SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SON - US8354951027 - Common Stock
48.71 USD
-0.4 (-0.81%)
42.79 USD
-5.92 (-12.15%)
SON gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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. SON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. SON also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- SON had positive earnings in the past year.
- SON had a positive operating cash flow in the past year.
- 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
- The Return On Assets of SON (5.36%) is better than 77.27% of its industry peers.
- The Return On Equity of SON (19.00%) is better than 86.36% of its industry peers.
- SON has a Return On Invested Capital (6.37%) 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 7.62%.
| 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 better Profit Margin (10.26%) than 95.45% of its industry peers.
- SON's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 10.36%, SON is in the better half of 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SON is creating some value.
- The number of shares outstanding for SON has been increased compared to 1 year ago.
- Compared to 5 years ago, SON has less shares outstanding
- The debt/assets ratio for SON is higher compared to a year ago.
2.2 Solvency
- SON has an Altman-Z score of 1.39. This is a bad value and indicates that SON is not financially healthy and even has some risk of bankruptcy.
- SON has a worse Altman-Z score (1.39) than 77.27% of its industry peers.
- 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 (17.32) which is in line with its industry peers.
- SON has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 1.15, SON perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.84
WACC7.58%
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.
- With a Current ratio value of 0.92, SON is not doing good in the industry: 95.45% of the companies in the same industry are doing better.
- SON has a Quick 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 Quick ratio of 0.58. This is amonst the worse of the industry: SON underperforms 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.
- SON shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.80% yearly.
- SON shows a decrease in Revenue. In the last year, the revenue decreased by -6.90%.
- The Revenue has been decreasing by -0.26% on average over the past years.
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 Y17.1%
EPS Next 2Y11.5%
EPS Next 3Y10.92%
EPS Next 5Y10.45%
Revenue Next Year15.66%
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.
- 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
- Based on the Price/Earnings ratio of 8.59, the valuation of SON can be described as reasonable.
- 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 (27.47), we can say SON is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.01, the valuation of SON can be described as reasonable.
- 90.91% of the companies in the same industry are more expensive than SON, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, SON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.01 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SON indicates a somewhat cheap valuation: SON is cheaper than 72.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 8.71 |
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)0.5
PEG (5Y)1.26
EPS Next 2Y11.5%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
- SON has a Yearly Dividend Yield of 4.53%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.39, 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 1.89, SON pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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
- 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 2Y11.5%
EPS Next 3Y10.92%
48.71
-0.4 (-0.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)10-22 2025-10-22/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners83.94%
Inst Owner Change0.02%
Ins Owners0.39%
Ins Owner Change0.93%
Market Cap4.80B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target54.32 (11.52%)
Short Float %5.49%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
Yearly Dividend2.07
Dividend Growth(5Y)4.02%
DP32.95%
Div Incr Years26
Div Non Decr Years26
Ex-DateN/A
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)-7.3%
EPS NQ rev (1m)-1.42%
EPS NQ rev (3m)-15.29%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 8.01 | ||
| P/S | 0.79 | ||
| P/FCF | 16.13 | ||
| P/OCF | 7.14 | ||
| P/B | 1.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.71 |
EPS(TTM)5.67
EY11.64%
EPS(NY)6.08
Fwd EY12.48%
FCF(TTM)3.02
FCFY6.2%
OCF(TTM)6.82
OCFY14.01%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.5
PEG (5Y)1.26
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 | 1.39 |
F-Score7
WACC7.58%
ROIC/WACC0.84
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 Y17.1%
EPS Next 2Y11.5%
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 Year15.66%
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.
Can you provide the valuation status for SONOCO PRODUCTS CO?
ChartMill assigns a valuation rating of 8 / 10 to SONOCO PRODUCTS CO (SON). This can be considered as Undervalued.
Can you provide the profitability details for SONOCO PRODUCTS CO?
SONOCO PRODUCTS CO (SON) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for SON stock?
The Earnings per Share (EPS) of SONOCO PRODUCTS CO (SON) is expected to grow by 17.1% in the next year.
Is the dividend of SONOCO PRODUCTS CO sustainable?
The dividend rating of SONOCO PRODUCTS CO (SON) is 9 / 10 and the dividend payout ratio is 32.95%.