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Pactiv Evergreen, Inc. (PTVE)
NASDAQ:PTVE
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Pactiv Evergreen
(NASDAQ:PTVE)
54Neutral
Positive Factors
Business Combination
The combined company possesses one of the most diverse substrate sets in Packaging with 250+ brands, 39k+ SKUs, and several varieties of fiber, resin & recycled offerings.
Valuation
Maintain Buy on Pactiv based on its valuation and the potential for volumes to improve.
Negative Factors
Earnings Consistency
A period of earnings consistency is needed before investors ascribe valuation multiple expansion to the enterprise.
Operating Environment
The operating environment for Pactiv Evergreen remains challenged near term.
Pactiv Evergreen (PTVE) vs. S&P 500 (SPY)
Market Cap
$3.25B
Dividend Yield2.22%
Average Volume (3M)761.05K
Price to Earnings (P/E)―
Beta (1Y)1.28
Revenue Growth-6.57%
EPS Growth38.96%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength57
IndustryPackaging & Containers
Share Statistics
EPS (TTM)-0.77
Shares Outstanding180,630,540
10 Day Avg. Volume1,039,963
30 Day Avg. Volume761,049
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.63
Price to Cash Flow (P/CF)9.00
P/FCF Ratio81.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.00Price Target Upside-0.06% Downside
Rating ConsensusHold
Number of Analyst Covering2
Pactiv Evergreen Business Overview & Revenue Model
Company DescriptionPactiv Evergreen Inc. (PTVE) is a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The company operates in multiple segments, including Foodservice, Food Merchandising, and Beverage Merchandising, providing a wide range of products such as containers, cups, lids, tableware, and cartons made from paper, plastic, and aluminum. Pactiv Evergreen serves a diverse customer base, including restaurants, food processors, supermarkets, and convenience stores.
How the Company Makes MoneyPactiv Evergreen generates revenue primarily through the sale of its packaging products across its three main business segments. The Foodservice segment provides products like containers and tableware to restaurants and institutional foodservice providers. The Food Merchandising segment offers packaging solutions to food processors and retailers, including supermarkets. The Beverage Merchandising segment focuses on the production of beverage cartons used by dairies and juice producers. Key revenue streams include direct sales to end-users and distributors. The company benefits from long-term contracts and relationships with major foodservice operators and retailers, ensuring a steady stream of income. Additionally, Pactiv Evergreen continuously innovates and develops new products to meet consumer demands and environmental standards, which helps to sustain and grow its market share.
Pactiv Evergreen Financial Statement Overview
Summary
Pactiv Evergreen is struggling with declining revenues and profitability pressures, as evidenced by its income statement. The company faces high leverage risks according to its balance sheet. However, it shows resilience in cash flow performance, indicating effective operational cash management.Income Statement
The income statement shows declining revenue over the years, with a significant drop from 2019 to 2024. Gross profit margin has decreased, indicating pressure on profitability. EBIT and EBITDA margins are low, suggesting operational challenges. However, the company managed to reduce its net loss in 2024 compared to 2023, indicating some improvement in cost management.60
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, highlighting financial leverage risks. Stockholders' equity has decreased over time, reflecting potential financial health concerns. However, in 2023, the equity ratio improved slightly, indicating a minor positive trend in the balance sheet structure.50
Neutral
Cash Flow
Cash flow analysis shows positive free cash flow growth in recent years, indicating improved cash generation from operations. Operating cash flow remains strong relative to net income, suggesting effective cash management. However, fluctuations in free cash flow highlight potential volatility in cash usage.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.81B | 5.51B | 6.22B | 5.44B | 4.69B | Gross Profit |
| 626.00M | 733.00M | 997.00M | 574.00M | 720.00M | EBIT |
| 110.00M | 28.00M | 405.00M | 229.00M | 283.00M | EBITDA |
| 440.00M | 641.00M | 1.11B | 619.00M | 576.00M | Net Income Common Stockholders |
| -133.00M | -223.00M | 318.00M | 33.00M | -10.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 146.00M | 164.00M | 531.00M | 197.00M | 458.00M | Total Assets |
| 5.88B | 6.39B | 7.31B | 7.02B | 6.84B | Total Debt |
| 3.70B | 3.87B | 4.41B | 4.54B | 4.25B | Net Debt |
| 3.56B | 3.70B | 3.88B | 4.34B | 3.80B | Total Liabilities |
| 4.77B | 5.05B | 5.75B | 5.73B | 5.77B | Stockholders Equity |
| 1.10B | 1.34B | 1.55B | 1.28B | 1.07B |
| Cash Flow | Free Cash Flow | |||
| 395.00M | 249.00M | 156.00M | -21.00M | -157.00M | Operating Cash Flow |
| 395.00M | 534.00M | 414.00M | 261.00M | 253.00M | Investing Cash Flow |
| -156.00M | -272.00M | 102.00M | -658.00M | -354.00M | Financing Cash Flow |
| -275.00M | -633.00M | -193.00M | 147.00M | -711.00M |
Pactiv Evergreen Technical Analysis
Positive
18.01
Price Trends
17.83
Positive
16.51
Positive
13.95
Positive
Market Momentum
0.06
Positive
80.73
Negative
83.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTVE, the sentiment is Positive. The current price of 18.01 is above the 20-day moving average (MA) of 17.90, above the 50-day MA of 17.83, and above the 200-day MA of 13.95, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 80.73 is Negative, neither overbought nor oversold. The STOCH value of 83.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTVE.
