The global consumer packaging and containers industry is an estimated $400 billion per year business. If you add in the industrial end markets, it swells to an estimated $500 billion business. The sector includes five major types of packaging and several other smaller packaging types. Paper and board (including paper bags and cartons) is the largest consumer packaging category with an estimated 34% share of the total packaging market. Rigid plastics (tubs, pots and jars etc.) is the second largest category with an estimated 27% share of the market. It's also one of the faster growing categories with forecasts showing it to grow 4% per year through 2015.
The market for these companies is distributed among several industries which have to package their own products for shipping to distributors or for sale to consumers. The largest customer is the food industry which consumes an estimated 51% of the packages and containers produced. Other categories include Other Consumer (20%), Beverage (18%), Health Care (6%), and Cosmetics (5%).
In order to completely understand this diverse industry it's important to understand those characteristics that will produce a successful packaging and container company. It's crucial for packaging businesses to manage the stability of their input raw material costs and pass through as much of those raw material costs as possible to their customers. It's important for management to have visibility of which end markets, products and customer relationships are profitable and which are unprofitable. And a successful packaging producer must be able to deliver new shapes, use new materials, print more colors in greater definition and deliver short run lengths more economically than it's competitors.
Below are 13 companies that fall within the parameters of the packaging and containers industry, are based in the United States, and pay at least a minimal dividend. Below I've listed each of these 13 companies, along with their descriptions to include links to their current price, their company web site, and their daily chart. Below that I've ranked them according to their PEG ratio, their dividend yield, their one year estimated capital gain, and their one year total return.
The purpose of this is to try to understand how well these companies stack up against one another. It's from this information that I often determine which companies are candidates for further investigation. Hopefully this will provide executable ideas for others too.
In order to completely understand this diverse industry it's important to understand those characteristics that will produce a successful packaging and container company. It's crucial for packaging businesses to manage the stability of their input raw material costs and pass through as much of those raw material costs as possible to their customers. It's important for management to have visibility of which end markets, products and customer relationships are profitable and which are unprofitable. And a successful packaging producer must be able to deliver new shapes, use new materials, print more colors in greater definition and deliver short run lengths more economically than it's competitors.
Below are 13 companies that fall within the parameters of the packaging and containers industry, are based in the United States, and pay at least a minimal dividend. Below I've listed each of these 13 companies, along with their descriptions to include links to their current price, their company web site, and their daily chart. Below that I've ranked them according to their PEG ratio, their dividend yield, their one year estimated capital gain, and their one year total return.
The purpose of this is to try to understand how well these companies stack up against one another. It's from this information that I often determine which companies are candidates for further investigation. Hopefully this will provide executable ideas for others too.
