SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
NYSE:SLGN - New York Stock Exchange, Inc. - US8270481091 - Common Stock - Currency: USD
SLGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. While SLGN is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years SLGN has always 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.
SLGN's Return On Equity of 13.88% is fine compared to the rest of the industry. SLGN outperforms 68.18% of its industry peers.
With a decent Return On Invested Capital value of 7.15%, SLGN is doing good in the industry, outperforming 63.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SLGN is in line with the industry average of 7.58%.
| 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 Profit Margin of 4.82%. This is in the better half of the industry: SLGN outperforms 72.73% of its industry peers.
SLGN's Profit Margin has improved in the last couple of years.
The Operating Margin of SLGN (9.87%) 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.
The Gross Margin of SLGN (17.63%) is worse than 77.27% of its industry peers.
SLGN's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, SLGN has more shares outstanding
The number of shares outstanding for SLGN has been reduced compared to 5 years ago.
Compared to 1 year ago, SLGN has a worse debt to assets ratio.
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 comparable to the rest of the industry: SLGN outperforms 54.55% 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.
With a Debt to FCF ratio value of 14.66, SLGN perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
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 (1.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.67 | ||
| Debt/FCF | 14.66 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.01
WACC7.1%
2.3 Liquidity
A Current Ratio of 1.14 indicates that SLGN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, SLGN is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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.
The Quick ratio of SLGN (0.67) is worse than 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.
The Revenue has been growing slightly by 1.99% in the past year.
SLGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.45% yearly.
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
SLGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.16% yearly.
The Revenue is expected to grow by 4.05% on average over the next years.
EPS Next Y15.33%
EPS Next 2Y12.14%
EPS Next 3Y10.27%
EPS Next 5Y7.16%
Revenue Next Year10.45%
Revenue Next 2Y6.48%
Revenue Next 3Y5.14%
Revenue Next 5Y4.05%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SLGN is valuated correctly with a Price/Earnings ratio of 14.63.
Based on the Price/Earnings ratio, SLGN is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SLGN is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.05, which indicates a correct valuation of SLGN.
Based on the Price/Forward Earnings ratio, SLGN is valued a bit cheaper than 72.73% of the companies in the same industry.
SLGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 12.05 |
4.2 Price Multiples
SLGN's Enterprise Value to EBITDA ratio is in line with 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 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.63 | ||
| EV/EBITDA | 11.52 |
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.
The decent profitability rating of SLGN may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)1.32
EPS Next 2Y12.14%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.45%.
SLGN's Dividend Yield is comparable with the industry average which is at 2.88.
Compared to the average S&P500 Dividend Yield of 2.35, 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 been paying a dividend for at least 10 years, so it has 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.
The dividend of SLGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.65%
EPS Next 2Y12.14%
EPS Next 3Y10.27%
54.99
-0.34 (-0.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners78.42%
Inst Owner Change0%
Ins Owners1.14%
Ins Owner Change0.38%
Market Cap5.88B
Analysts86.67
Price Target63.13 (14.8%)
Short Float %2.19%
Short Ratio2.97
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%
PT rev (3m)-6.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.63 | ||
| Fwd PE | 12.05 | ||
| P/S | 0.98 | ||
| P/FCF | 18.63 | ||
| P/OCF | 10.04 | ||
| P/B | 2.82 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.52 |
EPS(TTM)3.76
EY6.84%
EPS(NY)4.56
Fwd EY8.3%
FCF(TTM)2.95
FCFY5.37%
OCF(TTM)5.48
OCFY9.97%
SpS56.12
BVpS19.47
TBVpS-11.03
PEG (NY)0.95
PEG (5Y)1.32
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
WACC7.1%
ROIC/WACC1.01
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 2Y12.14%
EPS Next 3Y10.27%
EPS Next 5Y7.16%
Revenue 1Y (TTM)1.99%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.37%
Revenue Next Year10.45%
Revenue Next 2Y6.48%
Revenue Next 3Y5.14%
Revenue Next 5Y4.05%
EBIT growth 1Y0.12%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year59.21%
EBIT Next 3Y20.03%
EBIT Next 5Y12.16%
FCF growth 1Y87.1%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y52.68%
OCF growth 3Y9.04%
OCF growth 5Y7.31%