Graphic Stock Story


USD 23.29  0.09  0.39%   

As many investors are getting excited about consumer cyclical space, Graphic Packaging and Incapta may be going in opposite directions. We are going to concentrate on some of the competitive aspects of both Graphic and Incapta.
Published over two weeks ago
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Will Graphic Packaging (NYSE:GPK) shadow Incapta price appreciation?

By analyzing existing basic indicators between Graphic Packaging and Incapta, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Incapta with a short position in Graphic Packaging. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Graphic Packaging has an asset utilization ratio of 182.09 percent. This signifies that the company is making $1.82 for each dollar of assets. An increasing asset utilization means that Graphic Packaging Holding is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Graphic Packaging's Liquidity

Graphic Packaging financial leverage refers to using borrowed capital as a funding source to finance Graphic Packaging Holding ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Graphic Packaging financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Graphic Packaging's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Graphic Packaging, but it might be worth checking our own buy vs. sell analysis

Going after Graphic Financials

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Graphic Packaging revenue. Based on the latest financial disclosure, Graphic Packaging Holding reported 7.75 B of revenue. This is 8.7% higher than that of the Consumer Cyclical sector and 25.71% higher than that of the Packaging & Containers industry. The revenue for all United States stocks is 17.86% higher than that of the entity. As for Incapta we see revenue of 1.16 M, which is 99.98% lower than that of the Packaging & Containers

Graphic7.75 Billion
Sector6.16 Billion
Incapta1.16 Million
7.8 B
6.2 B

Graphic Packaging implied volatility may change after the surge

Recent standard deviation is at 2.09. Graphic Packaging Holding currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.16. However, we advise investors to further question Graphic Packaging Holding expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Graphic Packaging's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Graphic Packaging's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Graphic Packaging Implied Volatility

Graphic Packaging's implied volatility exposes the market's sentiment of Graphic Packaging Holding stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Graphic Packaging's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Graphic Packaging stock will not fluctuate a lot when Graphic Packaging's options are near their expiration.

Our Bottom Line On Graphic Packaging Holding

Although other entities within the packaging & containers industry are still a little expensive, even after the recent corrections, Graphic Packaging may offer a potential longer-term growth to traders. To conclude, as of the 26th of July 2022, we believe that at this point, Graphic Packaging is undervalued with below average probability of distress within the next 2 years. Our up-to-date advice on the firm is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Graphic Packaging Holding. Please refer to our Terms of Use for any information regarding our disclosure principles.

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