SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SON - US8354951027 - Common Stock
41.93 USD
+1.21 (+2.97%)
41.93 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SON. 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
In the past year SON was profitable.
In the past year SON had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 5.36%, SON is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.00%, SON belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.37%, SON is in line with its industry, 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 has a Profit Margin of 10.26%. This is amongst the best in the industry. SON outperforms 95.45% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
SON has a better Operating Margin (10.36%) 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.
Looking at the Gross Margin, with a value of 21.46%, SON is in line with its industry, outperforming 54.55% of the companies in the same industry.
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
The number of shares outstanding for SON has been reduced compared to 5 years ago.
The debt/assets ratio for SON is higher compared to a year ago.
2.2 Solvency
SON has an Altman-Z score of 1.33. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SON (1.33) is worse than 77.27% of its industry peers.
The Debt to FCF ratio of SON is 17.32, which is on the high side as it means it would take SON, 17.32 years of fcf income to pay off all of its debts.
SON's Debt to FCF ratio of 17.32 is in line compared 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/WACC0.86
WACC7.4%
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's Current ratio of 0.92 is on the low side compared to the rest of the industry. SON is outperformed by 95.45% of its industry peers.
A Quick Ratio of 0.58 indicates that SON may have some problems paying its short term obligations.
SON has a Quick ratio of 0.58. This is amonst the worse of the industry: SON underperforms 95.45% 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.
SON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.80% yearly.
SON shows a decrease in Revenue. In the last year, the revenue decreased by -6.90%.
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
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 Y17.4%
EPS Next 2Y11.83%
EPS Next 3Y10.92%
EPS Next 5Y10.45%
Revenue Next Year15.42%
Revenue Next 2Y6.92%
Revenue Next 3Y5.32%
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 7.40, which indicates a rather cheap valuation of SON.
SON's Price/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/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.59.
A Price/Forward Earnings ratio of 6.86 indicates a rather cheap valuation of SON.
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.
SON is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 6.86 |
4.2 Price Multiples
68.18% of the companies in the same industry are more expensive than SON, based on the Enterprise Value to EBITDA ratio.
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 | 13.89 | ||
| EV/EBITDA | 7.97 |
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)0.43
PEG (5Y)1.09
EPS Next 2Y11.83%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 5.13%, which is a nice return.
Compared to an average industry Dividend Yield of 3.34, 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 2.31, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
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 2Y11.83%
EPS Next 3Y10.92%
41.93
+1.21 (+2.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners84.26%
Inst Owner Change-0.16%
Ins Owners0.39%
Ins Owner Change0.93%
Market Cap4.14B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target54.32 (29.55%)
Short Float %5.39%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
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)-0.93%
PT rev (3m)-7.3%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)-14.08%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.4 | ||
| Fwd PE | 6.86 | ||
| P/S | 0.68 | ||
| P/FCF | 13.89 | ||
| P/OCF | 6.14 | ||
| P/B | 1.25 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.97 |
EPS(TTM)5.67
EY13.52%
EPS(NY)6.11
Fwd EY14.58%
FCF(TTM)3.02
FCFY7.2%
OCF(TTM)6.82
OCFY16.28%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.43
PEG (5Y)1.09
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
WACC7.4%
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 Y17.4%
EPS Next 2Y11.83%
EPS Next 3Y10.92%
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 Year15.42%
Revenue Next 2Y6.92%
Revenue Next 3Y5.32%
Revenue Next 5Y6.14%
EBIT growth 1Y-2.93%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year76.06%
EBIT Next 3Y22.97%
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 7.4 and the Price/Book (PB) ratio is 1.25.
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 17.4% in the next year.