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. SON also has an excellent dividend rating. This makes SON very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year SON was profitable.
SON had a positive operating cash flow in the past year.
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
With a Return On Assets value of 3.19%, SON perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.62%, SON is in line with its industry, outperforming 47.83% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.87%, SON is in line with its industry, outperforming 56.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SON is significantly below the industry average of 382232.95%.
| 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
SON has a Profit Margin (4.38%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SON has grown nicely.
SON has a better Operating Margin (9.93%) than 60.87% of its industry peers.
SON's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.20%, SON is in line with its industry, outperforming 52.17% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SON is still creating some value.
SON has more shares outstanding than it did 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.
With a Debt to FCF ratio value of 14.81, SON perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
A Debt/Equity ratio of 1.74 is on the high side and indicates that SON has dependencies on debt financing.
SON has a Debt to Equity ratio (1.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | 14.81 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.01
WACC6.82%
2.3 Liquidity
SON has a Current Ratio of 2.36. This indicates that SON is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SON (2.36) is better than 86.96% of its industry peers.
A Quick Ratio of 1.91 indicates that SON should not have too much problems paying its short term obligations.
The Quick ratio of SON (1.91) is better than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.91 |
3. Growth
3.1 Past
The earnings per share for SON have decreased strongly by -10.89% in the last year.
SON shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.31% yearly.
The Revenue has decreased by -3.65% in the past year.
The Revenue has been growing slightly by 4.70% on average over the past years.
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
Based on estimates for the next years, SON will show a small growth in Earnings Per Share. The EPS will grow by 2.70% on average per year.
The Revenue is expected to grow by 3.00% on average over the next years.
EPS Next Y-2.04%
EPS Next 2Y5.02%
EPS Next 3Y6.14%
EPS Next 5Y2.7%
Revenue Next Year-3.21%
Revenue Next 2Y6.32%
Revenue Next 3Y8.3%
Revenue Next 5Y3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.21 indicates a reasonable valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
SON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 8.64, the valuation of SON can be described as reasonable.
SON's Price/Forward Earnings ratio is rather cheap when compared to the industry. SON is cheaper than 91.30% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
82.61% of the companies in the same industry are more expensive than SON, based on the Enterprise Value to EBITDA ratio.
73.91% 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 | 15.2 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y5.02%
EPS Next 3Y6.14%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 4.13%, which is a nice return.
SON's Dividend Yield is rather good when compared to the industry average which is at 2.88. SON pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.49%.
SON has paid a dividend for at least 10 years, which is 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 Years25
Div Non Decr Years25
5.3 Sustainability
SON pays out 70.22% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SON is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP70.22%
EPS Next 2Y5.02%
EPS Next 3Y6.14%
SONOCO PRODUCTS CO
NYSE:SON (11/21/2024, 8:04:00 PM)
After market: 50.15 0 (0%)50.15
+0.18 (+0.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.21 | ||
| Fwd PE | 8.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 11.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.93% | ||
| PM (TTM) | 4.38% | ||
| GM | 21.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-10.89%
EPS 3Y15.54%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.65%
Revenue growth 3Y8.99%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y