SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SON - US8354951027 - Common Stock
43.1 USD
-0.07 (-0.16%)
43.1 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on SON. 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 has a Return On Assets of 5.36%. This is in the better half of the industry: SON outperforms 77.27% of its industry peers.
SON has a Return On Equity of 19.00%. This is amongst the best in the industry. SON outperforms 86.36% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.37%, SON is in line with its industry, outperforming 50.00% of the companies in the same 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 7.62%.
| 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's Profit Margin of 10.26% is amongst the best of the industry. SON outperforms 95.45% of its industry peers.
In the last couple of years the Profit Margin of SON has declined.
SON has a better Operating Margin (10.36%) than 68.18% of its industry peers.
In the last couple of years the Operating Margin of SON has remained more or less at the same level.
The Gross Margin of SON (21.46%) is comparable to the rest of the industry.
SON's Gross Margin has improved in the last couple of years.
| 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.
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 1.35, we must say that SON is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.35, SON is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
The Debt to FCF ratio of SON is 17.32, which is on the high side as it means it would take SON, 17.32 years of fcf income to pay off 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.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SON has dependencies on debt financing.
SON has a Debt to Equity ratio (1.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.86
WACC7.42%
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.
SON has a worse Current ratio (0.92) than 95.45% of its industry peers.
A Quick Ratio of 0.58 indicates that SON may have some problems paying its short term obligations.
The Quick ratio of SON (0.58) is worse than 95.45% 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.
The Revenue is expected to grow by 6.14% on average over the next years.
EPS Next Y17.4%
EPS Next 2Y11.83%
EPS Next 3Y10.92%
EPS Next 5Y10.45%
Revenue Next Year15.42%
Revenue Next 2Y6.92%
Revenue Next 3Y5.32%
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 7.60, which indicates a rather cheap valuation of SON.
Based on the Price/Earnings ratio, SON is valued cheaper than 95.45% of the companies in the same industry.
When comparing the Price/Earnings ratio of SON to the average of the S&P500 Index (26.50), we can say SON is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.05, 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 100.00% of the companies are valued more expensively.
SON is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 7.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SON is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SON is valued a bit cheaper than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.28 | ||
| EV/EBITDA | 8.18 |
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.
PEG (NY)0.44
PEG (5Y)1.12
EPS Next 2Y11.83%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.89%, SON is a good candidate for dividend investing.
SON's Dividend Yield is rather good when compared to the industry average which is at 2.49. SON pays more dividend than 90.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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
SON pays out 32.95% of its income as dividend. This is a sustainable payout ratio.
The dividend of SON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.95%
EPS Next 2Y11.83%
EPS Next 3Y10.92%
43.1
-0.07 (-0.16%)
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 Cap4.25B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price TargetN/A
Short Float %5.32%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.89% |
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)-0.93%
PT rev (3m)-7.3%
EPS NQ rev (1m)-4.24%
EPS NQ rev (3m)-15.29%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 7.05 | ||
| P/S | 0.69 | ||
| P/FCF | 14.28 | ||
| P/OCF | 6.32 | ||
| P/B | 1.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)5.67
EY13.16%
EPS(NY)6.11
Fwd EY14.19%
FCF(TTM)3.02
FCFY7.01%
OCF(TTM)6.82
OCFY15.83%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.44
PEG (5Y)1.12
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 | 1.35 |
F-Score7
WACC7.42%
ROIC/WACC0.86
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 Y17.4%
EPS Next 2Y11.83%
EPS Next 3Y10.92%
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 Year15.42%
Revenue Next 2Y6.92%
Revenue Next 3Y5.32%
Revenue Next 5Y6.14%
EBIT growth 1Y-2.93%
EBIT growth 3Y1.21%
EBIT growth 5Y0.22%
EBIT Next Year76.06%
EBIT Next 3Y22.97%
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 7.6 and the Price/Book (PB) ratio is 1.29.
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 17.4% in the next year.