Assessing Packaging Corp of America: Insights From 6 Financial Analysts

Packaging Corp of America PKG underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $211.5, a high estimate of $238.00, and a low estimate of $180.00. This current average represents a 8.28% decrease from the previous average price target of $230.60.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Packaging Corp of America. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Packaging Corp of America. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Packaging Corp of America compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Packaging Corp of America's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Packaging Corp of America's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Packaging Corp of America analyst ratings.

Discovering Packaging Corp of America: A Closer Look

Packaging Corp. of America is the third-largest containerboard and corrugated packaging manufacturer in the United States. It produces over 5 million tons of containerboard annually. The company's share of the domestic containerboard market is roughly 10%. PCA differentiates itself from larger competitors by focusing on smaller customers and operating with a high degree of flexibility.

Packaging Corp of America: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Packaging Corp of America's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.16% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Materials sector.

Net Margin: Packaging Corp of America's net margin is impressive, surpassing industry averages. With a net margin of 9.45%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Packaging Corp of America's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.55%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Packaging Corp of America's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.27% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Packaging Corp of America's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.62.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.