| International Paper International Paper Company (IP) operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, and the Middle East. The company's Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. Its Printing Papers segment produces printing and writing papers, such as uncoated and coated papers for use in copiers, desktop, and laser printers, and digital imaging; pulp that is used in the manufacture of printing, writing, and specialty papers, as well as towel and tissue products, and filtration products; and uncoated bristols. The company's Consumer Packaging segment offers coated paperboard for various packaging and commercial printing end uses, such as food, cosmetics, pharmaceuticals, computer software, tobacco products, greeting cards, paperback book covers, lottery tickets, direct mail, and point-of-purchase advertising under the Everest, Fortress, Starcote, and Carolina brands. This segment also produces cups, lids, food containers, and plates. Its Distribution segment distributes products and services to various customer markets, including commercial printers with printing papers and graphic pre-press, printing presses, and post-press equipment; building services and away-from-home markets with facility supplies; and manufacturers with packaging supplies and equipment, as well as offers warehousing and delivery services. International Paper Company sells its paper, packaging products, and other products directly to end users and converters, as well as through agents, resellers, and paper distributors. The company was founded in 1898 and is based in Memphis, Tennessee. (Daily Chart) |  4 August 2014 Price $47.85 1yr Target $55.57 No. of Brokers 14 1yr Cap Gain 16.13% Dividend $1.40 Yield 2.92% 1yr Tot Ret 19.05% EPS (ttm) $2.21 Payout 63.34% P/E 22.36 PEG 2.11 3yr RevGR 4.86% 3yr EarnGR 24.78% 3yr DivGR 32.14% |
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| Ball Corporation Ball Corporation (BLL), together with its subsidiaries, supplies metal packaging products to the beverage, food, personal care, and household products industries worldwide. It operates in four segments: Metal Beverage Packaging, Americas and Asia; Metal Beverage Packaging, Europe; Metal Food and Household Products Packaging; and Aerospace and Technologies. The Metal Beverage Packaging, Americas and Asia segment manufactures and sells metal beverage container products for use in beverage packaging; and non-beverage plastic containers. The Metal Beverage Packaging, Europe segment manufactures and sells metal beverage containers in Europe. The Metal Food and Household Products Packaging segment offers metal food, aerosol, paint, general line, and extruded aluminum containers, as well as decorative specialty containers and aluminum slugs; and extruded aluminum aerosol packaging products in Mexico. The Aerospace and Technologies segment designs, develops, and manufactures aerospace systems, including spacecraft, instruments and sensors, radio frequency systems and components, data exploitation solutions, and aerospace technologies and products for civil, commercial, and national security aerospace markets. It is also involved in the design, manufacture, and testing of satellites, remote sensors, and ground station control hardware and software, as well as provides related services, such as launch vehicle integration and satellite operations. In addition, this segment offers target identification, warning, and attitude control systems and components; cryogenic systems for reactant storage, and associated sensor cooling devices; star trackers; and fast-steering mirrors, as well as technical services and products to government agencies, prime contractors, and commercial organizations for various information warfare, electronic warfare, avionics, intelligence, training, and space systems needs. Ball Corporation was founded in 1880 and is headquartered in Broomfield, Colorado. (Daily Chart) |  4 August 2014 Price $61.95 1yr Target $61.18 No. of Brokers 11 1yr Cap Gain -1.25% Dividend $0.52 Yield 0.83% 1yr Tot Ret -0.43% EPS (ttm) $2.92 Payout 17.80% P/E 18.49 PEG 1.89 3yr RevGR 3.49% 3yr EarnGR 2.27% 3yr DivGR 37.06% |
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| Rock-Tenn Company Rock-Tenn Company (RKT) manufactures and sells corrugated and consumer packaging products in the United States, Canada, Mexico, Chile, Argentina, Puerto Rico, and China. The company operates in three segments: Corrugated Packaging, Consumer Packaging, and Recycling. The Corrugated Packaging segment offers containerboards, corrugated sheets, corrugated packaging, and preprinted linerboards for consumer and industrial products manufacturers and corrugated box manufacturers; converts corrugated sheets into corrugated products; and provides structural and graphic design and engineering services, and automated packaging machines, a swell as turn-key installation, automation, line integration, and packaging solutions. The Consumer Packaging segment provides coated recycled and bleached paperboards, and market pulp; specialty paperboards; folding cartons; solid fiber partitions; express mail envelopes; temporary and permanent point-of-purchase displays, and permanent displays; contract packing services, such as multi-product promotional