KS

KapStone Paper and Packaging Corp

Industrial/Transportation


Presented:11/26/2013
Price:$26.31
Cap:$2.51B
Current Price:$34.95
Cap:$3.42B

Presented

Date11/26/2013
Price$26.31
Market Cap$2.51B
Ent Value$3.78B
P/E Ratio18.44x
Book Value$4.05
Div Yield1.3%
Shares O/S95.49M
Ave Daily Vol660,000
Short Int4.57%

Current

Price$34.95
Market Cap$3.42B
KapStone Paper and Packaging Corporation engages in the production, sale, and export of unbleached kraft paper products and corrugated products in the United States and internationally. The company offers containerboards to converters in the corrugated packaging industry, and to other converters for various uses, which primarily include laminated tier sheets and wrapping materials; and kraft papers to converters who produce multiwall bags for agricultural products, pet food, cement, chemicals, and grocery bags, as well as specialty conversion products, such as wrapping paper products, dunnage bags, and roll wraps. It also provides saturating kraft paper under the Durasorb trade name; and unbleached folding carton board under the Kraftpak trade name to integrated and independent converters in the folding carton industry. The company was founded in 2005 and is headquartered in Northbrook, Illinois.

Please note, this stock split on 1/8/2014 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $52.61.

Highlights

The containerboard industry failed to return its cost of capital from 1990 to 2005, when a series of deals consolidated the industry and concentrated market share among a handful of companies. Today the top four companies control about 75% of market share for this commodity product, and continue to benefit from a wave of price increases that have resulted in current pricing of $1,000 per ton, up from just $300 during the financial crisis. The presenter, however, believes that the industry stands at an inflection point and is on the cusp of pricing declines that will disproportionately impact the bottom lines of players including International Paper, KapStone, and Rock-Tenn.

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