SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SON - US8354951027 - Common Stock
41.43 USD
+0.14 (+0.34%)
41.43 USD
0 (0%)
Overall SON gets a fundamental rating of 5 out of 10. We evaluated SON against 22 industry peers in the Containers & Packaging industry. There are concerns on the financial health of SON while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on SON. Finally SON also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SON had positive earnings in the past year.
In the past year SON had a positive cash flow from operations.
SON had positive earnings in 4 of the past 5 years.
In the past 5 years SON always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.36%, SON is doing good in the industry, outperforming 77.27% of the companies in the same industry.
The Return On Equity of SON (19.00%) is better than 86.36% of its industry peers.
With a Return On Invested Capital value of 6.37%, SON perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SON is in line with the industry average of 7.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 19% | ||
| ROIC | 6.37% |
ROA(3y)4.84%
ROA(5y)3.36%
ROE(3y)16.46%
ROE(5y)11.13%
ROIC(3y)8.06%
ROIC(5y)9.38%
1.3 Margins
SON has a Profit Margin of 10.26%. This is amongst the best in the industry. SON outperforms 95.45% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
With a decent Operating Margin value of 10.36%, SON is doing good in the industry, outperforming 68.18% of the companies in the same industry.
SON's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 21.46%, SON perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Gross Margin of SON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.36% | ||
| PM (TTM) | 10.26% | ||
| GM | 21.46% |
OM growth 3Y2.99%
OM growth 5Y0.48%
PM growth 3YN/A
PM growth 5Y-10.66%
GM growth 3Y4.17%
GM growth 5Y1.76%
2. Health
2.1 Basic Checks
SON has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, SON has more shares outstanding
SON has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SON has a worse debt to assets ratio.
2.2 Solvency
SON has an Altman-Z score of 1.33. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.33, SON is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
SON has a debt to FCF ratio of 17.32. This is a negative value and a sign of low solvency as SON would need 17.32 years to pay back of all of its debts.
SON has a Debt to FCF ratio of 17.32. This is comparable to the rest of the industry: SON outperforms 54.55% of its industry peers.
SON has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
SON has a Debt to Equity ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.85
WACC7.51%
2.3 Liquidity
A Current Ratio of 0.92 indicates that SON may have some problems paying its short term obligations.
SON's Current ratio of 0.92 is on the low side compared to the rest of the industry. SON is outperformed by 90.91% of its industry peers.
A Quick Ratio of 0.58 indicates that SON may have some problems paying its short term obligations.
SON's Quick ratio of 0.58 is on the low side compared to the rest of the industry. SON is outperformed by 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.48% over the past year.
The Earnings Per Share has been growing slightly by 6.80% on average over the past years.
The Revenue has decreased by -6.90% in the past year.
SON shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.26% yearly.
EPS 1Y (TTM)15.48%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%28.86%
Revenue 1Y (TTM)-6.9%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%27.16%
3.2 Future
Based on estimates for the next years, SON will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.45% on average per year.
The Revenue is expected to grow by 6.14% on average over the next years.
EPS Next Y18.65%
EPS Next 2Y12.21%
EPS Next 3Y11.04%
EPS Next 5Y10.45%
Revenue Next Year15.46%
Revenue Next 2Y7.31%
Revenue Next 3Y5.36%
Revenue Next 5Y6.14%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.31, which indicates a rather cheap valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
SON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
The Price/Forward Earnings ratio is 6.73, which indicates a rather cheap valuation of SON.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 6.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SON is valued a bit cheaper than 68.18% of the companies in the same industry.
77.27% of the companies in the same industry are more expensive than SON, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.72 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
SON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SON may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)1.08
EPS Next 2Y12.21%
EPS Next 3Y11.04%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.13%, SON is a good candidate for dividend investing.
SON's Dividend Yield is rather good when compared to the industry average which is at 3.34. SON pays more dividend than 90.91% of the companies in the same industry.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.02%.
SON has paid a dividend for at least 10 years, which is a reliable track record.
SON has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.02%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
32.95% of the earnings are spent on dividend by SON. This is a low number and sustainable payout ratio.