packing and product manipulation; and lithographic laminated packaging products. This segment also converts specialty paperboards into book covers and other products; prints, coats, die-cuts, and glues cartons to customer specifications; and offers ship finished cartons to customers for assembling, filling, and sealing. The Recycling segment is involved in collecting, sorting, grading, baling, and processing various grades of recovered paper, including old corrugated containers, office paper, box clippings, newspaper, and print shop scraps; collecting aluminum and plastics for resale to manufacturers; providing recycling and waste disposal services, as well as fiber marketing and brokerage services; and selling scrap materials. The company markets its products through its sales force, independent sales representatives, and independent distributors. Rock-Tenn Company was founded in 1936 and is headquartered in Norcross, Georgia. (Daily Chart) |  4 August 2014 Price $99.86 1yr Target $116.35 No. of Brokers 14 1yr Cap Gain 16.51% Dividend $1.40 Yield 1.40% 1yr Tot Ret 17.91% EPS (ttm) $6.95 Payout 20.14% P/E 14.56 PEG 1.30 3yr RevGR 46.49% 3yr EarnGR 20.18% 3yr DivGR 21.40% |
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| Sealed Air Corporation Sealed Air Corporation (SEE), through its subsidiaries, provides food safety and security, facility hygiene, and product protection solutions worldwide. The company operates through three segments: Food Care, Diversey Care, and Product Care. The Food Care segment provides integrated system solutions that incorporate equipment systems integrated into customers’ operations; consumables; and packaging equipment systems that incorporate options for loading, filling, dispensing, and retort and aseptic processing conditions. It also offers graphic design, printing, training, field quality assurance, and remote diagnostics services; and facility hygiene solutions, such as clean-in-place and open plant systems that integrate cleaning chemicals, lubricants, floor care equipment, and cleaning tools. This segment markets its solutions under the Cryovac, Diversey, Cryovac Grip & Tear, Cryovac Mirabella, Simple Steps, and Secure Check brand names to perishable food and beverage processors. The Diversey Care segment offers Diversey-branded solutions comprises integrated lines of products and dispensing systems for hard surface cleaning, disinfecting and sanitizing, hand washing, deodorizing, ware washing, hard surface and carpeted floor cleaning systems, cleaning tools and utensils, and fabric care for professional laundry applications. The Product Care segment provides various product care solutions to meet cushioning, void fill, positioning/block-and-bracing, surface protection, retail display, containment, and dunnage needs under the Bubble Wrap and Air Cap, Cryovac, Shanklin, Instapak, Jiffy, and Korrvu brands names directly, as well as through business supply distribution to fabricators, OEMs/contract manufacturers, e-commerce/fulfillment operations, and retail centers. It serves food and beverage processing, food service, retail, health care and industrial, commercial, and consumer markets. The company was founded in 1960 and is headquartered in Elmwood Park, New Jersey. (Daily Chart) |  4 August 2014 Price $32.99 1yr Target $38.11 No. of Brokers 9 1yr Cap Gain 15.51% Dividend $0.52 Yield 1.57% 1yr Tot Ret 17.08% EPS (ttm) $0.90 Payout 57.77% P/E 42.84 PEG 2.83 3yr RevGR 19.43% 3yr EarnGR -25.93% 3yr DivGR 5.01% |
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| MeadWestvaco Corporation MeadWestvaco Corporation (MWV) provides packaging solutions to healthcare, beauty and personal care, food, beverage, home and garden, tobacco, and agricultural industries worldwide. It operates in five segments: Food and Beverage, Home, Health and Beauty, Industrial, Specialty Chemicals, and Community Development and Land Management. The Food & Beverage segment produces packaging materials and paperboards, as well as is engaged in carton design and converting operation. The Home, Health & Beauty segment designs and produces pumps, paperboards, plastic packaging materials, trigger sprayers, hose-end sprayers, and spouted and applicator closures for the personal care, fragrance, home care, lawn and garden, prescription drug, and healthcare end markets. The Industrial segment designs and produces corrugated packaging materials, corrugated packaging solutions, kraftliner and recycled material medium paperboards, and containerboards, as well as converts boards and raw materials to corrugated packaging primarily for