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.
Each year in the past 5 years SLGN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SLGN (3.30%) is better than 68.18% of its industry peers.
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.
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
Looking at the Profit Margin, with a value of 4.82%, SLGN is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
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.
SLGN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 17.63%, SLGN is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
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
SLGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for SLGN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.02 indicates that SLGN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.02, SLGN perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
The Debt to FCF ratio of SLGN is 14.66, which is on the high side as it means it would take SLGN, 14.66 years of fcf income to pay off all of its debts.
SLGN has a Debt to FCF ratio (14.66) which is comparable to the rest of the industry.
SLGN has a Debt/Equity ratio of 1.67. This is a high value indicating a heavy dependency on external 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 | 2.02 |
ROIC/WACC0.92
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.14 indicates that SLGN should not have too much problems paying its short term obligations.
SLGN has a Current ratio of 1.14. This is in the lower half of the industry: SLGN underperforms 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.
Looking at the Quick ratio, with a value of 0.67, SLGN is doing worse than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.60% over the past year.
The Earnings Per Share has been growing by 11.04% on average over the past years. This is quite good.
SLGN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.99%.
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.
Based on estimates for the next years, SLGN will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
EPS Next Y15.33%
EPS Next 2Y12.2%
EPS Next 3Y10.27%
EPS Next 5Y7.16%
Revenue Next Year10.49%
Revenue Next 2Y6.52%
Revenue Next 3Y5.14%
Revenue Next 5Y4.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 14.85.
SLGN's Price/Earnings ratio is a bit cheaper when compared to the industry. SLGN is cheaper than 72.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. SLGN is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.22, which indicates a correct valuation of SLGN.
SLGN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SLGN is cheaper than 68.18% of the companies in the same industry.
SLGN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 12.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SLGN.
72.73% of the companies in the same industry are more expensive than SLGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.92 | ||
| EV/EBITDA | 11.43 |
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.
SLGN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.97
PEG (5Y)1.34
EPS Next 2Y12.2%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.46%.
Compared to an average industry Dividend Yield of 3.06, SLGN has a dividend in line with its industry peers.
SLGN's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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 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
SLGN pays out 28.65% of its income as dividend. This is a 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%
55.84
+1.66 (+3.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners78.42%
Inst Owner Change1.11%
Ins Owners1.14%
Ins Owner Change0.38%
Market Cap5.97B
Analysts86.67
Price Target63.13 (13.06%)
Short Float %2.19%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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)0.49%
PT rev (3m)-6.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.85 | ||
| Fwd PE | 12.22 | ||
| P/S | 1 | ||
| P/FCF | 18.92 | ||
| P/OCF | 10.19 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.43 |
EPS(TTM)3.76
EY6.73%
EPS(NY)4.57
Fwd EY8.18%
FCF(TTM)2.95
FCFY5.29%
OCF(TTM)5.48
OCFY9.81%
SpS56.12
BVpS19.47
TBVpS-11.03
PEG (NY)0.97
PEG (5Y)1.34
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 | 2.02 |
F-Score6
WACC7.75%
ROIC/WACC0.92
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 5Y7.16%
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 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%