SONOCO PRODUCTS CO (SON) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SON - US8354951027 - Common Stock
44.37 USD
+0.73 (+1.67%)
44.37 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SON. SON was compared to 22 industry peers in the Containers & Packaging industry. While SON is still in line with the averages on profitability rating, there are concerns on its financial health. SON scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
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
The Return On Assets of SON (5.36%) is better than 77.27% of its industry peers.
SON's Return On Equity of 19.00% is amongst the best of the industry. SON outperforms 86.36% of its industry peers.
The Return On Invested Capital of SON (6.37%) 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'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's Operating Margin of 10.36% is fine compared to the rest of the industry. SON outperforms 68.18% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SON is still creating some 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.
SON has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that SON is in the distress zone and has some risk of bankruptcy.
SON has a worse Altman-Z score (1.36) than 72.73% 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 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 17.32 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.86
WACC7.43%
2.3 Liquidity
A Current Ratio of 0.92 indicates that SON may have some problems paying its short term obligations.
SON's Current ratio of 0.92 is on the low side compared to the rest of the industry. SON is outperformed by 95.45% of its industry peers.
A Quick Ratio of 0.58 indicates that SON may have some problems paying its short term obligations.
SON's Quick ratio of 0.58 is on the low side compared to the rest of the industry. SON is outperformed by 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.
The Revenue has decreased by -6.90% in the past year.
SON shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.26% yearly.
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.
SON is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
SON is valuated cheaply with a Price/Earnings ratio of 7.83.
Compared to the rest of the industry, the Price/Earnings ratio of SON indicates a rather cheap valuation: SON is cheaper than 95.45% of the companies listed in the same industry.
SON is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.30, 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.
The average S&P500 Price/Forward Earnings ratio is at 23.23. SON is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 7.3 |
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.
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 | 14.7 | ||
| EV/EBITDA | 8.29 |
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)0.46
PEG (5Y)1.15
EPS Next 2Y11.5%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.86%, SON is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.52, SON pays a better dividend. On top of this SON pays more dividend than 90.91% 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 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
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 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.
SON's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.95%
EPS Next 2Y11.5%
EPS Next 3Y10.92%
44.37
+0.73 (+1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners83.94%
Inst Owner Change0%
Ins Owners0.39%
Ins Owner Change0.93%
Market Cap4.38B
Revenue(TTM)6.12B
Net Income(TTM)627.81M
Analysts74.67
Price Target54.32 (22.43%)
Short Float %5.49%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.86% |
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)-0.93%
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 | 7.83 | ||
| Fwd PE | 7.3 | ||
| P/S | 0.72 | ||
| P/FCF | 14.7 | ||
| P/OCF | 6.5 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.29 |
EPS(TTM)5.67
EY12.78%
EPS(NY)6.08
Fwd EY13.7%
FCF(TTM)3.02
FCFY6.8%
OCF(TTM)6.82
OCFY15.38%
SpS62.04
BVpS33.51
TBVpS-19.16
PEG (NY)0.46
PEG (5Y)1.15
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 | 1.36 |
F-Score7
WACC7.43%
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 Y17.1%
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%.