SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SON - US8354951027 - Common Stock
48.71 USD
-0.4 (-0.81%)
42.79 USD
-5.92 (-12.15%)
Taking everything into account, SON scores 5 out of 10 in our fundamental rating. 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.
- 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
- SON has a better Return On Assets (5.36%) than 77.27% of its industry peers.
- The Return On Equity of SON (19.00%) is better than 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.
- SON had an Average Return On Invested Capital over the past 3 years of 8.06%. This 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
- The Profit Margin of SON (10.26%) is better than 95.45% of its industry peers.
- SON's Profit Margin has declined in the last couple of years.
- 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 in line with its industry peers.
- 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.
- 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.
- Compared to 1 year ago, SON has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.39, we must say that SON is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of SON (1.39) is worse than 77.27% 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 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.
- SON has a Debt to Equity ratio of 1.15. This is comparable to the rest of the industry: SON outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.84
WACC7.61%
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 95.45% of its industry peers.
- A Quick Ratio of 0.58 indicates that SON may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.58, SON is doing worse than 95.45% of the companies in the same industry.
| 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
- SON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.45% yearly.
- The Revenue is expected to grow by 6.14% on average over the next years.
EPS Next Y17.1%
EPS Next 2Y11.5%
EPS Next 3Y10.92%
EPS Next 5Y10.45%
Revenue Next Year15.66%
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.
- 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
- SON is valuated reasonably with a Price/Earnings ratio of 8.59.
- Based on the Price/Earnings ratio, SON is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (27.47), we can say SON is valued rather cheaply.
- SON is valuated reasonably with a Price/Forward Earnings ratio of 8.01.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 90.91% of the companies listed in the same industry.
- SON is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.01 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 8.71 |
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.
- The decent profitability rating of SON may justify a higher PE ratio.
PEG (NY)0.5
PEG (5Y)1.26
EPS Next 2Y11.5%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.32%, SON is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.36, 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 1.87, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y11.5%
EPS Next 3Y10.92%
48.71
-0.4 (-0.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)02-16 2026-02-16/amc
Inst Owners83.94%
Inst Owner Change0.02%
Ins Owners0.39%
Ins Owner Change0.93%
Market Cap4.80B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target55.46 (13.86%)
Short Float %5.49%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend2.07
Dividend Growth(5Y)4.02%
DP32.95%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
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%
PT rev (3m)-7.3%
EPS NQ rev (1m)-1.42%
EPS NQ rev (3m)-15.29%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.01 | ||
| P/S | 0.79 | ||
| P/FCF | 16.13 | ||
| P/OCF | 7.14 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)5.67
EY11.64%
EPS(NY)6.08
Fwd EY12.48%
FCF(TTM)3.02
FCFY6.2%
OCF(TTM)6.82
OCFY14.01%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.5
PEG (5Y)1.26
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 | 1.39 |
F-Score7
WACC7.61%
ROIC/WACC0.84
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 Y17.1%
EPS Next 2Y11.5%
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 Year15.66%
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.
Can you provide the valuation status for SONOCO PRODUCTS CO?
ChartMill assigns a valuation rating of 8 / 10 to SONOCO PRODUCTS CO (SON). This can be considered as Undervalued.
Can you provide the profitability details for SONOCO PRODUCTS CO?
SONOCO PRODUCTS CO (SON) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for SON stock?
The Earnings per Share (EPS) of SONOCO PRODUCTS CO (SON) is expected to grow by 17.1% in the next year.
Is the dividend of SONOCO PRODUCTS CO sustainable?
The dividend rating of SONOCO PRODUCTS CO (SON) is 9 / 10 and the dividend payout ratio is 32.95%.