SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
NYSE:SON - New York Stock Exchange, Inc. - US8354951027 - Common Stock - Currency: USD
SON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 24 industry peers in the Containers & Packaging industry. Both the profitability and the financial health of SON get a neutral evaluation. Nothing too spectacular is happening here. SON is cheap, but on the other hand it scores bad on growth. Finally SON also has an excellent dividend rating. These ratings could make SON a good candidate for value and dividend investing.
1. Profitability
1.1 Basic Checks
In the past year SON was profitable.
In the past year SON had a positive cash flow from operations.
SON had positive earnings in 4 of the past 5 years.
SON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.19%, SON is in line with its industry, outperforming 52.17% of the companies in the same industry.
SON's Return On Equity of 11.62% is in line compared to the rest of the industry. SON outperforms 47.83% of its industry peers.
The Return On Invested Capital of SON (6.87%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SON is above the industry average of 7.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 11.62% | ||
| ROIC | 6.87% |
ROA(3y)3.84%
ROA(5y)4.23%
ROE(3y)12.51%
ROE(5y)12.93%
ROIC(3y)10.26%
ROIC(5y)10.4%
1.3 Margins
With a Profit Margin value of 4.38%, SON perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
SON's Profit Margin has improved in the last couple of years.
SON has a Operating Margin of 9.93%. This is in the better half of the industry: SON outperforms 60.87% of its industry peers.
In the last couple of years the Operating Margin of SON has grown nicely.
SON's Gross Margin of 21.20% is in line compared to the rest of the industry. SON outperforms 52.17% of its industry peers.
In the last couple of years the Gross Margin of SON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.93% | ||
| PM (TTM) | 4.38% | ||
| GM | 21.2% |
OM growth 3Y1.85%
OM growth 5Y2.92%
PM growth 3Y20.92%
PM growth 5Y3.78%
GM growth 3Y1.95%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SON is still creating some value.
Compared to 1 year ago, SON has more shares outstanding
The number of shares outstanding for SON has been reduced compared to 5 years ago.
SON has a better debt/assets ratio than last year.
2.2 Solvency
SON has an Altman-Z score of 2.12. This is not the best score and indicates that SON is in the grey zone with still only limited risk for bankruptcy at the moment.
SON has a better Altman-Z score (2.12) than 65.22% of its industry peers.
SON has a debt to FCF ratio of 14.81. This is a negative value and a sign of low solvency as SON would need 14.81 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.81, SON perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
SON has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
SON has a Debt to Equity ratio of 1.74. This is in the lower half of the industry: SON underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 14.81 | ||
| Altman-Z | 2.12 |
ROIC/WACC1
WACC6.85%
2.3 Liquidity
SON has a Current Ratio of 2.36. This indicates that SON is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.36, SON belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
SON has a Quick Ratio of 1.91. This is a normal value and indicates that SON is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.91, SON belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The earnings per share for SON have decreased strongly by -10.89% in the last year.
Measured over the past years, SON shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.31% on average per year.
The Revenue has decreased by -3.65% in the past year.
SON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.70% yearly.
EPS 1Y (TTM)-10.89%
EPS 3Y15.54%
EPS 5Y9.31%
EPS Q2Q%2.05%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y8.99%
Revenue growth 5Y4.7%
Sales Q2Q%-2.02%
3.2 Future
Based on estimates for the next years, SON will show a small growth in Earnings Per Share. The EPS will grow by 3.25% on average per year.
SON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y-1.89%
EPS Next 2Y1.36%
EPS Next 3Y3.75%
EPS Next 5Y3.25%
Revenue Next Year-2.74%
Revenue Next 2Y6.65%
Revenue Next 3Y5.98%
Revenue Next 5Y5.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.84, the valuation of SON can be described as reasonable.
Based on the Price/Earnings ratio, SON is valued cheaper than 95.65% of the companies in the same industry.
SON is valuated cheaply when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.94, the valuation of SON can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 95.65% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SON to the average of the S&P500 Index (93.88), we can say SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SON is valued cheaper than 91.30% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SON is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.64 | ||
| EV/EBITDA | 7.49 |
4.3 Compensation for Growth
SON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y1.36%
EPS Next 3Y3.75%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 4.28%, which is a nice return.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.06. SON pays more dividend than 86.96% of the companies in the same industry.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.49%.
SON has paid a dividend for at least 10 years, which is a reliable track record.
