SONOCO PRODUCTS CO (SON) Fundamental Analysis & Valuation
NYSE:SON • US8354951027
53.4 USD
+0.06 (+0.11%)
At close: Mar 9, 2026
53.4 USD
0 (0%)
After Hours: 3/9/2026, 8:04:00 PM
This SON fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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. While SON belongs to the best of the industry regarding profitability, there are concerns on its financial health. SON may be a bit undervalued, certainly considering the very reasonable score on growth Finally SON also has an excellent dividend rating.
1. SON Profitability Analysis
1.1 Basic Checks
- SON had positive earnings in the past year.
- In the past year SON had a positive cash flow from operations.
- SON had positive earnings in 4 of the past 5 years.
- SON had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- SON has a better Return On Assets (8.99%) than 100.00% of its industry peers.
- SON's Return On Equity of 27.75% is amongst the best of the industry. SON outperforms 90.91% of its industry peers.
- SON has a Return On Invested Capital of 7.26%. This is in the better half of the industry: SON outperforms 72.73% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SON is in line with the industry average of 7.71%.
- The last Return On Invested Capital (7.26%) for SON is above the 3 year average (6.90%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 27.75% | ||
| ROIC | 7.26% |
ROA(3y)5.63%
ROA(5y)4.37%
ROE(3y)18.19%
ROE(5y)14.5%
ROIC(3y)6.9%
ROIC(5y)8.54%
1.3 Margins
- SON has a better Profit Margin (13.34%) than 100.00% of its industry peers.
- In the last couple of years the Profit Margin of SON has grown nicely.
- With a decent Operating Margin value of 9.97%, SON is doing good in 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.
- Looking at the Gross Margin, with a value of 20.94%, SON is in line with its industry, outperforming 54.55% of the companies in the same industry.
- SON's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.97% | ||
| PM (TTM) | 13.34% | ||
| GM | 20.94% |
OM growth 3Y-5.23%
OM growth 5Y-0.02%
PM growth 3Y18.78%
PM growth 5Y27.48%
GM growth 3Y0.04%
GM growth 5Y0.95%
2. SON Health Analysis
2.1 Basic Checks
- SON has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SON has been increased compared to 1 year ago.
- 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
- Based on the Altman-Z score of 1.75, we must say that SON is in the distress zone and has some risk of bankruptcy.
- SON's Altman-Z score of 1.75 is in line compared to the rest of the industry. SON outperforms 40.91% of its industry peers.
- SON has a debt to FCF ratio of 12.51. This is a negative value and a sign of low solvency as SON would need 12.51 years to pay back of all of its debts.
- SON has a Debt to FCF ratio (12.51) which is in line with its industry peers.
- SON has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
- SON has a Debt to Equity ratio (1.05) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 12.51 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.9
WACC8.08%
2.3 Liquidity
- SON has a Current Ratio of 1.05. This is a normal value and indicates that SON is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.05, SON is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
- A Quick Ratio of 0.60 indicates that SON may have some problems paying its short term obligations.
- SON's Quick ratio of 0.60 is on the low side compared to the rest of the industry. SON is outperformed by 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.6 |
3. SON Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 16.97% over the past year.
- The Earnings Per Share has been growing by 10.90% on average over the past years. This is quite good.
- SON shows a strong growth in Revenue. In the last year, the Revenue has grown by 41.72%.
- The Revenue has been growing slightly by 7.50% on average over the past years.
EPS 1Y (TTM)16.97%
EPS 3Y-4.07%
EPS 5Y10.9%
EPS Q2Q%5%
Revenue 1Y (TTM)41.72%
Revenue growth 3Y8.67%
Revenue growth 5Y7.5%
Sales Q2Q%29.69%
3.2 Future
- SON is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.88% yearly.
- SON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.09% yearly.
EPS Next Y5.28%
EPS Next 2Y7.69%
EPS Next 3Y7.7%
EPS Next 5Y8.88%
Revenue Next Year-1.67%
Revenue Next 2Y0.15%
Revenue Next 3Y0.85%
Revenue Next 5Y4.09%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. SON Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.34, which indicates a very decent valuation of SON.
- Based on the Price/Earnings ratio, SON is valued cheaper than 90.91% of the companies in the same industry.
- SON's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.46.
- SON is valuated reasonably with a Price/Forward Earnings ratio of 8.87.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 95.45% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.65. SON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
- 81.82% 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 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.23 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- SON has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)0.86
EPS Next 2Y7.69%
EPS Next 3Y7.7%
5. SON Dividend Analysis
5.1 Amount
- SON has a Yearly Dividend Yield of 3.95%.
- SON's Dividend Yield is rather good when compared to the industry average which is at 2.36. SON pays more dividend than 81.82% of the companies in the same industry.
- SON's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
5.2 History
- The dividend of SON has a limited annual growth rate of 4.20%.
- 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)4.2%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
- 20.75% of the earnings are spent on dividend by SON. This is a low number and sustainable payout ratio.
- The dividend of SON is growing, but earnings are growing more, so the dividend growth is sustainable.
