SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SON - US8354951027 - Common Stock
41.09 USD
+0.35 (+0.86%)
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 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
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's Return On Equity of 19.00% is amongst the best of the industry. SON outperforms 86.36% of its industry peers.
SON's Return On Invested Capital of 6.37% is in line compared to the rest of the industry. SON outperforms 50.00% of its industry peers.
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.
In the last couple of years the Profit Margin of SON has declined.
Looking at the Operating Margin, with a value of 10.36%, SON is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
SON's Operating Margin has been stable in the last couple of years.
SON has a Gross Margin (21.46%) which is comparable to the rest of the industry.
SON's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SON is still 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.
SON has a worse debt/assets ratio than last year.
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.
SON has a Altman-Z score of 1.33. This is in the lower half of the industry: SON underperforms 72.73% 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.
The Debt to FCF ratio of SON (17.32) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
With a Debt to Equity ratio value of 1.15, SON perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.87
WACC7.35%
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
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.
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.
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
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.
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
With a Price/Earnings ratio of 7.25, the valuation of SON can be described as very cheap.
SON's Price/Earnings ratio is rather cheap when compared to the industry. SON is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (25.65), we can say SON is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.67, the valuation of SON can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 95.45% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.45. SON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 6.67 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 77.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.61 | ||
| 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)0.39
PEG (5Y)1.07
EPS Next 2Y12.21%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 5.33%, which is a nice return.
Compared to an average industry Dividend Yield of 3.50, 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 2.41, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.33% |
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 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%
NYSE:SON (11/25/2025, 12:07:41 PM)
41.09
+0.35 (+0.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners84.89%
Inst Owner Change-0.16%
Ins Owners0.37%
Ins Owner Change0.93%
Market Cap4.05B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target54.83 (33.44%)
Short Float %4.62%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.33% |
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)-12.63%
EPS NQ rev (3m)-11.55%
EPS NY rev (1m)-2.49%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)1.55%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.25 | ||
| Fwd PE | 6.67 | ||
| P/S | 0.66 | ||
| P/FCF | 13.61 | ||
| P/OCF | 6.02 | ||
| P/B | 1.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.97 |
EPS(TTM)5.67
EY13.8%
EPS(NY)6.16
Fwd EY14.98%
FCF(TTM)3.02
FCFY7.35%
OCF(TTM)6.82
OCFY16.61%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.39
PEG (5Y)1.07
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
WACC7.35%
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 7.25 and the Price/Book (PB) ratio is 1.23.
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.