Packaging Corporation of Americ — Earnings Quality Grade F
PKG · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 51 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 7.2%, CFFO 30.8%. Cash follows revenue
Expense Quality
Inventory 10.5% vs COGS 7.6%. Normal
CapEx growth 23.8% is >2x revenue growth 7.2%
SG&A/Gross Profit = 33.6%. Normal
Gross margin 21.0%, change -0.2pp. Stable
Cash Flow Quality
CFFO/NI = 2.01. Profits backed by cash
FCF $0.7B, FCF/NI = 0.94
Accruals ratio = -7.3%. Low accruals
Cash $0.6B covers only 14% of debt $4.4B
Balance Sheet Health
Goodwill+Intangibles $2.0B = 43% of equity
Debt/EBITDA = 2.5x. Healthy
Other assets 4.1% vs revenue 7.2%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 77% YoY
Manipulation Score
M-Score = -2.63 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10