SONOCO PRODUCTS CO (SON)
US8354951027 - Common Stock
Overall SON gets a fundamental rating of 6 out of 10. We evaluated SON against 23 industry peers in the Containers & Packaging industry. While SON belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. SON has a valuation in line with the averages, but on the other hand it scores bad on growth. SON also has an excellent dividend rating. This makes SON very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year SON was profitable.
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 has a Return On Assets of 6.60%. This is amongst the best in the industry. SON outperforms 91.30% of its industry peers.
Looking at the Return On Equity, with a value of 19.59%, SON belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.19%, SON is doing good in the industry, outperforming 69.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SON is above the industry average of 8.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 19.59% | ||
| ROIC | 9.19% |
ROA(3y)3.84%
ROA(5y)4.23%
ROE(3y)12.51%
ROE(5y)12.93%
ROIC(3y)10.26%
ROIC(5y)10.4%
1.3 Margins
SON has a Profit Margin of 7.00%. This is amongst the best in the industry. SON outperforms 86.96% of its industry peers.
In the last couple of years the Profit Margin of SON has grown nicely.
Looking at the Operating Margin, with a value of 10.54%, SON is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
SON's Operating Margin has improved in the last couple of years.
The Gross Margin of SON (21.17%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SON has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.54% | ||
| PM (TTM) | 7% | ||
| GM | 21.17% |
OM growth 3Y1.85%
OM growth 5Y2.92%
PM growth 3Y20.92%
PM growth 5Y3.78%
GM growth 3Y1.95%
GM growth 5Y1.86%
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.
Compared to 1 year ago, SON has more shares outstanding
SON has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SON has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that SON is not a great score, but indicates only limited risk for bankruptcy at the moment.
SON has a Altman-Z score of 2.63. This is amongst the best in the industry. SON outperforms 82.61% of its industry peers.
The Debt to FCF ratio of SON is 5.93, which is a neutral value as it means it would take SON, 5.93 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.93, SON is doing good in the industry, outperforming 73.91% of the companies in the same industry.
A Debt/Equity ratio of 1.25 is on the high side and indicates that SON has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.25, SON is in line with its industry, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 5.93 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.29
WACC7.14%
2.3 Liquidity
A Current Ratio of 1.76 indicates that SON should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.76, SON is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that SON should not have too much problems paying its short term obligations.
SON has a Quick ratio of 1.10. This is in the better half of the industry: SON outperforms 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for SON have decreased strongly by -18.83% in the last year.
The Earnings Per Share has been growing by 9.31% on average over the past years. This is quite good.
SON shows a decrease in Revenue. In the last year, the revenue decreased by -6.47%.
SON shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.70% yearly.
EPS 1Y (TTM)-18.83%
EPS 3Y15.54%
EPS 5Y9.31%
EPS growth Q2Q-19.69%
Revenue 1Y (TTM)-6.47%
Revenue growth 3Y8.99%
Revenue growth 5Y4.7%
Revenue growth Q2Q-2.4%
3.2 Future
The Earnings Per Share is expected to grow by 3.17% on average over the next years.
Based on estimates for the next years, SON will show a small growth in Revenue. The Revenue will grow by 3.36% on average per year.
EPS Next Y-2.03%
EPS Next 2Y2.87%
EPS Next 3Y4.72%
EPS Next 5Y3.17%
Revenue Next Year2.23%
Revenue Next 2Y2.44%
Revenue Next 3Y2.75%
Revenue Next 5Y3.36%
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
A Price/Earnings ratio of 10.86 indicates a reasonable valuation of SON.
Based on the Price/Earnings ratio, SON is valued a bit cheaper than the industry average as 73.91% 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 24.76.
A Price/Forward Earnings ratio of 11.08 indicates a reasonable valuation of SON.
Based on the Price/Forward Earnings ratio, SON is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
SON's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
60.87% of the companies in the same industry are more expensive than SON, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SON is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.79 | ||
| EV/EBITDA | 8.02 |
4.3 Compensation for Growth
SON has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y2.87%
EPS Next 3Y4.72%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 3.73%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.92, SON pays a better dividend. On top of this SON pays more dividend than 86.96% 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of SON has a limited annual growth rate of 4.49%.
SON has paid a dividend for at least 10 years, which is a reliable track record.
SON has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.49%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
41.56% of the earnings are spent on dividend by SON. This is a bit on the high side, but may be sustainable.
The dividend of SON is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.56%
EPS Next 2Y2.87%
EPS Next 3Y4.72%
SONOCO PRODUCTS CO
NYSE:SON (4/19/2024, 7:17:03 PM)
After market: 57.11 0 (0%)57.11
+0.71 (+1.26%)
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 Cap5.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.86 | ||
| Fwd PE | 11.08 | ||
| 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)N/A
PEG (5Y)1.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 19.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.54% | ||
| PM (TTM) | 7% | ||
| GM | 21.17% | ||
| 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 Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.76 | ||
| Quick Ratio | 1.1 | ||
| 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)
Growth
EPS 1Y (TTM)-18.83%
EPS 3Y15.54%
EPS 5Y
EPS growth Q2Q
EPS Next Y-2.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.47%
Revenue growth 3Y8.99%
Revenue growth 5Y
Revenue growth 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