produce, meat, consumer products, and bulk goods in Brazil and India. The Specialty Chemicals segment manufactures, markets, and distributes specialty chemicals, such as performance chemicals used in printing inks, asphalt paving, and adhesives, as well as in the agricultural, paper, and petroleum industries; and produces activated carbon products used in gas vapor emission control systems for automobiles and trucks, as well as applications for air, water, and food purification. The Community Development and Land Management segment is involved in the development and sale of real estate properties; entitling and enhancing tracts; and planning of landholdings. The company sells its products through its sales force, as well as through paperboard merchants and distributors. MeadWestvaco Corporation was founded in 1888 and is headquartered in Richmond, Virginia. (Daily Chart) |  4 August 2014 Price $42.28 1yr Target $45.90 No. of Brokers 10 1yr Cap Gain 8.56% Dividend $1.00 Yield 2.36% 1yr Tot Ret 10.92% EPS (ttm) $4.79 Payout 20.87% P/E 21.68 PEG 2.17 3yr RevGR 2.87% 3yr EarnGR 94.57% 3yr DivGR 38.91% |
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| Packaging Corporation of America Packaging Corporation of America (PKG) manufactures and sells container board and corrugated packaging products in the United States, Mexico, Canada, and Europe. The company operates through three segments: Packaging, Paper, and Corporate and Other. It offers corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to promote packaged product in retail locations; and honeycomb protective packaging. The company also produces packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products, as well as newsprint for newspaper publishers. In addition, it manufactures and sells white papers, including both commodity and specialty papers with various features, such as colors, coatings, high brightness, and recycled content. The white papers consist of communication papers, such as cut-size office papers, and printing and converting papers; and pressure sensitive papers, including release liners that are used to produce labels for use in consumer and commercially-packaged products. Further, the company produces market pulp. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois. (Daily Chart) |  4 August 2014 Price $67.39 1yr Target $75.68 No. of Brokers 12 1yr Cap Gain 12.30% Dividend $1.60 Yield 2.37% 1yr Tot Ret 14.67% EPS (ttm) $4.75 Payout 33.68% P/E 13.19 PEG 0.70 3yr RevGR 14.44% 3yr EarnGR 30.39% 3yr DivGR 35.60% |
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| Sonoco Products Company Sonoco Products Company (SON) manufactures and sells industrial and consumer packaging products in the United States, Europe, and Canada. The company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. The Consumer Packaging segment offers round composite cans, shaped rigid paperboard containers, fiber caulk/adhesive tubes, aluminum, steel, and peel able membrane easy-open closures for composite and metal cans; plastic bottles, jars, jugs, cups, and trays; and printed flexible packaging, rotogravure cylinder engraving, and global brand management products. The Paper and Industrial Converted Products segment provides recycled paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard, corrugating medium, and specialty grades; and paperboard tubes and cores, molded plugs, and reels, as well as is engaged in the collection, processing, and recycling of old corrugated containers, paper, plastics, metal, glass, and other recyclable materials. The Display and Packaging segment offers point-of-purchase displays, custom packaging, fulfillment, primary package filling, supply chain management, and paperboard specialty products. The Protective Solutions segment provides engineered, custom-designed protective, temperature-assurance, and retail security packaging solutions. Sonoco Products Company was formerly known as Southern Novelty Company. The company was founded in 1899 and is based in Hartsville, South Carolina. (Daily Chart) |  4 August 2014 Price $39.62 1yr Target $43.33 No. of Brokers 9 1yr Cap Gain 9.36% Dividend $1.28 Yield 3.23% 1yr Tot Ret 12.59% EPS (ttm) $2.15 Payout 59.53% P/E 17.85 PEG 3.24 3yr RevGR 5.48% 3yr EarnGR 2.62% 3yr DivGR 3.41% |
