AmcorPackaging Corp of America

Amcor vs Packaging Corp of America

This page compares Amcor plc and Packaging Corp of America across business models, financial performance, and market context, providing a neutral overview of how each company operates and the environm...

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Green Packaging Investment Theme: 18 Stocks (2025)

Green Packaging Investment Theme: 18 Stocks (2025)

International Paper's $1.5 billion sale of its cellulose fibers unit signals a strategic pivot to its core sustainable packaging business. This move highlights a broader industry trend of portfolio optimization, creating potential growth opportunities for companies focused on eco-friendly packaging solutions and related industries.

Published: August 22, 2025

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Investment Analysis

Amcor

Amcor

AMCR

Pros

  • Amcor reported a 10% revenue increase in 2025, reaching $15 billion, supported by growth across its flexible and rigid packaging segments.
  • The company has a broad global presence, operating in multiple regions including Europe, North America, Latin America, and Asia Pacific, enhancing market diversification.
  • Analysts generally rate Amcor as a moderate buy with an average price target suggesting about 26-33% upside potential over the next 12 months.

Considerations

  • Despite revenue growth, Amcor’s net income and EPS in 2025 showed declines, indicating pressure on profitability or margin compression.
  • Technical forecasts signal a potential short-term share price decline of up to 10% by year-end 2025, reflecting market sentiment and near-term uncertainties.
  • Relative valuation metrics like P/E and price-to-book are above sector averages, suggesting the stock might be priced high compared to peers within basic materials.

Pros

  • Packaging Corporation of America (PKG) has a strong competitive position in the North American corrugated packaging market with steady demand.
  • The company benefits from operational efficiency and scale, enabling solid margins and cash flow generation in a cyclical but essential industry.
  • PKG’s business exposure to e-commerce growth drives increased demand for corrugated packaging solutions, providing a growth catalyst.

Considerations

  • Packaging Corp faces cyclicality risks tied to commodity price volatility, especially in pulp and paper raw materials affecting input costs.
  • The company is sensitive to economic fluctuations impacting customer's production volumes and packaging demand across industries.
  • Execution risks remain from integrating acquisitions and expanding capacity amid changing consumer behaviour and supply chain disruptions.

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