SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - NYSE:SON - US8354951027 - Common Stock
40.68 USD
+0.23 (+0.57%)
41.39 USD
+0.71 (+1.75%)
Taking everything into account, SON scores 5 out of 10 in our fundamental rating. SON was compared to 22 industry peers in the Containers & Packaging industry. SON has a medium profitability rating, but doesn't score so well on its financial health evaluation. SON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally SON also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SON had positive earnings in the past year.
SON had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 5.36%, SON belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
SON's Return On Equity of 18.91% is amongst the best of the industry. SON outperforms 81.82% of its industry peers.
SON has a Return On Invested Capital of 6.28%. This is comparable to the rest of the industry: SON outperforms 54.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SON is in line with the industry average of 7.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 18.91% | ||
| ROIC | 6.28% |
ROA(3y)4.84%
ROA(5y)3.36%
ROE(3y)16.46%
ROE(5y)11.13%
ROIC(3y)8.06%
ROIC(5y)9.38%
1.3 Margins
Looking at the Profit Margin, with a value of 10.26%, SON belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
SON's Profit Margin has declined in the last couple of years.
SON has a better Operating Margin (10.21%) than 68.18% of its industry peers.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
The Gross Margin of SON (21.46%) is comparable to the rest of the industry.
SON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.21% | ||
| PM (TTM) | 10.26% | ||
| GM | 21.46% |
OM growth 3Y2.99%
OM growth 5Y0.48%
PM growth 3YN/A
PM growth 5Y-10.66%
GM growth 3Y4.17%
GM growth 5Y1.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SON is creating some value.
Compared to 1 year ago, SON has more shares outstanding
Compared to 5 years ago, SON has less shares outstanding
The debt/assets ratio for SON is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of SON is 17.02, which is on the high side as it means it would take SON, 17.02 years of fcf income to pay off all of its debts.
SON has a Debt to FCF ratio (17.02) which is in line with its industry peers.
SON has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.14, SON is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 17.02 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC7.33%
2.3 Liquidity
SON has a Current Ratio of 0.92. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
SON has a worse Current ratio (0.92) than 86.36% of its industry peers.
SON has a Quick Ratio of 0.92. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.58, SON is doing worse than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
SON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.48%, which is quite good.
Measured over the past 5 years, SON shows a small growth in Earnings Per Share. The EPS has been growing by 6.80% on average per year.
The Revenue has decreased by -6.90% in the past year.
The Revenue has been decreasing by -0.26% on average over the past years.
EPS 1Y (TTM)15.48%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%28.86%
Revenue 1Y (TTM)-6.9%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%27.16%
3.2 Future
SON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.45% yearly.
The Revenue is expected to grow by 6.14% on average over the next years.
EPS Next Y21.68%
EPS Next 2Y15.04%
EPS Next 3Y12.12%
EPS Next 5Y10.45%
Revenue Next Year16.21%
Revenue Next 2Y7.88%
Revenue Next 3Y6.37%
Revenue Next 5Y6.14%
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 accelerating.
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
With a Price/Earnings ratio of 7.17, the valuation of SON can be described as very cheap.
SON's Price/Earnings ratio is rather cheap when compared to the industry. SON is cheaper than 100.00% of the companies in the same industry.
SON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
SON is valuated cheaply with a Price/Forward Earnings ratio of 6.29.
Based on the Price/Forward Earnings ratio, SON is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SON to the average of the S&P500 Index (32.68), we can say SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 6.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 68.18% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SON is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.24 | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
SON'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 SON may justify a higher PE ratio.
SON's earnings are expected to grow with 12.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)1.06
EPS Next 2Y15.04%
EPS Next 3Y12.12%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 5.40%, which is a nice return.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.52. SON pays more dividend than 90.91% of the companies in the same industry.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.02%.
SON has been paying a dividend for at least 10 years, so it has a reliable track record.
