At the moment, the debt-to-equity of Graphic Packaging Holding Company (NYSE:GPK) is high, standing at 176.06, a figure that is higher than the 82.22 average recorded by the industry. This means that the company is currently holding a debt level at 2.93 B. GPK shares have a strong debt-to-equity ratio but their quick ratio which reads 0.80 is strong and might cause problems for them later in the future.
Even though there was a rise of +34.49% in revenue, the company failed to succeed in outperforming the industry average of 10.79%. For the most recent quarter, the net income has jumped by +99.37%. This strength in their income has affected them and thus increased their earnings to $253.80 M. The 34.49% yoy growth of GPK’s revenue has gone up that of the industry average by 5.2%. For the past 12 months, Graphic Packaging Holding Company revenue has gone up by 29.29%. The sustained growth in their revenue has helped boost their earnings per share.
Graphic Packaging Holding Company (GPK) has seen their earnings per share increased to $0.30 during the last quarter in comparison to the same quarter last year. They have recorded a 90.77% growing earnings per share earnings. They have recorded a 90.77% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.24. In the fiscal year 2018, Graphic Packaging Holding Company overcame its bottom line by hitting earning $0.96 per share compared to the $0.71 in 2017.
The 12-month return on equity has significantly fallen to 14.47 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Consumer Goods sector, the industry average is 15.24 while 6.81 is of the sector.
Also, looking at the price to cash flow of the company and the industry average, the 5.22 ratio of the stock is lower than the industry’s 6.72.
Graphic Packaging Holding Company (NYSE:GPK) has a price-to-earnings ratio of 17.16 which is higher than the 13.12 industry average at the moment. In addition to their unfavorable P/E ratio, Graphic Packaging Holding Company has maintained a gross margin of 15.84. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 4.40 when compared to 6.35 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Graphic Packaging Holding Company ROE is above 6.81 that of both the sector average.
The operating profit margin for Graphic Packaging Holding Company (GPK) is 7.70%, a figure which is considered to be weak. It has gone 9.92 from the 7.85 over the past 5 years. In addition to this, their operating margin is -2.22 lower than the industry average.
The net profit margin which stood at 3.94 on average in the past 5 years has jumped to 4.75 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 7.36.
Analysts meanwhile rate Graphic Packaging Holding Company (NYSE:GPK) as a strong buy. Still some above discussed indicators of the $3.49B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the GPK shares to either perform positively or negatively when compared to other stocks. The primary strengths of Graphic Packaging Holding Company can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.