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. Both the profitability and the financial health of SLGN get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years SLGN has always been profitable.
Each year in the past 5 years SLGN had a positive operating cash flow.
1.2 Ratios
SLGN has a Return On Assets of 3.30%. This is in the better half of the industry: SLGN outperforms 68.18% of its industry peers.
SLGN has a Return On Equity of 13.88%. This is in the better half of the industry: SLGN outperforms 68.18% of its industry peers.
The Return On Invested Capital of SLGN (6.08%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SLGN is in line with the industry average of 7.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 13.88% | ||
| ROIC | 6.08% |
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 (4.82%) is better than 72.73% of its industry peers.
SLGN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 9.87%, SLGN perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
In the last couple of years the Operating Margin of SLGN has remained more or less at the same level.
SLGN's Gross Margin of 17.63% is on the low side compared to the rest of the industry. SLGN is outperformed by 81.82% of its industry peers.
SLGN's Gross Margin has improved in the last couple of years.
| 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
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
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
The Debt to FCF ratio of SLGN is 14.65, which is on the high side as it means it would take SLGN, 14.65 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.65, SLGN is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
SLGN has a Debt/Equity ratio of 2.22. This is a high value indicating a heavy dependency on external financing.
SLGN has a Debt to Equity ratio of 2.22. This is in the lower half of the industry: SLGN underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 14.65 | ||
| Altman-Z | N/A |
ROIC/WACC0.88
WACC6.88%
2.3 Liquidity
A Current Ratio of 2.28 indicates that SLGN has no problem at all paying its short term obligations.
SLGN has a better Current ratio (2.28) than 86.36% of its industry peers.
SLGN has a Quick Ratio of 1.35. This is a normal value and indicates that SLGN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SLGN (1.35) is better than 81.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
SLGN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.60%, which is quite good.
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
Based on estimates for the next years, SLGN will show a small growth in Earnings Per Share. The EPS will grow by 6.56% on average per year.
Based on estimates for the next years, SLGN will show a small growth in Revenue. The Revenue will grow by 3.98% on average per year.
EPS Next Y14.84%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
EPS Next 5Y6.56%
Revenue Next Year10.49%
Revenue Next 2Y6.52%
Revenue Next 3Y5.14%
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
SLGN is valuated correctly with a Price/Earnings ratio of 14.44.
68.18% of the companies in the same industry are more expensive than SLGN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SLGN to the average of the S&P500 Index (24.95), we can say SLGN is valued slightly cheaper.
The Price/Forward Earnings ratio is 11.94, which indicates a very decent valuation of SLGN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLGN is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.99. SLGN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
SLGN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SLGN is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.4 | ||
| EV/EBITDA | 11.44 |
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)1.31
EPS Next 2Y11.93%
EPS Next 3Y9.69%
5. Dividend
5.1 Amount
SLGN has a Yearly Dividend Yield of 1.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.32, SLGN has a dividend in line with its industry peers.
SLGN's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| 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 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 28.64% 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.
DP28.64%
EPS Next 2Y11.93%
EPS Next 3Y9.69%
54.31
-0.26 (-0.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners77.82%
Inst Owner Change-3.64%
Ins Owners1.2%
Ins Owner Change-0.64%
Market Cap5.81B
Analysts85.56
Price Target62.82 (15.67%)
Short Float %3.18%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend0.77
Dividend Growth(5Y)10.87%
DP28.64%
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)-6.53%
PT rev (3m)-0.66%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 11.94 | ||
| P/S | 0.97 | ||
| P/FCF | 18.4 | ||
| P/OCF | 9.91 | ||
| P/B | 2.79 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)3.76
EY6.92%
EPS(NY)4.55
Fwd EY8.37%
FCF(TTM)2.95
FCFY5.44%
OCF(TTM)5.48
OCFY10.09%
SpS56.12
BVpS19.47
TBVpS19.47
PEG (NY)0.97
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.3% | ||
| ROE | 13.88% | ||
| ROCE | 7.77% | ||
| ROIC | 6.08% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 6.38% | ||
| 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-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.22 | ||
| Debt/FCF | 14.65 | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 93.62% | ||
| Cap/Sales | 4.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.51% | ||
| Profit Quality | 109.21% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | N/A |
F-Score5
WACC6.88%
ROIC/WACC0.88
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)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 5Y3.98%
EBIT growth 1Y0.12%
EBIT growth 3Y-1.22%
EBIT growth 5Y6.68%
EBIT Next Year59.52%
EBIT Next 3Y20.24%
EBIT Next 5Y12.08%
FCF growth 1Y87.12%
FCF growth 3Y12.26%
FCF growth 5Y10.67%
OCF growth 1Y52.68%
OCF growth 3Y9.04%
OCF growth 5Y7.31%