SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
NYSE:SLGN - New York Stock Exchange, Inc. - US8270481091 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to SLGN. SLGN was compared to 24 industry peers in the Containers & Packaging industry. Both the profitability and the financial health of SLGN get a neutral evaluation. Nothing too spectacular is happening here. SLGN has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 4 of the past 5 years.
SLGN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SLGN's Return On Assets of 3.82% is in line compared to the rest of the industry. SLGN outperforms 56.52% of its industry peers.
SLGN's Return On Equity of 14.40% is fine compared to the rest of the industry. SLGN outperforms 73.91% of its industry peers.
SLGN has a better Return On Invested Capital (7.95%) than 65.22% of its industry peers.
SLGN had an Average Return On Invested Capital over the past 3 years of 8.04%. This is in line with the industry average of 7.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 14.4% | ||
| ROIC | 7.95% |
ROA(3y)4.51%
ROA(5y)4.44%
ROE(3y)20.02%
ROE(5y)20.73%
ROIC(3y)8.04%
ROIC(5y)7.94%
1.3 Margins
SLGN's Profit Margin of 5.11% is fine compared to the rest of the industry. SLGN outperforms 65.22% of its industry peers.
In the last couple of years the Profit Margin of SLGN has grown nicely.
SLGN has a better Operating Margin (10.03%) than 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.
Looking at the Gross Margin, with a value of 17.14%, SLGN is doing worse than 86.96% of the companies in the same industry.
In the last couple of years the Gross Margin of SLGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.03% | ||
| PM (TTM) | 5.11% | ||
| GM | 17.14% |
OM growth 3Y-3.23%
OM growth 5Y1.41%
PM growth 3Y-4.61%
PM growth 5Y1.57%
GM growth 3Y-2.02%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SLGN is still creating some value.
SLGN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.26 indicates that SLGN is not a great score, but indicates only limited risk for bankruptcy at the moment.
SLGN has a better Altman-Z score (2.26) than 73.91% of its industry peers.
The Debt to FCF ratio of SLGN is 6.15, which is on the high side as it means it would take SLGN, 6.15 years of fcf income to pay off all of its debts.
SLGN has a Debt to FCF ratio of 6.15. This is amongst the best in the industry. SLGN outperforms 86.96% of its industry peers.
SLGN has a Debt/Equity ratio of 1.24. This is a high value indicating a heavy dependency on external financing.
SLGN has a Debt to Equity ratio of 1.24. This is in the better half of the industry: SLGN outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 6.15 | ||
| Altman-Z | 2.26 |
ROIC/WACC1.12
WACC7.07%
2.3 Liquidity
SLGN has a Current Ratio of 1.09. This is a normal value and indicates that SLGN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.09, SLGN is doing worse than 86.96% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that SLGN may have some problems paying its short term obligations.
The Quick ratio of SLGN (0.75) is worse than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.76% over the past year.
The Earnings Per Share has been growing by 11.04% on average over the past years. This is quite good.
EPS 1Y (TTM)6.76%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%34.92%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
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.
The Revenue is expected to grow by 4.53% on average over the next years.
EPS Next Y16.09%
EPS Next 2Y12.87%
EPS Next 3Y11.25%
EPS Next 5Y10.73%
Revenue Next Year8.97%
Revenue Next 2Y5.62%
Revenue Next 3Y5.25%
Revenue Next 5Y4.53%
3.3 Evolution
The EPS 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
SLGN is valuated correctly with a Price/Earnings ratio of 15.38.
SLGN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.28, SLGN is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.25 indicates a correct valuation of SLGN.
SLGN's Price/Forward Earnings is on the same level as the industry average.
SLGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 91.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SLGN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, SLGN is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 11.17 |
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.
PEG (NY)0.96
PEG (5Y)1.39
EPS Next 2Y12.87%
EPS Next 3Y11.25%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
SLGN's Dividend Yield is slightly below the industry average, which is at 3.06.
SLGN's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
5.2 History
The dividend of SLGN is nicely growing with an annual growth rate of 12.56%!
SLGN has paid a dividend for at least 10 years, which is 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)12.56%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
27.37% of the earnings are spent on dividend by SLGN. This is a low number and sustainable payout ratio.
