SONOCO PRODUCTS CO (SON)
US8354951027 - Common Stock
Taking everything into account, SON scores 5 out of 10 in our fundamental rating. SON was compared to 24 industry peers in the Containers & Packaging industry. SON has only an average score on both its financial health and profitability. SON has a valuation in line with the averages, but it does not seem to be growing. Finally SON also has an excellent dividend rating. These ratings would make SON suitable for dividend investing!
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.
Each year in the past 5 years SON had a positive operating cash flow.
1.2 Ratios
SON has a Return On Assets (3.19%) which is comparable to the rest of the industry.
SON has a Return On Equity (11.62%) which is comparable to the rest of the industry.
SON has a Return On Invested Capital (6.87%) which is in line with its industry peers.
SON had an Average Return On Invested Capital over the past 3 years of 10.26%. This is significantly below the industry average of 382233.10%.
| 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
Looking at the Profit Margin, with a value of 4.38%, SON is in line with its industry, outperforming 52.17% of the companies in the same industry.
SON's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.93%, SON is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
In the last couple of years the Operating Margin of SON has grown nicely.
SON has a Gross Margin (21.20%) which is in line with its industry peers.
SON's Gross Margin has improved in the last couple of years.
| 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
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.
SON has less shares outstanding than it did 5 years ago.
SON has a better debt/assets ratio than last year.
2.2 Solvency
SON has an Altman-Z score of 2.13. 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 (2.13) than 69.57% of its industry peers.
The Debt to FCF ratio of SON is 14.81, which is on the high side as it means it would take SON, 14.81 years of fcf income to pay off all of its debts.
SON's Debt to FCF ratio of 14.81 is in line compared to the rest of the industry. SON outperforms 47.83% of its industry peers.
SON has a Debt/Equity ratio of 1.74. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.74, SON is doing worse than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 14.81 | ||
| Altman-Z | 2.13 |
ROIC/WACC1
WACC6.9%
2.3 Liquidity
A Current Ratio of 2.36 indicates that SON has no problem at all paying its short term obligations.
SON has a better Current ratio (2.36) than 91.30% of its industry peers.
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.
SON has a better Quick ratio (1.91) than 82.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
SON shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.89%.
The Earnings Per Share has been growing by 9.31% on average over the past years. This is quite good.
Looking at the last year, SON shows a decrease in Revenue. The Revenue has decreased by -3.65% in the last year.
Measured over the past years, SON shows a small growth in Revenue. The Revenue has been growing by 4.70% on average per year.
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
The Earnings Per Share is expected to grow by 2.70% on average over the next years.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 3.00% on average per year.
EPS Next Y-1.89%
EPS Next 2Y1.36%
EPS Next 3Y3.75%
EPS Next 5Y2.7%
Revenue Next Year-3.32%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.28%
Revenue Next 5Y3%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.07 indicates a reasonable valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.73, SON is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.15, the valuation of SON can be described as very reasonable.
SON's Price/Forward Earnings ratio is rather cheap when compared to the industry. SON is cheaper than 95.65% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SON is valued cheaper than 82.61% 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 | 14.98 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y1.36%
EPS Next 3Y3.75%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 4.15%, which is a nice return.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.07. SON pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.49%.
SON has been paying a dividend for at least 10 years, so it has a reliable track record.
SON has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
SON's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP70.22%
EPS Next 2Y1.36%
EPS Next 3Y3.75%
SONOCO PRODUCTS CO
NYSE:SON (12/20/2024, 8:04:00 PM)
After market: 49.42 0 (0%)49.42
-0.73 (-1.46%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners81.96%
Inst Owner Change-1.17%
Ins Owners0.28%
Ins Owner Change-0.77%
Market Cap4.86B
Analysts76.92
Price Target60.91 (23.25%)
Short Float %1.48%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.15% |
Dividend Growth(5Y)4.49%
DP70.22%
Div Incr Years26
Div Non Decr Years26
Ex-Date
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)-2.11%
PT rev (3m)-0.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.82%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.5%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.07 | ||
| Fwd PE | 9.15 | ||
| P/S | 0.74 | ||
| P/FCF | 14.98 | ||
| P/OCF | 6.9 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.61 |
EPS(TTM)4.91
EY9.94%
EPS(NY)5.4
Fwd EY10.93%
FCF(TTM)3.3
FCFY6.68%
OCF(TTM)7.16
OCFY14.49%
SpS66.89
BVpS25.23
TBVpS-0.89
PEG (NY)N/A
PEG (5Y)1.08
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 | 2.13 |
F-Score6
WACC6.9%
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 5Y2.7%
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y8.99%
Revenue growth 5Y4.7%
Sales Q2Q%-2.02%
Revenue Next Year-3.32%
Revenue Next 2Y-0.92%
Revenue Next 3Y0.28%
Revenue Next 5Y3%
EBIT growth 1Y-13.86%
EBIT growth 3Y11.01%
EBIT growth 5Y7.75%
EBIT Next Year31.18%
EBIT Next 3Y-57.16%
EBIT Next 5Y8.37%
FCF growth 1Y402.94%
FCF growth 3Y0.54%
FCF growth 5Y5.52%
OCF growth 1Y75.63%
OCF growth 3Y7.76%
OCF growth 5Y8.4%