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| AptarGroup Inc. AptarGroup, Inc. (ATR) develops, manufactures, and sells consumer product dispensing systems in North America, Europe, Asia, and Latin America. The company operates in three segments: Beauty + Home, Pharma, and Food + Beverage. The Beauty + Home segment primarily sells pumps, closures, aerosol valves, and accessories to the personal care and household markets; and pumps and decorative components to the beauty market. The Pharma segment provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments in pharmaceutical market. The Food + Beverage segment offers dispensing and non-dispensing closures, spray pumps, and aerosol valves to the food and beverage markets. The company’s customers include beauty, personal care, pharmaceutical, home care, and food and beverage marketers. AptarGroup, Inc. sells its products through own sales force, as well as independent representatives and distributors. The company was founded in 1992 and is based in Crystal Lake, Illinois. (Daily Chart) |  4 August 2014 Price $61.38 1yr Target $67.00 No. of Brokers 6 1yr Cap Gain 9.15% Dividend $1.12 Yield 1.84% 1yr Tot Ret 10.99% EPS (ttm) $2.64 Payout 42.42% P/E 22.65 PEG 2.34 3yr RevGR 6.60% 3yr EarnGR 0.52% 3yr DivGR 13.02% |
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| Bemis Company, Inc. Bemis Company, Inc. (BMS) manufactures and sells packaging products and pressure sensitive materials in North America, Latin America, Europe, and the Asia-Pacific. The company operates in three segments: U.S. Packaging, Global Packaging, and Pressure Sensitive Materials. It offers multilayer polymer, blown, and cast film structures to produce packaging sold for food, medical, pharmaceutical, personal care, electronics, and industrial applications; custom thermoformed packaging and multiwall paper bags; and injection molded plastic and folding carton packaging products. The company also provides narrow-Web rolls of pressure sensitive paper, film, and metalized film printing stocks used in high-speed printing and die-cutting; and pressure sensitive films used for decorative signage through computer-aided plotters, digital and screen printers, and photographic overlaminate and mounting materials. In addition, it offers micro-thin film adhesives used in delicate electronic parts assembly, and graphic films for decorative signage; and pressure sensitive adhesive coated foam and tape based stocks to perform fastening and mounting functions. Bemis Company markets its products primarily through its direct sales force. The company was formerly known as Bemis Bro. Bag Company and changed its name to Bemis Company, Inc. in 1965. Bemis Company, Inc. was founded in 1858 and is headquartered in Neenah, Wisconsin. (Daily Chart) |  4 August 2014 Price $39.27 1yr Target $41.20 No. of Brokers 10 1yr Cap Gain 4.91% Dividend $1.08 Yield 2.75% 1yr Tot Ret 7.66% EPS (ttm) $2.05 Payout 52.68% P/E 17.93 PEG 2.74 3yr RevGR 1.30% 3yr EarnGR 3.27% 3yr DivGR 4.08% |
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| Tupperware Brands Corporation Tupperware Brands Corporation (TUP) operates as a direct-to-consumer marketer of various products across a range of brands and categories worldwide. The company is engaged in the manufacture and sale of preparation, storage, and serving solutions for the kitchen and home, as well as a line of cookware, knives, microwave products, microfiber textiles, water related items, and toys and gifts under the Tupperware brand. It also manufactures and distributes beauty and personal care products, including skin care products, cosmetics, bath and body care, toiletries, fragrances, jewelry, and nutritional products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, and Nuvo brands. Tupperware Brands Corporation sells its products directly to distributors, directors, managers, and dealers. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. Tupperware Brands Corporation was founded in 1996 and is headquartered in Orlando, Florida. (Daily Chart) |  4 August 2014 Price $72.75 1yr Target $84.57 No. of Brokers 7 1yr Cap Gain 16.24% Dividend $2.72 Yield 3.73% 1yr Tot Ret 19.97% EPS (ttm) $5.15 Payout 52.81% P/E 15.68 PEG 1.25 3yr RevGR 5.05% 3yr EarnGR 13.41% 3yr DivGR 32.79% |
