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 23 industry peers in the Containers & Packaging industry. SLGN has only an average score on both its financial health and profitability. SLGN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SLGN was profitable.
SLGN had a positive operating cash flow in the past year.
Each year in the past 5 years SLGN has 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 3.22%, SLGN is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
SLGN's Return On Equity of 13.89% is fine compared to the rest of the industry. SLGN outperforms 65.22% of its industry peers.
With a decent Return On Invested Capital value of 7.10%, SLGN is doing good in the industry, outperforming 60.87% of the companies in the same industry.
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 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 13.89% | ||
| ROIC | 7.1% |
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 (4.72%) is better than 73.91% of its industry peers.
In the last couple of years the Profit Margin of SLGN has grown nicely.
SLGN has a Operating Margin of 9.81%. This is in the better half of the industry: SLGN outperforms 60.87% of its industry peers.
In the last couple of years the Operating Margin of SLGN has remained more or less at the same level.
With a Gross Margin value of 17.28%, SLGN is not doing good in the industry: 82.61% of the companies in the same industry are doing better.
SLGN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.81% | ||
| PM (TTM) | 4.72% | ||
| GM | 17.28% |
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.
The debt/assets ratio for SLGN is higher compared to a year ago.
2.2 Solvency
SLGN has an Altman-Z score of 2.02. 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 2.02, SLGN is doing good in the industry, outperforming 78.26% of the companies in the same industry.
The Debt to FCF ratio of SLGN is 9.01, which is on the high side as it means it would take SLGN, 9.01 years of fcf income to pay off all of its debts.
SLGN has a better Debt to FCF ratio (9.01) than 82.61% of its industry peers.
SLGN has a Debt/Equity ratio of 1.72. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.72, SLGN perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.72 | ||
| Debt/FCF | 9.01 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.05
WACC6.75%
2.3 Liquidity
SLGN has a Current Ratio of 1.12. This is a normal value and indicates that SLGN is financially healthy and should not expect problems in meeting its short term obligations.
SLGN has a worse Current ratio (1.12) than 69.57% of its industry peers.
SLGN has a Quick Ratio of 1.12. 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 Quick ratio (0.71) than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.60% 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.
SLGN shows a decrease in Revenue. In the last year, the revenue decreased by -2.23%.
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)-2.23%
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 6.56% yearly.
SLGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.98% yearly.
EPS Next Y14.84%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
EPS Next 5Y6.56%
Revenue Next Year10.05%
Revenue Next 2Y6.3%
Revenue Next 3Y5.05%
Revenue Next 5Y3.98%
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
The Price/Earnings ratio is 14.27, which indicates a correct valuation of SLGN.
SLGN's Price/Earnings ratio is a bit cheaper when compared to the industry. SLGN is cheaper than 65.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.21, SLGN is valued a bit cheaper.
The Price/Forward Earnings ratio is 11.80, which indicates a very decent valuation of SLGN.
Based on the Price/Forward Earnings ratio, SLGN is valued a bit cheaper than 60.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SLGN to the average of the S&P500 Index (20.44), we can say SLGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 11.8 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLGN indicates a somewhat cheap valuation: SLGN is cheaper than 78.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.51 | ||
| EV/EBITDA | 10.67 |
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)0.96
PEG (5Y)1.29
EPS Next 2Y11.93%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, SLGN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, SLGN is paying slightly less dividend.
Compared to the average S&P500 Dividend Yield of 2.42, SLGN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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
SLGN pays out 29.69% 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.
DP29.69%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
53.67
-0.14 (-0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners77.82%
Inst Owner Change-0.26%
Ins Owners1.2%
Ins Owner Change-0.53%
Market Cap5.74B
Analysts85.56
Price Target62.82 (17.05%)
Short Float %2.89%
Short Ratio3.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP29.69%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.36%
Min EPS beat(2)-4.41%
Max EPS beat(2)1.69%
EPS beat(4)2
Avg EPS beat(4)0.15%
Min EPS beat(4)-4.41%
Max EPS beat(4)3.58%
EPS beat(8)4
Avg EPS beat(8)-0.16%
EPS beat(12)8
Avg EPS beat(12)1%
EPS beat(16)11
Avg EPS beat(16)1.22%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-6.23%
Max Revenue beat(2)-1.38%
Revenue beat(4)0
Avg Revenue beat(4)-4.73%
Min Revenue beat(4)-6.23%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-5.96%
Revenue beat(12)2
Avg Revenue beat(12)-4.27%
Revenue beat(16)6
Avg Revenue beat(16)-2.62%
PT rev (1m)-5.77%
PT rev (3m)0.14%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.27 | ||
| Fwd PE | 11.8 | ||
| P/S | 0.98 | ||
| P/FCF | 12.51 | ||
| P/OCF | 7.95 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.67 |
EPS(TTM)3.76
EY7.01%
EPS(NY)4.55
Fwd EY8.47%
FCF(TTM)4.29
FCFY8%
OCF(TTM)6.75
OCFY12.57%
SpS54.72
BVpS18.6
TBVpS-11.18
PEG (NY)0.96
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.22% | ||
| ROE | 13.89% | ||
| ROCE | 9.07% | ||
| ROIC | 7.1% | ||
| ROICexc | 8.15% | ||
| ROICexgc | 19.31% | ||
| OM | 9.81% | ||
| PM (TTM) | 4.72% | ||
| GM | 17.28% | ||
| FCFM | 7.84% |
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 | 1.72 | ||
| Debt/FCF | 9.01 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 95.25% | ||
| Cap/Sales | 4.49% | ||
| Interest Coverage | 3.59 | ||
| Cash Conversion | 84.88% | ||
| Profit Quality | 166.11% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.02 |
F-Score6
WACC6.75%
ROIC/WACC1.05
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 Y14.84%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
EPS Next 5Y6.56%
Revenue 1Y (TTM)-2.23%
Revenue growth 3Y1.03%
Revenue growth 5Y5.45%
Sales Q2Q%11.37%
Revenue Next Year10.05%
Revenue Next 2Y6.3%
Revenue Next 3Y5.05%
Revenue Next 5Y3.98%
EBIT growth 1Y-4.84%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year59.52%
EBIT Next 3Y20.24%
EBIT Next 5Y12.08%
FCF growth 1Y79.48%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y49.58%
OCF growth 3Y9.04%
OCF growth 5Y7.31%