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SEE

Sealed Air NYSE:SEE Stock Report

Last Price

US$45.17

Market Cap

US$6.6b

7D

1.7%

1Y

-21.5%

Updated

06 Oct, 2022

Data

Company Financials +
SEE fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance3/6
Financial Health2/6
Dividends5/6

SEE Stock Overview

Sealed Air Corporation provides food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific.

Sealed Air Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sealed Air
Historical stock prices
Current Share PriceUS$45.17
52 Week HighUS$70.73
52 Week LowUS$43.62
Beta1.22
1 Month Change-13.90%
3 Month Change-19.76%
1 Year Change-21.51%
3 Year Change13.89%
5 Year Change2.33%
Change since IPO1,652.05%

Recent News & Updates

Sep 29
Sealed Air (NYSE:SEE) Seems To Use Debt Quite Sensibly

Sealed Air (NYSE:SEE) Seems To Use Debt Quite Sensibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Sep 27

Sealed Air: Misclassified And Misunderstood

Summary Sealed Air is transitioning to higher-margin equipment sales and services. Markets may have to "classify" Sealed Air as an industrial company in a few years. The company may deserve a high valuation in the long term. Sealed Air (SEE) is a packaging provider focusing on packaging materials, automation, equipment, and services. As the company transforms into driving more sales from equipment sales and services, the market may have to reclassify it as an industrial company. Sealed Air is currently classified as a materials company. The company has a bright future in helping big and small companies derive cost savings by automating their packaging needs. Industrial companies trade at a much higher valuation than material companies. The Vanguard Materials ETF (VAW) has a P/E ratio of 12.3x while the Vanguard Industrials ETF (VIS) has a P/E of 19x. In the long term, Sealed Air may deserve a valuation closer to other industrial companies. But, the transition will take time since revenue from equipment and services is a small portion of total sales. Good Growth in Sales and Profits in Q2 2022 The company operates under two segments; its Food segment sells packaging solutions to various meat and seafood markets worldwide. The Protective business segment sells packaging solutions to e-commerce, consumer goods, pharmaceutical, medical devices, and industrial manufacturing companies. These packaging solutions combine high-performance materials and automation equipment. The company saw sales increase by 7%, adjusted EBITDA growth of 12%, and adjusted EPS growth of 28% [Exhibit 1]. The volume/mix was unfavorable for the company in Q2 2022, contributing a negative $62 million to the company's sales growth. But, its pricing power helped propel sales by $214 million. The dollar's strength was also a headwind for sales growth, taking away nearly $52 million in sales [Exhibit 2]. Exhibit 1: Sealed Air Q2 2022 Sales and EPS Growth Sealed Air Q2 2022 Sales and EPS Growth (Sealed Air Investor Presentation) Exhibit 2: Sealed Air Q1 2021 to Q2 2022 Sales and EBITDA Bridge Sealed Air Q1 2021 to Q2 2022 Sales and EBITDA Bridge (Sealed Air Investor Presentation) Sealed Air's Prescient Focus on Packaging Equipment and Services In 2020, the company launched its Automation Solutions strategy to focus on growing its equipment sales and services. In the long run, this automation strategy would make Sealed Air products sticky among its customer base and increase margins. The company is projecting $500 million in equipment and services sales for 2022. With some help from acquisitions, the company looks to cross $1 billion in sales by the end of 2025 [Exhibit 3]. For example, in 2019, the company acquired Automated Packaging Systems - a manufacturer of automated bagging systems. Manufacturers are looking to reduce the cost of labor and increase productivity in their processes, given the labor shortage in the U.S. and ongoing reshoring efforts triggered by the supply chain disruptions during the pandemic and geopolitical tensions with China. These megatrends are just starting, and Sealed Air should benefit from this in the coming years. Exhibit 3: Sealed Air Current and Projected Sales from Packaging Equipment and Services Sealed Air Current and Projected Sales from Packaging Equipment and Services (Sealed Air Investor Presentation) As Sealed Air transforms into an automation provider, a company like Rockwell Automation (ROK) may be its closest peer in the long run. Rockwell Automation has gross profit margins in the low- to mid-forties, while Sealed Air currently commands gross margins in the low-thirties [Exhibit 4]. Exhibit 4: Gross Profit Margins for Sealed Air, Rockwell Automation, Graphic Packaging, Sonoco Products, and Packaging Corporation of America Gross Profit Margins for Sealed Air, Rockwell Automation, Graphic Packaging, Sonoco Products, and Packaging Corporation of America (Seeking Alpha, Author Compilation) Sealed Air has a much higher gross margin and operating margin than some of its material peers. Its operating margins are close to that of Rockwell Automation [Exhibit 5]. In 2017, Sealed Air became a focused company with the spin-off of its Diversey division. Diversey (DSEY) made hygiene and cleaning products. Diversey was a low-margin business. With the spin-off of Diversey and its new-found focus on equipment sales and digitization, Sealed Air can consistently achieve a 16% operating margin in the future. Exhibit 5: Operating Profit Margins for Sealed Air, Rockwell Automation, Graphic Packaging, Sonoco Products, and Packaging Corporation of America Operating Profit Margins for Sealed Air, Rockwell Automation, Graphic Packaging, Sonoco Products, and Packaging Corporation of America (Seeking Alpha, Author Compilation) Monthly Return Comparison with the Vanguard S&P 500 Index ETF Sealed Air averaged a monthly return of 1% between June 2019 and August 2022. The company's third quartile [75% of the months between 2019 and 2022] returns were below 7.68% per month - an excellent monthly return. But, the company's stock has high volatility compared to the Vanguard S&P 500 Index ETF (VOO). According to Yahoo Finance, Sealed Air has a Beta (five-year monthly return volatility) of 1.17. A linear regression of the monthly returns of Sealed Air and the Vanguard S&P 500 Index ETF between June 2019 and August 2022 yielded a Beta of 1.14 - very close to the Beta provided by Yahoo Finance. Exhibit 6: Sealed Air Monthly Return Statistics Sealed Air Monthly Return Statistics (Data Provided by IEX Cloud, Author Calculations) The current market volatility may exacerbate the volatility in Sealed Air. For every 1% change in the monthly return of the Vanguard S&P 500 Index ETF, Sealed Air can be reasonably expected to have a mean change of 1.14%. The standard deviation of 8.34% for Sealed Air's monthly returns also warns of high volatility in its stock price. Sealed Air's monthly returns have a high positive correlation of 0.75 with the Vanguard S&P 500 Index ETF. It is no surprise that Sealed Air has returned a negative 21%, while the Vanguard S&P 500 Index ETF has produced a negative 17% in the past year. Generally, high beta stocks perform poorly during a market downturn. Of the stocks I covered in Seeking Alpha last month [Exhibit 7], Colgate-Palmolive (CL) had the lowest Beta and has held up well against the current market downturn. In general, Consumer Staples stocks have a very low beta, and investors flock to the safety of that sector during times of high market volatility. Exhibit 7: Sealed Air Current and Projected Sales from Packaging Equipment and Services

