SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
USA - NYSE:SLGN - US8270481091 - Common Stock
43.54 USD
+0.38 (+0.88%)
43.54 USD
0 (0%)
SLGN gets a fundamental rating of 4 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SLGN had positive earnings in the past year.
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
The Return On Assets of SLGN (3.21%) is better than 68.18% of its industry peers.
With a decent Return On Equity value of 13.59%, SLGN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
SLGN's Return On Invested Capital of 7.75% is fine compared to the rest of the industry. SLGN outperforms 72.73% 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 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.59% | ||
| ROIC | 7.75% |
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
The Profit Margin of SLGN (4.90%) is better than 72.73% of its industry peers.
SLGN's Profit Margin has improved in the last couple of years.
The Operating Margin of SLGN (10.08%) is better than 68.18% of its industry peers.
SLGN's Operating Margin has been stable in the last couple of years.
SLGN has a Gross Margin of 17.88%. 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 | 10.08% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.88% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SLGN is still creating some value.
SLGN has more shares outstanding than it did 1 year ago.
SLGN has less shares outstanding than it did 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 1.77. This is a bad value and indicates that SLGN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.77, SLGN perfoms like the industry average, outperforming 40.91% of the companies in the same industry.
The Debt to FCF ratio of SLGN is 88.79, which is on the high side as it means it would take SLGN, 88.79 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SLGN (88.79) is comparable to the rest of the industry.
SLGN has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
SLGN has a Debt to Equity ratio (1.40) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 88.79 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.98
WACC7.92%
2.3 Liquidity
SLGN has a Current Ratio of 0.96. 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 worse Current ratio (0.96) than 86.36% of its industry peers.
SLGN has a Quick Ratio of 0.96. 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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. SLGN is outperformed by 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.77% over the past year.
Measured over the past years, SLGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.04% on average per year.
Looking at the last year, SLGN shows a small growth in Revenue. The Revenue has grown by 5.49% in the last 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)15.77%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%14.77%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.42%
3.2 Future
SLGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.74% yearly.
SLGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
EPS Next Y10.66%
EPS Next 2Y10.25%
EPS Next 3Y9.46%
EPS Next 5Y6.74%
Revenue Next Year10.07%
Revenue Next 2Y6.34%
Revenue Next 3Y5%
Revenue Next 5Y3.48%
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 11.19, the valuation of SLGN can be described as reasonable.
SLGN's Price/Earnings ratio is rather cheap when compared to the industry. SLGN is cheaper than 86.36% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, SLGN is valued rather cheaply.
A Price/Forward Earnings ratio of 9.87 indicates a reasonable valuation of SLGN.
SLGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. SLGN is cheaper than 86.36% of the companies in the same industry.
SLGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SLGN.
SLGN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 81.87 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
SLGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SLGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.05
PEG (5Y)1.01
EPS Next 2Y10.25%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, SLGN has a reasonable but not impressive dividend return.
In the last 3 months the price of SLGN has falen by -21.86%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.36, SLGN has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, SLGN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of SLGN grows each year by 10.87%, which is quite nice.
SLGN has paid a dividend for at least 10 years, which is a reliable track record.
SLGN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.87%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
27.80% 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.
DP27.8%
EPS Next 2Y10.25%
EPS Next 3Y9.46%
43.54
+0.38 (+0.88%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners79.21%
Inst Owner Change0.13%
Ins Owners1.13%
Ins Owner Change-4.24%
Market Cap4.66B
Analysts85.56
Price Target61.59 (41.46%)
Short Float %5.34%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP27.8%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.87%
Min EPS beat(2)-3.96%
Max EPS beat(2)2.22%
EPS beat(4)2
Avg EPS beat(4)-1.11%
Min EPS beat(4)-4.41%
Max EPS beat(4)2.22%
EPS beat(8)5
Avg EPS beat(8)0.85%
EPS beat(12)7
Avg EPS beat(12)-0.04%
EPS beat(16)10
Avg EPS beat(16)0.74%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-1.59%
Revenue beat(4)0
Avg Revenue beat(4)-2.87%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-4.68%
Revenue beat(12)1
Avg Revenue beat(12)-4.41%
Revenue beat(16)4
Avg Revenue beat(16)-3.1%
PT rev (1m)0%
PT rev (3m)-3.36%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)-10.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.05%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.19 | ||
| Fwd PE | 9.87 | ||
| P/S | 0.76 | ||
| P/FCF | 81.87 | ||
| P/OCF | 13.54 | ||
| P/B | 2.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.16 |
EPS(TTM)3.89
EY8.93%
EPS(NY)4.41
Fwd EY10.13%
FCF(TTM)0.53
FCFY1.22%
OCF(TTM)3.21
OCFY7.38%
SpS57.6
BVpS20.77
TBVpS-10.93
PEG (NY)1.05
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.59% | ||
| ROCE | 9.9% | ||
| ROIC | 7.75% | ||
| ROICexc | 8.16% | ||
| ROICexgc | 18.94% | ||
| OM | 10.08% | ||
| PM (TTM) | 4.9% | ||
| GM | 17.88% | ||
| FCFM | 0.92% |
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-Score5
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 88.79 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 95.91% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 37.36% | ||
| Profit Quality | 18.84% | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.77 |
F-Score5
WACC7.92%
ROIC/WACC0.98
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)15.77%
EPS 3Y2.11%
EPS 5Y11.04%
EPS Q2Q%14.77%
EPS Next Y10.66%
EPS Next 2Y10.25%
EPS Next 3Y9.46%
EPS Next 5Y6.74%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.42%
Revenue Next Year10.07%
Revenue Next 2Y6.34%
Revenue Next 3Y5%
Revenue Next 5Y3.48%
EBIT growth 1Y4.61%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year55.86%
EBIT Next 3Y19.18%
EBIT Next 5Y11.67%
FCF growth 1Y-22.06%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y19.17%
OCF growth 3Y9.04%
OCF growth 5Y7.31%