Current Analysis: Pactiv Evergreen

TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Mark, Marker, Hand, Write, Glass, Glass Pane

Image Source: Pixabay

Pactiv Evergreen Inc. (PTVE) is engaged in the business of manufacturing and distributing fresh food service and food merchandising products and fresh beverage cartons. It operates in two segments: Foodservice, Food and Beverage Merchandising.

These segments manufacture products such as food containers, drinkware, tableware, service ware, 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.

It generates the majority of its revenue from Food and Beverage Merchandising.

The company's geographical segments are the United States, the Rest of North America, and Others, of which the vast majority of its revenue comes from the United States.

The company was formerly known as Reynolds Group Holdings Limited.

The company was founded in 1880 and is headquartered in Lake Forest, Illinois.

Pactiv Evergreen Inc. is a subsidiary of Packaging Finance Limited.

Three key data points gauge PTVE or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.

PTVE Price

Over the past year, Pactiv’s share price increased about 61% from $7.30 to $11.75 as of Thursday’s market close.

If Pactiv shares trade in the range of $7.00 to $21.00 this next year, its recent $11.75 share price might rise to $15.00 by next year. Of course, Pactiv’s price could also drop about the same $3.25 estimated amount or more.

My $3.35 upside estimate is $1.07 below the median of 1-year target estimates from 7 analysts tracking PTVE for brokers.

PTVE Dividend

Pactiv Evergreen Inc. has paid variable Quarterly dividends since February 2021.

Pactiv’s most recent Q dividend of $0.10 was declared May 2nd  for shareholders of record May 31st and the dividend was paid June 14th.

A forward-looking $0.40 annual dividend yields 3.4% at Thursday’s closing share price.

PTVE Returns

To put it all together, a $3.65 estimated gross gain per share for the coming year results from adding Pactiv’s $0.40 dividend to the estimated price upside of $3.25.

A little under $1000 buys 85 shares at $11.75 per share.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might take out $0.12 per share out of the $3.65 gross gain to reveal a net gain of $3.53 X 85 shares = $300.05 for about a 30% estimated net gain on the year.

Furthermore, the $34.00 annual dividend income from $1K invested is over 2.89 times greater than the $11.75 single share price. By these numbers, Pactiv Evergreen Inc. is an ideal dividend dog.

You might choose to pounce on Pactiv Evergreen Inc. It is a 144-year-old dividend-paying Illinois-based packaging firm that has a 3-year track record paying quarterly $0.10 dividends.

The exact track of Pactiv’s future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


More By This Author:

Current Analysis: Kohl's Corporation
Current Analysis: International Paper Company
Current Analysis: International Game Technology

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments