Graphic Packaging: Mixed Q2 But Expect Volume Growth Going Forward

(11min)

Summary

  • Graphic Packaging's recent quarterly results were mixed, with a slight revenue miss but an EPS beat.
  • The company's focus on cost reduction, margin expansion, and growth investments is expected to drive future profitability and shareholder value.
  • Despite a slight increase in multiple since the last time I reviewed the company, Graphic Packaging still offers compelling value compared to historical multiples and peers in the packaging industry.

Set of unbleached plant fiber food box and paper coffee cup.

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Introduction

I previously covered Graphic Packaging Holding Company (NYSE:GPK) back in February 2024. At the time, my investment thesis was based around the fact that the company was on track for accretive growth capital spend, margin

This article was written by

I'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on capital, and can compound their invested capital over long periods of time.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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