SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - NYSE:SON - US8354951027 - Common Stock
40.15 USD
+0.69 (+1.75%)
40.15 USD
0 (0%)
Taking everything into account, SON scores 5 out of 10 in our fundamental rating. SON was compared to 22 industry peers in the Containers & Packaging industry. SON has a medium profitability rating, but doesn't score so well on its financial health evaluation. SON may be a bit undervalued, certainly considering the very reasonable score on growth Finally SON also has an excellent dividend rating.
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.
SON had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SON had a positive operating cash flow.
1.2 Ratios
SON has a Return On Assets of 5.36%. This is amongst the best in the industry. SON outperforms 81.82% of its industry peers.
SON has a Return On Equity of 18.91%. This is amongst the best in the industry. SON outperforms 81.82% of its industry peers.
SON has a Return On Invested Capital (6.28%) which is comparable to the rest of the industry.
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 7.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 18.91% | ||
| ROIC | 6.28% |
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 90.91% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
The Operating Margin of SON (10.21%) is better than 68.18% of its industry peers.
SON's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 21.46%, SON is in line with its industry, outperforming 59.09% of the companies in the same industry.
SON's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.21% | ||
| 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
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
The Debt to FCF ratio of SON is 17.02, which is on the high side as it means it would take SON, 17.02 years of fcf income to pay off all of its debts.
SON has a Debt to FCF ratio (17.02) which is in line with its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that SON has dependencies on debt financing.
The Debt to Equity ratio of SON (1.14) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 17.02 | ||
| Altman-Z | N/A |
ROIC/WACC0.85
WACC7.39%
2.3 Liquidity
SON has a Current Ratio of 0.92. 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 Current ratio, with a value of 0.92, SON is doing worse than 86.36% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that SON may have some problems paying its short term obligations.
SON has a Quick ratio of 0.58. This is in the lower half of the industry: SON underperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
SON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.48%, which is quite good.
Measured over the past 5 years, SON shows a small growth in Earnings Per Share. The EPS has been growing by 6.80% on average per year.
The Revenue has decreased by -6.90% in the past year.
Measured over the past years, SON shows a decrease in Revenue. The Revenue has been decreasing by -0.26% on average per year.
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
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 Y21.68%
EPS Next 2Y15.04%
EPS Next 3Y12.12%
EPS Next 5Y10.45%
Revenue Next Year16.21%
Revenue Next 2Y7.88%
Revenue Next 3Y6.37%
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
A Price/Earnings ratio of 7.08 indicates a rather cheap valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (26.83), we can say SON is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.20, the valuation of SON can be described as very cheap.
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 22.88, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.2 |
4.2 Price Multiples
SON's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SON is cheaper than 68.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SON is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.07 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as SON's earnings are expected to grow with 12.12% in the coming years.
PEG (NY)0.33
PEG (5Y)1.04
EPS Next 2Y15.04%
EPS Next 3Y12.12%
5. Dividend
5.1 Amount
SON has a Yearly Dividend Yield of 5.25%, which is a nice return.
Compared to an average industry Dividend Yield of 3.28, SON pays a better dividend. On top of this SON pays more dividend than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
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 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
SON pays out 32.95% of its income as dividend. This is a sustainable payout ratio.
SON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.95%
EPS Next 2Y15.04%
EPS Next 3Y12.12%
40.15
+0.69 (+1.75%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners84.89%
Inst Owner Change-0.12%
Ins Owners0.37%
Ins Owner Change1.16%
Market Cap3.96B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts80
Price Target58.59 (45.93%)
Short Float %4.83%
Short Ratio4.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
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)-4.19%
Min EPS beat(2)-6.6%
Max EPS beat(2)-1.77%
EPS beat(4)0
Avg EPS beat(4)-7.46%
Min EPS beat(4)-17.56%
Max EPS beat(4)-1.77%
EPS beat(8)3
Avg EPS beat(8)-2.88%
EPS beat(12)6
Avg EPS beat(12)-0.38%
EPS beat(16)10
Avg EPS beat(16)1.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-2.38%
Max Revenue beat(2)-0.76%
Revenue beat(4)0
Avg Revenue beat(4)-9.88%
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)-4.75%
PT rev (1m)0%
PT rev (3m)1.77%
EPS NQ rev (1m)-3.51%
EPS NQ rev (3m)-3.23%
EPS NY rev (1m)-0.78%
EPS NY rev (3m)-1.78%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.08 | ||
| Fwd PE | 6.2 | ||
| P/S | 0.65 | ||
| P/FCF | 13.07 | ||
| P/OCF | 5.88 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.92 |
EPS(TTM)5.67
EY14.12%
EPS(NY)6.47
Fwd EY16.12%
FCF(TTM)3.07
FCFY7.65%
OCF(TTM)6.82
OCFY17%
SpS62.04
BVpS33.66
TBVpS-19.01
PEG (NY)0.33
PEG (5Y)1.04
Graham Number65.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.36% | ||
| ROE | 18.91% | ||
| ROCE | 7.53% | ||
| ROIC | 6.28% | ||
| ROICexc | 6.47% | ||
| ROICexgc | 18.24% | ||
| OM | 10.21% | ||
| PM (TTM) | 10.26% | ||
| GM | 21.46% | ||
| FCFM | 4.95% |
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 | 1.14 | ||
| Debt/FCF | 17.02 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 76.04% | ||
| Cap/Sales | 6.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.56% | ||
| Profit Quality | 48.25% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | N/A |
F-Score7
WACC7.39%
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 Y21.68%
EPS Next 2Y15.04%
EPS Next 3Y12.12%
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 Year16.21%
Revenue Next 2Y7.88%
Revenue Next 3Y6.37%
Revenue Next 5Y6.14%
EBIT growth 1Y-4.33%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year77.39%
EBIT Next 3Y24.4%
EBIT Next 5Y14.67%
FCF growth 1Y-33.71%
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 7.08 and the Price/Book (PB) ratio is 1.19.
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 21.68% in the next year.