 to $8.99B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▲

    Operating margin improved: 10.9% → 12.3%

    How much operating profit is left per $100 of revenue. It moved +1.4 points over 5 years — pricing power, cost control, and product mix all show up here.

  • ―

    Equity ratio is 42.9% (a middling level)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 6 of 6 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 20.6% over 6 years (latest: 17.2%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Makes containerboard (linerboard and medium) in its own mills and converts most of it into corrugated boxes in nearby plants, selling regionally to many customers; also makes uncoated freesheet paper.

How money and goods flow at Packaging Corporation of America
  1. 01 what it draws on

    Inputs & resources

    • About 16,800 employees (Dec 31, 2025)
    • Ten mills and 91 corrugated products plants
    • Wood fiber and recycled fiber
  2. 02 what it does

    Activities

    • Containerboard production
    • Corrugated box manufacturing
    • Uncoated freesheet paper production
  3. 03 who it serves

    Customers

    • Food, beverage and agricultural producers
    • Retail and wholesale trade
    • Industrial customers
    • Office paper retailers (ODP)
  4. 04 how money comes in

    How it earns

    • Corrugated products and containerboard sales
    • Paper sales

How the business makes money

  • Third-largest North American containerboard producer.
  • No single customer exceeds 10% of segment sales.
  • Greif containerboard business acquired September 2025.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

PKG faces stricter EPA particulate rules and trade-policy changes; an executive leads government affairs.

  • Environmental rules

    Particulate standards

    Stricter EPA particulate matter standards may make permits harder to obtain.

    Constrains the businessTouches: Activities

    Source: Form 10-K (FY2025)

  • Trade & export rules

    Trade policy

    Renegotiating or ending trade agreements could affect its business.

    Constrains the businessTouches: Customers

    Source: Form 10-K (FY2025)

  • Political engagement

    Government affairs

    A senior vice president leads tax, ESG and government affairs.

    Supports the businessTouches: Activities

    Source: Form 10-K (FY2025)

Revenue by segment (2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Packaging

    8,293.9 (92%)
  • Paper

    615.4 (7%)
  • Corporate and Other

    80 (1%)

Source: Form 10-K (FY2025) Total revenue $8,989.3M. Income from operations: Packaging $1,125.3M, Paper $129.6M.

10

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

11

Alliances & capital tiesSite analysisShow

Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.

  • Pending or recent acquisition

    Greif, Inc. (containerboard business)

    Acquired September 2, 2025 for $1.8 billion in cash: two containerboard mills (~800,000 tons) and eight sheet feeder and corrugated plants.

    Source: Form 10-K (FY2025)

12

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Many regional and national customers; ODP in paper.

Named by the company

No single customer exceeds 10% of segment sales.

Suppliers

Wood fiber, recycled fiber, chemicals and energy.

Named by the company

No supplier is named.

13

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

The 10-K says corrugated competition is mostly regional; nationally its primary competitors are International Paper, Smurfit WestRock, Georgia-Pacific and Pratt Industries.

Competitors named in the 10-K

Corrugated products (national)

Source: Form 10-K (FY2025)

Peer group the company chose

2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

Packaging, basic materials and related-industry companies (2026 proxy).

Source: Proxy statement (2026)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

14

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26

Line itemFY202010-K on EDGAR ↗FY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue6,6587,7308,4787,8028,3838,989
Operating income7241,2411,4211,0751,1011,107
Pretax income6331,1091,3651,0141,0641,028
Net income (attributable)4618411,030765805774
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—16.1%9.7%-8.0%7.4%7.2%
Operating margincalcoperating income ÷ revenue × 10010.9%16.1%16.8%13.8%13.1%12.3%
Net margincalcnet income attributable to the company ÷ revenue × 1006.9%10.9%12.1%9.8%9.6%8.6%
Balance sheet ($M)
Total assets7,4337,8378,0048,6818,83310,726
Total equity3,2463,6073,6673,9974,4044,598
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable2,4942,4912,4922,8922,4923,993
Equity ratio43.7%46.0%45.8%46.0%49.9%42.9%
ROE14.2%24.5%28.3%20.0%19.2%17.2%
Cash flow ($M)
Operating CF1,0331,0941,4951,3151,1911,558
Investing CF-426-794-834-875-278-2,573
Financing CF-312-656-960-112-876859
Free cash flowcalccash flow from operations − capital expenditures612489671845522729
Cash and equivalents975619320648685529
Per share & other
EPS ($)4.848.8311.038.488.938.58
BVPS ($)34.2438.5840.8844.6149.0451.55
Dividend per share ($)3.374.004.755.005.005.00
Payout ratiocalcdividend per share ÷ diluted EPS × 10069.6%45.3%43.1%59.0%56.0%58.3%
P/E (x)28.515.411.619.225.224.0
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)12.98.87.310.613.512.4
P/B (x)calcfiscal year-end closing price ÷ book value per share4.033.533.133.654.594.00

