SEALED AIR CORP (SEE) Stock Fundamental Analysis
NYSE:SEE - New York Stock Exchange, Inc. - US81211K1007 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SEE. SEE was compared to 22 industry peers in the Containers & Packaging industry. SEE scores excellent on profitability, but there are concerns on its financial health. SEE has a bad growth rate and is valued cheaply. Finally SEE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SEE was profitable.
In the past year SEE had a positive cash flow from operations.
In the past 5 years SEE has always been profitable.
SEE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.20%, SEE is doing good in the industry, outperforming 77.27% of the companies in the same industry.
SEE has a Return On Equity of 37.12%. This is amongst the best in the industry. SEE outperforms 100.00% of its industry peers.
The Return On Invested Capital of SEE (9.64%) is better than 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SEE is above the industry average of 7.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 37.12% | ||
| ROIC | 9.64% |
ROA(3y)5.47%
ROA(5y)6.56%
ROE(3y)82.47%
ROE(5y)148.35%
ROIC(3y)11.86%
ROIC(5y)12.29%
1.3 Margins
Looking at the Profit Margin, with a value of 5.55%, SEE is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
SEE's Profit Margin has declined in the last couple of years.
SEE's Operating Margin of 14.90% is amongst the best of the industry. SEE outperforms 100.00% of its industry peers.
SEE's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 30.29%, SEE belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
In the last couple of years the Gross Margin of SEE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.9% | ||
| PM (TTM) | 5.55% | ||
| GM | 30.29% |
OM growth 3Y-1.5%
OM growth 5Y3.01%
PM growth 3Y-18.77%
PM growth 5Y-2.17%
GM growth 3Y-0.26%
GM growth 5Y-1.6%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SEE is creating some value.
The number of shares outstanding for SEE has been increased compared to 1 year ago.
Compared to 5 years ago, SEE has less shares outstanding
Compared to 1 year ago, SEE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that SEE is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SEE (1.78) is comparable to the rest of the industry.
The Debt to FCF ratio of SEE is 10.54, which is on the high side as it means it would take SEE, 10.54 years of fcf income to pay off all of its debts.
SEE has a Debt to FCF ratio of 10.54. This is in the better half of the industry: SEE outperforms 77.27% of its industry peers.
A Debt/Equity ratio of 5.43 is on the high side and indicates that SEE has dependencies on debt financing.
With a Debt to Equity ratio value of 5.43, SEE is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | 10.54 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.33
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.26 indicates that SEE should not have too much problems paying its short term obligations.
SEE has a Current ratio of 1.26. This is comparable to the rest of the industry: SEE outperforms 50.00% of its industry peers.
SEE has a Quick Ratio of 1.26. This is a bad value and indicates that SEE is not financially healthy enough and could expect problems in meeting its short term obligations.
SEE has a Quick ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The earnings per share for SEE have decreased by -1.55% in the last year.
SEE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.31% yearly.
SEE shows a decrease in Revenue. In the last year, the revenue decreased by -2.45%.
SEE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.39% yearly.
EPS 1Y (TTM)-1.55%
EPS 3Y-3.91%
EPS 5Y2.31%
EPS Q2Q%3.85%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y-0.86%
Revenue growth 5Y2.39%
Sales Q2Q%-4.29%
3.2 Future
Based on estimates for the next years, SEE will show a small growth in Earnings Per Share. The EPS will grow by 6.43% on average per year.
Based on estimates for the next years, SEE will show a small growth in Revenue. The Revenue will grow by 2.10% on average per year.
EPS Next Y-0.89%
EPS Next 2Y3.24%
EPS Next 3Y5.01%
EPS Next 5Y6.43%
Revenue Next Year-1.51%
Revenue Next 2Y0.39%
Revenue Next 3Y1.08%
Revenue Next 5Y2.1%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.81 indicates a reasonable valuation of SEE.
86.36% of the companies in the same industry are more expensive than SEE, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.50. SEE is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.29, the valuation of SEE can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SEE is valued cheaper than 81.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SEE to the average of the S&P500 Index (36.44), we can say SEE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SEE indicates a somewhat cheap valuation: SEE is cheaper than 72.73% of the companies listed in the same industry.
95.45% of the companies in the same industry are more expensive than SEE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.98 | ||
| EV/EBITDA | 8.23 |
4.3 Compensation for Growth
The decent profitability rating of SEE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.24
EPS Next 2Y3.24%
EPS Next 3Y5.01%
5. Dividend
5.1 Amount
SEE has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.93, SEE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, SEE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
The dividend of SEE has a limited annual growth rate of 5.00%.
SEE has paid a dividend for at least 10 years, which is a reliable track record.