SON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.95%
EPS Next 2Y12.21%
EPS Next 3Y11.04%
41.43
+0.14 (+0.34%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners84.26%
Inst Owner Change-0.16%
Ins Owners0.39%
Ins Owner Change0.93%
Market Cap4.09B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target54.32 (31.11%)
Short Float %5.39%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.13% |
Yearly Dividend2.07
Dividend Growth(5Y)4.02%
DP32.95%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.96%
Min EPS beat(2)-6.6%
Max EPS beat(2)-1.32%
EPS beat(4)0
Avg EPS beat(4)-7.35%
Min EPS beat(4)-17.56%
Max EPS beat(4)-1.32%
EPS beat(8)3
Avg EPS beat(8)-2.82%
EPS beat(12)6
Avg EPS beat(12)-0.35%
EPS beat(16)10
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-9.86%
Min Revenue beat(4)-19.38%
Max Revenue beat(4)-0.76%
Revenue beat(8)1
Avg Revenue beat(8)-6.29%
Revenue beat(12)1
Avg Revenue beat(12)-6.34%
Revenue beat(16)3
Avg Revenue beat(16)-4.74%
PT rev (1m)0%
PT rev (3m)-6.43%
EPS NQ rev (1m)-6.52%
EPS NQ rev (3m)-13.44%
EPS NY rev (1m)-2.49%
EPS NY rev (3m)-3.26%
Revenue NQ rev (1m)-0.33%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.31 | ||
| Fwd PE | 6.73 | ||
| P/S | 0.67 | ||
| P/FCF | 13.72 | ||
| P/OCF | 6.07 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.02 |
EPS(TTM)5.67
EY13.69%
EPS(NY)6.16
Fwd EY14.86%
FCF(TTM)3.02
FCFY7.29%
OCF(TTM)6.82
OCFY16.47%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.39
PEG (5Y)1.08
Graham Number65.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 19% | ||
| ROCE | 7.64% | ||
| ROIC | 6.37% | ||
| ROICexc | 6.57% | ||
| ROICexgc | 18.51% | ||
| OM | 10.36% | ||
| PM (TTM) | 10.26% | ||
| GM | 21.46% | ||
| FCFM | 4.87% |
ROA(3y)4.84%
ROA(5y)3.36%
ROE(3y)16.46%
ROE(5y)11.13%
ROIC(3y)8.06%
ROIC(5y)9.38%
ROICexc(3y)8.38%
ROICexc(5y)10.09%
ROICexgc(3y)16.5%
ROICexgc(5y)19.85%
ROCE(3y)9.66%
ROCE(5y)11.51%
ROICexgc growth 3Y-9.06%
ROICexgc growth 5Y-7.04%
ROICexc growth 3Y-21.68%
ROICexc growth 5Y-13.61%
OM growth 3Y2.99%
OM growth 5Y0.48%
PM growth 3YN/A
PM growth 5Y-10.66%
GM growth 3Y4.17%
GM growth 5Y1.76%
F-Score7
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 77.1% | ||
| Cap/Sales | 6.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.07% | ||
| Profit Quality | 47.43% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 1.33 |
F-Score7
WACC7.51%
ROIC/WACC0.85
Cap/Depr(3y)105.95%
Cap/Depr(5y)100.18%
Cap/Sales(3y)6.57%
Cap/Sales(5y)5.6%
Profit Quality(3y)138.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.48%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%28.86%
EPS Next Y18.65%
EPS Next 2Y12.21%
EPS Next 3Y11.04%
EPS Next 5Y10.45%
Revenue 1Y (TTM)-6.9%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%27.16%
Revenue Next Year15.46%
Revenue Next 2Y7.31%
Revenue Next 3Y5.36%
Revenue Next 5Y6.14%
EBIT growth 1Y-2.93%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year77.39%
EBIT Next 3Y24.4%
EBIT Next 5Y14.67%
FCF growth 1Y-34.84%
FCF growth 3Y117.79%
FCF growth 5Y13.88%
OCF growth 1Y-16.27%
OCF growth 3Y40.81%
OCF growth 5Y14.38%
SONOCO PRODUCTS CO / SON FAQ
What is the ChartMill fundamental rating of SONOCO PRODUCTS CO (SON) stock?
ChartMill assigns a fundamental rating of 5 / 10 to SON.
What is the valuation status for SON stock?
ChartMill assigns a valuation rating of 8 / 10 to SONOCO PRODUCTS CO (SON). This can be considered as Undervalued.
What is the profitability of SON stock?
SONOCO PRODUCTS CO (SON) has a profitability rating of 6 / 10.
What is the valuation of SONOCO PRODUCTS CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SONOCO PRODUCTS CO (SON) is 7.31 and the Price/Book (PB) ratio is 1.24.
What is the expected EPS growth for SONOCO PRODUCTS CO (SON) stock?
The Earnings per Share (EPS) of SONOCO PRODUCTS CO (SON) is expected to grow by 18.65% in the next year.