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 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
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.
SLGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SLGN (3.30%) is better than 68.18% of its industry peers.
SLGN has a better Return On Equity (13.88%) than 68.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.15%, SLGN is in the better half of the industry, outperforming 63.64% 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 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 13.88% | ||
| ROIC | 7.15% |
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
The Profit Margin of SLGN (4.82%) is better than 72.73% of its industry peers.
SLGN's Profit Margin has improved in the last couple of years.
SLGN has a Operating Margin (9.87%) which is in line with 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 17.63% is on the low side compared to the rest of the industry. SLGN is outperformed by 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 | 9.87% | ||
| PM (TTM) | 4.82% | ||
| GM | 17.63% |
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.
The number of shares outstanding for SLGN has been reduced compared to 5 years ago.
Compared to 1 year ago, SLGN has a worse debt to assets ratio.
2.2 Solvency
SLGN has an Altman-Z score of 2.04. 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.
SLGN's Altman-Z score of 2.04 is in line compared to the rest of the industry. SLGN outperforms 54.55% of its industry peers.
SLGN has a debt to FCF ratio of 14.66. This is a negative value and a sign of low solvency as SLGN would need 14.66 years to pay back of all of its debts.
SLGN has a Debt to FCF ratio (14.66) which is in line with its industry peers.
A Debt/Equity ratio of 1.67 is on the high side and indicates that SLGN has dependencies on debt financing.
With a Debt to Equity ratio value of 1.67, SLGN perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 14.66 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.01
WACC7.08%
2.3 Liquidity
A Current Ratio of 1.14 indicates that SLGN should not have too much problems paying its short term obligations.
SLGN's Current ratio of 1.14 is on the low side compared to the rest of the industry. SLGN is outperformed by 63.64% of its industry peers.
A Quick Ratio of 0.67 indicates that SLGN may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, SLGN is doing worse than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
SLGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.60%, 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 been growing slightly by 1.99% in the past year.
SLGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.45% yearly.
EPS 1Y (TTM)13.6%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%18.84%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.37%
3.2 Future
The Earnings Per Share is expected to grow by 7.16% 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 4.05% on average per year.
EPS Next Y15.33%
EPS Next 2Y12.2%
EPS Next 3Y10.27%
EPS Next 5Y7.16%
Revenue Next Year10.49%
Revenue Next 2Y6.52%
Revenue Next 3Y5.14%
Revenue Next 5Y4.05%
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
Based on the Price/Earnings ratio of 15.05, the valuation of SLGN can be described as correct.
SLGN's Price/Earnings ratio is a bit cheaper when compared to the industry. SLGN is cheaper than 72.73% of the companies in the same industry.
When comparing the Price/Earnings ratio of SLGN to the average of the S&P500 Index (27.30), we can say SLGN is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 12.38, the valuation of SLGN can be described as correct.
Based on the Price/Forward Earnings ratio, SLGN is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SLGN to the average of the S&P500 Index (21.76), we can say SLGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 12.38 |
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 a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.17 | ||
| EV/EBITDA | 11.72 |
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.
The decent profitability rating of SLGN may justify a higher PE ratio.
PEG (NY)0.98
PEG (5Y)1.36
EPS Next 2Y12.2%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.41%. Purely for dividend investing, there may be better candidates out there.
SLGN's Dividend Yield is comparable with the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.37, SLGN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
5.2 History
On average, the dividend of SLGN grows each year by 10.87%, which is quite nice.
SLGN has paid a dividend for at least 10 years, which is 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
SLGN pays out 28.65% 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.
DP28.65%
EPS Next 2Y12.2%
EPS Next 3Y10.27%
56.58
+0.08 (+0.14%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners78.42%
Inst Owner Change0%
Ins Owners1.14%
Ins Owner Change0.38%
Market Cap6.05B
Analysts86.67
Price Target63.13 (11.58%)
Short Float %2.19%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.41% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP28.65%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.96%
Min EPS beat(2)1.69%
Max EPS beat(2)2.22%
EPS beat(4)2
Avg EPS beat(4)-0.19%
Min EPS beat(4)-4.41%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)0.22%
EPS beat(12)8
Avg EPS beat(12)1.15%
EPS beat(16)11
Avg EPS beat(16)1.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-5.69%
Revenue beat(12)1
Avg Revenue beat(12)-4.58%
Revenue beat(16)5
Avg Revenue beat(16)-2.82%
PT rev (1m)0.49%
PT rev (3m)-6.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 12.38 | ||
| P/S | 1.01 | ||
| P/FCF | 19.17 | ||
| P/OCF | 10.33 | ||
| P/B | 2.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.72 |
EPS(TTM)3.76
EY6.65%
EPS(NY)4.57
Fwd EY8.08%
FCF(TTM)2.95
FCFY5.22%
OCF(TTM)5.48
OCFY9.69%
SpS56.12
BVpS19.47
TBVpS-11.03
PEG (NY)0.98
PEG (5Y)1.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 13.88% | ||
| ROCE | 9.14% | ||
| ROIC | 7.15% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 16.18% | ||
| OM | 9.87% | ||
| PM (TTM) | 4.82% | ||
| GM | 17.63% | ||
| FCFM | 5.26% |
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 | 1.67 | ||
| Debt/FCF | 14.66 | ||
| Debt/EBITDA | 3.95 | ||
| Cap/Depr | 93.64% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 3.69 | ||
| Cash Conversion | 66.51% | ||
| Profit Quality | 109.22% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.04 |
F-Score6
WACC7.08%
ROIC/WACC1.01
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)13.6%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%18.84%
EPS Next Y15.33%
EPS Next 2Y12.2%
EPS Next 3Y10.27%
EPS Next 5Y7.16%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.37%
Revenue Next Year10.49%
Revenue Next 2Y6.52%
Revenue Next 3Y5.14%
Revenue Next 5Y4.05%
EBIT growth 1Y0.12%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year59.21%
EBIT Next 3Y20.03%
EBIT Next 5Y12.16%
FCF growth 1Y87.1%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y52.68%
OCF growth 3Y9.04%
OCF growth 5Y7.31%