April 19, 2025 a 10:46 am
PKG: Dividend Analysis - Packaging Corporation of America
The Packaging Corporation of America demonstrates a solid dividend profile with room for moderate growth. Operating in a generally stable sector, the company has maintained a reliable dividend history, although without current payouts. Investors may view the company's capital efficiency as a positive attribute despite a lack of immediate yield.
📊 Overview
The Packaging Corporation of America, embedded in the packaging sector, offers a promising dividend yield complemented by a robust track record. Its stable dividend history of 23 years reinforces confidence in its sustainability.
| Detail | Value |
|---|---|
| Sector | Packaging |
| Dividend yield | 2.54 % |
| Current dividend per share | $0.00 |
| Dividend history | 23 years |
| Last cut or suspension | None |
📈 Dividend History
Evaluating the dividend history provides insight into the company's commitment to returning profits to shareholders. The absence of cuts or suspensions over the years signals stability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | $1.25 |
| 2024 | $5.00 |
| 2023 | $5.00 |
| 2022 | $4.75 |
| 2021 | $4.00 |
📈 Dividend Growth
The company has witnessed moderate dividend growth, with sustainability and periodic increases reinforcing shareholder trust.
| Time | Growth |
|---|---|
| 3 years | 7.72% |
| 5 years | 9.61% |
The average dividend growth is 9.61% over 5 years. This shows moderate but steady dividend growth.
💰 Payout Ratio
Analyzing payout ratios helps investors assess dividend sustainability and the company’s ability to reinvest in growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 0% |
| Free cash flow-based | 0% |
The payout ratios currently stand at 0% for both EPS and FCF, indicating a focus on reinvestment and potential future dividend increases.
💹 Cashflow & Capital Efficiency
Cash flow and capital efficiency are pivotal in maintaining operational stability and fueling growth ventures, which impact overall returns.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Free Cash Flow Yield | 2.60% | 5.82% | 5.68% |
| Earnings Yield | 4.01% | 5.27% | 8.72% |
| CAPEX to Operating Cash Flow | 56.36% | 35.72% | 55.13% |
| Stock-based Compensation to Revenue | 0.58% | 0.51% | 0.42% |
| Free Cash Flow / Operating Cash Flow Ratio | 43.78% | 64.28% | 44.87% |
The stability of cash flows and efficient capital use suggests a matured operational framework, beneficial for sustaining growth-oriented strategies.
📊 Balance Sheet & Leverage Analysis
Balance sheet metrics guide investors on a company's liquidity, leverage, and financial health, which are crucial for long-term value creation.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Debt-to-Equity | 0.63 | 0.79 | 0.76 |
| Debt-to-Assets | 0.31 | 0.37 | 0.35 |
| Debt-to-Capital | 0.39 | 0.44 | 0.43 |
| Net Debt to EBITDA | 1.27 | 1.59 | 1.31 |
| Current Ratio | 3.23 | 2.57 | 2.86 |
| Quick Ratio | 2.10 | 1.77 | 1.75 |
| Financial Leverage | 2.01 | 2.17 | 2.18 |
The data reveals strong liquidity and balanced leverage, indicating solid financial health and manageable debt obligations.
🔍 Fundamental Strength & Profitability
These measures underline the company's efficiency and profitability, illustrating its operational effectiveness and earning potentials.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Return on Equity | 18.28% | 19.14% | 28.08% |
| Return on Assets | 9.11% | 8.81% | 12.87% |
| Margins: Net | 9.60% | 9.81% | 12.15% |
| EBIT | 13.19% | 13.68% | 16.93% |
| EBITDA | 13.14% | 20.32% | 22.32% |
| Gross | 21.27% | 21.77% | 24.66% |
| R&D to Revenue | 0% | 0% | 0% |
Consistent profitability and robust returns depict an effectively managed corporation with stable operational capabilities.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3/5 | |
| Dividend Stability | 4/5 | |
| Dividend growth | 3/5 | |
| Payout ratio | 4/5 | |
| Financial stability | 5/5 | |
| Dividend continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 4/5 |
Total Score: 32/40
🗣️ Rating
Packaging Corporation of America showcases resilient financial metrics and a dependable dividend history, making it a reliable choice for consideration in dividend-oriented portfolios.