SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
NYSE:SON - US8354951027 - Common Stock
47.07 USD
+0.33 (+0.71%)
Overall SON gets a fundamental rating of 5 out of 10. We evaluated SON against 22 industry peers in the Containers & Packaging industry. While SON is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Of the past 5 years SON 4 years were profitable.
Each year in the past 5 years SON had a positive operating cash flow.
1.2 Ratios
SON's Return On Assets of 4.64% is amongst the best of the industry. SON outperforms 86.36% of its industry peers.
SON's Return On Equity of 17.18% is fine compared to the rest of the industry. SON outperforms 77.27% of its industry peers.
SON has a Return On Invested Capital of 4.94%. This is in the lower half of the industry: SON underperforms 63.64% of its industry peers.
SON had an Average Return On Invested Capital over the past 3 years of 8.06%. This is in line with the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 17.18% | ||
| ROIC | 4.94% |
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
The Profit Margin of SON (9.81%) is better than 90.91% of its industry peers.
SON's Profit Margin has declined in the last couple of years.
The Operating Margin of SON (9.99%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
SON's Gross Margin of 21.26% is in line compared to the rest of the industry. SON outperforms 59.09% of its industry peers.
In the last couple of years the Gross Margin of SON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.99% | ||
| PM (TTM) | 9.81% | ||
| GM | 21.26% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SON is still creating some value.
SON has more shares outstanding than it did 1 year ago.
SON has less shares outstanding than it did 5 years ago.
SON has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that SON is in the distress zone and has some risk of bankruptcy.
SON has a worse Altman-Z score (1.36) than 72.73% of its industry peers.
The Debt to FCF ratio of SON is 38.01, which is on the high side as it means it would take SON, 38.01 years of fcf income to pay off all of its debts.
SON has a Debt to FCF ratio (38.01) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.54 is on the high side and indicates that SON has dependencies on debt financing.
The Debt to Equity ratio of SON (1.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 38.01 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.76
WACC6.53%
2.3 Liquidity
A Current Ratio of 1.25 indicates that SON should not have too much problems paying its short term obligations.
SON has a Current ratio of 1.25. This is comparable to the rest of the industry: SON outperforms 50.00% of its industry peers.
SON has a Quick Ratio of 1.25. This is a bad value and indicates that SON is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.72, SON is in line with its industry, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
SON shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.38%.
The Earnings Per Share has been growing slightly by 6.80% on average over the past years.
SON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.28%.
SON shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.26% yearly.
EPS 1Y (TTM)7.38%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%7.03%
Revenue 1Y (TTM)-14.28%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%17.68%
3.2 Future
The Earnings Per Share is expected to grow by 10.45% on average over the next years. This is quite good.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 6.14% on average per year.
EPS Next Y22.64%
EPS Next 2Y15.78%
EPS Next 3Y13.14%
EPS Next 5Y10.45%
Revenue Next Year16.54%
Revenue Next 2Y8.36%
Revenue Next 3Y6.81%
Revenue Next 5Y6.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.98, which indicates a very decent 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 27.17.
Based on the Price/Forward Earnings ratio of 7.18, the valuation of SON can be described as very cheap.
Based on the Price/Forward Earnings ratio, SON is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SON to the average of the S&P500 Index (22.78), we can say SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 7.18 |
4.2 Price Multiples
SON's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as SON.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.54 | ||
| EV/EBITDA | 9.59 |
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.
SON's earnings are expected to grow with 13.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)1.32
EPS Next 2Y15.78%
EPS Next 3Y13.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.55%, SON is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.16, SON pays a better dividend. On top of this SON pays more dividend than 90.91% of the companies listed in the same industry.
SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.02%.
SON has been paying a dividend for at least 10 years, so it has a reliable track record.
SON has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.02%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
37.02% 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.
DP37.02%
EPS Next 2Y15.78%
EPS Next 3Y13.14%
NYSE:SON (8/29/2025, 12:14:01 PM)
47.07
+0.33 (+0.71%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners85.21%
Inst Owner Change0.32%
Ins Owners0.37%
Ins Owner Change2.43%
Market Cap4.64B
Analysts80
Price Target58.59 (24.47%)
Short Float %4.1%
Short Ratio4.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.55% |
Yearly Dividend2.07
Dividend Growth(5Y)4.02%
DP37.02%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.26%
Min EPS beat(2)-6.6%
Max EPS beat(2)-3.91%
EPS beat(4)1
Avg EPS beat(4)-6.6%
Min EPS beat(4)-17.56%
Max EPS beat(4)1.68%
EPS beat(8)4
Avg EPS beat(8)-0.5%
EPS beat(12)7
Avg EPS beat(12)1.09%
EPS beat(16)11
Avg EPS beat(16)1.84%
Revenue beat(2)0
Avg Revenue beat(2)-8.87%
Min Revenue beat(2)-16.99%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-10.15%
Min Revenue beat(4)-19.38%
Max Revenue beat(4)-0.76%
Revenue beat(8)1
Avg Revenue beat(8)-6.34%
Revenue beat(12)1
Avg Revenue beat(12)-6.25%
Revenue beat(16)4
Avg Revenue beat(16)-4.5%
PT rev (1m)1.77%
PT rev (3m)2.35%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.76%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.18%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.98 | ||
| Fwd PE | 7.18 | ||
| P/S | 0.82 | ||
| P/FCF | 32.54 | ||
| P/OCF | 8.54 | ||
| P/B | 1.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.59 |
EPS(TTM)5.24
EY11.13%
EPS(NY)6.56
Fwd EY13.93%
FCF(TTM)1.45
FCFY3.07%
OCF(TTM)5.51
OCFY11.71%
SpS57.43
BVpS32.8
TBVpS-22.28
PEG (NY)0.4
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.64% | ||
| ROE | 17.18% | ||
| ROCE | 5.93% | ||
| ROIC | 4.94% | ||
| ROICexc | 5.12% | ||
| ROICexgc | 12.48% | ||
| OM | 9.99% | ||
| PM (TTM) | 9.81% | ||
| GM | 21.26% | ||
| FCFM | 2.52% |
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%
ROICexcg growth 3Y-9.06%
ROICexcg 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-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.54 | ||
| Debt/FCF | 38.01 | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 89.96% | ||
| Cap/Sales | 7.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 53.74% | ||
| Profit Quality | 25.67% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.36 |
F-Score4
WACC6.53%
ROIC/WACC0.76
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)7.38%
EPS 3Y11.27%
EPS 5Y6.8%
EPS Q2Q%7.03%
EPS Next Y22.64%
EPS Next 2Y15.78%
EPS Next 3Y13.14%
EPS Next 5Y10.45%
Revenue 1Y (TTM)-14.28%
Revenue growth 3Y-1.73%
Revenue growth 5Y-0.26%
Sales Q2Q%17.68%
Revenue Next Year16.54%
Revenue Next 2Y8.36%
Revenue Next 3Y6.81%
Revenue Next 5Y6.14%
EBIT growth 1Y-14.15%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year76.99%
EBIT Next 3Y24.4%
EBIT Next 5Y14.67%
FCF growth 1Y-56.98%
FCF growth 3Y117.79%
FCF growth 5Y13.88%
OCF growth 1Y-19.23%
OCF growth 3Y40.81%
OCF growth 5Y14.38%