Industry Revenues:

• Corrugated Packaging: approx. 70%
• Paper Products: approx. 30%

TOP 3 Markets:

1. USA: approx. 85%
2. Canada: approx. 10%
3. Mexico: approx. 5%

Packaging Corporation of America (PCA) generates the majority of its revenues from the production of corrugated packaging, which accounts for about 70% of total revenue. The remainder is attributed to paper products used in various industrial and commercial applications.

Geographically, the U.S. market is the dominant revenue contributor for PCA, followed by Canada and Mexico. These markets are crucial for the company as they are the main consumers of the packaging and paper products. PCA's strong presence in North America allows it to benefit from the demand in these stable and developed markets.

Production Sites in the USA:

Packaging Corporation of America (PCA) operates multiple production facilities in the United States. The main locations include:

• Containerboard Mills: These are located in Counce (Tennessee), DeRidder (Louisiana), Filer City (Michigan), Tomahawk (Wisconsin), and Valdosta (Georgia).
• Corrugated Products Plants: PCA operates over 90 corrugated products plants in the USA, strategically distributed to ensure efficient customer supply.

PCA is one of the leading manufacturers of packaging solutions in North America, focusing on the production of corrugated products and containerboard. The geographic distribution of their production sites enables the company to effectively serve a wide range of customers in different regions.

Revenue Growth: Estimated at 3-5% annually (based on historical data up to 2023)
Investments in Sustainability: Increasing by 10% annually (estimate based on industry trends)

Packaging Corporation of America (PCA) pursues a strategy focused on sustainable growth and efficiency improvements. The company is increasing its investments in environmentally friendly packaging solutions to meet the growing sustainability requirements. This includes enhancing the recyclability of their products and reducing the CO2 footprint in production.

Another key focus is on optimizing production processes and expanding production capacities. PCA plans to enhance efficiency and reduce costs through technological innovations and automation. These measures are intended to strengthen the company's competitiveness and capture new market share.

Additionally, PCA is diversifying its product portfolio to serve new markets and deepen existing customer relationships. This includes both organic growth and strategic acquisitions to expand the product offering and increase geographical reach.

Main raw materials: Pulp, recycled paper

Main importing countries: Canada, Brazil, Chile

Packaging Corporation of America (PCA) mainly imports pulp and recycled paper, which are needed for the production of corrugated cardboard and packaging materials. Canada is a significant supplier due to its extensive forest resources and proximity to PCA's production facilities in the USA. Brazil and Chile are also important suppliers because they have large pulp production capacities and offer competitive prices.

These countries not only provide the necessary raw materials but also offer a logistically advantageous location, making the import efficient and cost-effective. PCA places great emphasis on sustainable sourcing practices and often collaborates with suppliers who offer environmentally friendly and certified materials.

Market share: 10% (estimated, 2025)
EBITDA margin: 18% (2024)
Return on Equity (ROE): 25% (2024)

Packaging Corporation of America (PCA) has a significant competitive advantage in the packaging industry, highlighted by its strong EBITDA margin of 18% and a high Return on Equity of 25%. These indicators point to an efficient cost structure and effective capital utilization.

PCA's market share is estimated at around 10%, making the company one of the leading players in the industry. PCA benefits from a wide range of products and strong customer loyalty, further solidifying its position in the market.

In addition, PCA continuously invests in technological innovations and sustainability initiatives to differentiate itself from the competition and remain competitive in the long term. These strategic measures help strengthen the company's competitive advantage and secure its market position.

Institutional Investor Share: approximately 90% (2025, estimated based on historical data)

Insider Purchases/Sales: No significant transactions in the last quarter (2025, estimated)

The institutional investor share in Packaging Corporation of America is traditionally high, indicating the trust of large investment funds and institutional investors in the company's stability and growth potential. These investors typically hold long-term positions and influence the company's strategic direction.

There were no significant insider purchases or sales in the last quarter, suggesting that the management and other insiders do not currently expect significant changes in the company's valuation. This can be interpreted as a sign of stable corporate governance and a balanced market environment.

Market share of Packaging Corporation of America (PKG): approximately 10% (estimated for 2025)

Top competitors and their market shares:

1. International Paper Company: approximately 20%
2. WestRock Company: approximately 15%
3. Smurfit Kappa Group: approximately 12%
4. Packaging Corporation of America (PKG): approximately 10%
5. Mondi Group: approximately 8%
6. DS Smith: approximately 7%
7. Stora Enso: approximately 5%

Packaging Corporation of America (PKG) holds a solid market share of around 10%, making them a significant player in the packaging industry. However, the market is dominated by larger companies like International Paper and WestRock, which have greater production capacities and a broader global network.

PKG's moat mainly consists of their strong customer loyalty and ability to offer customized packaging solutions. This allows them to differentiate themselves in specific niche markets. Compared to larger competitors, their moat could be considered less strong as these companies benefit from economies of scale and a larger global presence.

Overall, PKG holds a respectable position in the market, but larger competitors may have a stronger moat due to their more extensive resources and networks. Nevertheless, PKG remains competitive through their specialization and innovation capabilities.

Revenue Growth: 4.5% (2024) Profit Growth: 3.2% (2024) Dividend Yield: 3.6% (2024)

Packaging Corporation of America (PCA) recorded a moderate revenue growth of 4.5% in 2024. This reflects stable demand for packaging solutions, especially in the e-commerce and consumer goods sectors, which continue to be drivers of growth.

The profit growth of 3.2% shows that the company was able to efficiently manage its cost structure, despite challenges posed by rising raw material prices and logistical constraints. PCA also offers an attractive dividend yield of 3.6%, which may be of interest to income-oriented investors.

Overall, PCA provides a solid investment opportunity, especially for investors seeking stable returns and a company with a strong market position in the packaging sector. Long-term growth opportunities could arise from innovations and expansion into new markets.

Dividend Yield: 3.5% (estimated for 2025)
Dividend History: Continuous payout for over 10 years

Packaging Corporation of America (NYSE:PKG) is known for its consistent dividend policy. The company has regularly distributed dividends in recent years, achieving a dividend yield of around 3.5%. This reliability is an indicator of the financial stability and the company's ability to continue providing returns to shareholders even in economically challenging times.

The continuity of dividend payments for more than a decade shows that PKG pursues a solid capital return strategy. Analysts estimate that the company will be able to continue its dividend policy in the future, supported by stable cash flows and a strong market position.