Packaging Corp Return On Equity vs. Return On Asset
| PKG Stock | USD 247.28 0.89 0.36% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.19142921 | Current Value 0.15 | Quarterly Volatility 0.06937999 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.24 | 0.2177 |
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| Net Profit Margin | 0.0574 | 0.0981 |
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| Operating Profit Margin | 0.088 | 0.1378 |
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| Pretax Profit Margin | 0.08 | 0.13 |
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| Return On Assets | 0.0575 | 0.0881 |
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| Return On Equity | 0.15 | 0.1914 |
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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 |
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 Return On Asset 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 third in return on asset category among its peers reporting about 0.43 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Packaging Corp of is roughly 2.31 . 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 Return On Asset 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 |
| = | 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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Packaging Corp |
| = | 0.0821 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Packaging Return On Asset Comparison
Packaging Corp is currently under evaluation in return on asset 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -70.9 M | -74.4 M | |
| Operating Income | 1.1 B | 1.1 B | |
| Income Before Tax | 1 B | 513.3 M | |
| Total Other Income Expense Net | -61 M | -58 M | |
| Net Income | 765.2 M | 803.5 M | |
| Income Tax Expense | 248.9 M | 140.6 M | |
| Net Income Applicable To Common Shares | 1.2 B | 1.2 B | |
| Net Income From Continuing Ops | 787.6 M | 586.5 M | |
| Interest Income | 81 M | 111.6 M | |
| Net Interest Income | -57.3 M | -60.2 M | |
| Change To Netincome | 105.1 M | 110.4 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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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.