The dividend of SLGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.37%
EPS Next 2Y12.87%
EPS Next 3Y11.25%
SILGAN HOLDINGS INC
NYSE:SLGN (1/30/2025, 12:13:00 PM)
55.82
+0.04 (+0.07%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners71%
Inst Owner Change3.71%
Ins Owners1.31%
Ins Owner Change-4.71%
Market Cap5.96B
Analysts84.71
Price Target63.24 (13.29%)
Short Float %5.1%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend0.73
Dividend Growth(5Y)12.56%
DP27.37%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.34%
Min EPS beat(2)-4.41%
Max EPS beat(2)-0.26%
EPS beat(4)2
Avg EPS beat(4)1.41%
Min EPS beat(4)-4.41%
Max EPS beat(4)6.75%
EPS beat(8)4
Avg EPS beat(8)-0.31%
EPS beat(12)8
Avg EPS beat(12)1.32%
EPS beat(16)11
Avg EPS beat(16)1.82%
Revenue beat(2)0
Avg Revenue beat(2)-5.77%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-5.32%
Revenue beat(4)0
Avg Revenue beat(4)-5.76%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)-5.32%
Revenue beat(8)0
Avg Revenue beat(8)-6.69%
Revenue beat(12)3
Avg Revenue beat(12)-3.82%
Revenue beat(16)7
Avg Revenue beat(16)-2.42%
PT rev (1m)0%
PT rev (3m)1.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.47%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.38 | ||
| Fwd PE | 13.25 | ||
| P/S | 1.03 | ||
| P/FCF | 9.62 | ||
| P/OCF | 6.89 | ||
| P/B | 2.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.17 |
EPS(TTM)3.63
EY6.5%
EPS(NY)4.21
Fwd EY7.55%
FCF(TTM)5.8
FCFY10.39%
OCF(TTM)8.1
OCFY14.51%
SpS54.16
BVpS19.23
TBVpS-6.1
PEG (NY)0.96
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.82% | ||
| ROE | 14.4% | ||
| ROCE | 10.66% | ||
| ROIC | 7.95% | ||
| ROICexc | 8.53% | ||
| ROICexgc | 18.27% | ||
| OM | 10.03% | ||
| PM (TTM) | 5.11% | ||
| GM | 17.14% | ||
| FCFM | 10.71% |
ROA(3y)4.51%
ROA(5y)4.44%
ROE(3y)20.02%
ROE(5y)20.73%
ROIC(3y)8.04%
ROIC(5y)7.94%
ROICexc(3y)9.01%
ROICexc(5y)8.74%
ROICexgc(3y)19.72%
ROICexgc(5y)17.86%
ROCE(3y)10.79%
ROCE(5y)10.66%
ROICexcg growth 3Y13.34%
ROICexcg growth 5Y7.38%
ROICexc growth 3Y5.15%
ROICexc growth 5Y1.22%
OM growth 3Y-3.23%
OM growth 5Y1.41%
PM growth 3Y-4.61%
PM growth 5Y1.57%
GM growth 3Y-2.02%
GM growth 5Y1.34%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.24 | ||
| Debt/FCF | 6.15 | ||
| Debt/EBITDA | 3.04 | ||
| Cap/Depr | 93.94% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 3.52 | ||
| Cash Conversion | 102.77% | ||
| Profit Quality | 209.43% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.26 |
F-Score7
WACC7.07%
ROIC/WACC1.12
Cap/Depr(3y)87.02%
Cap/Depr(5y)95.04%
Cap/Sales(3y)3.75%
Cap/Sales(5y)4.19%
Profit Quality(3y)108.37%
Profit Quality(5y)118.07%
High Growth Momentum
Growth
EPS 1Y (TTM)6.76%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%34.92%
EPS Next Y16.09%
EPS Next 2Y12.87%
EPS Next 3Y11.25%
EPS Next 5Y10.73%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.31%
Revenue Next Year8.97%
Revenue Next 2Y5.62%
Revenue Next 3Y5.25%
Revenue Next 5Y4.53%
EBIT growth 1Y-7.92%
EBIT growth 3Y3.31%
EBIT growth 5Y7.62%
EBIT Next Year41.49%
EBIT Next 3Y19.57%
EBIT Next 5Y11.24%
FCF growth 1Y177.12%
FCF growth 3Y-12.23%
FCF growth 5Y-4.11%
OCF growth 1Y94.27%
OCF growth 3Y-7.13%
OCF growth 5Y-0.96%