SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - NYSE:SON - US8354951027 - Common Stock
40.93 USD
-0.64 (-1.54%)
40.93 USD
0 (0%)
Overall SON gets a fundamental rating of 5 out of 10. We evaluated SON against 22 industry peers in the Containers & Packaging industry. There are concerns on the financial health of SON while its profitability can be described as average. SON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
SON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SON has a Return On Assets of 5.36%. This is in the better half of the industry: SON outperforms 77.27% of its industry peers.
The Return On Equity of SON (19.00%) is better than 86.36% of its industry peers.
With a Return On Invested Capital value of 6.37%, SON perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
SON's Profit Margin of 10.26% is amongst the best of the industry. SON outperforms 95.45% of its industry peers.
SON's Profit Margin has declined in the last couple of years.
SON has a Operating Margin of 10.36%. This is in the better half 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 has a Gross Margin (21.46%) which is in line with 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.
Compared to 1 year ago, SON has more shares outstanding
Compared to 5 years ago, SON has less shares outstanding
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 worse Altman-Z score (1.33) than 72.73% 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 (17.32) which is in line with its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
SON has a Debt to Equity ratio (1.15) which 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/WACC0.86
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.92 indicates that SON may have some problems paying its short term obligations.
SON has a worse Current ratio (0.92) than 90.91% 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.
SON has a worse Quick ratio (0.58) than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.48% over the past year.
The Earnings Per Share has been growing slightly by 6.80% on average over the past years.
Looking at the last year, SON shows a decrease in Revenue. The Revenue has decreased by -6.90% in the last 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
The Earnings Per Share is expected to grow by 10.45% on average over the next years. This is quite good.
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 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
A Price/Earnings ratio of 7.22 indicates a rather cheap valuation of SON.
Compared to the rest of the industry, the Price/Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (25.89), we can say SON is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.65, 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 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
SON's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SON is cheaper than 68.18% of the companies in the same industry.
77.27% of the companies in the same industry are more expensive than SON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.56 | ||
| EV/EBITDA | 7.99 |
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.
SON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)1.06
EPS Next 2Y12.21%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.10%, SON is a good candidate for dividend investing.
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
SON pays out 32.95% of its income as dividend. This is a 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%
40.93
-0.64 (-1.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners84.89%
Inst Owner Change-0.32%
Ins Owners0.37%
Ins Owner Change0.93%
Market Cap4.04B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target54.83 (33.96%)
Short Float %4.83%
Short Ratio4.18
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 | 7.22 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.66 | ||
| P/FCF | 13.56 | ||
| P/OCF | 6 | ||
| P/B | 1.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.99 |
EPS(TTM)5.67
EY13.85%
EPS(NY)6.16
Fwd EY15.04%
FCF(TTM)3.02
FCFY7.38%
OCF(TTM)6.82
OCFY16.67%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.39
PEG (5Y)1.06
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
WACC7.39%
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 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 7.22 and the Price/Book (PB) ratio is 1.22.
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.