NasdaqGS:SLGN

Stock Analysis Report

Executive Summary

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products worldwide.

Rewards

Trading at 38.8% below its fair value

Earnings are forecast to grow 16.13% per year

Pays a high and reliable dividend of 1.44%

Risk Analysis

Debt is not well covered by operating cash flow

Profit margins (4.4%) are lower than last year (7.6%)



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Silgan Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SLGN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

SLGN

-0.8%

US Packaging

1.3%

US Market


1 Year Return

22.0%

SLGN

18.3%

US Packaging

19.4%

US Market

Return vs Industry: SLGN exceeded the US Packaging industry which returned 18.3% over the past year.

Return vs Market: SLGN exceeded the US Market which returned 19.4% over the past year.


Shareholder returns

SLGNIndustryMarket
7 Day0.2%-0.8%1.3%
30 Day-1.2%0.8%2.6%
90 Day2.2%3.2%5.0%
1 Year23.8%22.0%21.3%18.3%22.0%19.4%
3 Year26.2%21.2%25.9%17.5%46.8%37.3%
5 Year21.6%13.9%42.8%24.7%66.3%48.0%

Price Volatility Vs. Market

How volatile is Silgan Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Silgan Holdings undervalued compared to its fair value and its price relative to the market?

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLGN ($30.66) is trading below our estimate of fair value ($50.13)

Significantly Below Fair Value: SLGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SLGN is good value based on its PE Ratio (17.2x) compared to the Packaging industry average (19x).

PE vs Market: SLGN is good value based on its PE Ratio (17.2x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SLGN is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SLGN is overvalued based on its PB Ratio (3.5x) compared to the US Packaging industry average (3.5x).


Next Steps

Future Growth

How is Silgan Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SLGN's forecast earnings growth (16.1% per year) is above the savings rate (1.7%).

Earnings vs Market: SLGN's earnings (16.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: SLGN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SLGN's revenue (0.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SLGN's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SLGN's Return on Equity is forecast to be high in 3 years time (20.4%)


Next Steps

Past Performance

How has Silgan Holdings performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLGN has high quality earnings.

Growing Profit Margin: SLGN's current net profit margins (4.4%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: SLGN's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: SLGN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SLGN had negative earnings growth (-40.6%) over the past year, making it difficult to compare to the Packaging industry average (-18.3%).


Return on Equity

High ROE: Whilst SLGN's Return on Equity (20.36%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Silgan Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SLGN's short term assets ($1.6B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: SLGN's short term assets ($1.6B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: SLGN's debt to equity ratio (270.3%) is considered high.

Reducing Debt: SLGN's debt to equity ratio has increased from 251.5% to 270.3% over the past 5 years.

Debt Coverage: SLGN's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: SLGN's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: SLGN has a high level of physical assets or inventory.

Debt Coverage by Assets: SLGN's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Silgan Holdings's current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: SLGN's dividend (1.44%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SLGN's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.68%).


Stability and Growth of Payments

Stable Dividend: SLGN's dividends per share have been stable in the past 10 years.

Growing Dividend: SLGN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.2%), SLGN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SLGN's dividends in 3 years are forecast to be well covered by earnings (19.8% payout ratio).


Next Steps

Management

What is the CEO of Silgan Holdings's salary, the management and board of directors tenure and is there insider trading?

12.2yrs

Average management tenure


CEO

Anthony Allott (55yo)

13.8yrs

Tenure

US$3,386,123

Compensation

Mr. Anthony J. Allott, also known as Tony has been Chairman of Silgan Holdings Inc since April 1, 2019. He has been Chief Executive Officer of Silgan Holdings Inc. since March 1, 2006 and was its President ...


CEO Compensation Analysis

Compensation vs Market: Anthony's total compensation ($USD3.39M) is below average for companies of similar size in the US market ($USD5.09M).

Compensation vs Earnings: Anthony's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

12.2yrs

Average Tenure

55yo

Average Age

Experienced Management: SLGN's management team is seasoned and experienced (12.2 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

67yo

Average Age

Experienced Board: SLGN's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$59,42930 Aug 19
John Alden
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$29.71
SellUS$323,97309 Aug 19
Thomas Snyder
EntityIndividual
Role
Unit President
President of Silgan Containers
Shares10,444
Max PriceUS$31.02
SellUS$111,59417 May 19
Anthony Andreacchi
EntityIndividual
Shares3,692
Max PriceUS$30.23
SellUS$367,95203 May 19
B. Prinzen
EntityIndividual
Role
Head of Corporate Development
Senior Vice President of Corporate Development
Shares12,242
Max PriceUS$30.06
SellUS$2,250,96103 May 19
Robert Lewis
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares75,000
Max PriceUS$30.04
SellUS$3,289,47803 May 19
Adam Greenlee
EntityIndividual
Role
President
President & COO
Shares110,000
Max PriceUS$30.02
SellUS$183,29122 Feb 19
William Jennings
EntityIndividual
Shares6,362
Max PriceUS$28.81
SellUS$1,808,92119 Feb 19
Anthony Allott
EntityIndividual
Role
Chief Executive Officer
CEO & Chairman of the Board
Shares63,490
Max PriceUS$28.62

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Frank Hogan (58yo)

    Senior VP

    • Tenure: 22.5yrs
    • Compensation: US$996.48k
  • Bob Lewis (55yo)

    Executive VP & CFO

    • Tenure: 15.3yrs
    • Compensation: US$1.31m
  • Anthony Allott (55yo)

    CEO & Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: US$3.39m
  • Kimberly Ulmer (51yo)

    VP of Finance & Treasurer

    • Tenure: 1.9yrs
  • Adam Greenlee (45yo)

    President & COO

    • Tenure: 0.7yrs
    • Compensation: US$1.35m
  • Thomas Snyder (52yo)

    President of Silgan Containers

    • Tenure: 12.2yrs
    • Compensation: US$1.30m
  • B. Prinzen (60yo)

    Senior Vice President of Corporate Development

    • Tenure: 5.8yrs

Board Members

  • R. Silver (76yo)

    Director

    • Tenure: 32.9yrs
    • Compensation: US$199.07k
  • D. Horrigan (75yo)

    Director

    • Tenure: 32.9yrs
    • Compensation: US$209.80k
  • Bill Donovan (67yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$176.02k
  • John Alden (77yo)

    Independent Director

    • Tenure: 18.1yrs
    • Compensation: US$190.43k
  • Kim Fields (49yo)

    Director

    • Tenure: 0.4yrs
  • Leigh Abramson (50yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$36.94k
  • Anthony Allott (55yo)

    CEO & Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: US$3.39m
  • Brad Lich (51yo)

    Director

    • Tenure: 9.2yrs
  • Joseph Jordan (72yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$181.07k

Company Information

Silgan Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Silgan Holdings Inc.
  • Ticker: SLGN
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Metal and Glass Containers
  • Sector: Materials
  • Market Cap: US$3.396b
  • Shares outstanding: 110.77m
  • Website: https://www.silganholdings.com

Number of Employees


Location

  • Silgan Holdings Inc.
  • 4 Landmark Square
  • Suite 400
  • Stamford
  • Connecticut
  • 6901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLGNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1997
SL3DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1997

Biography

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products worldwide. It operates through three segments: Metal Containers, Closures, and Plast ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 23:47
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.