SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - NYSE:SON - US8354951027 - Common Stock
47.39 USD
+0.22 (+0.47%)
47.39 USD
0 (0%)
SON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. While SON is still in line with the averages on profitability rating, there are concerns on its financial health. SON is valued quite cheap, while showing a decent growth score. This is a good 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 4.64%, SON belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
The Return On Equity of SON (17.18%) is better than 81.82% of its industry peers.
The Return On Invested Capital of SON (4.94%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SON is in line with the industry average of 7.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 17.18% | ||
| ROIC | 4.94% |
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
The Profit Margin of SON (9.81%) is better than 90.91% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
SON has a Operating Margin of 9.99%. This is in the better half of the industry: SON outperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
With a Gross Margin value of 21.26%, SON perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
SON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.99% | ||
| PM (TTM) | 9.81% | ||
| GM | 21.26% |
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.
The number of shares outstanding for SON has been increased compared to 1 year ago.
The number of shares outstanding for SON has been reduced compared to 5 years ago.
SON has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.37, we must say that SON is in the distress zone and has some risk of bankruptcy.
SON's Altman-Z score of 1.37 is on the low side compared to the rest of the industry. SON is outperformed by 63.64% of its industry peers.
SON has a debt to FCF ratio of 38.01. This is a negative value and a sign of low solvency as SON would need 38.01 years to pay back of all of its debts.
SON has a Debt to FCF ratio (38.01) which is comparable to the rest of the industry.
SON has a Debt/Equity ratio of 1.54. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SON (1.54) is worse than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 38.01 | ||
| Altman-Z | 1.37 |
ROIC/WACC0.72
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.25 indicates that SON should not have too much problems paying its short term obligations.
The Current ratio of SON (1.25) is comparable to the rest of the industry.
A Quick Ratio of 0.72 indicates that SON may have some problems paying its short term obligations.
With a Quick ratio value of 0.72, SON perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
SON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.38%.
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 for SON has decreased by -14.28% in the past year. This is quite bad
The Revenue has been decreasing by -0.26% on average over the past years.
EPS 1Y (TTM)7.38%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%7.03%
Revenue 1Y (TTM)-14.28%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%17.68%
3.2 Future
Based on estimates for the next years, SON will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.45% on average per year.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y22.64%
EPS Next 2Y15.78%
EPS Next 3Y13.14%
EPS Next 5Y10.45%
Revenue Next Year16.54%
Revenue Next 2Y8.36%
Revenue Next 3Y6.81%
Revenue Next 5Y6.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
SON is valuated reasonably with a Price/Earnings ratio of 9.04.
100.00% of the companies in the same industry are more expensive than SON, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (27.20), we can say SON is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.23, the valuation of SON can be described as very cheap.
SON's Price/Forward Earnings ratio is rather cheap when compared to the industry. SON is cheaper than 95.45% of the companies in the same industry.
SON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SON is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SON is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.76 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as SON's earnings are expected to grow with 13.14% in the coming years.
PEG (NY)0.4
PEG (5Y)1.33
EPS Next 2Y15.78%
EPS Next 3Y13.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, SON is a good candidate for dividend investing.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.24. SON pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.02%.
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)4.02%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
SON pays out 37.02% 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.
DP37.02%
EPS Next 2Y15.78%
EPS Next 3Y13.14%
47.39
+0.22 (+0.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners85.21%
Inst Owner Change0.32%
Ins Owners0.37%
Ins Owner Change1.11%
Market Cap4.67B
Analysts80
Price Target58.59 (23.63%)
Short Float %3.75%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend2.07
Dividend Growth(5Y)4.02%
DP37.02%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.26%
Min EPS beat(2)-6.6%
Max EPS beat(2)-3.91%
EPS beat(4)1
Avg EPS beat(4)-6.6%
Min EPS beat(4)-17.56%
Max EPS beat(4)1.68%
EPS beat(8)4
Avg EPS beat(8)-0.5%
EPS beat(12)7
Avg EPS beat(12)1.09%
EPS beat(16)11
Avg EPS beat(16)1.84%
Revenue beat(2)0
Avg Revenue beat(2)-8.87%
Min Revenue beat(2)-16.99%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-10.15%
Min Revenue beat(4)-19.38%
Max Revenue beat(4)-0.76%
Revenue beat(8)1
Avg Revenue beat(8)-6.34%
Revenue beat(12)1
Avg Revenue beat(12)-6.25%
Revenue beat(16)4
Avg Revenue beat(16)-4.5%
PT rev (1m)0%
PT rev (3m)0.12%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)1.99%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)0.23%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.23 | ||
| P/S | 0.83 | ||
| P/FCF | 32.76 | ||
| P/OCF | 8.6 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.65 |
EPS(TTM)5.24
EY11.06%
EPS(NY)6.56
Fwd EY13.83%
FCF(TTM)1.45
FCFY3.05%
OCF(TTM)5.51
OCFY11.63%
SpS57.43
BVpS32.8
TBVpS-22.28
PEG (NY)0.4
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 17.18% | ||
| ROCE | 5.93% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 12.48% | ||
| OM | 9.99% | ||
| PM (TTM) | 9.81% | ||
| GM | 21.26% | ||
| FCFM | 2.52% |
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%
ROICexcg growth 3Y-9.06%
ROICexcg 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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 38.01 | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 89.96% | ||
| Cap/Sales | 7.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.74% | ||
| Profit Quality | 25.67% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.37 |
F-Score4
WACC6.87%
ROIC/WACC0.72
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)7.38%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%7.03%
EPS Next Y22.64%
EPS Next 2Y15.78%
EPS Next 3Y13.14%
EPS Next 5Y10.45%
Revenue 1Y (TTM)-14.28%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%17.68%
Revenue Next Year16.54%
Revenue Next 2Y8.36%
Revenue Next 3Y6.81%
Revenue Next 5Y6.14%
EBIT growth 1Y-14.15%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year76.99%
EBIT Next 3Y24.4%
EBIT Next 5Y14.67%
FCF growth 1Y-56.98%
FCF growth 3Y117.79%
FCF growth 5Y13.88%
OCF growth 1Y-19.23%
OCF growth 3Y40.81%
OCF growth 5Y14.38%