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 23 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.
1. Profitability
1.1 Basic Checks
In the past year SEE was profitable.
SEE had a positive operating cash flow in the past year.
Each year in the past 5 years SEE has been profitable.
Each year in the past 5 years SEE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SEE (3.77%) is better than 69.57% of its industry peers.
The Return On Equity of SEE (42.39%) is better than 95.65% of its industry peers.
SEE has a better Return On Invested Capital (10.09%) than 82.61% of its industry peers.
SEE had an Average Return On Invested Capital over the past 3 years of 11.86%. This is above the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 42.39% | ||
| ROIC | 10.09% |
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
SEE has a better Profit Margin (4.91%) than 73.91% of its industry peers.
SEE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.01%, SEE belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SEE has grown nicely.
SEE's Gross Margin of 30.14% is amongst the best of the industry. SEE outperforms 86.96% of its industry peers.
SEE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.01% | ||
| PM (TTM) | 4.91% | ||
| GM | 30.14% |
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.
SEE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SEE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that SEE is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.71, SEE perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
The Debt to FCF ratio of SEE is 8.67, which is on the high side as it means it would take SEE, 8.67 years of fcf income to pay off all of its debts.
SEE has a Debt to FCF ratio of 8.67. This is in the better half of the industry: SEE outperforms 78.26% of its industry peers.
SEE has a Debt/Equity ratio of 6.95. This is a high value indicating a heavy dependency on external financing.
SEE's Debt to Equity ratio of 6.95 is on the low side compared to the rest of the industry. SEE is outperformed by 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.95 | ||
| Debt/FCF | 8.67 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.5
WACC6.71%
2.3 Liquidity
SEE has a Current Ratio of 1.16. This is a normal value and indicates that SEE is financially healthy and should not expect problems in meeting its short term obligations.
SEE's Current ratio of 1.16 is in line compared to the rest of the industry. SEE outperforms 43.48% of its industry peers.
A Quick Ratio of 0.72 indicates that SEE may have some problems paying its short term obligations.
SEE's Quick ratio of 0.72 is in line compared to the rest of the industry. SEE outperforms 43.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
SEE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.25%.
Measured over the past 5 years, SEE shows a small growth in Earnings Per Share. The EPS has been growing by 2.31% on average per year.
The Revenue has decreased by -1.75% in the past year.
The Revenue has been growing slightly by 2.39% on average over the past years.
EPS 1Y (TTM)-1.25%
EPS 3Y-3.91%
EPS 5Y2.31%
EPS Q2Q%-14.77%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y-0.86%
Revenue growth 5Y2.39%
Sales Q2Q%-0.34%
3.2 Future
SEE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.78% yearly.
SEE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.70% yearly.
EPS Next Y-0.47%
EPS Next 2Y2.99%
EPS Next 3Y4.9%
EPS Next 5Y6.78%
Revenue Next Year-1.32%
Revenue Next 2Y0.34%
Revenue Next 3Y1.02%
Revenue Next 5Y2.7%
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 accelerating.
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
The Price/Earnings ratio is 8.89, which indicates a very decent valuation of SEE.
95.65% 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 28.18. SEE is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.93, the valuation of SEE can be described as reasonable.
Based on the Price/Forward Earnings ratio, SEE is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SEE to the average of the S&P500 Index (20.81), we can say SEE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 8.93 |
4.2 Price Multiples
73.91% of the companies in the same industry are more expensive than SEE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SEE indicates a rather cheap valuation: SEE is cheaper than 91.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 7.62 |
4.3 Compensation for Growth
The decent profitability rating of SEE may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.85
EPS Next 2Y2.99%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.93%, SEE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.33, SEE pays a bit more dividend than its industry peers.
SEE's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
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 44.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
SEE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.58%
EPS Next 2Y2.99%
EPS Next 3Y4.9%
28
+0.69 (+2.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners97.97%
Inst Owner Change0.46%
Ins Owners0.79%
Ins Owner Change4.69%
Market Cap4.11B
Analysts77.14
Price Target36.66 (30.93%)
Short Float %4.68%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.93% |
Yearly Dividend0.81
Dividend Growth(5Y)5%
DP44.58%
Div Incr Years0
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.94%
Min EPS beat(2)11.29%
Max EPS beat(2)16.59%
EPS beat(4)4
Avg EPS beat(4)25.22%
Min EPS beat(4)11.29%
Max EPS beat(4)43.85%
EPS beat(8)7
Avg EPS beat(8)21.51%
EPS beat(12)11
Avg EPS beat(12)16.85%
EPS beat(16)14
Avg EPS beat(16)13.38%
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)3
Avg Revenue beat(4)1.01%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)2.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)-0.86%
Revenue beat(16)9
Avg Revenue beat(16)-0.1%
PT rev (1m)-11.21%
PT rev (3m)-11.88%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-6.16%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.89 | ||
| Fwd PE | 8.93 | ||
| P/S | 0.76 | ||
| P/FCF | 8.1 | ||
| P/OCF | 5.65 | ||
| P/B | 6.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.62 |
EPS(TTM)3.15
EY11.25%
EPS(NY)3.14
Fwd EY11.2%
FCF(TTM)3.46
FCFY12.34%
OCF(TTM)4.95
OCFY17.7%
SpS36.7
BVpS4.25
TBVpS-17.94
PEG (NY)N/A
PEG (5Y)3.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 42.39% | ||
| ROCE | 15.03% | ||
| ROIC | 10.09% | ||
| ROICexc | 10.82% | ||
| ROICexgc | 29.42% | ||
| OM | 15.01% | ||
| PM (TTM) | 4.91% | ||
| GM | 30.14% | ||
| FCFM | 9.42% |
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-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.95 | ||
| Debt/FCF | 8.67 | ||
| Debt/EBITDA | 4.13 | ||
| Cap/Depr | 91.41% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 2.85 | ||
| Cash Conversion | 69.31% | ||
| Profit Quality | 191.84% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.71 |
F-Score6
WACC6.71%
ROIC/WACC1.5
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)-1.25%
EPS 3Y-3.91%
EPS 5Y2.31%
EPS Q2Q%-14.77%
EPS Next Y-0.47%
EPS Next 2Y2.99%
EPS Next 3Y4.9%
EPS Next 5Y6.78%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y-0.86%
Revenue growth 5Y2.39%
Sales Q2Q%-0.34%
Revenue Next Year-1.32%
Revenue Next 2Y0.34%
Revenue Next 3Y1.02%
Revenue Next 5Y2.7%
EBIT growth 1Y-0.43%
EBIT growth 3Y-2.35%
EBIT growth 5Y5.48%
EBIT Next Year33.59%
EBIT Next 3Y12.73%
EBIT Next 5Y8.83%
FCF growth 1Y86.69%
FCF growth 3Y0.75%
FCF growth 5Y9.58%
OCF growth 1Y41.03%
OCF growth 3Y0.85%
OCF growth 5Y7.33%