Graphic Packaging Holding (GPK) rose by 0.22% and closed at $13.80 per share during the second week of August 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 0.22%, 4.4%, and 8.4%, respectively, as of August 12. Graphic Packaging is trading 2.2% above its 20-day moving average, 5.2% above its 50-day moving average, and 7.7% above its 200-day moving average.
Related ETF and peers
The Vanguard Small-Cap Value ETF (VBR) invests 0.26% of its holdings in Graphic 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 market cap based on five value factors. VBR’s YTD price movement was 12.4% on August 12.
The market caps of Graphic Packaging’s peers are as follows:
Moody’s rated Graphic Packaging’s notes
Moody’s rated Graphic Packaging International’s new $300 million senior unsecured notes due in 2024 as “Ba2.” The net proceeds from these offerings and $5 million cash on the balance sheet will be used to repay $300 million revolver borrowings and to pay fees and expenses related to the transaction.
Moody’s kept the company’s corporate family rating of Ba1, the probability of default rating of Ba1-PD, and other instruments ratings unchanged. It also provided the stock’s rating outlook as “stable.”
Performance in 2Q16
Graphic Packaging reported 2Q16 net sales of $1.1 billion—a rise of 4.4% over net sales of $1.1 billion in 2Q15. The company’s cost of sales as a percentage of net sales rose by 0.20% and its income from operations fell by 4.2% between 2Q15 and 2Q16. It reported business combinations and other special charges of $5.3 million in 2Q16—compared to $3.9 million in 2Q15.
Its net income and EPS (earnings per share) rose to $77.8 million and $0.24, respectively, in 2Q16—compared to $57.6 million and $0.17, respectively, in 2Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $195.2 million in 2Q16—a rise of 1.6% over 2Q15.
Graphic Packaging’s cash and cash equivalents fell by 29.5% and its inventories rose by 5.9% between 2Q15 and 2Q16. Its current ratio and long-term debt-to-equity ratio rose to 1.6x and 2.0x, respectively, in 2Q16—compared to 1.5x and 1.7x, respectively, in 4Q15. The company repurchased shares worth of $37.0 million in 2Q16.
Graphic Packaging declared a quarterly dividend of $0.05 per share on its common stock. The dividend will be paid on October 5, 2016, to shareholders of record at the close of business on September 15, 2016.
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