SILGAN HOLDINGS INC (SLGN)

US8270481091 - Common Stock

44.26  +0.02 (+0.05%)

After market: 44.2584 0 (0%)

Fundamental Rating

5

Taking everything into account, SLGN scores 5 out of 10 in our fundamental rating. SLGN was compared to 23 industry peers in the Containers & Packaging industry. While SLGN has a great profitability rating, there are some minor concerns on its financial health. SLGN has a valuation in line with the averages, but on the other hand it scores bad on growth.



7

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.
SLGN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

SLGN has a better Return On Assets (4.08%) than 65.22% of its industry peers.
The Return On Equity of SLGN (16.27%) is better than 69.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.35%, SLGN is in the better half of the industry, outperforming 69.57% 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 7.56%.
The last Return On Invested Capital (8.35%) for SLGN is above the 3 year average (8.04%), which is a sign of increasing profitability.
Industry RankSector 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 has a Profit Margin of 5.25%. This is in the better half of the industry: SLGN outperforms 69.57% of its industry peers.
SLGN's Profit Margin has improved in the last couple of years.
SLGN's Operating Margin of 10.06% is fine compared to the rest of the industry. SLGN outperforms 65.22% 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 16.61%, 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 been stable in the last couple of years.
Industry RankSector 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%

4

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.
SLGN has less shares outstanding than it did 1 year ago.
SLGN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SLGN has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 2.15 indicates that SLGN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.15, SLGN is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
SLGN has a debt to FCF ratio of 11.67. This is a negative value and a sign of low solvency as SLGN would need 11.67 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.67, SLGN is in line with its industry, outperforming 47.83% of the companies in the same industry.
A Debt/Equity ratio of 1.33 is on the high side and indicates that SLGN has dependencies on debt financing.
SLGN has a Debt to Equity ratio of 1.33. This is comparable to the rest of the industry: SLGN outperforms 56.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.33
Debt/FCF 11.67
Altman-Z 2.15
ROIC/WACC1.27
WACC6.58%

2.3 Liquidity

A Current Ratio of 1.04 indicates that SLGN should not have too much problems paying its short term obligations.
SLGN has a Current ratio of 1.04. This is in the lower half of the industry: SLGN underperforms 78.26% of its industry peers.
A Quick Ratio of 0.62 indicates that SLGN may have some problems paying its short term obligations.
SLGN has a Quick ratio of 0.62. This is in the lower half of the industry: SLGN underperforms 73.91% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.62

3

3. Growth

3.1 Past

The earnings per share for SLGN have decreased strongly by -16.62% in the last year.
Measured over the past years, SLGN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.33% on average per year.
Looking at the last year, SLGN shows a decrease in Revenue. The Revenue has decreased by -7.84% in the last 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.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.37, which indicates a correct valuation of SLGN.
60.87% 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 (28.63), we can say SLGN is valued rather cheaply.
The Price/Forward Earnings ratio is 10.92, which indicates a very decent valuation of SLGN.
69.57% of the companies in the same industry are more expensive than SLGN, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.22. SLGN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.37
Fwd PE 10.92

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.
Based on the Price/Free Cash Flow ratio, SLGN is valued a bit cheaper than the industry average as 60.87% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 14.22
EV/EBITDA 9.7

4.3 Compensation for Growth

SLGN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SLGN may justify a higher PE ratio.
PEG (NY)1.54
PEG (5Y)1.29
EPS Next 2Y9.17%
EPS Next 3Y9.56%

5

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 2.95.
Compared to the average S&P500 Dividend Yield of 2.38, SLGN is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.72%

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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)12.56%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

25.70% 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.
DP25.7%
EPS Next 2Y9.17%
EPS Next 3Y9.56%

SILGAN HOLDINGS INC

NYSE:SLGN (6/21/2024, 7:24:28 PM)

After market: 44.2584 0 (0%)

44.26

+0.02 (+0.05%)

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 Cap4.73B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.72%
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)
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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 RankSector Rank
PE 13.37
Fwd PE 10.92
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)1.54
PEG (5Y)1.29
Profitability
Industry RankSector 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 RankSector 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