NasdaqGS:SLGN

Stock Analysis Report

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Executive Summary

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally.


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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

-1.1%

SLGN

-2.3%

US Packaging

-0.7%

US Market


1 Year Return

8.2%

SLGN

-6.0%

US Packaging

5.3%

US Market

Return vs Industry: SLGN exceeded the US Packaging industry which returned -6.9% over the past year.

Return vs Market: SLGN exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

SLGNIndustryMarket
7 Day-1.1%-2.3%-0.7%
30 Day3.8%1.8%4.6%
90 Day1.5%4.5%14.0%
1 Year9.8%8.2%-3.8%-6.0%7.6%5.3%
3 Year7.2%2.6%-1.4%-8.2%34.9%26.1%
5 Year32.1%23.5%31.0%14.1%62.3%44.7%

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?

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SLGN ($32.69) is trading below our estimate of fair value ($59.88)

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


Price To Earnings Ratio

PE vs Industry: SLGN is poor value based on its PE Ratio (17.7x) compared to the US Packaging industry average (16.6x).

PE vs Market: SLGN is poor value based on its PE Ratio (17.7x) compared to the US market (16.2x).


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 (3.6x) compared to the US Packaging industry average (2.9x).


Next Steps

Future Growth

How is Silgan Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 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 (2.2%).

Earnings vs Market: SLGN's earnings (16.1% per year) are forecast to grow slower than the US market (22.9% per year).

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

Revenue vs Market: SLGN's revenue (2.9% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SLGN's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SLGN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Silgan Holdings performed over the past 5 years?

7.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SLGN has high quality earnings.

Growing Profit Margin: SLGN's current net profit margins (4.6%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: SLGN's earnings have grown by 7.8% 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 (-8.9%) over the past year, making it difficult to compare to the Packaging industry average (1.4%).


Return on Equity

High ROE: Whilst SLGN's Return on Equity (20.05%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Silgan Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SLGN's short term assets ($2.0B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: SLGN's short term assets ($2.0B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: SLGN's debt to equity ratio (293.6%) is considered high.

Reducing Debt: SLGN's debt to equity ratio has reduced from 352% to 293.6% over the past 5 years.

Debt Coverage: SLGN's debt is not well covered by operating cash flow (16.5%).

Interest Coverage: SLGN's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SLGN's dividend (1.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: SLGN's dividend (1.47%) is low compared to the top 25% of dividend payers in the US market (4.6%).


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 (24.4%), 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 (18.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.8yrs

Average management tenure


CEO

Anthony Allott (56yo)

14.33yrs

Tenure

US$13,264,941

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 ($USD13.26M) is above average for companies of similar size in the US market ($USD5.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Allott
CEO & Chairman of the Board14.33yrsUS$13.26m0.64% $23.2m
Adam Greenlee
President & COO1.25yrsUS$5.44m0.036% $1.3m
Robert Lewis
Executive VP & CFO15.92yrsUS$5.40m0.15% $5.3m
Frank Hogan
Senior VP23.08yrsUS$3.13m0.16% $5.8m
Thomas Snyder
President of Silgan Containers12.75yrsUS$1.99m0.022% $786.5k
B. Prinzen
Senior Vice President of Corporate Development6.42yrsno data0.017% $607.4k
Kimberly Ulmer
VP of Finance & Treasurer2.5yrsno data0.030% $1.1m

12.8yrs

Average Tenure

56yo

Average Age

Experienced Management: SLGN's management team is seasoned and experienced (12.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Allott
CEO & Chairman of the Board14.33yrsUS$13.26m0.64% $23.2m
R. Silver
Director33.5yrsUS$213.85k15.39% $557.8m
D. Horrigan
Director33.5yrsUS$224.75k12.8% $464.0m
William Donovan
Independent Director2.5yrsUS$218.35k0.011% $389.3k
Kimberly Fields
Independent Director1yrUS$53.50kno data
Leigh Abramson
Independent Director1.92yrsUS$299.21k0.013% $455.2k
Brad Lich
Independent Director9.75yrsUS$26.75kno data
Joseph Jordan
Independent Director6.33yrsUS$223.84k0.019% $673.4k

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: SLGN's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SLGN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$3.624b
  • Shares outstanding: 110.87m
  • 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 in North America, Europe, and internationally. It operates through three segments: Metal Containers, Closures, and Plastic Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Closures segment offers a range of metal and plastic closures, and dispensing systems for use in food, beverage, health care, garden, personal care, home, and beauty products, as well as capping/sealing equipment and detection systems. The Plastic Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive; and marine chemical products. This segment also provides plastic thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products, as well as thermoformed plastic tubs for food, household, and personal care products, including soft fabric wipes. The company markets its products primarily through direct sales force, as well as through a network of distributors and an online shopping catalog. Silgan Holdings Inc. was founded in 1987 and is headquartered in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 23:56
End of Day Share Price2020/07/13 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.