SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
USA - NYSE:SLGN - US8270481091 - Common Stock
43.2 USD
-0.07 (-0.16%)
43.2 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SLGN. SLGN was compared to 22 industry peers in the Containers & Packaging industry. There are concerns on the financial health of SLGN while its profitability can be described as average. SLGN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SLGN was profitable.
In the past year SLGN had a positive cash flow from operations.
SLGN had positive earnings in each of the past 5 years.
In the past 5 years SLGN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SLGN (3.21%) is better than 68.18% of its industry peers.
The Return On Equity of SLGN (13.59%) is better than 68.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.75%, SLGN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
SLGN had an Average Return On Invested Capital over the past 3 years of 8.32%. This is in line with the industry average of 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.59% | ||
| ROIC | 7.75% |
ROA(3y)4.05%
ROA(5y)4.3%
ROE(3y)16.99%
ROE(5y)19.72%
ROIC(3y)8.32%
ROIC(5y)8.1%
1.3 Margins
Looking at the Profit Margin, with a value of 4.90%, SLGN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Profit Margin of SLGN has grown nicely.
SLGN's Operating Margin of 10.08% is fine compared to the rest of the industry. SLGN outperforms 68.18% of its industry peers.
In the last couple of years the Operating Margin of SLGN has remained more or less at the same level.
SLGN has a worse Gross Margin (17.88%) than 77.27% of its industry peers.
In the last couple of years the Gross Margin of SLGN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.08% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.88% |
OM growth 3Y-2.23%
OM growth 5Y1.17%
PM growth 3Y-9.29%
PM growth 5Y1.81%
GM growth 3Y2.23%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLGN is creating some value.
SLGN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SLGN has less shares outstanding
The debt/assets ratio for SLGN is higher compared to a year ago.
2.2 Solvency
SLGN has an Altman-Z score of 1.77. This is a bad value and indicates that SLGN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.77, SLGN is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of SLGN is 88.79, which is on the high side as it means it would take SLGN, 88.79 years of fcf income to pay off all of its debts.
SLGN has a Debt to FCF ratio of 88.79. This is comparable to the rest of the industry: SLGN outperforms 40.91% of its industry peers.
A Debt/Equity ratio of 1.40 is on the high side and indicates that SLGN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.40, SLGN is in line with its industry, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 88.79 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.06
WACC7.29%
2.3 Liquidity
A Current Ratio of 0.96 indicates that SLGN may have some problems paying its short term obligations.
SLGN's Current ratio of 0.96 is on the low side compared to the rest of the industry. SLGN is outperformed by 86.36% of its industry peers.
A Quick Ratio of 0.56 indicates that SLGN may have some problems paying its short term obligations.
SLGN has a worse Quick ratio (0.56) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
SLGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.77%, which is quite good.
Measured over the past years, SLGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.04% on average per year.
Looking at the last year, SLGN shows a small growth in Revenue. The Revenue has grown by 5.49% in the last year.
The Revenue has been growing slightly by 5.45% on average over the past years.
EPS 1Y (TTM)15.77%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%14.77%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.42%
3.2 Future
Based on estimates for the next years, SLGN will show a small growth in Earnings Per Share. The EPS will grow by 6.74% on average per year.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y10.66%
EPS Next 2Y10.31%
EPS Next 3Y9.46%
EPS Next 5Y6.74%
Revenue Next Year10.07%
Revenue Next 2Y6.34%
Revenue Next 3Y5%
Revenue Next 5Y3.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.11, the valuation of SLGN can be described as very reasonable.
Based on the Price/Earnings ratio, SLGN is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
SLGN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
SLGN is valuated reasonably with a Price/Forward Earnings ratio of 9.78.
Based on the Price/Forward Earnings ratio, SLGN is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SLGN to the average of the S&P500 Index (22.70), we can say SLGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SLGN.
SLGN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.23 | ||
| EV/EBITDA | 10.17 |
4.3 Compensation for Growth
SLGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SLGN may justify a higher PE ratio.
