Packaging Corp of America
PKG: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$691.00 | Pbkwl | Rgglmcr |
Packaging Corp Navigates A Challenging Operating Environment as Demand Slows and Prices Fall
Business Strategy and Outlook
Packaging Corp of America manufactures packaging products and uncoated freesheet, or UFS, paper. It accounts for roughly 10% of the North American containerboard market and is the third-largest producer. The majority of the firm’s containerboard is used internally to produce corrugated packaging, with the remainder sold to external customers. A decade of consolidation in the corrugated packaging industry allowed Packaging Corp to raise prices aggressively, but increased competitive intensity from legacy paper producers has limited pricing power in recent years.