SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
NYSE:SLGN - New York Stock Exchange, Inc. - US8270481091 - Common Stock - Currency: USD
Taking everything into account, SLGN scores 5 out of 10 in our fundamental rating. SLGN was compared to 22 industry peers in the Containers & Packaging industry. SLGN has a medium profitability rating, but doesn't score so well on its financial health evaluation. SLGN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SLGN was profitable.
In the past year SLGN had a positive cash flow from operations.
Each year in the past 5 years SLGN has been profitable.
In the past 5 years SLGN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.30%, SLGN is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
With a decent Return On Equity value of 13.88%, SLGN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
SLGN's Return On Invested Capital of 7.15% is fine compared to the rest of the industry. SLGN outperforms 63.64% of its industry peers.
SLGN had an Average Return On Invested Capital over the past 3 years of 8.32%. This is in line with the industry average of 7.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 13.88% | ||
| ROIC | 7.15% |
ROA(3y)4.05%
ROA(5y)4.3%
ROE(3y)16.99%
ROE(5y)19.72%
ROIC(3y)8.32%
ROIC(5y)8.1%
1.3 Margins
SLGN has a better Profit Margin (4.82%) than 72.73% of its industry peers.
SLGN's Profit Margin has improved in the last couple of years.
SLGN has a Operating Margin (9.87%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SLGN has remained more or less at the same level.
SLGN has a Gross Margin of 17.63%. This is in the lower half of the industry: SLGN underperforms 77.27% of its industry peers.
In the last couple of years the Gross Margin of SLGN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.87% | ||
| PM (TTM) | 4.82% | ||
| GM | 17.63% |
OM growth 3Y-2.23%
OM growth 5Y1.17%
PM growth 3Y-9.29%
PM growth 5Y1.81%
GM growth 3Y2.23%
GM growth 5Y1.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SLGN is creating some value.
The number of shares outstanding for SLGN has been increased compared to 1 year ago.
Compared to 5 years ago, SLGN has less shares outstanding
The debt/assets ratio for SLGN is higher compared to a year ago.
2.2 Solvency
SLGN has an Altman-Z score of 2.03. This is not the best score and indicates that SLGN is in the grey zone with still only limited risk for bankruptcy at the moment.
SLGN has a Altman-Z score of 2.03. This is in the better half of the industry: SLGN outperforms 68.18% of its industry peers.
SLGN has a debt to FCF ratio of 14.66. This is a negative value and a sign of low solvency as SLGN would need 14.66 years to pay back of all of its debts.
SLGN has a Debt to FCF ratio of 14.66. This is in the better half of the industry: SLGN outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 1.67 is on the high side and indicates that SLGN has dependencies on debt financing.
SLGN has a Debt to Equity ratio of 1.67. This is comparable to the rest of the industry: SLGN outperforms 40.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 14.66 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.03
WACC6.93%
2.3 Liquidity
SLGN has a Current Ratio of 1.14. This is a normal value and indicates that SLGN is financially healthy and should not expect problems in meeting its short term obligations.
SLGN has a worse Current ratio (1.14) than 63.64% of its industry peers.
SLGN has a Quick Ratio of 1.14. This is a bad value and indicates that SLGN is not financially healthy enough and could expect problems in meeting its short term obligations.
SLGN has a Quick ratio of 0.67. This is in the lower half of the industry: SLGN underperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
SLGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.60%, which is quite good.
SLGN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.04% yearly.
SLGN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
Measured over the past years, SLGN shows a small growth in Revenue. The Revenue has been growing by 5.45% on average per year.
EPS 1Y (TTM)13.6%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%18.84%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.37%
3.2 Future
The Earnings Per Share is expected to grow by 6.56% on average over the next years.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y15.33%
EPS Next 2Y12.2%
EPS Next 3Y10.27%
EPS Next 5Y6.56%
Revenue Next Year10.49%
Revenue Next 2Y6.52%
Revenue Next 3Y5.14%
Revenue Next 5Y3.98%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.65, the valuation of SLGN can be described as correct.
Based on the Price/Earnings ratio, SLGN is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.25, SLGN is valued a bit cheaper.
SLGN is valuated correctly with a Price/Forward Earnings ratio of 12.05.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLGN is on the same level as its industry peers.