PEG (NY)1.04
PEG (5Y)1.01
EPS Next 2Y10.31%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.80%, SLGN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, SLGN has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, SLGN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
5.2 History
On average, the dividend of SLGN grows each year by 10.87%, which is quite nice.
SLGN has been paying a dividend for at least 10 years, so it has a reliable track record.
SLGN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.87%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
SLGN pays out 27.80% of its income as dividend. This is a sustainable payout ratio.
The dividend of SLGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.8%
EPS Next 2Y10.31%
EPS Next 3Y9.46%
43.2
-0.07 (-0.16%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner Change2.24%
Ins Owners1.14%
Ins Owner Change-4.24%
Market Cap4.62B
Analysts85.56
Price Target61.59 (42.57%)
Short Float %4.55%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.8% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP27.8%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.87%
Min EPS beat(2)-3.96%
Max EPS beat(2)2.22%
EPS beat(4)2
Avg EPS beat(4)-1.11%
Min EPS beat(4)-4.41%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)0.85%
EPS beat(12)7
Avg EPS beat(12)-0.04%
EPS beat(16)10
Avg EPS beat(16)0.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-2.87%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-4.68%
Revenue beat(12)1
Avg Revenue beat(12)-4.41%
Revenue beat(16)4
Avg Revenue beat(16)-3.1%
PT rev (1m)0.67%
PT rev (3m)-2.44%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-10.04%
EPS NY rev (1m)-4.05%
EPS NY rev (3m)-4.05%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.11 | ||
| Fwd PE | 9.78 | ||
| P/S | 0.75 | ||
| P/FCF | 81.23 | ||
| P/OCF | 13.44 | ||
| P/B | 2.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.17 |
EPS(TTM)3.89
EY9%
EPS(NY)4.42
Fwd EY10.23%
FCF(TTM)0.53
FCFY1.23%
OCF(TTM)3.21
OCFY7.44%
SpS57.6
BVpS20.77
TBVpS-10.93
PEG (NY)1.04
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.59% | ||
| ROCE | 9.9% | ||
| ROIC | 7.75% | ||
| ROICexc | 8.16% | ||
| ROICexgc | 18.94% | ||
| OM | 10.08% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.88% | ||
| FCFM | 0.92% |
ROA(3y)4.05%
ROA(5y)4.3%
ROE(3y)16.99%
ROE(5y)19.72%
ROIC(3y)8.32%
ROIC(5y)8.1%
ROICexc(3y)9.41%
ROICexc(5y)9.05%
ROICexgc(3y)21.51%
ROICexgc(5y)19.67%
ROCE(3y)10.64%
ROCE(5y)10.34%
ROICexcg growth 3Y4.56%
ROICexcg growth 5Y5.59%
ROICexc growth 3Y-0.53%
ROICexc growth 5Y-1.45%
OM growth 3Y-2.23%
OM growth 5Y1.17%
PM growth 3Y-9.29%
PM growth 5Y1.81%
GM growth 3Y2.23%
GM growth 5Y1.69%
F-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 88.79 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 95.91% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 37.36% | ||
| Profit Quality | 18.84% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.77 |
F-Score5
WACC7.29%
ROIC/WACC1.06
Cap/Depr(3y)87.84%
Cap/Depr(5y)91.73%
Cap/Sales(3y)3.88%
Cap/Sales(5y)4.06%
Profit Quality(3y)133.62%
Profit Quality(5y)122.75%
High Growth Momentum
Growth
EPS 1Y (TTM)15.77%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%14.77%
EPS Next Y10.66%
EPS Next 2Y10.31%
EPS Next 3Y9.46%
EPS Next 5Y6.74%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.42%
Revenue Next Year10.07%
Revenue Next 2Y6.34%
Revenue Next 3Y5%
Revenue Next 5Y3.48%
EBIT growth 1Y4.61%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year57.54%
EBIT Next 3Y19.53%
EBIT Next 5Y11.67%
FCF growth 1Y-22.06%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y19.17%
OCF growth 3Y9.04%
OCF growth 5Y7.31%