Sep 16
If EPS Growth Is Important To You, Sealed Air (NYSE:SEE) Presents An Opportunity

If EPS Growth Is Important To You, Sealed Air (NYSE:SEE) Presents An Opportunity

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

SEEUS PackagingUS Market
7D1.7%3.5%3.3%
1Y-21.5%-26.1%-20.4%

Return vs Industry: SEE exceeded the US Packaging industry which returned -24.7% over the past year.

Return vs Market: SEE underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is SEE's price volatile compared to industry and market?
SEE volatility
SEE Average Weekly Movement4.9%
Packaging Industry Average Movement5.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.9%

Stable Share Price: SEE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SEE's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196016,500Ted Dohenyhttps://www.sealedair.com

Sealed Air Corporation provides food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Food and Protective. The Food segment offers integrated packaging materials and automation equipment solutions to provide food safety and shelf life extension, reduce food waste, automate processes, and optimize total cost for food processors in the fresh red meat, smoked and processed meats, poultry, seafood, plant-based, and dairy markets under the CRYOVAC, CRYOVAC Grip & Tear, CRYOVAC Darfresh, Simple Steps, and Optidure brands.

Sealed Air Fundamentals Summary

How do Sealed Air's earnings and revenue compare to its market cap?
SEE fundamental statistics
Market CapUS$6.56b
Earnings (TTM)US$540.80m
Revenue (TTM)US$5.77b

12.1x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SEE income statement (TTM)
RevenueUS$5.77b
Cost of RevenueUS$3.98b
Gross ProfitUS$1.79b
Other ExpensesUS$1.25b
EarningsUS$540.80m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 01, 2022

Earnings per share (EPS)3.72
Gross Margin31.08%
Net Profit Margin9.37%
Debt/Equity Ratio1,822.2%

How did SEE perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

22%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SEE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SEE?

