PKG
Packaging Corporation Of America
Industrial/Transportation, Consumer
11/06/2014
Presented
| Date | 10/29/2014 |
| Price | $71.07 |
| Market Cap | $6.99B |
| Ent Value | $9.29B |
| P/E Ratio | 20.96x |
| Book Value | $15.97 |
| Div Yield | 1.9% |
| Shares O/S | 98.39M |
| Ave Daily Vol | 1,170,000 |
| Short Int | 1.88% |
Current
| Price | $220.80 |
| Market Cap | $19.83B |
| Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States, Mexico, Canada, and Europe. The company operates through three segments: Packaging, Paper, and Corporate and Other. It offers corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to promote packaged product in retail locations; and honeycomb protective packaging. The company also produces packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products, as well as newsprint for newspaper publishers. In addition, it manufactures and sells white papers, including both commodity and specialty papers with various features, such as colors, coatings, high brightness, and recycled content. The white papers consist of communication papers, such as cut-size office papers, and printing and converting papers; and pressure sensitive papers, including release liners that are used to produce labels for use in consumer and commercially-packaged products. Further, the company produces market pulp. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois. |
Presented by: Mick McGuire, Founder & Managing Member, Marcato at The Excellence in Investing: San Francisco conference
Publicly traded companies mentioned herein: Packaging Corporation of America (PKG), Sotheby’s (BID), International Paper Co (IP), Rock-Tenn Company (RKT), KapStone Paper and Packaging Co. (KS)
Highlights
Mr. McGuire started out by commenting that shares of Sotheby’s, which he presented at last year’s conference, have underperformed and are even more attractively valued. Earnings are higher, and the auctioneer is in the process of making a lot of changes Marcato has been pushing for. McGuire thinks it is early innings and the risk/ reward is “meaningfully more attractive” today. Having said that, he turned to the corrugated packaging industry and his long idea in shares of Packaging Corporation of America (PKG). Marcato owns 3% of PKG’s outstanding shares, and established the position within the past 30 days.
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