Top 12 Packaging & Containers Stocks
Marvin's rules picked 12 packaging & containers companies above about $300 million in size. Karat Packaging, Ball and Sonoco rank highest on Marvin's industry-relative scores. Each pick below lists its strengths and one caution.
Packaging and containers companies make the boxes, cans, bottles, labels and wrappers that hold and ship everyday goods. This list covers 12 of them, ranked by Marvin's Overall score, with the highest first.
Look at more than the Overall score. Quality reflects the health of the business, and Opportunity is Marvin's separate measure. The margins, growth and debt figures in each pick show what sits behind those scores. Some stocks score well on one side and poorly on the other.
Some figures are missing for a few companies, and the blurbs say so. Scores only compare a company with others in the same industry. They are not a forecast and not advice.
The list
How Marvin ranked these stocks
Marvin included companies above about $300 million in size and ranked them by Marvin scores from 0 to 100. The Packaging & Containers industry was ranked with the highest Overall score first. Scores are relative to each company's own industry, so a high score means a company looks strong compared with other packaging companies today. It does not mean it looks strong against every company in the market.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Packaging & Containers industry, highest Overall score first.
The stocks, one by one
Karat Packaging Inc. KRT
Karat Packaging has the top Overall score, 94, in this list. Its gross margin of 40.7% and return on equity of 30.2% point to a profitable business, and revenue grew 10.7% last year. Caution: no debt-to-equity figure is available, so its borrowing is unclear.
Ball Corporation BALL
Ball Corporation earns a Quality score of 94, the highest of the 12, with revenue growth of 11.6% and return on equity of 16.5%. Its free cash flow margin of 5.8% is modest, and debt-to-equity of 1.31 means it uses a fair amount of borrowing.
Sonoco Products Company SON
Sonoco Products posts the group's highest Opportunity score, 94, helped by revenue growth of 41.7%. Its operating margin is 13.6%. Caution: free cash flow margin is thin at 2.9%, and its Quality score is a middling 47.
Crown Holdings, Inc. CCK
Crown Holdings has a Quality score of 74 and return on equity of 27.3%, with a free cash flow margin of 9.0%. Growth was slower at 4.8%, and debt-to-equity of 2.19 is on the higher side, so debt is the main watch point.
Silgan Holdings Inc. SLGN
Silgan Holdings grew revenue 10.7%, with a gross margin of 17.1% and a free cash flow margin of 5.1%. Those are middling figures. Caution: return on equity is 11.4% and debt-to-equity is 2.04, so borrowing is notable. Operating margin is not available.
TriMas Corporation TRS
TriMas has a Quality score of 87, low debt-to-equity of 0.30 and return on equity of 62.7%. Growth is slow at 2.4%. Caution: free cash flow margin is -1.7%, below zero, meaning it did not generate spare cash in the period measured.
Avery Dennison Corporation AVY
Avery Dennison turns sales into cash well, with a free cash flow margin of 11.5% and return on equity of 30.3%. Caution: revenue growth is just 1.1%, and its Opportunity score of 34 is the weak spot in its profile.
Packaging Corporation of America PKG
Packaging Corporation of America shows an operating margin of 10.9% and a free cash flow margin of 7.8%, with moderate debt-to-equity of 0.94. Caution: return on equity is 14.8% and its Overall score is 48, which puts it in the lower half of this list.
Greif, Inc. GEF
Greif has an Opportunity score of 80 but a Quality score of just 34. Revenue growth was 4.3%, and debt-to-equity is a low 0.41. Caution: margin and return figures are not available, so its profitability is hard to judge here.
Myers Industries, Inc. MYE
Myers Industries has a gross margin of 34.7% and a free cash flow margin of 10.9%, both healthy. Caution: revenue shrank, with growth of -1.3%, return on equity is 12.0%, and its Overall score is 34.
Graphic Packaging Holding Company GPK
Graphic Packaging has an operating margin of 5.8% and return on equity of 6.0%, both modest. Revenue growth was -2.2%, and debt-to-equity is 1.76. Caution: free cash flow margin is not available, and its Overall score is 27.
O-I Glass, Inc. OI
O-I Glass has the lowest Overall score here, 6. Return on equity is -214.3%, revenue growth is -1.6%, and debt-to-equity of 9.01 is the highest in the group. Caution: free cash flow margin is -0.2%, so heavy debt is a clear concern.
Common questions
What do packaging & containers companies do?
They make the materials that protect, hold and ship products, such as cardboard boxes, metal cans, glass bottles, plastic containers and labels. Their customers include food, drink, household goods and industrial businesses.
What does a high Marvin Overall score mean?
It means a company looks strong compared with other companies in its own industry today, based on Marvin's Quality and Opportunity scores. It is not a prediction and not a recommendation to buy or sell.
Why do some stocks on this list have missing figures?
Not every company reports every measure in a form Marvin can use. When a figure such as operating margin, free cash flow margin or debt-to-equity is missing, the blurb says so and the score rests on the figures that are available.
Keep reading
- Top 15 Fastest-Growing Profitable Consumer Cyclical Stocks
- Top 15 Consumer Cyclical Companies by Business Quality
- Top 15 Consumer Cyclical Stocks Right Now
- Top 20 Dividend Stocks Ranked by Marvin's Scores
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.