Other financial metrics that can be useful for relative valuation.

SEE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA8.7x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does SEE's PE Ratio compare to its peers?

SEE PE Ratio vs Peers
The above table shows the PE ratio for SEE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.9x
GPK Graphic Packaging Holding
22.3x17.3%US$6.4b
SON Sonoco Products
13.7x6.3%US$5.8b
WRK WestRock
8.8x20.2%US$8.1b
PKG Packaging Corporation of America
10.6x1.0%US$10.8b
SEE Sealed Air
12.1x9.2%US$6.6b

Price-To-Earnings vs Peers: SEE is good value based on its Price-To-Earnings Ratio (12.1x) compared to the peer average (13.9x).


Price to Earnings Ratio vs Industry

How does SEE's PE Ratio compare vs other companies in the North American Packaging Industry?

Price-To-Earnings vs Industry: SEE is good value based on its Price-To-Earnings Ratio (12.1x) compared to the North American Packaging industry average (13.1x)


Price to Earnings Ratio vs Fair Ratio

What is SEE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SEE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.1x
Fair PE Ratio17.6x

Price-To-Earnings vs Fair Ratio: SEE is good value based on its Price-To-Earnings Ratio (12.1x) compared to the estimated Fair Price-To-Earnings Ratio (17.6x).


Share Price vs Fair Value

What is the Fair Price of SEE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SEE ($45.17) is trading below our estimate of fair value ($128.92)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Sealed Air forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEE's forecast earnings growth (9.2% per year) is above the savings rate (1.9%).

Earnings vs Market: SEE's earnings (9.2% per year) are forecast to grow slower than the US market (14.8% per year).

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

Revenue vs Market: SEE's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SEE's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEE's Return on Equity is forecast to be very high in 3 years time (133.8%).


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Past Performance

How has Sealed Air performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


33.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SEE has high quality earnings.

Growing Profit Margin: SEE's current net profit margins (9.4%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: SEE's earnings have grown significantly by 33.7% per year over the past 5 years.

Accelerating Growth: SEE's earnings growth over the past year (11.8%) is below its 5-year average (33.7% per year).

Earnings vs Industry: SEE earnings growth over the past year (11.8%) underperformed the Packaging industry 12.1%.


Return on Equity

High ROE: Whilst SEE's Return on Equity (270.81%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is Sealed Air's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SEE's short term assets ($2.0B) exceed its short term liabilities ($1.5B).

Long Term Liabilities: SEE's short term assets ($2.0B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: SEE's net debt to equity ratio (1681.4%) is considered high.

Reducing Debt: SEE's debt to equity ratio has increased from 1288.4% to 1822.2% over the past 5 years.

Debt Coverage: SEE's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: SEE's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


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Dividend

What is Sealed Air current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.77%

Current Dividend Yield

Dividend Yield vs Market

Sealed Air Dividend Yield vs Market
How does Sealed Air dividend yield compare to the market?
SegmentDividend Yield
Company (Sealed Air)1.8%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Packaging)3.0%
Analyst forecast in 3 Years (Sealed Air)1.8%

Notable Dividend: SEE's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: SEE's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.9%), SEE's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (23.8%), SEE's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Ted Doheny (60 yo)

5.08yrs

Tenure

US$9,674,692

Compensation

Mr. Edward L. Doheny II, also known as Ted, has been an Independent Director at Eastman Chemical Company since February 12, 2020. Mr. Doheny has been the Chief Executive Officer and President at Sealed Air...


CEO Compensation Analysis

Ted Doheny's Compensation vs Sealed Air Earnings
How has Ted Doheny's remuneration changed compared to Sealed Air's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$541m

Mar 31 2022n/an/a

US$535m

Dec 31 2021US$10mUS$1m

US$491m

Sep 30 2021n/an/a

US$460m

Jun 30 2021n/an/a

US$484m

Mar 31 2021n/an/a

US$475m

Dec 31 2020US$12mUS$1m

US$484m

Sep 30 2020n/an/a

US$471m

Jun 30 2020n/an/a

US$418m

Mar 31 2020n/an/a

US$343m

Dec 31 2019US$9mUS$1m

US$293m

Sep 30 2019n/an/a

US$368m

Jun 30 2019n/an/a

US$364m

Mar 31 2019n/an/a

US$422m

Dec 31 2018US$9mUS$1m

US$149m

Sep 30 2018n/an/a

-US$24m

Jun 30 2018n/an/a

-US$42m

Mar 31 2018n/an/a

-US$96m

Dec 31 2017US$3mUS$335k

US$58m

Compensation vs Market: Ted's total compensation ($USD9.67M) is about average for companies of similar size in the US market ($USD8.57M).