Pactiv Evergreen Risk Analysis
Pactiv Evergreen disclosed 51 risk factors in its most recent earnings report. Pactiv Evergreen reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pactiv Evergreen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $16.99B | 21.15 | 19.03% | 2.75% | 7.45% | 5.26% | |
69 Neutral | $7.40B | 11.36 | 22.72% | 1.67% | -6.59% | -7.81% | |
65 Neutral | $3.82B | 14.10 | 45.91% | 3.07% | -1.75% | -21.15% | |
62 Neutral | $4.35B | 26.73 | 6.42% | 4.79% | -6.93% | -65.66% | |
61 Neutral | $23.79B | 28.65 | 6.74% | 4.11% | -1.57% | 84.85% | |
60 Neutral | $6.56B | 11.42 | 3.23% | 4.27% | 2.37% | -21.19% | |
54 Neutral | $3.25B | ― | -11.10% | 2.22% | -6.57% | 38.96% |
* Consumer Cyclical Sector Average
Performance Comparison
PTVE
Pactiv Evergreen
18.01
3.37
23.02%
GPK
Graphic Packaging
25.35
-1.34
-5.02%
IP
International Paper Co
46.48
13.34
40.25%
PKG
Packaging
186.42
19.72
11.83%
SEE
Sealed Air
26.73
-4.01
-13.04%
SON
Sonoco Products
45.01
-8.88
-16.48%
Pactiv Evergreen Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 1.07% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, focusing on a shift towards core operations and cost efficiency despite facing significant challenges such as decreased revenues and operational issues at Pine Bluff. While financial performance for Q3 was strong and innovation continues to drive future growth prospects, current consumer demand and broader industry challenges remain a concern.Highlights
Strong Financial Performance in Q3 2024
Q3 revenues were $1.3 billion with an adjusted EBITDA of $214 million, representing a solid 16% margin. The company delivered adjusted earnings per share of $0.36 and a free cash flow of $190 million.
Successful Divestiture of Mill Operations
Completed the sale of remaining mill operations on October 1, focusing on core North American converting operations and transitioning to a capital-light business model.
Cost Savings Initiatives
On track to generate $15 million in cost savings from discretionary spend and SG&A, and an anticipated $35 million in cost savings by 2026 from footprint optimization.
Innovation and New Product Development
Launched new Recycleware brand products and SmartPour portable containers, aiming to expand presence in underrepresented markets.
Positive Cash Flow and Reduced Net Debt
Generated free cash flow of $190 million, reducing net debt by $170 million and net leverage to 4.3x.
Lowlights
Decreased Revenues and Volumes
Net revenues decreased by about 3% compared to last year, driven by lower sales volumes despite favorable pricing.
Operational Challenges at Pine Bluff Mill
Experienced higher manufacturing costs due to operational challenges at Pine Bluff during the final quarter of ownership.
Negative Contribution from Pine Bluff
Pine Bluff generated negative $38 million of adjusted EBITDA for the first nine months of the year.
Consumer Demand and Industry Challenges
Foot traffic in restaurants and grocery stores affected by lingering high prices, with foodservice volumes down 2% and food and beverage merchandising volumes down 8%.
Company Guidance
During the Pactiv Evergreen earnings call for Q3 2024, management provided detailed guidance for the remainder of the year, projecting a full-year adjusted EBITDA between $800 million and $810 million. This revised guidance accounts for operational challenges at their Pine Bluff mill, which resulted in a $17 million shortfall in Q3 EBITDA compared to previous forecasts. The company expects a sequential uplift in Q4, driven by industry promotions and efficiency gains, despite broader market challenges. They also anticipate generating $15 million in cost savings from discretionary spend and SG&A by year-end. The full-year capital expenditure is forecasted to be $240 million to $250 million, with free cash flow projected to range from $180 million to $200 million. The divestiture of the Pine Bluff mill is expected to improve the company’s profitability and reduce earnings volatility, positioning Pactiv Evergreen for solid earnings momentum into 2025.Pactiv Evergreen Corporate Events
Delistings and Listing ChangesExecutive/Board ChangesPrivate Placements and FinancingM&A Transactions
Pactiv Evergreen Completes Merger and Delists from Nasdaq
Neutral
Apr 1, 2025
On the Closing Date, Pactiv Evergreen, through its parent company Clydesdale Acquisition Holdings, Inc., entered into several financial agreements involving the issuance of senior secured notes with varying maturity dates and interest rates. These notes, secured by first-priority liens on the assets of Clydesdale and its subsidiaries, are part of a broader financial restructuring and merger strategy. Concurrently, Pactiv Evergreen repaid and terminated its existing credit agreements and released related liens and guarantees. The company also announced significant leadership changes and the delisting of its shares from Nasdaq following the completion of a merger, resulting in Pactiv Evergreen becoming a wholly owned subsidiary of Novolex. This strategic move, funded through new notes, loans, and equity contributions, marks a significant shift in the company’s corporate structure and market presence.
Delistings and Listing ChangesM&A Transactions
Pactiv Evergreen to Finalize Acquisition by Novolex
Neutral
Mar 28, 2025
On March 28, 2025, Pactiv Evergreen announced that it had received all required regulatory approvals for its acquisition by Novolex, which is expected to close on April 1, 2025. The transaction will result in Pactiv Evergreen becoming a privately held company, with its common stock no longer listed on Nasdaq, marking a significant shift in its market presence.
Delistings and Listing ChangesM&A Transactions
Pactiv Evergreen Set for Acquisition by Novolex
Neutral
Jan 21, 2025
Pactiv Evergreen Inc. announced the expiration of the Hart-Scott-Rodino Act waiting period on January 21, 2025, in relation to its planned acquisition by Novolex Holdings, LLC. The merger, valued at $18.00 per share, is expected to close in the second quarter of 2025, subject to foreign antitrust approvals and other conditions, resulting in Pactiv Evergreen becoming a privately held company and delisting from Nasdaq.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.