SLGN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
SLGN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLGN indicates a somewhat cheap valuation: SLGN is cheaper than 77.27% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.66 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
SLGN'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 SLGN may justify a higher PE ratio.
PEG (NY)0.96
PEG (5Y)1.33
EPS Next 2Y12.2%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
SLGN's Dividend Yield is comparable with the industry average which is at 3.19.
Compared to the average S&P500 Dividend Yield of 2.38, SLGN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of SLGN is nicely growing with an annual growth rate of 10.87%!
SLGN has paid a dividend for at least 10 years, which is a reliable track record.
SLGN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.87%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
28.65% of the earnings are spent on dividend by SLGN. This is a low number and sustainable payout ratio.
SLGN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.65%
EPS Next 2Y12.2%
EPS Next 3Y10.27%
55.07
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners77.82%
Inst Owner Change1.11%
Ins Owners1.2%
Ins Owner Change0.38%
Market Cap5.89B
Analysts85.56
Price Target62.82 (14.07%)
Short Float %3.18%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP28.65%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.96%
Min EPS beat(2)1.69%
Max EPS beat(2)2.22%
EPS beat(4)2
Avg EPS beat(4)-0.19%
Min EPS beat(4)-4.41%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)0.22%
EPS beat(12)8
Avg EPS beat(12)1.15%
EPS beat(16)11
Avg EPS beat(16)1.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.83%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-3.8%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-5.69%
Revenue beat(12)1
Avg Revenue beat(12)-4.58%
Revenue beat(16)5
Avg Revenue beat(16)-2.82%
PT rev (1m)-0.81%
PT rev (3m)-6.53%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.65 | ||
| Fwd PE | 12.05 | ||
| P/S | 0.98 | ||
| P/FCF | 18.66 | ||
| P/OCF | 10.05 | ||
| P/B | 2.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.53 |
EPS(TTM)3.76
EY6.83%
EPS(NY)4.57
Fwd EY8.3%
FCF(TTM)2.95
FCFY5.36%
OCF(TTM)5.48
OCFY9.95%
SpS56.12
BVpS19.47
TBVpS-11.03
PEG (NY)0.96
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 13.88% | ||
| ROCE | 9.14% | ||
| ROIC | 7.15% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 16.18% | ||
| OM | 9.87% | ||
| PM (TTM) | 4.82% | ||
| GM | 17.63% | ||
| FCFM | 5.26% |
ROA(3y)4.05%
ROA(5y)4.3%
ROE(3y)16.99%
ROE(5y)19.72%
ROIC(3y)8.32%
ROIC(5y)8.1%
ROICexc(3y)9.41%
ROICexc(5y)9.05%
ROICexgc(3y)21.51%
ROICexgc(5y)19.67%
ROCE(3y)10.64%
ROCE(5y)10.34%
ROICexcg growth 3Y4.56%
ROICexcg growth 5Y5.59%
ROICexc growth 3Y-0.53%
ROICexc growth 5Y-1.45%
OM growth 3Y-2.23%
OM growth 5Y1.17%
PM growth 3Y-9.29%
PM growth 5Y1.81%
GM growth 3Y2.23%
GM growth 5Y1.69%
F-Score6
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 14.66 | ||
| Debt/EBITDA | 3.95 | ||
| Cap/Depr | 93.64% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 3.69 | ||
| Cash Conversion | 66.51% | ||
| Profit Quality | 109.22% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.03 |
F-Score6
WACC6.93%
ROIC/WACC1.03
Cap/Depr(3y)87.84%
Cap/Depr(5y)91.73%
Cap/Sales(3y)3.88%
Cap/Sales(5y)4.06%
Profit Quality(3y)133.62%
Profit Quality(5y)122.75%
High Growth Momentum
Growth
EPS 1Y (TTM)13.6%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%18.84%
EPS Next Y15.33%
EPS Next 2Y12.2%
EPS Next 3Y10.27%
EPS Next 5Y6.56%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.37%
Revenue Next Year10.49%
Revenue Next 2Y6.52%
Revenue Next 3Y5.14%
Revenue Next 5Y3.98%
EBIT growth 1Y0.12%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year59.21%
EBIT Next 3Y20.03%
EBIT Next 5Y12.08%
FCF growth 1Y87.1%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y52.68%
OCF growth 3Y9.04%
OCF growth 5Y7.31%