SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - NYSE:SON - US8354951027 - Common Stock
40.05 USD
-0.26 (-0.65%)
40.05 USD
0 (0%)
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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SON. 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.
Of the past 5 years SON 4 years were profitable.
In the past 5 years SON always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.36%, SON is doing good in the industry, outperforming 77.27% of the companies in the same industry.
SON has a Return On Equity of 19.00%. This is amongst the best in the industry. SON outperforms 86.36% of its industry peers.
SON has a Return On Invested Capital (6.37%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SON is in line with the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 19% | ||
| ROIC | 6.37% |
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 95.45% of the companies in the same industry.
SON's Profit Margin has declined in the last couple of years.
SON's Operating Margin of 10.36% is fine compared to the rest of the industry. SON outperforms 68.18% of its industry peers.
SON's Operating Margin has been stable in the last couple of years.
SON's Gross Margin of 21.46% is in line compared to the rest of the industry. SON outperforms 54.55% of its industry peers.
In the last couple of years the Gross Margin of SON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.36% | ||
| 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.
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 1.33, we must say that SON is in the distress zone and has some risk of bankruptcy.
SON has a Altman-Z score of 1.33. This is in the lower half of the industry: SON underperforms 77.27% of its industry peers.
SON has a debt to FCF ratio of 17.32. This is a negative value and a sign of low solvency as SON would need 17.32 years to pay back of all of its debts.
SON has a Debt to FCF ratio of 17.32. This is comparable to the rest of the industry: SON outperforms 54.55% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
The Debt to Equity ratio of SON (1.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.87
WACC7.34%
2.3 Liquidity
A Current Ratio of 0.92 indicates that SON may have some problems paying its short term obligations.
The Current ratio of SON (0.92) is worse than 90.91% of its industry peers.
A Quick Ratio of 0.58 indicates that SON may have some problems paying its short term obligations.
SON's Quick ratio of 0.58 is on the low side compared to the rest of the industry. SON is outperformed by 90.91% of its industry peers.
| 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.
SON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.80% yearly.
The Revenue has decreased by -6.90% in the past year.
Measured over the past years, SON shows a decrease in Revenue. The Revenue has been decreasing by -0.26% on average per year.
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
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.
SON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
EPS Next Y18.65%
EPS Next 2Y12.21%
EPS Next 3Y11.04%
EPS Next 5Y10.45%
Revenue Next Year15.46%
Revenue Next 2Y7.31%
Revenue Next 3Y5.36%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.06, which indicates a rather cheap valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
SON is valuated cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.50 indicates a rather cheap valuation of SON.
Based on the Price/Forward Earnings ratio, SON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SON to the average of the S&P500 Index (34.98), we can say SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 6.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SON is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
SON's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SON is cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.26 | ||
| EV/EBITDA | 7.93 |
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.
SON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.38
PEG (5Y)1.04
EPS Next 2Y12.21%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 5.10%, which is a nice return.
Compared to an average industry Dividend Yield of 3.59, SON pays a better dividend. On top of this SON pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
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
32.95% of the earnings are spent on dividend by SON. This is a low number and sustainable payout ratio.
SON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.95%
EPS Next 2Y12.21%
EPS Next 3Y11.04%
40.05
-0.26 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners84.89%
Inst Owner Change-0.19%
Ins Owners0.37%
Ins Owner Change2.09%
Market Cap3.95B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target54.83 (36.9%)
Short Float %4.62%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.1% |
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)-6.43%
EPS NQ rev (1m)-12.22%
EPS NQ rev (3m)-11.1%
EPS NY rev (1m)-3.26%
EPS NY rev (3m)-4.23%
Revenue NQ rev (1m)1.77%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)-0.93%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.06 | ||
| Fwd PE | 6.5 | ||
| P/S | 0.65 | ||
| P/FCF | 13.26 | ||
| P/OCF | 5.87 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.93 |
EPS(TTM)5.67
EY14.16%
EPS(NY)6.16
Fwd EY15.37%
FCF(TTM)3.02
FCFY7.54%
OCF(TTM)6.82
OCFY17.04%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.38
PEG (5Y)1.04
Graham Number65.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 19% | ||
| ROCE | 7.64% | ||
| ROIC | 6.37% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 18.51% | ||
| OM | 10.36% | ||
| PM (TTM) | 10.26% | ||
| GM | 21.46% | ||
| FCFM | 4.87% |
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 | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 77.1% | ||
| Cap/Sales | 6.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.07% | ||
| Profit Quality | 47.43% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.33 |
F-Score7
WACC7.34%
ROIC/WACC0.87
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 Y18.65%
EPS Next 2Y12.21%
EPS Next 3Y11.04%
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 Year15.46%
Revenue Next 2Y7.31%
Revenue Next 3Y5.36%
Revenue Next 5Y6.14%
EBIT growth 1Y-2.93%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year77.39%
EBIT Next 3Y24.4%
EBIT Next 5Y14.67%
FCF growth 1Y-34.84%
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 7.06 and the Price/Book (PB) ratio is 1.2.
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 18.65% in the next year.