Graphic Packaging Return On Equity vs. Current Valuation
| GPK Stock | USD 28.12 0.14 0.50% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.23 | Current Value 0.25 | Quarterly Volatility 0.07291816 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.2 | 0.27 |
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| Net Profit Margin | 0.0725 | 0.069 |
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| Operating Profit Margin | 0.13 | 0.1415 |
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| Pretax Profit Margin | 0.0934 | 0.089 |
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| Return On Assets | 0.0611 | 0.0582 |
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| Return On Equity | 0.25 | 0.23 |
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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.
Graphic |
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) | Dividend Share 0.4 | Earnings Share 2.34 | Revenue Per Share | Quarterly Revenue Growth (0.06) |
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 Current Valuation vs. Return On Equity 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. Graphic Packaging Holding is rated # 3 in return on equity category among its peers. It also is rated # 3 in current valuation category among its peers reporting about 53,024,119,926 of Current Valuation per Return On Equity. 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. 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.
Graphic Packaging |
| = | 0.26 |
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.
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 |
| = | 13.67 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.
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 141.23 Billion. Graphic Packaging holds roughly 13.67 Billion in current valuation claiming about 10% of all equities under Materials industry.
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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -281.7 M | -295.8 M | |
| Operating Income | 1.5 B | 1.6 B | |
| Income Before Tax | 1.1 B | 1.1 B | |
| Total Other Income Expense Net | -361.8 M | -343.7 M | |
| Net Income | 831.5 M | 873 M | |
| Income Tax Expense | 241.5 M | 253.6 M | |
| Net Income Applicable To Common Shares | 600.3 M | 630.3 M | |
| Net Income From Continuing Ops | 831.5 M | 873 M | |
| Non Operating Income Net Other | 1.1 M | 1.2 M | |
| Interest Income | 226.6 M | 130.2 M | |
| Net Interest Income | -215.1 M | -225.9 M | |
| Change To Netincome | 278.3 M | 292.2 M | |
| Net Income Per Share | 2.11 | 2.22 | |
| Income Quality | 1.82 | 1.73 | |
| Net Income Per E B T | 0.70 | 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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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.