DP20.75%
EPS Next 2Y7.69%
EPS Next 3Y7.7%
SON Fundamentals: All Metrics, Ratios and Statistics
53.4
+0.06 (+0.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)02-16 2026-02-16/amc
Earnings (Next)04-27 2026-04-27
Inst Owners88.87%
Inst Owner Change0.18%
Ins Owners0.22%
Ins Owner Change4.82%
Market Cap5.27B
Revenue(TTM)7.52B
Net Income(TTM)1.00B
Analysts76
Price Target66.05 (23.69%)
Short Float %5.1%
Short Ratio4.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.95% |
Yearly Dividend2.11
Dividend Growth(5Y)4.2%
DP20.75%
Div Incr Years26
Div Non Decr Years26
Ex-Date02-25 2026-02-25 (0.53)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.52%
Min EPS beat(2)-1.32%
Max EPS beat(2)4.37%
EPS beat(4)1
Avg EPS beat(4)-1.87%
Min EPS beat(4)-6.6%
Max EPS beat(4)4.37%
EPS beat(8)4
Avg EPS beat(8)-1.9%
EPS beat(12)6
Avg EPS beat(12)-0.29%
EPS beat(16)10
Avg EPS beat(16)1.96%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)-0.68%
Revenue beat(4)0
Avg Revenue beat(4)-5.19%
Min Revenue beat(4)-16.99%
Max Revenue beat(4)-0.68%
Revenue beat(8)0
Avg Revenue beat(8)-6.46%
Revenue beat(12)1
Avg Revenue beat(12)-5.85%
Revenue beat(16)2
Avg Revenue beat(16)-4.86%
PT rev (1m)20.47%
PT rev (3m)21.6%
EPS NQ rev (1m)-4.24%
EPS NQ rev (3m)-5.17%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-1.52%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.7 | ||
| P/FCF | 15.23 | ||
| P/OCF | 7.64 | ||
| P/B | 1.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.26 |
EPS(TTM)5.72
EY10.71%
EPS(NY)6.02
Fwd EY11.28%
FCF(TTM)3.51
FCFY6.56%
OCF(TTM)6.99
OCFY13.1%
SpS76.22
BVpS36.64
TBVpS-16.03
PEG (NY)1.77
PEG (5Y)0.86
Graham Number68.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 27.75% | ||
| ROCE | 8.68% | ||
| ROIC | 7.26% | ||
| ROICexc | 7.59% | ||
| ROICexgc | 20.49% | ||
| OM | 9.97% | ||
| PM (TTM) | 13.34% | ||
| GM | 20.94% | ||
| FCFM | 4.6% |
ROA(3y)5.63%
ROA(5y)4.37%
ROE(3y)18.19%
ROE(5y)14.5%
ROIC(3y)6.9%
ROIC(5y)8.54%
ROICexc(3y)7.17%
ROICexc(5y)8.9%
ROICexgc(3y)16.2%
ROICexgc(5y)18.14%
ROCE(3y)8.24%
ROCE(5y)10.47%
ROICexgc growth 3Y-1.65%
ROICexgc growth 5Y-6.94%
ROICexc growth 3Y-12.39%
ROICexc growth 5Y-11.08%
OM growth 3Y-5.23%
OM growth 5Y-0.02%
PM growth 3Y18.78%
PM growth 5Y27.48%
GM growth 3Y0.04%
GM growth 5Y0.95%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 12.51 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 66.24% | ||
| Cap/Sales | 4.58% | ||
| Interest Coverage | 2.88 | ||
| Cash Conversion | 54.37% | ||
| Profit Quality | 34.47% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 1.75 |
F-Score7
WACC8.08%
ROIC/WACC0.9
Cap/Depr(3y)92.54%
Cap/Depr(5y)98.23%
Cap/Sales(3y)6.22%
Cap/Sales(5y)5.77%
Profit Quality(3y)137.56%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.97%
EPS 3Y-4.07%
EPS 5Y10.9%
EPS Q2Q%5%
EPS Next Y5.28%
EPS Next 2Y7.69%
EPS Next 3Y7.7%
EPS Next 5Y8.88%
Revenue 1Y (TTM)41.72%
Revenue growth 3Y8.67%
Revenue growth 5Y7.5%
Sales Q2Q%29.69%
Revenue Next Year-1.67%
Revenue Next 2Y0.15%
Revenue Next 3Y0.85%
Revenue Next 5Y4.09%
EBIT growth 1Y38.62%
EBIT growth 3Y2.99%
EBIT growth 5Y7.47%
EBIT Next Year38.95%
EBIT Next 3Y14.71%
EBIT Next 5Y11.74%
FCF growth 1Y-21.53%
FCF growth 3Y24.24%
FCF growth 5Y-7.53%
OCF growth 1Y-17.28%
OCF growth 3Y10.66%
OCF growth 5Y-0.45%
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 7 / 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 7 / 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 5.28% in the next year.
Is the dividend of SONOCO PRODUCTS CO sustainable?
The dividend rating of SONOCO PRODUCTS CO (SON) is 8 / 10 and the dividend payout ratio is 20.75%.