SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
NYSE:SLGN - New York Stock Exchange, Inc. - US8270481091 - Common Stock - Currency: USD
Taking everything into account, SLGN scores 4 out of 10 in our fundamental rating. SLGN was compared to 23 industry peers in the Containers & Packaging industry. SLGN has a medium profitability rating, but doesn't score so well on its financial health evaluation. SLGN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SLGN had positive earnings in the past year.
SLGN had a positive operating cash flow in the past year.
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 (3.22%) is better than 65.22% of its industry peers.
With a decent Return On Equity value of 13.89%, SLGN is doing good in the industry, outperforming 60.87% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.10%, SLGN is doing good in the industry, outperforming 65.22% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SLGN is in line with the industry average of 7.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 13.89% | ||
| ROIC | 7.1% |
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
With a decent Profit Margin value of 4.72%, SLGN is doing good in the industry, outperforming 69.57% 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 60.87% 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's Gross Margin of 17.28% is on the low side compared to the rest of the industry. SLGN is outperformed by 82.61% of its industry peers.
In the last couple of years the Gross Margin of SLGN has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLGN is creating some value.
The number of shares outstanding for SLGN has been increased compared to 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
An Altman-Z score of 1.99 indicates that SLGN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SLGN (1.99) is better than 60.87% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 9.01, SLGN is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
A Debt/Equity ratio of 1.72 is on the high side and indicates that SLGN has dependencies on debt financing.
The Debt to Equity ratio of SLGN (1.72) is worse than 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.06
WACC6.7%
2.3 Liquidity
SLGN has a Current Ratio of 1.12. 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 1.12, SLGN is doing worse than 73.91% of the companies in the same industry.
SLGN has a Quick Ratio of 1.12. This is a bad value and indicates that SLGN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.71, SLGN is doing worse than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.71 |
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.
The Revenue has decreased by -2.23% in the past year.
Measured over the past years, SLGN shows a small growth in Revenue. The Revenue has been growing by 5.45% on average per year.
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
The Earnings Per Share is expected to grow by 6.56% on average over the next years.
Based on estimates for the next years, SLGN will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y14.84%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
EPS Next 5Y6.56%
Revenue Next Year10.12%
Revenue Next 2Y6.29%
Revenue Next 3Y5.04%
Revenue Next 5Y3.98%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 14.02 indicates a correct valuation of SLGN.
Based on the Price/Earnings ratio, SLGN is valued a bit cheaper than 65.22% of the companies in the same industry.
SLGN is valuated cheaply when we compare the Price/Earnings ratio to 28.33, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.21, which indicates a correct valuation of SLGN.
SLGN's Price/Forward Earnings ratio is in line with the industry average.
SLGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.37, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
SLGN's Enterprise Value to EBITDA ratio is in line with 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 | 11.84 | ||
| EV/EBITDA | 10.29 |
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)1.27
EPS Next 2Y11.93%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.62%.
SLGN's Dividend Yield is slightly below the industry average, which is at 3.58.
Compared to the average S&P500 Dividend Yield of 2.51, SLGN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
5.2 History
The dividend of SLGN is nicely growing with an annual growth rate of 10.87%!
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)10.87%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
29.69% of the earnings are spent on dividend by SLGN. This is a low number and sustainable payout ratio.
SLGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.69%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
50.91
+2.09 (+4.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners77.82%
Inst Owner Change0.11%
Ins Owners1.2%
Ins Owner Change-0.53%
Market Cap5.44B
Analysts85.88
Price Target67.21 (32.02%)
Short Float %4.76%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP29.69%
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)0%
PT rev (3m)7.62%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-0.99%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.02 | ||
| Fwd PE | 12.21 | ||
| P/S | 0.93 | ||
| P/FCF | 11.84 | ||
| P/OCF | 7.53 | ||
| P/B | 2.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.29 |
EPS(TTM)3.63
EY7.13%
EPS(NY)4.17
Fwd EY8.19%
FCF(TTM)4.3
FCFY8.44%
OCF(TTM)6.76
OCFY13.28%
SpS54.82
BVpS18.63
TBVpS-11.2
PEG (NY)0.95
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 13.89% | ||
| ROCE | 9.07% | ||
| ROIC | 7.1% | ||
| ROICexc | 8.15% | ||
| ROICexgc | 19.31% | ||
| 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)8.32%
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-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 9.01 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 95.25% | ||
| Cap/Sales | 4.49% | ||
| Interest Coverage | 3.59 | ||
| Cash Conversion | 84.88% | ||
| Profit Quality | 166.11% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.99 |
F-Score6
WACC6.7%
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)6.76%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%34.92%
EPS Next Y14.84%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
EPS Next 5Y6.56%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%5.31%
Revenue Next Year10.12%
Revenue Next 2Y6.29%
Revenue Next 3Y5.04%
Revenue Next 5Y3.98%
EBIT growth 1Y-4.84%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year59.52%
EBIT Next 3Y20.24%
EBIT Next 5Y12.08%
FCF growth 1Y79.48%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y49.58%
OCF growth 3Y9.04%
OCF growth 5Y7.31%