SON has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.02%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
SON pays out 32.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of SON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.95%
EPS Next 2Y15.04%
EPS Next 3Y12.12%
40.68
+0.23 (+0.57%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners84.89%
Inst Owner Change-0.61%
Ins Owners0.37%
Ins Owner Change0.93%
Market Cap4.01B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts80
Price Target54.83 (34.78%)
Short Float %4.83%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.4% |
Yearly Dividend2.07
Dividend Growth(5Y)4.02%
DP32.95%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.96%
Min EPS beat(2)-6.6%
Max EPS beat(2)-1.32%
EPS beat(4)0
Avg EPS beat(4)-7.35%
Min EPS beat(4)-17.56%
Max EPS beat(4)-1.32%
EPS beat(8)3
Avg EPS beat(8)-2.82%
EPS beat(12)6
Avg EPS beat(12)-0.35%
EPS beat(16)10
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-9.86%
Min Revenue beat(4)-19.38%
Max Revenue beat(4)-0.76%
Revenue beat(8)1
Avg Revenue beat(8)-6.29%
Revenue beat(12)1
Avg Revenue beat(12)-6.34%
Revenue beat(16)3
Avg Revenue beat(16)-4.74%
PT rev (1m)-6.43%
PT rev (3m)-4.77%
EPS NQ rev (1m)-7.4%
EPS NQ rev (3m)-6.88%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.17 | ||
| Fwd PE | 6.29 | ||
| P/S | 0.66 | ||
| P/FCF | 13.24 | ||
| P/OCF | 5.96 | ||
| P/B | 1.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.01 |
EPS(TTM)5.67
EY13.94%
EPS(NY)6.47
Fwd EY15.91%
FCF(TTM)3.07
FCFY7.55%
OCF(TTM)6.82
OCFY16.78%
SpS62.04
BVpS33.66
TBVpS-19.01
PEG (NY)0.33
PEG (5Y)1.06
Graham Number65.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 18.91% | ||
| ROCE | 7.53% | ||
| ROIC | 6.28% | ||
| ROICexc | 6.47% | ||
| ROICexgc | 18.24% | ||
| OM | 10.21% | ||
| PM (TTM) | 10.26% | ||
| GM | 21.46% | ||
| FCFM | 4.95% |
ROA(3y)4.84%
ROA(5y)3.36%
ROE(3y)16.46%
ROE(5y)11.13%
ROIC(3y)8.06%
ROIC(5y)9.38%
ROICexc(3y)8.38%
ROICexc(5y)10.09%
ROICexgc(3y)16.5%
ROICexgc(5y)19.85%
ROCE(3y)9.66%
ROCE(5y)11.51%
ROICexgc growth 3Y-9.06%
ROICexgc growth 5Y-7.04%
ROICexc growth 3Y-21.68%
ROICexc growth 5Y-13.61%
OM growth 3Y2.99%
OM growth 5Y0.48%
PM growth 3YN/A
PM growth 5Y-10.66%
GM growth 3Y4.17%
GM growth 5Y1.76%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 17.02 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 76.04% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.56% | ||
| Profit Quality | 48.25% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | N/A |
F-Score7
WACC7.33%
ROIC/WACC0.86
Cap/Depr(3y)105.95%
Cap/Depr(5y)100.18%
Cap/Sales(3y)6.57%
Cap/Sales(5y)5.6%
Profit Quality(3y)138.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.48%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%28.86%
EPS Next Y21.68%
EPS Next 2Y15.04%
EPS Next 3Y12.12%
EPS Next 5Y10.45%
Revenue 1Y (TTM)-6.9%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%27.16%
Revenue Next Year16.21%
Revenue Next 2Y7.88%
Revenue Next 3Y6.37%
Revenue Next 5Y6.14%
EBIT growth 1Y-4.33%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year77.39%
EBIT Next 3Y24.4%
EBIT Next 5Y14.67%
FCF growth 1Y-33.71%
FCF growth 3Y117.79%
FCF growth 5Y13.88%
OCF growth 1Y-16.27%
OCF growth 3Y40.81%
OCF growth 5Y14.38%
SONOCO PRODUCTS CO / SON FAQ
What is the ChartMill fundamental rating of SONOCO PRODUCTS CO (SON) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SON.
What is the valuation status for SON stock?
ChartMill assigns a valuation rating of 8 / 10 to SONOCO PRODUCTS CO (SON). This can be considered as Undervalued.
What is the profitability of SON stock?
SONOCO PRODUCTS CO (SON) has a profitability rating of 6 / 10.
What is the valuation of SONOCO PRODUCTS CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SONOCO PRODUCTS CO (SON) is 7.17 and the Price/Book (PB) ratio is 1.21.
What is the expected EPS growth for SONOCO PRODUCTS CO (SON) stock?
The Earnings per Share (EPS) of SONOCO PRODUCTS CO (SON) is expected to grow by 21.68% in the next year.