Packaging Corporation of America (NYSE:PKG) Seeing a Cash Difference of 0.38986 in the Yearly Flow

Packaging Corporation of America (NYSE:PKG) has seen year over year cash flow change of 0.38986.  This is calculated as the one year percentage growth of the firm’s cash flow from operations from their publicly filed statement of cash flows.  Cash reserves are an important element for an investor to consider when analyzing a stock.  A continued reduction in cash flow could spell trouble for a firm while on the other hand solid continued cash flow growth should translate into stock growth.

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Packaging Corporation of America (NYSE:PKG) of the General Industrials sector closed the recent session at 77.950000 with a market value of $7308148.

Taking look at some key returns data we can note the following:

Packaging Corporation of America (NYSE:PKG) has Return on Invested Capital of 0.258529, with a 5-year average of 0.211462 and an ROIC quality score of 6.266286. Why is ROIC important to potential investors? It’s one of the most fundamental metrics in determining the value of a firm’s shares. It helps potential investors determine if the company is using it’s invested capital to return profits.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.170011 for Packaging Corporation of America (NYSE:PKG).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

In addition to Capex to PPE we can look at Cash Flow to Capex.  This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs.  Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Packaging Corporation of America (NYSE:PKG)’s Cash Flow to Capex stands at 2.124928.

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Near-Term Growth Drilldown

Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations.  This number stands at 0.38986 for Packaging Corporation of America (NYSE:PKG).  The one year Growth EBIT ratio stands at 0.16746 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.13659 which is calculated similarly to EBIT Growth with just the addition of amortization.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.46822.  The one year growth in Net Profit after Tax is 0.57312 and lastly sales growth was 0.11467.

In looking at some Debt ratios, Packaging Corporation of America (NYSE:PKG) has a debt to equity ratio of 0.98893 and a Free Cash Flow to Debt ratio of 0.234274.  This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated.  In terms of Net Debt to EBIT, that ratio stands at 2.04500.  This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt.  The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio.  Packaging Corporation of America’s ND to MV current stands at 0.302183. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investors will be closely watching which way market momentum will shift as we cruise into the back half of the year. Earnest investors will most likely be pouring over the latest earnings reports trying to spot buying opportunities. Many investors will pay especially close attention to companies that have posted large surprise factors over the past quarter. As the dust settles, investors might be monitoring stock price activity following the earning release in order to set up a plan for trading around the next earnings season. 

50/200 Simple Moving Average Cross

Packaging Corporation of America (NYSE:PKG) has a 0.86533 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Investors may be circling the wagons wondering what’s in store for the stock market over the next few months. Capitalizing on the current trends may be just what the doctor ordered. Searching for value in the current investing landscape may be a priority for some investors. The mindset of one investor may be completely different from another. Sometimes stocks that look too good to be true actually are, and those that are actually very good may not look that enticing. Keeping a close watch on technicals and fundamentals may be a good way to start filtering through the vast sea of equities. Many stock enthusiasts will also keep a sharp focus on positive estimate revisions to help gain an edge in the markets. Whatever the strategy, investors will no doubt be searching far and wide for consistent outperformers.