Packaging Corporation: Boxed And Ready To Ship Profits
Philip Saglimbeni • 11 Comments
Philip Saglimbeni • 11 Comments
An Analysis Of Packaging Corporation Of America
Fri, Jul. 22, 7:15 AM
- Deutsche Bank downgrades Packaging Corp. of America (NYSE:PKG) to a Hold rating after having the containerboard/packaging stock set at Buy.
- The firm trims its price target on Packaging Corp. to $75 from $73. Shares of PKG closed at $73.81 yesterday.
Wed, Jul. 20, 5:22 PM
Tue, Jul. 19, 5:35 PM
Wed, Jul. 6, 10:56 AM
- Packaging Corporation of America (PKG) entered into a definitive agreement to acquire substantially all the assets of TimBar Corporatio for $386M in cash. As per the agreement, the company will take over five corrugated products plants, two fulfillment centers and four design centers located primarily in the eastern and southeastern U.S.
- The acquisition will lead to growth of 2 lacs tons or 6% from its current level of 87% in container board integration level and will allow for further optimization and enhancement of mill capacity. The acquisition will be accretive to earnings immediately.
- PCA Chairman and CEO Mark Kowlzan said, “Following our successful integration of Boise, including the capacity we now have at the DeRidder, LA mill, this acquisition is an excellent fit, both geographically and strategically, with substantial benefits and synergies. TimBar is a well-capitalized company with a commitment to continuous improvement, innovation and safety in their operations. This, along with their customer focus, has allowed them to achieve excellent operating margins and consistent results. We look forward to working together to further enhance our strong balance sheet, financial results and cash flow consistent with our strategy to return significant value to our shareholders.”
- The company expects to complete the acquisition in the Q3 and expects to finance the transaction with a new term loan.
- Press Release
Wed, May 18, 5:09 PM
Tue, May 17, 10:18 AM
- Paper and packaging stocks are under heavy pressure in morning trading on some broad pricing and macroeconomic concerns.
- Decliners include WestRock (WRK -4.3%), International Paper (IP -3%), Packaging Corp of America (PKG -2.9%), KapStone Paper (KS -4.6%), UFP Technologies (UFPT -1.5%), Multi Packaging Solutions (MPSX -3.2%).
Mon, Apr. 25, 7:55 AM
- Argus upgrades Packaging Corporation of America(NYSE:PKG) to a Buy rating from Hold after digesting the paper company's Q1 report.
- A positive outlook from Packaging Corporation on improved pricing and the conversion of a newsprint facility factors into the ratings action.
- Argus sets a price target of $74 on PKG vs. Friday's close of $65.68 and the 52-week high of $73.60.
- Now read the Packaging Corporation of America earnings call transcript
Thu, Apr. 21, 3:43 PM
- The majority of corporate buybacks in recent years have been "purely an exercise in financial engineering with very little fundamental foundation,” says Ted Theodore, portfolio manager of the TrimTabs Float Shrink ETF (NYSEARCA:TTFS).
- There are exceptions though, and he points to those companies using free cash flow rather than debt to finance repurchases.
- Overall, he says, buybacks have had "some modest artificial positive effect" on stock prices. What about rate hikes? Those firms using debt to fund repurchases will suffer the most. As for his fund, it focuses on companies using free cash flow for buybacks, so bring on higher rates.
- Of his fund's holdings, cyclicals with large domestic exposure are favorites: Packaging Corp. of America (PKG +1.8%), Sealed Air (SEE -1.2%), and UPS (UPS -1.1%).
- Buyback ETFs: PKW, SYLD, TTFS, SPYB
Wed, Apr. 20, 5:02 PM
Tue, Apr. 19, 5:35 PM| Tue, Apr. 19, 5:35 PM | 16 Comments
Thu, Feb. 25, 5:04 PM
Mon, Jan. 25, 5:48 PM
- Packaging (NYSE:PKG): Q4 EPS of $1.08 beats by $0.05.
- Revenue of $1.39B (-2.8% Y/Y) misses by $40M.
Mon, Jan. 25, 2:34 PM
- Concerns over pricing are running up and down the paper and packaging sector.
- A drop in prices during January could lead to even further erosion down the road warns, Citi.
- Downgrades: Citi lowers International Paper (IP -10.5%) and Packaging Corp. of America (PKG -13.1%) to Neutral from Buy, BAML takes Westrock (WRK -13.8%) to Neutral from Buy, Macquarie slams KapStone Paper & Packaging (KS -21.8%) with an Underperform rating.
- Also showing weakness are Domtar (UFS -7.4%), Orchids Paper Products (TIS -1.9%), P H Glatfelter (GLT -9.2%), and Clearwater Paper (CLW -6.4%).
Sun, Jan. 24, 5:35 PM
Dec. 15, 2015, 5:03 PM
- Packaging (NYSE:PKG) declares $0.55/share quarterly dividend, in line with previous.
- Forward yield 3.43%
- Payable Jan. 15; for shareholders of record Dec. 28; ex-div Dec. 23.
Oct. 20, 2015, 5:47 PM
- Packaging (NYSE:PKG): Q3 EPS of $1.26 misses by $0.02.
- Revenue of $1.47B (-3.3% Y/Y) misses by $30M.
Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products. It operates through following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers various corrugated packaging products . The Paper segment manufactures and... More
Sector: Consumer Goods
Industry: Packaging & Containers
Country: United States
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