Graphic Packaging Holding Company Fundamental Analysis (NYSE: GPK)
Graphic Packaging Holding Company Fundamental Analysis (NYSE: GPK)
Graphic Packaging Holding Company (NYSE: GPK) shows weak financial fundamentals with a PE ratio of 18.08, profit margin of 2.25%, and ROE of 5.92%. The company generates $8.6B in annual revenue with weak year-over-year growth of -2.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GPK's fundamental strength across five key dimensions:
Efficiency Score
WeakGPK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGPK trades at attractive valuation levels.
Growth Score
WeakGPK faces weak or negative growth trends.
Financial Health Score
ModerateGPK shows balanced financial health with some risks.
Profitability Score
WeakGPK struggles to sustain strong margins.
Key Financial Metrics
Is GPK Expensive or Cheap?
P/E Ratio
GPK trades at 18.08 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GPK's PEG of -0.29 indicates potential undervaluation.
Price to Book
The market values Graphic Packaging Holding Company at 1.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.26 times EBITDA. This is generally considered low.
How Well Does GPK Make Money?
Net Profit Margin
For every $100 in sales, Graphic Packaging Holding Company keeps $2.25 as profit after all expenses.
Operating Margin
Core operations generate 6.89 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.92 in profit for every $100 of shareholder equity.
ROA
Graphic Packaging Holding Company generates $1.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Graphic Packaging Holding Company generates limited operating cash flow of $791.09M, signaling weaker underlying cash strength.
Free Cash Flow
Graphic Packaging Holding Company generates weak or negative free cash flow of $188.55M, restricting financial flexibility.
FCF Per Share
Each share generates $0.64 in free cash annually.
FCF Yield
GPK converts 5.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How GPK Stacks Against Its Sector Peers
| Metric | GPK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.08 | 26.29 | Better (Cheaper) |
| ROE | 5.92% | 966.00% | Weak |
| Net Margin | 2.25% | -4927.00% (disorted) | Weak |
| Debt/Equity | 1.80 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.38 | 2.32 | Neutral |
| ROA | 1.66% | 295.00% | Weak |
GPK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Graphic Packaging Holding Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.48%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
149.46%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-2.70%
Industry Style: Cyclical, Growth, Discretionary
Declining