Compensation vs Earnings: Ted's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SEE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SEE's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SEE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:SEE Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
31 Aug 22BuyUS$54,079Emile ChammasIndividual1,000US$54.08
26 Aug 22BuyUS$27,625Henry KeizerIndividual500US$55.25
03 Aug 22BuyUS$256,274Edward DohenyIndividual4,500US$56.95
03 Aug 22BuyUS$57,658Sergio PupkinIndividual1,000US$57.97
05 May 22BuyUS$65,280Christopher StephensIndividual1,000US$65.28

Ownership Breakdown

What is the ownership structure of SEE?
Owner TypeNumber of SharesOwnership Percentage
State or Government75,0480.05%
Individual Insiders1,232,3050.8%
General Public19,650,39513.5%
Institutions124,269,37885.6%

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


Top Shareholders

Top 25 shareholders own 58.83% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
13.84%
BlackRock, Inc.
20,093,076$907.6m0.43%0.02%
11.35%
The Vanguard Group, Inc.
16,478,769$744.3m0.09%0.02%
4.75%
State Street Global Advisors, Inc.
6,893,165$311.4m-3.56%0.02%
4.68%
Janus Henderson Group plc
6,799,224$307.1m-0.27%0.17%
2.91%
T. Rowe Price Group, Inc.
4,224,178$190.8m-72.65%0.02%
2.19%
Kensico Capital Management Corp.
3,177,900$143.5m-3.69%6.38%
1.97%
Geode Capital Management, LLC
2,859,357$129.2m0.35%0.02%
1.66%
Managed Account Advisors LLC
2,410,614$108.9m8.81%0.03%
1.51%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
2,190,019$98.9m-1.97%0.03%
1.27%
Northern Trust Global Investments
1,840,472$83.1m-12.11%0.02%
1.12%
Harris Associates L.P.
1,626,352$73.5m-1.71%0.1%
1.11%
Victory Capital Management Inc.
1,606,581$72.6m24.83%0.08%
1.05%
Norges Bank Investment Management
1,525,914$68.9m0%0.01%
1.02%
Invesco Capital Management LLC
1,483,021$67.0m2.85%0.05%
0.98%
BNY Mellon Asset Management
1,416,445$64.0m-1.1%0.01%
0.94%
EARNEST Partners, LLC
1,367,705$61.8m12.09%0.41%
0.88%
FMR LLC
1,282,182$57.9m-8.62%0.01%
0.8%
AllianceBernstein L.P.
1,158,055$52.3m-24.65%0.02%
0.78%
Charles Schwab Investment Management, Inc.
1,129,030$51.0m-0.48%0.01%
0.76%
Wellington Management Group LLP
1,107,045$50.0m-1.95%0.01%
0.69%
Dimensional Fund Advisors LP
999,567$45.2m1.98%0.01%
0.66%
Thompson, Siegel & Walmsley LLC
955,242$43.1m0.8%0.54%
0.66%
Bank of America Corporation, Asset Management Arm
953,007$43.0m0.15%0.02%
0.64%
Franklin Resources, Inc.
931,773$42.1m2.25%0.02%
0.64%
TD Asset Management, Inc.
927,278$41.9m0%0.04%

Company Information

Sealed Air Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Sealed Air Corporation
  • Ticker: SEE
  • Exchange: NYSE
  • Founded: 1960
  • Industry: Paper Packaging
  • Sector: Materials
  • Implied Market Cap: US$6.560b
  • Shares outstanding: 145.23m
  • Website: https://www.sealedair.com

Number of Employees


Location

  • Sealed Air Corporation
  • 2415 Cascade Pointe Boulevard
  • Charlotte
  • North Carolina
  • 28208
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
SDADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0L4FLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
SEE *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
S1EA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/06 00:00
End of Day Share Price2022/10/06 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.