PKG

Packaging Corp Of America

Industrial/Transportation


Presented:06/23/2022
Price:$135.80
Cap:$12.72B
Current Price:$220.80
Cap:$19.83B

Presented

Date06/23/2022
Price$135.80
Market Cap$12.72B
Ent Value$16.61B
P/E Ratio13.87x
Book Value$40.33
Div Yield3.13%
Shares O/S93.70M
Ave Daily Vol622,306
Short Int1.59%

Current

Price$220.80
Market Cap$19.83B
Packaging Corporation of America engages in the production of container products. It operates through the following segments: Packaging, Paper, and Corporate and Other. The Packaging segment offers a variety of corrugated packaging products, such as conventional shipping containers. The Paper segment manufactures and sells a range of papers, including communication-based papers, and pressure sensitive papers. The Corporate and Other segment focuses on transportation assets, such as rail cars, and trucks. The company was founded in 1959 and is headquartered in Lake Forest, IL.

Publicly traded companies mentioned herein: International Paper Co (IP), Nine Dragons Paper Holdings Ltd (2689 HK), Packaging Corp of America (PKG), Westrock Co (WRK)

Highlights

The presenter is short shares of Packaging Corp of America (PKG), a US-based containerboard producer that is the third largest player in North America (11% market share) behind IP (30%) and WRK (21%). PKG currently trades at $135 per share ($12.7B market cap), but he sees ~30% downside based on its historical 15x earnings multiple as peak earnings normalize from secular (supply/demand dynamics) and idiosyncratic (recent outperformance inflecting) headwinds. 

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Idea Discussion

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