SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
NYSE:SLGN - New York Stock Exchange, Inc. - US8270481091 - Common Stock - Currency: USD
Overall SLGN gets a fundamental rating of 5 out of 10. We evaluated SLGN against 24 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SLGN had positive earnings in the past year.
In the past year SLGN had a positive cash flow from operations.
Each year in the past 5 years SLGN has been profitable.
In the past 5 years SLGN always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.22%, SLGN perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
SLGN has a better Return On Equity (13.90%) than 60.87% of its industry peers.
The Return On Invested Capital of SLGN (6.37%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLGN is in line with the industry average of 7.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 13.9% | ||
| ROIC | 6.37% |
ROA(3y)4.05%
ROA(5y)4.3%
ROE(3y)16.99%
ROE(5y)19.72%
ROIC(3y)8.08%
ROIC(5y)7.95%
1.3 Margins
Looking at the Profit Margin, with a value of 4.72%, SLGN is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
SLGN's Profit Margin has improved in the last couple of years.
SLGN has a Operating Margin of 9.81%. This is in the better half of the industry: SLGN outperforms 65.22% of its industry peers.
In the last couple of years the Operating Margin of SLGN has remained more or less at the same level.
The Gross Margin of SLGN (17.28%) is worse than 86.96% of its industry peers.
SLGN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 4.72% | ||
| GM | 17.28% |
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
SLGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SLGN has been increased compared to 1 year ago.
SLGN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SLGN is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SLGN is 9.01, which is on the high side as it means it would take SLGN, 9.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 9.01, SLGN is doing good in the industry, outperforming 69.57% of the companies in the same industry.
A Debt/Equity ratio of 2.08 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 2.08, SLGN is doing worse than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | N/A |
ROIC/WACC0.92
WACC6.91%
2.3 Liquidity
A Current Ratio of 1.65 indicates that SLGN should not have too much problems paying its short term obligations.
SLGN has a Current ratio of 1.65. This is in the better half of the industry: SLGN outperforms 69.57% of its industry peers.
SLGN has a Quick Ratio of 1.04. This is a normal value and indicates that SLGN is financially healthy and should not expect problems in meeting its short term obligations.
SLGN has a Quick ratio of 1.04. This is comparable to the rest of the industry: SLGN outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.76% over the past year.
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.
SLGN shows a decrease in Revenue. In the last year, the revenue decreased by -2.23%.
The Revenue has been growing slightly by 5.45% on average over the past years.
EPS 1Y (TTM)6.76%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%34.92%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%5.31%
3.2 Future
SLGN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.73% yearly.
SLGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.55% yearly.
EPS Next Y15.27%
EPS Next 2Y11.99%
EPS Next 3Y9.75%
EPS Next 5Y10.73%
Revenue Next Year10.12%
Revenue Next 2Y6.28%
Revenue Next 3Y5.04%
Revenue Next 5Y4.55%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.51 indicates a correct valuation of SLGN.
Based on the Price/Earnings ratio, SLGN is valued a bit cheaper than 60.87% of the companies in the same industry.
SLGN is valuated cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
SLGN is valuated correctly with a Price/Forward Earnings ratio of 12.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLGN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.44, SLGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 12.59 |
4.2 Price Multiples
SLGN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLGN indicates a rather cheap valuation: SLGN is cheaper than 82.61% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.25 | ||
| EV/EBITDA | 10.72 |
4.3 Compensation for Growth
SLGN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SLGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)1.31
EPS Next 2Y11.99%
EPS Next 3Y9.75%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
SLGN's Dividend Yield is slightly below the industry average, which is at 3.19.
SLGN's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
On average, the dividend of SLGN grows each year by 10.88%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.88%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
SLGN pays out 29.70% of its income as dividend. This is a sustainable payout ratio.
SLGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.7%
EPS Next 2Y11.99%
EPS Next 3Y9.75%
52.67
-1.64 (-3.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners77.82%
Inst Owner Change8.17%
Ins Owners1.2%
Ins Owner Change-6.03%
Market Cap5.62B
Analysts85.88
Price Target67.21 (27.61%)
Short Float %5.17%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.77
Dividend Growth(5Y)10.88%
DP29.7%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.36%
Min EPS beat(2)-4.41%
Max EPS beat(2)1.69%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-4.41%
Max EPS beat(4)3.58%
EPS beat(8)4
Avg EPS beat(8)-0.16%
EPS beat(12)8
Avg EPS beat(12)1%
EPS beat(16)11
Avg EPS beat(16)1.22%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-4.73%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-5.96%
Revenue beat(12)2
Avg Revenue beat(12)-4.27%
Revenue beat(16)6
Avg Revenue beat(16)-2.62%
PT rev (1m)6.27%
PT rev (3m)7.62%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)-0.71%
EPS NY rev (3m)-0.9%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0.99%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 12.59 | ||
| P/S | 0.96 | ||
| P/FCF | 12.25 | ||
| P/OCF | 7.79 | ||
| P/B | 2.83 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 10.72 |
EPS(TTM)3.63
EY6.89%
EPS(NY)4.18
Fwd EY7.94%
FCF(TTM)4.3
FCFY8.16%
OCF(TTM)6.76
OCFY12.83%
SpS54.82
BVpS18.63
TBVpS18.63
PEG (NY)0.95
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 13.9% | ||
| ROCE | 8.14% | ||
| ROIC | 6.37% | ||
| ROICexc | 7.22% | ||
| ROICexgc | 7.22% | ||
| OM | 9.81% | ||
| PM (TTM) | 4.72% | ||
| GM | 17.28% | ||
| FCFM | 7.84% |
ROA(3y)4.05%
ROA(5y)4.3%
ROE(3y)16.99%
ROE(5y)19.72%
ROIC(3y)8.08%
ROIC(5y)7.95%
ROICexc(3y)9.1%
ROICexc(5y)8.86%
ROICexgc(3y)17.47%
ROICexgc(5y)17.25%
ROCE(3y)10.33%
ROCE(5y)10.16%
ROICexcg growth 3Y-24.68%
ROICexcg growth 5Y-13.27%
ROICexc growth 3Y-4.49%
ROICexc growth 5Y-3.83%
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 Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.08 | ||
| Debt/FCF | 9.01 | ||
| Debt/EBITDA | 4.86 | ||
| Cap/Depr | 95.25% | ||
| Cap/Sales | 4.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.89% | ||
| Profit Quality | 166.09% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | N/A |
F-Score5
WACC6.91%
ROIC/WACC0.92
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)6.76%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%34.92%
EPS Next Y15.27%
EPS Next 2Y11.99%
EPS Next 3Y9.75%
EPS Next 5Y10.73%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%5.31%
Revenue Next Year10.12%
Revenue Next 2Y6.28%
Revenue Next 3Y5.04%
Revenue Next 5Y4.55%
EBIT growth 1Y-4.86%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year60.59%
EBIT Next 3Y20.28%
EBIT Next 5Y13.96%
FCF growth 1Y79.49%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y49.59%
OCF growth 3Y9.04%
OCF growth 5Y7.31%