The share price of Graphic Packaging Holding Company [NYSE: GPK] inclined by $14.04, presently trading at $14.10. The company’s shares saw 40.39% gains compared to the lowest price in the period of the last 52 weeks, set at $10.04 recorded on 11/07/2019. The last few days have been benevolent to the share price as GPK fall by -0.42% during the last week, even though the stock is still down by -1.26% compared to -0.06 of all time high it touched on 07/08/19. However, the stock had a strong performance during the past 3 months, roughly N/A 0.00%, while additionally dropping -4.62% during the last 12 months. Graphic Packaging Holding Company is said to have a 12-month price target set at $15.75. That means that the stock has a strong potential to acquire 1.65% increase from the current trading price.

Graphic Packaging Holding Company [NYSE:GPK]: Analyst Rating and Earnings

Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Graphic Packaging Holding Company [GPK], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in December. On average, stock market experts give GPK an Outperform rating. Its stock price has been found in the range of 10.04 to 15.22. This is compared to its latest closing price of $14.04.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Graphic Packaging Holding Company [GPK] is sitting at 1.80. This is compared to 1 month ago, when its average rating was 1.80.

For the quarter ending in Mar-19 Graphic Packaging Holding Company [GPK] generated $1.51 billion in sales. That’s 1.82% lower than the average estimate of $1.53 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.

Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Tue 23 Jul (In 12 Days).

Fundamental Analysis of Graphic Packaging Holding Company [GPK]

Now let’s turn to look at profitability: with a current Operating Margin for Graphic Packaging Holding Company [GPK] sitting at +7.97 and its Gross Margin at +15.70, this company’s Net Margin is now 4.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.

This company’s Return on Total Capital is 10.88, and its Return on Invested Capital has reached 8.60%. Its Return on Equity is 15.40, and its Return on Assets is 3.71. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates GPK financial performance.

Turning to investigate this organization’s capital structure, Graphic Packaging Holding Company [GPK] has generated a Total Debt to Total Equity ratio of 187.22. Similarly, its Total Debt to Total Capital is 65.18, while its Total Debt to Total Assets stands at 41.89. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 183.93, and its Long-Term Debt to Total Capital is 64.04. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.

What about valuation? This company’s Enterprise Value to EBITDA is 7.80 and its Total Debt to EBITDA Value is 3.25. The Enterprise Value to Sales for this firm is now 1.17, and its Total Debt to Enterprise Value stands at 0.43.

Shifting the focus to workforce efficiency, Graphic Packaging Holding Company [GPK] earns $334,611 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 11.34 and its Total Asset Turnover is 1.01. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.64 and its Current Ratio is 1.50. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.

Graphic Packaging Holding Company [GPK] has 297.50M shares outstanding, amounting to a total market cap of $4.18B. Its stock price has been found in the range of 10.04 to 15.22. At its current price, it has moved down by -7.36% from its 52-week high, and it has moved up 40.39% from its 52-week low.

This stock’s Relative Strength Index (RSI) is at 55.46. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Graphic Packaging Holding Company [GPK] a Reliable Buy?

Graphic Packaging Holding Company [GPK] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.