Why Pactiv Evergreen Inc's Stock Skyrocketed 23% in a Quarter

Pactiv Evergreen Inc's stock has seen a significant surge of 24.94% over the past week and 23.27% over the past three months. The company's GF Value, a measure of intrinsic value defined by GuruFocus.com, currently stands at $11.11, down from $12.87 three months ago. This shift indicates that the stock has moved from being a possible value trap to being fairly valued.

Company Overview

Pactiv Evergreen Inc is a leading player in the Packaging & Containers industry. The company specializes in manufacturing and distributing fresh foodservice and food merchandising products, as well as fresh beverage cartons. It operates through three main segments: Foodservice, Food Merchandising, and Beverage Merchandising. These segments produce a wide range of products, including food containers, drinkware, tableware, ready-to-eat food containers, clear rigid-display containers, trays for meat and poultry, molded fiber egg cartons, printed cartons, spouts & filling machines, and other products. The majority of the company's revenue is generated from the United States, its primary geographical market. 1720098130579484672.png

Profitability Analysis

Pactiv Evergreen Inc has a Profitability Rank of 5/10, indicating a moderate level of profitability. The company's Operating Margin stands at 1.63%, which is better than 23.24% of the companies in the industry. The company's ROE and ROA are -5.10% and -0.99% respectively, while its ROIC is 3.88%. Over the past 10 years, the company has been profitable for 7 years. 1720098149361577984.png

Growth Prospects

The company's Growth Rank is 3/10, indicating a relatively low level of growth. The 3-Year Revenue Growth Rate per Share is 5.60%, which is better than 43.01% of the companies in the industry. However, the 5-Year Revenue Growth Rate per Share is -6.40%. The company's future total revenue growth rate estimate is currently at -0.94%. 1720098167820709888.png

Top Holders

The top three holders of Pactiv Evergreen Inc's stock are Jim Simons (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Jeremy Grantham (Trades, Portfolio), holding 168,800, 160,439, and 22,275 shares respectively. Their respective share percentages are 0.09%, 0.09%, and 0.01%.

Competitive Landscape

Pactiv Evergreen Inc operates in a competitive industry, with key competitors including TriMas Corp (TRS, Financial) with a market cap of $1.01 billion, Ardagh Metal Packaging SA (AMBP, Financial) with a market cap of $2.09 billion, and Myers Industries Inc (MYE, Financial) with a market cap of $629.075 million.

Conclusion

In conclusion, Pactiv Evergreen Inc's stock has seen a significant surge over the past three months. The company's profitability and growth prospects, along with its competitive position in the industry, make it a stock to watch. However, investors should also consider the company's future total revenue growth rate estimate and the current GF Value before making investment decisions.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.