SEALED AIR CORP (SEE) Stock Fundamental Analysis
NYSE:SEE - New York Stock Exchange, Inc. - US81211K1007 - Common Stock - Currency: USD
Taking everything into account, SEE scores 5 out of 10 in our fundamental rating. SEE was compared to 24 industry peers in the Containers & Packaging industry. While SEE has a great profitability rating, there are quite some concerns on its financial health. SEE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year SEE was profitable.
In the past year SEE had a positive cash flow from operations.
In the past 5 years SEE has always been profitable.
In the past 5 years SEE always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.77%, SEE is doing good in the industry, outperforming 65.22% of the companies in the same industry.
Looking at the Return On Equity, with a value of 42.39%, SEE belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
SEE has a Return On Invested Capital of 10.09%. This is amongst the best in the industry. SEE outperforms 82.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SEE is above the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 42.39% | ||
| ROIC | 10.09% |
ROA(3y)5.47%
ROA(5y)6.56%
ROE(3y)82.47%
ROE(5y)148.35%
ROIC(3y)11.86%
ROIC(5y)12.29%
1.3 Margins
With a decent Profit Margin value of 4.91%, SEE is doing good in the industry, outperforming 65.22% of the companies in the same industry.
SEE's Profit Margin has declined in the last couple of years.
SEE's Operating Margin of 15.01% is amongst the best of the industry. SEE outperforms 100.00% of its industry peers.
SEE's Operating Margin has improved in the last couple of years.
SEE's Gross Margin of 30.14% is amongst the best of the industry. SEE outperforms 86.96% of its industry peers.
In the last couple of years the Gross Margin of SEE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 4.91% | ||
| GM | 30.14% |
OM growth 3Y-1.5%
OM growth 5Y3.01%
PM growth 3Y-18.77%
PM growth 5Y-2.17%
GM growth 3Y-0.26%
GM growth 5Y-1.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SEE is still creating some value.
SEE has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SEE has been reduced compared to 5 years ago.
SEE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.79, we must say that SEE is in the distress zone and has some risk of bankruptcy.
SEE's Altman-Z score of 1.79 is in line compared to the rest of the industry. SEE outperforms 43.48% of its industry peers.
The Debt to FCF ratio of SEE is 8.67, which is on the high side as it means it would take SEE, 8.67 years of fcf income to pay off all of its debts.
SEE's Debt to FCF ratio of 8.67 is fine compared to the rest of the industry. SEE outperforms 73.91% of its industry peers.
SEE has a Debt/Equity ratio of 6.95. This is a high value indicating a heavy dependency on external financing.
SEE has a Debt to Equity ratio of 6.95. This is amonst the worse of the industry: SEE underperforms 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.95 | ||
| Debt/FCF | 8.67 | ||
| Altman-Z | 1.79 |
ROIC/WACC1.48
WACC6.82%
2.3 Liquidity
A Current Ratio of 1.16 indicates that SEE should not have too much problems paying its short term obligations.
The Current ratio of SEE (1.16) is worse than 73.91% of its industry peers.
A Quick Ratio of 0.72 indicates that SEE may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, SEE is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for SEE have decreased by -1.25% in the last year.
SEE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.31% yearly.
The Revenue has decreased by -1.75% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)-1.25%
EPS 3Y-3.91%
EPS 5Y2.31%
EPS Q2Q%-14.77%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y-0.86%
Revenue growth 5Y2.39%
Sales Q2Q%-0.34%
3.2 Future
SEE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.14% yearly.
Based on estimates for the next years, SEE will show a small growth in Revenue. The Revenue will grow by 2.17% on average per year.
EPS Next Y0.44%
EPS Next 2Y5.48%
EPS Next 3Y7.37%
EPS Next 5Y7.14%
Revenue Next Year0.37%
Revenue Next 2Y1.43%
Revenue Next 3Y2.84%
Revenue Next 5Y2.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.35 indicates a reasonable valuation of SEE.
Based on the Price/Earnings ratio, SEE is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.75. SEE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.30, the valuation of SEE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SEE is valued a bit cheaper than 69.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, SEE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
SEE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SEE is cheaper than 60.87% of the companies in the same industry.
91.30% of the companies in the same industry are more expensive than SEE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.35 | ||
| EV/EBITDA | 8.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SEE does not grow enough to justify the current Price/Earnings ratio.
SEE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)23.63
PEG (5Y)4.48
EPS Next 2Y5.48%
EPS Next 3Y7.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, SEE has a reasonable but not impressive dividend return.