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| Silgan Holdings Inc. Silgan Holdings Inc. (SLGN), together with its subsidiaries, manufactures and sells rigid packaging for shelf-stable food and other consumer goods products worldwide. The company operates through three segments: Metal Containers, Closures, and Plastic Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for human and pet food and general line products. The Closures segment offers a range of metal, composite, and plastic closures for food and beverage products. The Plastic Containers segment manufactures custom designed plastic containers, tubes, and closures for personal care, food, health care, pharmaceutical, household and industrial chemical, pet care, agricultural chemical, automotive, and marine chemical products. The company also manufactures and sells barrier and non-barrier plastic thermoformed bowls and trays for shelf-stable food, such as soups and other ready-to-eat meals, and pet food, as well as thermoformed plastic tubs for personal care and household products, including soft fabric wipes. It markets its products primarily through direct sales force, as well as through a network of distributors and an on-line shopping catalog. Silgan Holdings Inc. was founded in 1987 and is headquartered in Stamford, Connecticut. (Daily Chart) |  4 August 2014 Price $49.56 1yr Target $50.44 No. of Brokers 9 1yr Cap Gain 1.77% Dividend $0.60 Yield 1.21% 1yr Tot Ret 2.98% EPS (ttm) $3.00 Payout 20.00% P/E 18.02 PEG 1.68 3yr RevGR 6.41% 3yr EarnGR 14.78% 3yr DivGR 9.95% |
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| Greif, Inc. Greif, Inc. (GEF) produces and sells industrial packaging products worldwide. The company’s Rigid Industrial Packaging and Services segment provides rigid intermediate bulk containers, closure systems, transit protection products, water bottles, and reconditioned containers, as well as steel, fiber, and plastic drums; and container lifecycle, blending, filling and other packaging, logistics, and warehousing services. This segment sells its products to customers in the chemicals, paints and pigments, food and beverage, petroleum, industrial coatings, agricultural, pharmaceutical, mineral, and other industries. Its Flexible Products and Services segment offers flexible intermediate bulk containers and related services; and industrial and consumer shipping sacks and multiwall bag products, which are used to ship a range of industrial and consumer products, such as seed, fertilizers, chemicals, concrete, flour, sugar, feed, pet foods, popcorn, charcoal, and salt primarily in the agricultural, chemical, building products, and food industries. The company’s Paper Packaging segment provides containerboard, corrugated sheets, corrugated containers, and other corrugated products to customers in packaging, automotive, food, and building products industries. This segment’s corrugated container products are used to ship home appliances, small machinery, grocery products, building products, automotive components, books and furniture, and other applications. Its Land Management segment is engaged in the harvest and regeneration of timber properties; and sale of timberland and special use land. As of October 31, 2013, this segment owned approximately 252,475 acres of timber property in the southeastern United States and approximately 10,300 acres of timber property in Canada. The company was formerly known as Greif Bros. Corporation and changed its name to Greif, Inc. in 2001. Greif, Inc. was founded in 1877 and is headquartered in Delaware, Ohio. (Daily Chart) |  4 August 2014 Price $49.51 1yr Target $57.50 No. of Brokers 4 1yr Cap Gain 16.13% Dividend $1.68 Yield 3.39% 1yr Tot Ret 19.52% EPS (ttm) $3.13 Payout 53.67% P/E 16.13 PEG 1.61 3yr RevGR 7.86% 3yr EarnGR -10.05% 3yr DivGR 0.79% |
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| Mobile Mini, Inc. Mobile Mini, Inc. (MINI) provides lease portable storage solutions primarily in North America and the United Kingdom. Its products include remanufactured and modified steel storage containers, steel security office and steel combination offices, wood mobile offices, and steel records storage containers, as well as van trailers and other—non-core storage units. The company’s products are used for various storage applications, including retail and manufacturing supplies, inventory and maintenance supplies, temporary offices, construction materials and equipment, documents and records, and household goods. It serves large and small retailers, construction companies, medical centers, schools, utilities, manufacturers and distributors, the United States and the United Kingdom military, government agencies, hotels, restaurants, entertainment complexes, and households. As of March 31, 2014, its total portable storage containers and office fleet was approximately 212,000 units. The company was founded in 1983 and is headquartered in Tempe, Arizona. (Daily Chart) |  4 August 2014 Price $37.86 1yr Target $47.57 No. of Brokers 7 1yr Cap Gain 25.64% Dividend $0.68 Yield 1.79% 1yr Tot Ret 27.43% EPS (ttm) $0.42 Payout 161.90% P/E 86.05 PEG 5.06 3yr RevGR 7.08% 3yr EarnGR 19.90% 3yr DivGR N/A |
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