SEE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5%
Div Incr Years0
Div Non Decr Years18
5.3 Sustainability
SEE pays out 39.74% of its income as dividend. This is a sustainable payout ratio.
The dividend of SEE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.74%
EPS Next 2Y3.24%
EPS Next 3Y5.01%
31.19
-0.2 (-0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners99.23%
Inst Owner Change0%
Ins Owners0.22%
Ins Owner Change5.41%
Market Cap4.59B
Analysts77.14
Price Target39.41 (26.35%)
Short Float %3.98%
Short Ratio3.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend0.81
Dividend Growth(5Y)5%
DP39.74%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.04%
Min EPS beat(2)11.29%
Max EPS beat(2)18.79%
EPS beat(4)4
Avg EPS beat(4)18.95%
Min EPS beat(4)11.29%
Max EPS beat(4)29.13%
EPS beat(8)8
Avg EPS beat(8)24.51%
EPS beat(12)11
Avg EPS beat(12)16.81%
EPS beat(16)14
Avg EPS beat(16)13.93%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.2%
Revenue beat(4)2
Avg Revenue beat(4)0.25%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)1.82%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.97%
Revenue beat(16)8
Avg Revenue beat(16)-0.3%
PT rev (1m)5.91%
PT rev (3m)-4.56%
EPS NQ rev (1m)-0.85%
EPS NQ rev (3m)-4.13%
EPS NY rev (1m)-0.53%
EPS NY rev (3m)-0.42%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 9.29 | ||
| P/S | 0.86 | ||
| P/FCF | 10.98 | ||
| P/OCF | 7.23 | ||
| P/B | 5.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.23 |
EPS(TTM)3.18
EY10.2%
EPS(NY)3.36
Fwd EY10.76%
FCF(TTM)2.84
FCFY9.11%
OCF(TTM)4.32
OCFY13.84%
SpS36.28
BVpS5.43
TBVpS-16.71
PEG (NY)N/A
PEG (5Y)4.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 37.12% | ||
| ROCE | 14.35% | ||
| ROIC | 9.64% | ||
| ROICexc | 10.25% | ||
| ROICexgc | 26.21% | ||
| OM | 14.9% | ||
| PM (TTM) | 5.55% | ||
| GM | 30.29% | ||
| FCFM | 7.83% |
ROA(3y)5.47%
ROA(5y)6.56%
ROE(3y)82.47%
ROE(5y)148.35%
ROIC(3y)11.86%
ROIC(5y)12.29%
ROICexc(3y)12.96%
ROICexc(5y)13.69%
ROICexgc(3y)34.47%
ROICexgc(5y)35.94%
ROCE(3y)17.48%
ROCE(5y)18%
ROICexcg growth 3Y-13.43%
ROICexcg growth 5Y4.01%
ROICexc growth 3Y-12.87%
ROICexc growth 5Y1.08%
OM growth 3Y-1.5%
OM growth 5Y3.01%
PM growth 3Y-18.77%
PM growth 5Y-2.17%
GM growth 3Y-0.26%
GM growth 5Y-1.6%
F-Score5
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.43 | ||
| Debt/FCF | 10.54 | ||
| Debt/EBITDA | 4.18 | ||
| Cap/Depr | 90.23% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 61.3% | ||
| Profit Quality | 141.05% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 1.78 |
F-Score5
WACC7.23%
ROIC/WACC1.33
Cap/Depr(3y)108.19%
Cap/Depr(5y)108.57%
Cap/Sales(3y)4.25%
Cap/Sales(5y)4.06%
Profit Quality(3y)115.98%
Profit Quality(5y)111.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.55%
EPS 3Y-3.91%
EPS 5Y2.31%
EPS Q2Q%3.85%
EPS Next Y-0.89%
EPS Next 2Y3.24%
EPS Next 3Y5.01%
EPS Next 5Y6.43%
Revenue 1Y (TTM)-2.45%
Revenue growth 3Y-0.86%
Revenue growth 5Y2.39%
Sales Q2Q%-4.29%
Revenue Next Year-1.51%
Revenue Next 2Y0.39%
Revenue Next 3Y1.08%
Revenue Next 5Y2.1%
EBIT growth 1Y-5.94%
EBIT growth 3Y-2.35%
EBIT growth 5Y5.48%
EBIT Next Year33.35%
EBIT Next 3Y12.85%
EBIT Next 5Y8.67%
FCF growth 1Y9.49%
FCF growth 3Y0.75%
FCF growth 5Y9.58%
OCF growth 1Y2.92%
OCF growth 3Y0.85%
OCF growth 5Y7.33%