SILGAN HOLDINGS INC (SLGN)
US8270481091 - Common Stock
SLGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. SLGN has an excellent profitability rating, but there are some minor concerns on its financial health. SLGN is valued correctly, but it does not seem to be growing.
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.
SLGN had positive earnings in each of the past 5 years.
In the past 5 years SLGN always reported a positive cash flow from operatings.
1.2 Ratios
SLGN has a Return On Assets of 4.08%. This is in the better half of the industry: SLGN outperforms 63.64% of its industry peers.
SLGN has a Return On Equity of 16.27%. This is in the better half of the industry: SLGN outperforms 68.18% of its industry peers.
With a decent Return On Invested Capital value of 8.35%, SLGN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLGN is in line with the industry average of 7.81%.
The 3 year average ROIC (8.04%) for SLGN is below the current ROIC(8.35%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 16.27% | ||
| ROIC | 8.35% |
ROA(3y)4.51%
ROA(5y)4.44%
ROE(3y)20.02%
ROE(5y)20.73%
ROIC(3y)8.04%
ROIC(5y)7.94%
1.3 Margins
SLGN's Profit Margin of 5.25% is fine compared to the rest of the industry. SLGN outperforms 68.18% of its industry peers.
SLGN's Profit Margin has improved in the last couple of years.
The Operating Margin of SLGN (10.06%) is better than 63.64% of its industry peers.
SLGN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 16.61%, SLGN is doing worse than 81.82% of the companies in the same industry.
In the last couple of years the Gross Margin of SLGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.06% | ||
| PM (TTM) | 5.25% | ||
| GM | 16.61% |
OM growth 3Y-3.23%
OM growth 5Y1.41%
PM growth 3Y-4.61%
PM growth 5Y1.57%
GM growth 3Y-2.02%
GM growth 5Y1.34%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SLGN has less shares outstanding
Compared to 1 year ago, SLGN has an improved debt to assets ratio.
2.2 Solvency
SLGN has an Altman-Z score of 2.18. 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.
With a decent Altman-Z score value of 2.18, SLGN is doing good in the industry, outperforming 68.18% of the companies in the same industry.
The Debt to FCF ratio of SLGN is 11.67, which is on the high side as it means it would take SLGN, 11.67 years of fcf income to pay off all of its debts.
SLGN has a Debt to FCF ratio (11.67) which is in line with its industry peers.
SLGN has a Debt/Equity ratio of 1.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.33, SLGN is in line with its industry, outperforming 59.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | 11.67 | ||
| Altman-Z | 2.18 |
ROIC/WACC1.25
WACC6.69%
2.3 Liquidity
A Current Ratio of 1.04 indicates that SLGN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.04, SLGN is doing worse than 77.27% of the companies in the same industry.
SLGN has a Quick Ratio of 1.04. 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 0.62. This is in the lower half of the industry: SLGN underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The earnings per share for SLGN have decreased strongly by -16.62% in the last year.
The Earnings Per Share has been growing by 10.33% on average over the past years. This is quite good.
The Revenue has decreased by -7.84% in the past year.
Measured over the past years, SLGN shows a small growth in Revenue. The Revenue has been growing by 6.12% on average per year.
EPS 1Y (TTM)-16.62%
EPS 3Y3.57%
EPS 5Y10.33%
EPS Q2Q%-11.54%
Revenue 1Y (TTM)-7.84%
Revenue growth 3Y6.75%
Revenue growth 5Y6.12%
Sales Q2Q%-7.14%
3.2 Future
The Earnings Per Share is expected to grow by 6.75% on average over the next years.
Based on estimates for the next years, SLGN will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y8.68%
EPS Next 2Y9.17%
EPS Next 3Y9.56%
EPS Next 5Y6.75%
Revenue Next Year-0.36%
Revenue Next 2Y1.29%
Revenue Next 3Y2.01%
Revenue Next 5Y2.01%
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
With a Price/Earnings ratio of 14.46, SLGN is valued correctly.
SLGN's Price/Earnings is on the same level as the industry average.
SLGN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.41.
Based on the Price/Forward Earnings ratio of 11.81, the valuation of SLGN can be described as reasonable.
Based on the Price/Forward Earnings ratio, SLGN is valued a bit cheaper than 68.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, SLGN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 11.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SLGN is on the same level as its industry peers.
SLGN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 10.04 |
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)1.67
PEG (5Y)1.4
EPS Next 2Y9.17%
EPS Next 3Y9.56%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.91, SLGN has a dividend in line with its industry peers.
SLGN's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
The dividend of SLGN is nicely growing with an annual growth rate of 12.56%!
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)12.56%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
SLGN pays out 25.70% of its income as dividend. This is a sustainable payout ratio.
The dividend of SLGN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.7%
EPS Next 2Y9.17%
EPS Next 3Y9.56%
SILGAN HOLDINGS INC
NYSE:SLGN (7/26/2024, 7:04:01 PM)
After market: 47.85 0 (0%)47.85
+0.87 (+1.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 11.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.67
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 16.27% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.06% | ||
| PM (TTM) | 5.25% | ||
| GM | 16.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-16.62%
EPS 3Y3.57%
EPS 5Y
EPS Q2Q%
EPS Next Y8.68%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.84%
Revenue growth 3Y6.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y