Packaging Corp Return On Equity vs. Shares Owned By Insiders

PKG Stock  USD 247.03  1.00  0.40%   
Considering Packaging Corp's profitability and operating efficiency indicators, Packaging Corp of may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Packaging Corp's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.19142921
Current Value
0.15
Quarterly Volatility
0.06937999
 
Credit Downgrade
 
Yuan Drop
 
Covid
The Packaging Corp's current Sales General And Administrative To Revenue is estimated to increase to 0.1, while Price To Sales Ratio is projected to decrease to 1.00. At this time, Packaging Corp's Net Income Applicable To Common Shares is most likely to increase significantly in the upcoming years. The Packaging Corp's current Interest Income is estimated to increase to about 111.6 M, while Income Before Tax is projected to decrease to roughly 513.3 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.240.2177
Significantly Up
Slightly volatile
Net Profit Margin0.05740.0981
Way Down
Slightly volatile
Operating Profit Margin0.0880.1378
Way Down
Pretty Stable
Pretax Profit Margin0.080.13
Way Down
Slightly volatile
Return On Assets0.05750.0881
Way Down
Slightly volatile
Return On Equity0.150.1914
Significantly Down
Very volatile
For Packaging Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Packaging Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Packaging Corp of utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Packaging Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Packaging Corp of over time as well as its relative position and ranking within its peers.
  

Packaging Corp's Revenue Breakdown by Earning Segment

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Is Paper & Plastic Packaging Products & Materials space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Packaging Corp. If investors know Packaging will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Packaging Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.3
Dividend Share
5
Earnings Share
8.57
Revenue Per Share
91.752
Quarterly Revenue Growth
0.127
The market value of Packaging Corp is measured differently than its book value, which is the value of Packaging that is recorded on the company's balance sheet. Investors also form their own opinion of Packaging Corp's value that differs from its market value or its book value, called intrinsic value, which is Packaging Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Packaging Corp's market value can be influenced by many factors that don't directly affect Packaging Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Packaging Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Packaging Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Packaging Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Packaging Corp Shares Owned By Insiders vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Packaging Corp's current stock value. Our valuation model uses many indicators to compare Packaging Corp value to that of its competitors to determine the firm's financial worth.
Packaging Corp of is rated below average in return on equity category among its peers. It is regarded fourth in shares owned by insiders category among its peers making about  7.49  of Shares Owned By Insiders per Return On Equity. At this time, Packaging Corp's Return On Equity is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Packaging Corp by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Packaging Shares Owned By Insiders vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Packaging Corp

Return On Equity

 = 

Net Income

Total Equity

 = 
0.19
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Shares Owned by Insiders show the percentage of outstanding shares owned by insiders (such as principal officers or members of the board of directors) or private individuals and entities with over 5% of the total shares outstanding. Company executives or private individuals with access to insider information share information about a firm's operations that is not available to the general public.

Packaging Corp

Insiders Shares

 = 

Executives Shares

+

Employees

 = 
1.42 %
Although the research on effects of insider trading on prices and volatility is still relatively inconclusive, and investors are advised to pay close attention to the distribution of equities among company's stakeholders to avoid many problems associated with the disclosure of price-sensitive information.

Packaging Shares Owned By Insiders Comparison

Packaging Corp is currently under evaluation in shares owned by insiders category among its peers.

Packaging Corp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Packaging Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Packaging Corp will eventually generate negative long term returns. The profitability progress is the general direction of Packaging Corp's change in net profit over the period of time. It can combine multiple indicators of Packaging Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-70.9 M-74.4 M
Operating Income1.1 B1.1 B
Income Before TaxB513.3 M
Total Other Income Expense Net-61 M-58 M
Net Income765.2 M803.5 M
Income Tax Expense248.9 M140.6 M
Net Income Applicable To Common Shares1.2 B1.2 B
Net Income From Continuing Ops787.6 M586.5 M
Interest Income81 M111.6 M
Net Interest Income-57.3 M-60.2 M
Change To Netincome105.1 M110.4 M
Net Income Per Share 8.48  8.90 
Income Quality 1.72  1.23 
Net Income Per E B T 0.75  0.56 

Packaging Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Packaging Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Packaging Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Packaging Corp's important profitability drivers and their relationship over time.

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When determining whether Packaging Corp is a strong investment it is important to analyze Packaging Corp's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Packaging Corp's future performance. For an informed investment choice regarding Packaging Stock, refer to the following important reports:
To fully project Packaging Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Packaging Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Packaging Corp's income statement, its balance sheet, and the statement of cash flows.
Potential Packaging Corp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Packaging Corp investors may work on each financial statement separately, they are all related. The changes in Packaging Corp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Packaging Corp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.