SILGAN HOLDINGS INC (SLGN) Stock Fundamental Analysis
NYSE:SLGN - New York Stock Exchange, Inc. - US8270481091 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SLGN. SLGN was compared to 22 industry peers in the Containers & Packaging industry. SLGN has an average financial health and profitability rating. 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.
SLGN had a positive operating cash flow in the past year.
SLGN had positive earnings in each of the past 5 years.
SLGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.21%, SLGN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
SLGN has a better Return On Equity (13.59%) than 63.64% of its industry peers.
SLGN has a Return On Invested Capital (5.92%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SLGN is in line with the industry average of 7.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.59% | ||
| ROIC | 5.92% |
ROA(3y)4.05%
ROA(5y)4.3%
ROE(3y)16.99%
ROE(5y)19.72%
ROIC(3y)8.32%
ROIC(5y)8.1%
1.3 Margins
SLGN has a better Profit Margin (4.90%) than 68.18% of its industry peers.
In the last couple of years the Profit Margin of SLGN has grown nicely.
SLGN has a Operating Margin (10.08%) which is comparable to the rest of the industry.
SLGN's Operating Margin has been stable in the last couple of years.
The Gross Margin of SLGN (17.88%) 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 | 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
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
Compared to 5 years ago, SLGN has less shares outstanding
Compared to 1 year ago, SLGN has a worse debt to assets ratio.
2.2 Solvency
SLGN has a debt to FCF ratio of 88.88. This is a negative value and a sign of low solvency as SLGN would need 88.88 years to pay back of all of its debts.
SLGN has a Debt to FCF ratio of 88.88. This is comparable to the rest of the industry: SLGN outperforms 40.91% of its industry peers.
SLGN has a Debt/Equity ratio of 2.27. This is a high value indicating a heavy dependency on external financing.
SLGN's Debt to Equity ratio of 2.27 is on the low side compared to the rest of the industry. SLGN is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.27 | ||
| Debt/FCF | 88.88 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC6.88%
2.3 Liquidity
SLGN has a Current Ratio of 2.51. This indicates that SLGN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.51, SLGN belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
A Quick Ratio of 1.46 indicates that SLGN should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.46, SLGN belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
SLGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.77%, 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.
Looking at the last year, SLGN shows a small growth in Revenue. The Revenue has grown by 5.49% in the last year.
The Revenue has been growing slightly by 5.45% on average over the past years.
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 7.16% yearly.
SLGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
EPS Next Y15.33%
EPS Next 2Y12.14%
EPS Next 3Y10.27%
EPS Next 5Y7.16%
Revenue Next Year10.4%
Revenue Next 2Y6.48%
Revenue Next 3Y5.15%
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 reasonably with a Price/Earnings ratio of 11.92.
Based on the Price/Earnings ratio, SLGN is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.48, SLGN is valued rather cheaply.
The Price/Forward Earnings ratio is 10.16, which indicates a very decent valuation of SLGN.
Based on the Price/Forward Earnings ratio, SLGN is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SLGN to the average of the S&P500 Index (34.04), we can say SLGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SLGN.
Based on the Price/Free Cash Flow ratio, SLGN is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 87.28 | ||
| EV/EBITDA | 10.56 |
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)0.78
PEG (5Y)1.08
EPS Next 2Y12.14%
EPS Next 3Y10.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.72%, SLGN has a reasonable but not impressive dividend return.
SLGN's Dividend Yield is comparable with the industry average which is at 3.14.
SLGN's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
On average, the dividend of SLGN grows each year by 10.87%, which is quite nice.
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
27.81% 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.
DP27.81%
EPS Next 2Y12.14%
EPS Next 3Y10.27%
46.37
-0.25 (-0.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner Change1.48%
Ins Owners1.14%
Ins Owner Change0.38%
Market Cap4.96B
Analysts83.33
Price Target61.18 (31.94%)
Short Float %2.27%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP27.81%
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)0.95%
PT rev (3m)0.63%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)-0.46%
EPS NY rev (1m)0%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.16 | ||
| P/S | 0.81 | ||
| P/FCF | 87.28 | ||
| P/OCF | 14.43 | ||
| P/B | 2.23 | ||
| P/tB | 2.23 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)3.89
EY8.39%
EPS(NY)4.56
Fwd EY9.84%
FCF(TTM)0.53
FCFY1.15%
OCF(TTM)3.21
OCFY6.93%
SpS57.6
BVpS20.77
TBVpS20.77
PEG (NY)0.78
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 13.59% | ||
| ROCE | 7.57% | ||
| ROIC | 5.92% | ||
| ROICexc | 6.16% | ||
| ROICexgc | 6.16% | ||
| 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 | 2.27 | ||
| Debt/FCF | 88.88 | ||
| Debt/EBITDA | 5.49 | ||
| Cap/Depr | 95.92% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 37.35% | ||
| Profit Quality | 18.82% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | N/A |
F-Score5
WACC6.88%
ROIC/WACC0.86
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 Y15.33%
EPS Next 2Y12.14%
EPS Next 3Y10.27%
EPS Next 5Y7.16%
Revenue 1Y (TTM)5.49%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.42%
Revenue Next Year10.4%
Revenue Next 2Y6.48%
Revenue Next 3Y5.15%
Revenue Next 5Y4.05%
EBIT growth 1Y4.62%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year57.54%
EBIT Next 3Y19.53%
EBIT Next 5Y12.16%
FCF growth 1Y-22.13%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y19.16%
OCF growth 3Y9.04%
OCF growth 5Y7.31%