Packaging Corporation of America (PKG) has reported steadily expanding net margins over the past 3 years, growing from 6.7% in 4Q 2022 to 8.5% in 4Q 2023 to 11.2% in 4Q 2024. The company's revenue has also grown at a healthy clip, increasing 11.8% year-over-year in 4Q 2024. This combination of margin expansion and revenue growth has driven a 23.7% increase in net income over the same period. PKG maintains a strong balance sheet, with a debt-to-equity ratio of just 0.7 and $2.9 billion in cash as of 4Q 2024. The company's free cash flow has grown to $1.1 billion in 4Q 2024, up from $844 million in 4Q 2023. The consistent margin improvement, healthy financials, and positive revenue and earnings trends make PKG an attractive opportunity for investors seeking exposure to the packaging industry. The company's operational execution and pricing power suggest the margin expansion thesis remains intact.

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