Packaging Corporation of America (PKG) stock
Materials · Paper & Plastic Packaging Products & Materials
Packaging Corporation of America (PKG) is a Paper & Plastic Packaging Products & Materials company in the Materials sector, headquartered in Lake Forest, Illinois. As of October 23, 2026, PKG closed at $247.29, a market capitalization of $22.03 billion, the 386th largest company in the S&P 500. Over the last twelve months it generated $9.82 billion in revenue (+12% year over year) and $742.40 million in free cash flow. The stock trades at 30.5x trailing earnings and 17.5x forward earnings.
- 1-year total return: +18.9% (dividends reinvested)
- 5-year return: +16.4% a year
- 52-week range: $191.50 – $259.98
- Gross margin 21.2%, operating margin 15.0%
- Dividend yield: 2.43%
- FI Handbook report card: C+ across 9 metrics
- 15th largest of 24 Materials stocks in the S&P 500
PKG price chart
1Y price change: +16.0% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| PKG | +2.6% | +22.2% | +18.9% | +22.7% | +16.4% | +15.0% | +15.2% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 2000.
PKG key statistics
- Market cap
- $22.0B
- #386 in S&P 500
- P/E (TTM)
- 30.5x
- Forward P/E
- 17.5x
- EPS (TTM)
- $8.11
- Revenue (TTM)
- $9.8B
- +13%
- Free cash flow
- $742.4M
- Gross margin
- 21.2%
- Operating margin
- 15.0%
- Return on equity
- —
- Dividend yield
- 2.43%
- 52-week range
- $191.50 – $259.98
- Beta
- 0.77
- Price / sales
- 2.2x
- EV / EBITDA
- 13.0x
- Debt / equity
- 0.94x
- Employees
- 16,800
PKG report card
C+Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth12.5%B
- Gross margin21.2%D
- Operating margin15.0%C
- FCF margin7.6%D
- Return on equity——
- Net debt / EBITDA1.9xC
- Forward P/E17.5xB
- PEG ratio1.5xC
- Shareholder yield3.1%B
- Share count change / yr-1.0%B
Packaging Corporation of Americ financials
Revenue went from $5.8B in fiscal 2016 to $9.0B in fiscal 2025, growing 5.0% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $5.8B | $6.4B | $7.0B | $7.0B | $6.7B | $7.7B | $8.5B | $7.8B | $8.4B | $9.0B |
| Gross profit | $1.3B | $1.5B | $1.6B | $1.6B | $1.4B | $1.9B | $2.1B | $1.7B | $1.8B | $1.9B |
| Operating income | $783.3M | $932.5M | $1.1B | $1.1B | $723.9M | $1.2B | $1.4B | $1.1B | $1.1B | $1.1B |
| Net income | $449.6M | $668.6M | $738.0M | $696.4M | $461.0M | $841.1M | $1.0B | $765.2M | $805.1M | $774.1M |
| EPS (diluted) | $4.75 | $7.07 | $7.80 | $7.34 | $4.84 | $8.83 | $11.03 | $8.48 | $8.93 | $8.58 |
| Free cash flow | $532.6M | $513.1M | $628.7M | $807.9M | $611.6M | $489.0M | $670.8M | $845.4M | $521.5M | $728.6M |
| Buybacks | $100.3M | — | — | $0 | $0 | $193.0M | $522.6M | $41.5M | $0 | $153.0M |
| Dividends paid | $216.1M | $237.6M | $268.1M | $298.7M | $299.6M | $379.8M | $420.3M | $448.9M | $448.8M | $449.6M |
| Diluted shares | 93.7M | 93.7M | 93.9M | 94.1M | 94.4M | 94.5M | 92.7M | 89.5M | 89.5M | 89.6M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into PKG?
A reverse DCF asks what growth the current price requires. With an enterprise value of $25.8B and $742.4M of trailing free cash flow, Packaging Corporation of Americ needs to grow free cash flow about 24.8% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 3.6% a year over the last five years.
P/E ratio history
Current 28.8x vs. median 16.9x (10th–90th percentile 12.1x–28.4x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
PKG dividend
- Dividend yield
- 2.43%
- Annual dividend
- $6.00
- Years of increases
- —
- 5-yr dividend growth
- 8.2%
- per year
- Payout ratio
- 68%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
PKG analyst price targets
9 analysts' average 12-month target is $269.22 (+9% vs. $247.29). Targets range from $170.00 to $322.00. 70% rate it a buy.
PKG earnings
Next report: January 26, 2027. Packaging Corporation of Americ has beaten EPS estimates 3 quarters in a row.
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Oct 21, 2026 | $2.92 | $3.04 | +4.3% |
| Jul 22, 2026 | $2.31 | $2.35 | +1.6% |
| Apr 22, 2026 | $2.13 | $2.40 | +12.5% |
| Jan 27, 2026 | $2.41 | $2.32 | -3.9% |
| Oct 22, 2025 | $2.82 | $2.73 | -3.1% |
| Jul 23, 2025 | $2.44 | $2.48 | +1.5% |
| Apr 22, 2025 | $2.21 | $2.31 | +4.3% |
| Jan 28, 2025 | $2.53 | $2.47 | -2.5% |
Stocks like PKG
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|---|---|---|---|---|---|
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PKG news
- PKG Q3 deep dive: higher volumes and price realization drive strong performance, cost headwinds persist · Oct 23, 2026
- 5 insightful analyst questions from Packaging Corporation of America’s Q3 earnings call · Oct 23, 2026
- Packaging Corp Of America (PKG) Q3 Earnings Beat Meets Rising Cost Risk · Oct 22, 2026
- Packaging Corporation of America Q3 Earnings Call Highlights · Oct 22, 2026
- Packaging Corp Q3 Earnings Beat Estimates on Favorable Price & Mix · Oct 22, 2026
PKG stock FAQ
What is PKG's market cap?
Packaging Corporation of America's market capitalization is $22.03 billion as of October 23, 2026, ranking 386th in the S&P 500.
What is PKG's P/E ratio?
PKG trades at a trailing price-to-earnings ratio of 30.5x and a forward P/E of 17.5x. Its median P/E over the period we track is 16.9x.
Does PKG pay a dividend?
Yes. Packaging Corporation of America pays $6.00 per share a year, a 2.43% yield. Dividends grew 8.2% a year over the last five years.
How much has PKG stock returned?
Including reinvested dividends, PKG returned +18.9% over one year, +16.4% a year over five years, +15.0% a year over ten years through October 23, 2026.
Is PKG stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Packaging Corporation of America must grow free cash flow about 25% a year for the next decade. Its free cash flow grew 4% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the PKG price target?
9 analysts cover PKG with an average 12-month price target of $269.22, +9% from the current price. 70% of them rate it a buy.
When does PKG report earnings?
Packaging Corporation of America is expected to report earnings on January 26, 2027. It has beaten EPS estimates 3 quarters in a row.
How many employees does Packaging Corporation of America have?
Packaging Corporation of America has about 16,800 full-time employees, or $584,696 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology