SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SLGN - US8270481091 - Common Stock
42.38 USD
-0.27 (-0.63%)
42.38 USD
0 (0%)
SLGN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. While SLGN is still in line with the averages on profitability rating, there are concerns on its financial health. SLGN is not valued too expensively and it also shows a decent growth rate.
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.
- Each year in the past 5 years SLGN has been profitable.
- SLGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of SLGN (3.32%) is better than 63.64% of its industry peers.
- Looking at the Return On Equity, with a value of 13.87%, SLGN is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
- SLGN has a Return On Invested Capital of 7.11%. This is in the better half of the industry: SLGN outperforms 68.18% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SLGN is in line with the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 13.87% | ||
| ROIC | 7.11% |
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 4.91%, SLGN is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- In the last couple of years the Profit Margin of SLGN has grown nicely.
- SLGN has a Operating Margin of 9.97%. This is in the better half of the industry: SLGN outperforms 63.64% 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 (17.67%) is worse than 81.82% of its industry peers.
- SLGN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.97% | ||
| PM (TTM) | 4.91% | ||
| GM | 17.67% |
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.
- Compared to 1 year ago, SLGN has more shares outstanding
- The number of shares outstanding for SLGN has been reduced compared to 5 years ago.
- SLGN has a worse debt/assets ratio than last year.
2.2 Solvency
- SLGN has an Altman-Z score of 1.89. This is not the best score and indicates that SLGN is in the grey zone with still only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.89, SLGN is in line with its industry, outperforming 40.91% of the companies in the same industry.
- SLGN has a debt to FCF ratio of 75.81. This is a negative value and a sign of low solvency as SLGN would need 75.81 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 75.81, SLGN is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
- SLGN has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
- SLGN's Debt to Equity ratio of 1.68 is on the low side compared to the rest of the industry. SLGN is outperformed by 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 75.81 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.89
WACC7.98%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that SLGN should not have too much problems paying its short term obligations.
- SLGN has a Current ratio of 1.27. This is in the lower half of the industry: SLGN underperforms 63.64% of its industry peers.
- A Quick Ratio of 0.85 indicates that SLGN may have some problems paying its short term obligations.
- The Quick ratio of SLGN (0.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- SLGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.37%, which is quite good.
- The Earnings Per Share has been growing by 11.04% on average over the past years. This is quite good.
- The Revenue has grown by 11.10% in the past year. This is quite good.
- SLGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.45% yearly.
EPS 1Y (TTM)14.37%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%0.83%
Revenue 1Y (TTM)11.1%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%15.11%
3.2 Future
- The Earnings Per Share is expected to grow by 6.74% on average over the next years.
- The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y3.64%
EPS Next 2Y3.46%
EPS Next 3Y5.24%
EPS Next 5Y6.74%
Revenue Next Year10.96%
Revenue Next 2Y6.48%
Revenue Next 3Y5.01%
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
- SLGN is valuated reasonably with a Price/Earnings ratio of 10.87.
- Based on the Price/Earnings ratio, SLGN is valued cheaper than 90.91% of the companies in the same industry.
- When comparing the Price/Earnings ratio of SLGN to the average of the S&P500 Index (28.60), we can say SLGN is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.91, which indicates a very decent valuation of SLGN.
- SLGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. SLGN is cheaper than 81.82% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. SLGN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 10.91 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.63 | ||
| EV/EBITDA | 9.45 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of SLGN may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)0.98
EPS Next 2Y3.46%
EPS Next 3Y5.24%
5. Dividend
5.1 Amount
- SLGN has a Yearly Dividend Yield of 1.85%.
- SLGN's Dividend Yield is comparable with the industry average which is at 2.38.
- SLGN's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
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 26.99% 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.
DP26.99%
EPS Next 2Y3.46%
EPS Next 3Y5.24%
SILGAN HOLDINGS INC / SLGN FAQ
What is the fundamental rating for SLGN stock?
ChartMill assigns a fundamental rating of 4 / 10 to SLGN.
What is the valuation status of SILGAN HOLDINGS INC (SLGN) stock?
ChartMill assigns a valuation rating of 6 / 10 to SILGAN HOLDINGS INC (SLGN). This can be considered as Fairly Valued.
How profitable is SILGAN HOLDINGS INC (SLGN) stock?
SILGAN HOLDINGS INC (SLGN) has a profitability rating of 6 / 10.
What are the PE and PB ratios of SILGAN HOLDINGS INC (SLGN) stock?
The Price/Earnings (PE) ratio for SILGAN HOLDINGS INC (SLGN) is 10.87 and the Price/Book (PB) ratio is 1.97.
Can you provide the dividend sustainability for SLGN stock?
The dividend rating of SILGAN HOLDINGS INC (SLGN) is 6 / 10 and the dividend payout ratio is 26.99%.