Last Updated: 13 Nov 2024
Executive Summary
Pactiv Evergreen Inc. (PTVE) is a leading manufacturer and distributor of fresh food service and food merchandising products in North America. The company has a market capitalization of $2.15 billion and trades on the NASDAQ exchange. Pactiv Evergreen's stock price is currently $11.53, which is below its 52-week high of $15.58 and above its 52-week low of $8.75.
Company Overview
Pactiv Evergreen was founded in 1911 and is headquartered in Lake Forest, Illinois. The company has approximately 18,000 employees and operates 40 manufacturing facilities in North America. Pactiv Evergreen's products are used in a variety of industries, including foodservice, retail, and healthcare.
Fundamental Analysis
Pactiv Evergreen's financial performance has been mixed in recent years. The company's revenue has declined slightly in each of the past two years, and its earnings per share have been volatile. However, the company's profitability metrics have improved in recent quarters. Pactiv Evergreen's gross profit margin has increased from 18.9% in 2021 to 19.1% in 2023, and its operating margin has increased from 7.6% to 8.2% over the same period.
Pactiv Evergreen's balance sheet is strong. The company has $1.2 billion in cash and equivalents and $1.5 billion in debt. Pactiv Evergreen's debt-to-equity ratio is 0.6, which is below the industry average.
Technical Analysis
Pactiv Evergreen's stock price has been in a downtrend since early 2023. The stock price broke below its 200-day moving average in June 2023 and has continued to decline since then. The stock price is currently trading below its 50-day moving average, which is a sign of weakness.
Short Term Outlook
Pactiv Evergreen's stock price is likely to remain under pressure in the short term. The company's revenue and earnings are expected to decline in the coming quarters, and the stock price is trading below its key moving averages.
Long Term Outlook
Pactiv Evergreen's long-term outlook is more positive. The company is a leader in its industry, and it has a strong balance sheet. Pactiv Evergreen is also benefiting from the growing demand for sustainable packaging solutions.
Analyst Recommendations
Analysts are mixed on Pactiv Evergreen's stock. Three analysts have a "Strong Buy" rating on the stock, two analysts have a "Buy" rating, and two analysts have a "Hold" rating. The average analyst target price is $14, which is 21% above the current stock price.
