Graphic Packaging Declared a Quarterly Dividend of $0.05 per Share
News Flash: Top Events in the Consumer Sector Last Week
Price movement
Graphic Packaging Holding (GPK) rose by 10.2%. It closed at $12.33 per share at the end of the last week of February 2016. The price movement on a weekly, monthly, and YTD (year-to-date) basis is 10.2%, 13.2%, and -3.9%, respectively.
Currently, Graphic Packaging is trading 7.1% above its 20-day moving average, 2.8% above its 50-day moving average, and 8.4% below its 200-day moving average.
The Vanguard Small-Cap Value ETF (VBR) invests 0.32% of its holdings in Graph Packaging. VBR aims to track the CRSP US Small-Cap Value Index. The index selects from a list of stocks in the 85%–99% range of the market cap based on five value factors. VBR’s YTD price movement was -6.3% as of February 25, 2016.
The PowerShares DWA Momentum ETF (PDP) invests 1.2% of its holdings in Graphic Packaging. PDP tracks an index of 100 US-listed large and mid-cap companies selected and weighted by the relative stock performance.
The market caps of Graphic Package’s competitors are as follows:
International Paper Company (IP) – $14.5 billion
WestRock Company (WRK) – $8.5 billion
Graphic Packaging declared a dividend
Graphic Packaging declared a quarterly dividend of $0.05 per share on its common stock. The dividend will be paid on April 5, 2016, to shareholders as of record at the close of business on March 15, 2016.
Performance in 4Q15 and 2015
Graphic Packaging reported 4Q15 net sales of $1,024.9 million—a rise of 2.4% compared to net sales of $1,001.1 million in fiscal 4Q14. The net tons of paperboard packaging sold rose by 4.6% in fiscal 4Q15—compared to fiscal 4Q14. The company’s cost of sales as a percentage of net sales fell by 1.2%, and its operating income rose by 14.5% in fiscal 4Q15—compared to fiscal 4Q14.
Its net income and EPS (earnings per share) rose to $57.2 million and $0.17, respectively, in fiscal 4Q15—compared to $41.5 million and $0.13, respectively, in fiscal 4Q14.
Fiscal 2015 results
In its fiscal 2015 results, Graphic Packaging reported net sales of $4,160.2 million—a fall of 1.9% year-over-year. Its net income and EPS rose to $230.1 million and $0.70, respectively, in fiscal 2015—compared to $89.7 million and $0.27, respectively, in fiscal 2014.
Meanwhile, its cash and cash equivalents fell by 32.7%. It inventories rose by 6.8% in fiscal 2015. Its current ratio and long-term debt-to-equity ratio fell to 1.5x and 1.7x, respectively, in fiscal 2015—compared to 1.6x and 1.9x, respectively, in fiscal 2014.
The price-to-earnings and price-to-book value ratios of Graphic Packaging are 17.6x and 3.7x, respectively, as of February 26, 2016.
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