Packaging Corporation of America (PKG) — Free Cash Flow Yield
Consumer Cyclical
Packaging Corporation of America manufactures and sells containerboard and uncoated freesheet (UFS) paper products in North America. The company operates through Packaging and Paper segments. The Packaging segment offers various linerboard and corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products, as well as packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization. The Paper segment manufactures and sells commodity and specialty papers, as well as communication papers, including cut-size office papers, and printing and converting papers; and white papers. This segment sells papers through its sales and marketing organization. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.
| Metric | Value |
|---|---|
| FCF Yield | 3.2% |
| Consumer Cyclical Sector Avg FCF Yield | 5.1% |
| Annual Free Cash Flow | $729M |
| Market Cap | $22.8B |
| P/E Ratio | 33.2x |
Packaging Corporation of America's FCF yield of 3.2% is below the Consumer Cyclical sector average (5.1%).
Frequently Asked Questions
What is Packaging Corporation of America's (PKG) free cash flow yield?
Packaging Corporation of America's (PKG) free cash flow yield is 3.2%. That is below the Consumer Cyclical sector average (5.1%).
Is PKG's free cash flow yield good?
At 3.2%, PKG's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Packaging Corporation of America generate?
Packaging Corporation of America generated $729M in free cash flow, against a market cap of $22.8B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →