Balancing Dividends and Fundamentals: The Case of NYSE:SON.

SONOCO PRODUCTS CO (NYSE:SON) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:SON demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Looking at the Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:SON has received a 7 out of 10:

• SON's Dividend Yield is rather good when compared to the industry average which is at 2.95. SON pays more dividend than 90.91% of the companies in the same industry.
• SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
• SON has paid a dividend for at least 10 years, which is a reliable track record.
• SON has not decreased their dividend for at least 10 years, which is a reliable track record.

Understanding NYSE:SON's Health Score

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:SON, the assigned 5 for health provides valuable insights:

• SON has a Altman-Z score of 2.51. This is amongst the best in the industry. SON outperforms 81.82% of its industry peers.
• SON has a better Debt to FCF ratio (7.06) than 86.36% of its industry peers.
• Looking at the Debt to Equity ratio, with a value of 1.04, SON is in the better half of the industry, outperforming 63.64% of the companies in the same industry.

Assessing Profitability for NYSE:SON

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:SON was assigned a score of 6 for profitability:

• SON's Return On Assets of 5.14% is fine compared to the rest of the industry. SON outperforms 77.27% of its industry peers.
• With a decent Return On Invested Capital value of 9.24%, SON is doing good in the industry, outperforming 72.73% of the companies in the same industry.
• SON had an Average Return On Invested Capital over the past 3 years of 10.26%. This is above the industry average of 7.91%.
• With a decent Profit Margin value of 5.57%, SON is doing good in the industry, outperforming 72.73% of the companies in the same industry.
• In the last couple of years the Profit Margin of SON has grown nicely.
• SON's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of SON has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of SON

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.