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
|Historical stock prices|
|Current Share Price||US$45.17|
|52 Week High||US$70.73|
|52 Week Low||US$43.62|
|1 Month Change||-13.90%|
|3 Month Change||-19.76%|
|1 Year Change||-21.51%|
|3 Year Change||13.89%|
|5 Year Change||2.33%|
|Change since IPO||1,652.05%|
Recent News & Updates
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...
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
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...
|SEE||US Packaging||US Market|
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.
|SEE Average Weekly Movement||4.9%|
|Packaging Industry Average Movement||5.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.6%|
|10% least volatile stocks in US Market||2.9%|
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
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
|SEE fundamental statistics|
Is SEE overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|SEE income statement (TTM)|
|Cost of Revenue||US$3.98b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Nov 01, 2022
|Earnings per share (EPS)||3.72|
|Net Profit Margin||9.37%|
How did SEE perform over the long term?See historical performance and comparison
1.8%Current Dividend Yield
Is SEE undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is SEE's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does SEE's PE Ratio compare to its peers?
|SEE PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
GPK Graphic Packaging Holding
SON Sonoco Products
PKG Packaging Corporation of America
SEE Sealed Air
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.
|Current PE Ratio||12.1x|
|Fair PE Ratio||17.6x|
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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How is Sealed Air forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Sealed Air performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Sealed Air's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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).
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What is Sealed Air current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Sealed Air Dividend Yield vs Market|
|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.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ted Doheny (60 yo)
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|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$10m||US$1m|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$12m||US$1m|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$9m||US$1m|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$9m||US$1m|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$3m||US$335k|
Compensation vs Market: Ted's total compensation ($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.
Experienced Management: SEE's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: SEE's board of directors are considered experienced (3.4 years average tenure).
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
|31 Aug 22||BuyUS$54,079||Emile Chammas||Individual||1,000||US$54.08|
|26 Aug 22||BuyUS$27,625||Henry Keizer||Individual||500||US$55.25|
|03 Aug 22||BuyUS$256,274||Edward Doheny||Individual||4,500||US$56.95|
|03 Aug 22||BuyUS$57,658||Sergio Pupkin||Individual||1,000||US$57.97|
|05 May 22||BuyUS$65,280||Christopher Stephens||Individual||1,000||US$65.28|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||75,048||0.05%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Sealed Air Corporation's employee growth, exchange listings and data sources
- 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
- Sealed Air Corporation
- 2415 Cascade Pointe Boulevard
- North Carolina
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SEE||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1969|
|SDA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1969|
|0L4F||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1969|
|SEE *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1969|
|S1EA34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 1 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/06 00:00|
|End of Day Share Price||2022/10/06 00:00|
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.