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueOperating incomeNet incomeDiluted EPS
2026-09-30$2.6B+12.5%$385M+18.7%$262M+15.6%$2.93
2026-06-30$2.49B+14.7%$291M-12.7%$192M-20.5%$2.15
2026-03-31$2.37B+10.6%$251M-10.3%$171M-16.1%$1.91
2025-12-31 †$2.36B+10.1%$169M-44.2%$102M-53.9%—
2025-09-30$2.31B$325M$227M$2.51
2025-06-30$2.17B$334M$242M$2.67
2025-03-31$2.14B$280M$204M$2.26
2024-12-31 †$2.15B$302M$221M—

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

15

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2025)

10.8%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$1,107M × (1 − 24.5%) ÷ $7,743M × 100 = 10.8%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

7.90%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $18.4B ÷ ($18.4B + $3.99B) = 82.2%

e.g.Debt weight: $3.99B ÷ ($18.4B + $3.99B) = 17.8%

e.g.WACC: 8.8% × 82.2% + 5.0% × (1 − 24.5%) × 17.8% = 7.90%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

+2.9pt▲favorable

Earning more than the cost of capital (ROIC > WACC in 6 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 6.6%–9.5% and ROIC − WACC runs +1.3 to +4.2 points. The sign holds across this range. This describes the latest year and does not predict future value creation.

WACC 7.90% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4.95% (10-year Treasury, 2026-11-03)
β
0.70 (price-derived adjusted beta)
Equity risk premium
5.5%
Cost of equity
8.80%
Cost of debt
4.95% (no debt on record, using the risk-free rate)
Tax rate
24.5% (effective rate, FY2023–FY2025)
Capital structure (equity : debt)
82% : 18%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 7.90%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).

Initial β: 0.70 (price-derived adjusted beta. Raw β 0.56, R² 0.12, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 0.556 + 0.33 = 0.702

termsβ (beta)

Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity8.80%

formularisk-free rate + β × equity risk premium

e.g.5.0% + 0.7 × 5.5% = 8.8%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$18.4B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$3.99B
Cost of debt *no debt on record, using the risk-free rate instead4.95%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)82% : 18%

16

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

5.1%

Perpetual FCF growth: g = r − FCF ÷ EV = 7.9% − 2.8%

Past FCF growth (FY2020–FY2025)

+3.6%

Compound annual rate, 5 years

Past revenue growth (FY2020–FY2025)

+6.2%

Compound annual rate, 5 years

Inputs (FY2025): free cash flow $729M (operating CF − capex); enterprise value $26.41B = market cap $23.02B (latest close, 2026-11-04) + debt $3.99B − cash and short-term investments $601M; r = WACC of 7.9% using this page’s default assumptions (β 0.70, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$26.02B

FCF $729M ÷ (7.9% − 5.1%)

Theoretical ÷ actual enterprise value

0.99x

Below 1x: these assumptions value the business below the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r5.9%6.9%7.9%8.9%9.9%
0%0.47x0.40x0.35x0.31x0.28x
2%0.71x0.56x0.47x0.40x0.35x
4%1.45x0.95x0.71x0.56x0.47x
6%—3.07x1.45x0.95x0.71x
8%———3.07x1.45x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

17

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.70x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -8.0%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 108%

    Most profit comes from core operations.

  • ✓

    Days sales outstanding: 46 → 49 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26

Profit bridge (FY2025)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding
  • Days inventory outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$1,558M ÷ $774M = 2.01x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$1,107M ÷ $1,028M × 100 = 108%

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

e.g.($1,144M + $1,256M) ÷ 2 ÷ $8,989M × 365 = 49 days

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

e.g.($1,125M + $1,243M) ÷ 2 ÷ $7,100M × 365 = 61 days

termsInventory · Cost of revenue (COGS)

18

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
98.1%
Directors & officers (shares)
1.6%
Everyone else (est.)
0.3%

individuals and other non-13F holders

Directors & officers (voting power)
1.6%

no separate voting figure; shown as shares

Institutional-ownership rank
85 of 416

1 = most institutional; 20% of covered companies have more

Beta (adjusted)
0.70

above 1 = swings more than the market

  • 87.4M shares reported by 899 13F filers ÷ 89.1M shares outstanding on 2026-07-31. Option positions are excluded.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-27 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-31)

19

Strengths & weaknessesSite analysis

Strengths

  1. 1. Integrated system

    Mills mainly supply its own box plants, with a regional/local customer focus.