SEE's Dividend Yield is a higher than the industry average which is at 3.19.
Compared to an average S&P500 Dividend Yield of 2.30, SEE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
5.2 History
The dividend of SEE has a limited annual growth rate of 5.00%.
SEE has paid a dividend for at least 10 years, which is a reliable track record.
SEE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
SEE pays out 44.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of SEE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.58%
EPS Next 2Y5.48%
EPS Next 3Y7.37%
32.59
-1.59 (-4.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners97.97%
Inst Owner Change2.01%
Ins Owners0.79%
Ins Owner Change5.82%
Market Cap4.75B
Analysts75.24
Price Target41.52 (27.4%)
Short Float %4.07%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend0.81
Dividend Growth(5Y)5%
DP44.58%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.94%
Min EPS beat(2)11.29%
Max EPS beat(2)16.59%
EPS beat(4)4
Avg EPS beat(4)25.22%
Min EPS beat(4)11.29%
Max EPS beat(4)43.85%
EPS beat(8)7
Avg EPS beat(8)21.51%
EPS beat(12)11
Avg EPS beat(12)16.85%
EPS beat(16)14
Avg EPS beat(16)13.38%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.2%
Revenue beat(4)3
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.86%
Revenue beat(16)9
Avg Revenue beat(16)-0.1%
PT rev (1m)-0.19%
PT rev (3m)-0.62%
EPS NQ rev (1m)-5.48%
EPS NQ rev (3m)-7.15%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)-2.18%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.35 | ||
| Fwd PE | 10.3 | ||
| P/S | 0.88 | ||
| P/FCF | 9.35 | ||
| P/OCF | 6.52 | ||
| P/B | 7.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.45 |
EPS(TTM)3.15
EY9.67%
EPS(NY)3.16
Fwd EY9.71%
FCF(TTM)3.49
FCFY10.69%
OCF(TTM)5
OCFY15.33%
SpS37.01
BVpS4.29
TBVpS-18.09
PEG (NY)23.63
PEG (5Y)4.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 42.39% | ||
| ROCE | 15.03% | ||
| ROIC | 10.09% | ||
| ROICexc | 10.82% | ||
| ROICexgc | 29.42% | ||
| OM | 15.01% | ||
| PM (TTM) | 4.91% | ||
| GM | 30.14% | ||
| FCFM | 9.42% |
ROA(3y)5.47%
ROA(5y)6.56%
ROE(3y)82.47%
ROE(5y)148.35%
ROIC(3y)11.86%
ROIC(5y)12.29%
ROICexc(3y)12.96%
ROICexc(5y)13.69%
ROICexgc(3y)34.47%
ROICexgc(5y)35.94%
ROCE(3y)17.48%
ROCE(5y)18%
ROICexcg growth 3Y-13.43%
ROICexcg growth 5Y4.01%
ROICexc growth 3Y-12.87%
ROICexc growth 5Y1.08%
OM growth 3Y-1.5%
OM growth 5Y3.01%
PM growth 3Y-18.77%
PM growth 5Y-2.17%
GM growth 3Y-0.26%
GM growth 5Y-1.6%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.95 | ||
| Debt/FCF | 8.67 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 91.41% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 69.31% | ||
| Profit Quality | 191.84% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.79 |
F-Score6
WACC6.82%
ROIC/WACC1.48
Cap/Depr(3y)108.19%
Cap/Depr(5y)108.57%
Cap/Sales(3y)4.25%
Cap/Sales(5y)4.06%
Profit Quality(3y)115.98%
Profit Quality(5y)111.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.25%
EPS 3Y-3.91%
EPS 5Y2.31%
EPS Q2Q%-14.77%
EPS Next Y0.44%
EPS Next 2Y5.48%
EPS Next 3Y7.37%
EPS Next 5Y7.14%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y-0.86%
Revenue growth 5Y2.39%
Sales Q2Q%-0.34%
Revenue Next Year0.37%
Revenue Next 2Y1.43%
Revenue Next 3Y2.84%
Revenue Next 5Y2.17%
EBIT growth 1Y-0.43%
EBIT growth 3Y-2.35%
EBIT growth 5Y5.48%
EBIT Next Year35.49%
EBIT Next 3Y13.47%
EBIT Next 5Y10.37%
FCF growth 1Y86.69%
FCF growth 3Y0.75%
FCF growth 5Y9.58%
OCF growth 1Y41.03%
OCF growth 3Y0.85%
OCF growth 5Y7.33%