SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
NYSE:SON - New York Stock Exchange, Inc. - US8354951027 - Common Stock - Currency: USD
Taking everything into account, SON scores 4 out of 10 in our fundamental rating. SON was compared to 23 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 is valued quite cheap, but it does not seem to be growing. 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.
Each year in the past 5 years SON had a positive operating cash flow.
1.2 Ratios
SON's Return On Assets of 1.31% is on the low side compared to the rest of the industry. SON is outperformed by 65.22% of its industry peers.
The Return On Equity of SON (7.22%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 5.32%, SON is not doing good in the industry: 65.22% of the companies in the same industry are doing better.
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 7.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 7.22% | ||
| ROIC | 5.32% |
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 (3.09%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SON has declined.
SON has a Operating Margin of 10.19%. This is in the better half of the industry: SON outperforms 65.22% of its industry peers.
SON's Operating Margin has been stable in the last couple of years.
The Gross Margin of SON (21.47%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.19% | ||
| PM (TTM) | 3.09% | ||
| GM | 21.47% |
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.
The number of shares outstanding for SON has been increased compared to 1 year ago.
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 1.03. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
SON's Altman-Z score of 1.03 is on the low side compared to the rest of the industry. SON is outperformed by 78.26% of its industry peers.
SON has a debt to FCF ratio of 15.98. This is a negative value and a sign of low solvency as SON would need 15.98 years to pay back of all of its debts.
The Debt to FCF ratio of SON (15.98) is comparable to the rest of the industry.
SON has a Debt/Equity ratio of 2.19. This is a high value indicating a heavy dependency on external financing.
SON has a Debt to Equity ratio of 2.19. This is in the lower half of the industry: SON underperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 15.98 | ||
| Altman-Z | 1.03 |
ROIC/WACC0.87
WACC6.13%
2.3 Liquidity
SON has a Current Ratio of 0.79. 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 Current ratio (0.79) than 86.96% of its industry peers.
SON has a Quick Ratio of 0.79. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.54, SON is doing worse than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
SON shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.03%.
The Earnings Per Share has been growing slightly by 6.80% on average over the past years.
SON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -21.76%.
SON shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.26% yearly.
EPS 1Y (TTM)-7.03%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%-1.96%
Revenue 1Y (TTM)-21.76%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%-16.66%
3.2 Future
SON is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.59% yearly.
SON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.36% yearly.
EPS Next Y24%
EPS Next 2Y14.59%
EPS Next 3Y9.79%
EPS Next 5Y6.59%
Revenue Next Year18.36%
Revenue Next 2Y9.04%
Revenue Next 3Y7.62%
Revenue Next 5Y6.36%
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 stable.
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
SON is valuated reasonably with a Price/Earnings ratio of 8.98.
Based on the Price/Earnings ratio, SON is valued cheaper than 95.65% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. SON is valued rather cheaply when compared to this.
SON is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 100.00% of the companies listed in the same industry.
SON's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
73.91% of the companies in the same industry are cheaper than SON, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SON is valued cheaper than 86.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.83 | ||
| EV/EBITDA | 11.95 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.37
PEG (5Y)1.32
EPS Next 2Y14.59%
EPS Next 3Y9.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.83%, SON is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.59, SON pays a better dividend. On top of this SON pays more dividend than 86.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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
124.12% of the earnings are spent on dividend by SON. This is not a sustainable payout ratio.
The dividend of SON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP124.12%
EPS Next 2Y14.59%
EPS Next 3Y9.79%
43.9
+0.48 (+1.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners82.65%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change10.08%
Market Cap4.33B
Analysts76.92
Price Target57.41 (30.77%)
Short Float %3.42%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend2.07
Dividend Growth(5Y)4.02%
DP124.12%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.94%
Min EPS beat(2)-17.56%
Max EPS beat(2)1.68%
EPS beat(4)3
Avg EPS beat(4)-1.93%
Min EPS beat(4)-17.56%
Max EPS beat(4)5.77%
EPS beat(8)5
Avg EPS beat(8)0.5%
EPS beat(12)9
Avg EPS beat(12)3.24%
EPS beat(16)12
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-11.42%
Min Revenue beat(2)-19.38%
Max Revenue beat(2)-3.46%
Revenue beat(4)0
Avg Revenue beat(4)-7.73%
Min Revenue beat(4)-19.38%
Max Revenue beat(4)-3.22%
Revenue beat(8)1
Avg Revenue beat(8)-6.19%
Revenue beat(12)2
Avg Revenue beat(12)-4.75%
Revenue beat(16)6
Avg Revenue beat(16)-3%
PT rev (1m)0%
PT rev (3m)-5.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)16.7%
EPS NY rev (1m)-0.93%
EPS NY rev (3m)12.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)24.42%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)1.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.82 | ||
| P/FCF | 9.83 | ||
| P/OCF | 5.19 | ||
| P/B | 1.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.95 |
EPS(TTM)4.89
EY11.14%
EPS(NY)6.06
Fwd EY13.81%
FCF(TTM)4.47
FCFY10.18%
OCF(TTM)8.46
OCFY19.26%
SpS53.8
BVpS23.03
TBVpS-28.8
PEG (NY)0.37
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.31% | ||
| ROE | 7.22% | ||
| ROCE | 6.38% | ||
| ROIC | 5.32% | ||
| ROICexc | 5.61% | ||
| ROICexgc | 15.41% | ||
| OM | 10.19% | ||
| PM (TTM) | 3.09% | ||
| GM | 21.47% | ||
| FCFM | 8.3% |
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%
ROICexcg growth 3Y-9.06%
ROICexcg 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-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.19 | ||
| Debt/FCF | 15.98 | ||
| Debt/EBITDA | 5.45 | ||
| Cap/Depr | 104.9% | ||
| Cap/Sales | 7.41% | ||
| Interest Coverage | 3.58 | ||
| Cash Conversion | 91.09% | ||
| Profit Quality | 268.75% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.03 |
F-Score6
WACC6.13%
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)-7.03%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%-1.96%
EPS Next Y24%
EPS Next 2Y14.59%
EPS Next 3Y9.79%
EPS Next 5Y6.59%
Revenue 1Y (TTM)-21.76%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%-16.66%
Revenue Next Year18.36%
Revenue Next 2Y9.04%
Revenue Next 3Y7.62%
Revenue Next 5Y6.36%
EBIT growth 1Y-24.38%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year78.6%
EBIT Next 3Y24.19%
EBIT Next 5Y14.85%
FCF growth 1Y-15.24%
FCF growth 3Y117.79%
FCF growth 5Y13.88%
OCF growth 1Y-5.56%
OCF growth 3Y40.81%
OCF growth 5Y14.38%