    Evidence: Form 10-K (FY2025)

  2. 2. Market position

    Third-largest containerboard producer in North America.

    Evidence: Form 10-K (FY2025)

  3. 3. Consistent profits

    Net income positive every year 2020–2025.

    Evidence: Form 10-K (FY2025)

Weaknesses

  1. 1. Higher debt

    Debt rose to about $4.0B after the Greif purchase.

    Evidence: Form 10-K (FY2025)

  2. 2. Earnings pressure

    Q2 2026 net income $192M versus $242M despite higher revenue.

    Evidence: Form 10-Q (quarter ended 2026-06-30)

  3. 3. Small, shrinking paper segment

    Paper revenue slipped to $615M in 2025 from $625M in 2024.

    Evidence: Form 10-K (FY2025)

20

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

24.0x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

2.42%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

58%

Dividends per share ÷ diluted EPS

FCF yield (FY2025)

4.0%

(Operating CF − capex) ÷ market cap

  1. 1. Dividend income

    Dividends per share rose from $3.37 (2020) to $5.00 (2025) and $1.50 quarterly in 2026.

    What has to hold
    Steady box demand supports cash flow.
    The other side
    Earnings decline in 2026.

    Evidence: Form 10-K (FY2025)

  2. 2. Capacity growth

    Greif mills add about 800,000 tons.

    What has to hold
    Integration lowers costs.
    The other side
    Debt and execution.

    Evidence: Form 10-K (FY2025)

Share counts are shares outstanding from the balance sheet (not tagged in XBRL).

21

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

Cash & short-term investments ÷ debt due within a year

—

$601M vs. —

Interest coverage (operating income ÷ interest expense)

Not disclosed

Interest expense isn’t reported as a separate line.

Free cash flow ÷ dividends paid

1.6x

$729M vs. $450M (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
Revenue-8.0% in FY2023 ($8.48B → $7.8B)Yes, by FY2025
Operating income-24.3% in FY2023 ($1.42B → $1.08B)Not yet, as of FY2025

Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Profitable every year

    Net income positive every year 2020–2025; low $461M in 2020.

    Source: Form 10-K (FY2025)

23

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
Med
45
123
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Demand & macro

    Box demand

    Company disclosure (summarized from the 10-K)
    Corrugated demand follows consumer spending and industrial activity.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  2. 2Raw materials & energy

    Fiber and energy costs

    Company disclosure (summarized from the 10-K)
    Fiber is the largest raw material cost; mills use large amounts of energy.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  3. 3Competition & technology shift

    Competition

    Company disclosure (summarized from the 10-K)
    Competes with International Paper, Smurfit WestRock, Georgia-Pacific, Pratt and smaller producers.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  4. 4Law & regulation

    Antitrust class action

    Company disclosure (summarized from the 10-K)
    Containerboard price-fixing suit seeks treble damages.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5M&A & integration

    Greif integration

    Company disclosure (summarized from the 10-K)
    Integrating the acquired mills and plants.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med

24

What changed in the risk factorsFrom SEC data

Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.

New or substantially reworded (3)

  • Acquisition Integration – The business may underperform relative to our expectations, and we may not be able to successfully integrate the business into our existing business. Read more

    On September 2, 2025, we completed the acquisition of the containerboard business of Greif, Inc. The business may underperform relative to our expectations, which may cause our financial results to differ from our own or the investment community’s expectations. We are in the early stages of integrating the acquired business into our business, and are expending considerable time and resources on the integration. There may be substantial difficulties, costs and delays involved in this integration and the integration process could result in the diversion of our management’s attention from our existing business.

  • We are relying on the Seller to provide transition services to us for key functions of the acquired business, including accounting, information technology systems and support, purchasing and other services. Read more

    We will be required to implement our own systems at the acquired business to perform these functions and exit the transition services agreement during the next year. We may experience delays or higher than expected costs in connection with these activities. We may face challenges in running the acquired business and achieving expected benefits from the acquisition if we experience difficulties in the implementation of our systems.

  • If the Greif containerboard business underperforms relative to our expectations, or if we fail to successfully integrate the business or experience difficulties in implementing our systems into the acquired business, it may have a material adverse effect on our business, financial condition and results of operations.

Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 26, 2026 ↗ with the 10-K filed Feb 27, 2025 ↗.

25

What to watch going forwardSite analysis

  • Box shipments and pricing.
  • Greif mill integration.
  • Antitrust litigation.
  • Debt reduction.

26

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: October 31, 2026 · Financial data fetched: October 31, 2026 02:26 (SEC EDGAR) · Source 10-K filed: February 26, 2026

Built on10-K FY2025 · filed 2026-02-26Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Packaging Corporation of America’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.