SON has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.49%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
SON pays out 70.22% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SON is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP70.22%
EPS Next 2Y1.36%
EPS Next 3Y3.75%
SONOCO PRODUCTS CO
NYSE:SON (1/30/2025, 8:04:00 PM)
After market: 48.29 0 (0%)48.29
+0.11 (+0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change0.71%
Ins Owners0.28%
Ins Owner Change-1%
Market Cap4.74B
Analysts76.92
Price Target60.91 (26.13%)
Short Float %1.85%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
Yearly Dividend2.02
Dividend Growth(5Y)4.49%
DP70.22%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.03%
Min EPS beat(2)1.68%
Max EPS beat(2)2.37%
EPS beat(4)3
Avg EPS beat(4)1.7%
Min EPS beat(4)-3.01%
Max EPS beat(4)5.77%
EPS beat(8)6
Avg EPS beat(8)3.15%
EPS beat(12)10
Avg EPS beat(12)4.73%
EPS beat(16)13
Avg EPS beat(16)4.05%
Revenue beat(2)0
Avg Revenue beat(2)-4.15%
Min Revenue beat(2)-4.84%
Max Revenue beat(2)-3.46%
Revenue beat(4)1
Avg Revenue beat(4)-2.71%
Min Revenue beat(4)-4.84%
Max Revenue beat(4)0.66%
Revenue beat(8)1
Avg Revenue beat(8)-4.57%
Revenue beat(12)3
Avg Revenue beat(12)-3.04%
Revenue beat(16)7
Avg Revenue beat(16)-1.56%
PT rev (1m)0%
PT rev (3m)-2.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.84 | ||
| Fwd PE | 8.94 | ||
| P/S | 0.72 | ||
| P/FCF | 14.64 | ||
| P/OCF | 6.74 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.49 |
EPS(TTM)4.91
EY10.17%
EPS(NY)5.4
Fwd EY11.19%
FCF(TTM)3.3
FCFY6.83%
OCF(TTM)7.16
OCFY14.83%
SpS66.89
BVpS25.23
TBVpS-0.89
PEG (NY)N/A
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 11.62% | ||
| ROCE | 8.87% | ||
| ROIC | 6.87% | ||
| ROICexc | 9.31% | ||
| ROICexgc | 17.64% | ||
| OM | 9.93% | ||
| PM (TTM) | 4.38% | ||
| GM | 21.2% | ||
| FCFM | 4.93% |
ROA(3y)3.84%
ROA(5y)4.23%
ROE(3y)12.51%
ROE(5y)12.93%
ROIC(3y)10.26%
ROIC(5y)10.4%
ROICexc(3y)10.67%
ROICexc(5y)11.1%
ROICexgc(3y)19.55%
ROICexgc(5y)21.29%
ROCE(3y)13.68%
ROCE(5y)13.86%
ROICexcg growth 3Y-14.06%
ROICexcg growth 5Y-3.62%
ROICexc growth 3Y-9.34%
ROICexc growth 5Y-2.85%
OM growth 3Y1.85%
OM growth 5Y2.92%
PM growth 3Y20.92%
PM growth 5Y3.78%
GM growth 3Y1.95%
GM growth 5Y1.86%
F-Score6
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 14.81 | ||
| Debt/EBITDA | 4.26 | ||
| Cap/Depr | 104.76% | ||
| Cap/Sales | 5.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.31% | ||
| Profit Quality | 112.49% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z | 2.12 |
F-Score6
WACC6.85%
ROIC/WACC1
Cap/Depr(3y)106.67%
Cap/Depr(5y)95.59%
Cap/Sales(3y)4.82%
Cap/Sales(5y)4.36%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.89%
EPS 3Y15.54%
EPS 5Y9.31%
EPS Q2Q%2.05%
EPS Next Y-1.89%
EPS Next 2Y1.36%
EPS Next 3Y3.75%
EPS Next 5Y3.25%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y8.99%
Revenue growth 5Y4.7%
Sales Q2Q%-2.02%
Revenue Next Year-2.74%
Revenue Next 2Y6.65%
Revenue Next 3Y5.98%
Revenue Next 5Y5.65%
EBIT growth 1Y-13.86%
EBIT growth 3Y11.01%
EBIT growth 5Y7.75%
EBIT Next Year32.31%
EBIT Next 3Y22.48%
EBIT Next 5Y11.81%
FCF growth 1Y402.94%
FCF growth 3Y0.54%
FCF growth 5Y5.52%
OCF growth 1Y75.63%
OCF growth 3Y7.76%
OCF growth 5Y8.4%