Graphic Packaging Current Valuation vs. Return On Equity

GPK Stock  USD 27.17  0.29  1.08%   
Considering the key profitability indicators obtained from Graphic Packaging's historical financial statements, Graphic Packaging Holding is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in March. Profitability indicators assess Graphic Packaging's ability to earn profits and add value for shareholders. At this time, Graphic Packaging's Price To Sales Ratio is quite stable compared to the past year. Days Sales Outstanding is expected to rise to 42.19 this year, although the value of Operating Cash Flow Sales Ratio will most likely fall to 0.07. At this time, Graphic Packaging's Non Operating Income Net Other is quite stable compared to the past year. Change To Netincome is expected to rise to about 292.2 M this year, although the value of Net Income From Continuing Ops will most likely fall to about 335.4 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.20.2228
Moderately Down
Pretty Stable
Net Profit Margin0.07840.0747
Sufficiently Up
Slightly volatile
Operating Profit Margin0.130.1271
Fairly Up
Slightly volatile
Pretax Profit Margin0.110.1006
Significantly Up
Slightly volatile
Return On Assets0.0620.059
Sufficiently Up
Slightly volatile
Return On Equity0.230.2185
Notably Up
Slightly volatile
For Graphic Packaging profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Graphic Packaging to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Graphic Packaging Holding utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Graphic Packaging's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Graphic Packaging Holding over time as well as its relative position and ranking within its peers.
  
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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 Graphic Packaging. If investors know Graphic 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 Graphic Packaging 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
(0.28)
Dividend Share
0.4
Earnings Share
2.16
Revenue Per Share
28.97
Quarterly Revenue Growth
(0.07)
The market value of Graphic Packaging Holding is measured differently than its book value, which is the value of Graphic that is recorded on the company's balance sheet. Investors also form their own opinion of Graphic Packaging's value that differs from its market value or its book value, called intrinsic value, which is Graphic Packaging'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 Graphic Packaging's market value can be influenced by many factors that don't directly affect Graphic Packaging'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 Graphic Packaging's value and its price as these two are different measures arrived at by different means. Investors typically determine if Graphic Packaging is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Graphic Packaging'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.

Graphic Packaging Holding Return On Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Graphic Packaging's current stock value. Our valuation model uses many indicators to compare Graphic Packaging value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15IPWRKREYNBALLAVYSONGPK -0.0500.050.100.150.200.250.300.35 05B10B15B20B25B30B35B
Graphic Packaging Holding is rated # 3 in current valuation category among its peers. It also is rated # 3 in return on equity category among its peers . The ratio of Current Valuation to Return On Equity for Graphic Packaging Holding is about  57,947,004,927 . At this time, Graphic Packaging's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Graphic Packaging 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.

Graphic Current Valuation vs. Competition

Graphic Packaging Holding is rated # 3 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Materials industry is currently estimated at about 148.67 Billion. Graphic Packaging holds roughly 13.16 Billion in current valuation claiming about 9% of all equities under Materials industry.
JavaScript chart by amCharts 3.21.15OthersBALLREYNWRKIPGPK

Graphic Return On Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Graphic Packaging

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
13.16 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.

Graphic Packaging

Return On Equity

 = 

Net Income

Total Equity

 = 
0.23
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.

Graphic Return On Equity Comparison

0.22710.66940.3170.17750.1707100%
Graphic Packaging is currently under evaluation in return on equity category among its peers.

Graphic Packaging Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Graphic Packaging, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Graphic Packaging will eventually generate negative long term returns. The profitability progress is the general direction of Graphic Packaging's change in net profit over the period of time. It can combine multiple indicators of Graphic Packaging, 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-455 M-432.2 M
Operating Income1.1 B1.2 B
Income Before Tax886 M930.3 M
Total Other Income Expense Net-233 M-221.3 M
Net Income658 M690.9 M
Income Tax Expense229 M240.4 M
Net Income Applicable To Common Shares600.3 M630.3 M
Net Income From Continuing Ops658 M335.4 M
Non Operating Income Net Other1.1 M1.2 M
Interest Income226.6 M130.2 M
Net Interest Income-230 M-241.5 M
Change To Netincome278.3 M292.2 M
Net Income Per Share 2.16  2.27 
Income Quality 1.28  1.21 
Net Income Per E B T 0.74  0.43 

Graphic Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Graphic Packaging. 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 Graphic Packaging 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 Graphic Packaging's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Graphic Packaging without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Graphic Packaging position

In addition to having Graphic Packaging in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Investor Favorites Theme
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 constituents at this time.
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When determining whether Graphic Packaging Holding is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Graphic Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Graphic Packaging Holding Stock. Highlighted below are key reports to facilitate an investment decision about Graphic Packaging Holding Stock:
Check out Risk vs Return Analysis.
You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
To fully project Graphic Packaging's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Graphic Packaging Holding 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 Graphic Packaging's income statement, its balance sheet, and the statement of cash flows.
Potential Graphic Packaging investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Graphic Packaging investors may work on each financial statement separately, they are all related. The changes in Graphic Packaging's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Graphic Packaging'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.