NYSE:SEE

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Sealed Air's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SEE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.2%

SEE

0.6%

US Packaging

2.6%

US Market


1 Year Return

-19.1%

SEE

-1.0%

US Packaging

15.4%

US Market

Return vs Industry: SEE underperformed the US Packaging industry which returned -0.4% over the past year.

Return vs Market: SEE underperformed the US Market which returned 16.2% over the past year.


Shareholder returns

SEEIndustryMarket
7 Day2.2%0.6%2.6%
30 Day9.5%3.7%6.1%
90 Day23.6%11.9%16.6%
1 Year-17.6%-19.1%1.3%-1.0%17.8%15.4%
3 Year-12.7%-16.8%10.4%2.9%43.9%34.7%
5 Year-27.1%-32.3%38.4%21.1%76.2%57.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sealed Air undervalued compared to its fair value and its price relative to the market?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEE ($36.64) is trading below our estimate of fair value ($51.84)

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


Price To Earnings Ratio

PE vs Industry: SEE is good value based on its PE Ratio (16.5x) compared to the US Packaging industry average (18.3x).

PE vs Market: SEE is good value based on its PE Ratio (16.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SEE has negative assets, so we can't compare its PB Ratio to the US Packaging industry average.


Next Steps

Future Growth

How is Sealed Air forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEE's forecast earnings growth (15% per year) is above the savings rate (2.2%).

Earnings vs Market: SEE's earnings (15% per year) are forecast to grow slower than the US market (22.6% per year).

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

Revenue vs Market: SEE's revenue (3.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: SEE's revenue (3.7% 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 (208.5%).


Next Steps

Past Performance

How has Sealed Air performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEE has a large one-off loss of $114.5M impacting its March 31 2020 financial results.

Growing Profit Margin: SEE's current net profit margins (7.1%) are lower than last year (8.9%).


Past Earnings Growth Analysis

Earnings Trend: SEE's earnings have grown by 0.9% per year over the past 5 years.

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

Earnings vs Industry: SEE had negative earnings growth (-18.5%) over the past year, making it difficult to compare to the Packaging industry average (-1.1%).


Return on Equity

High ROE: SEE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Sealed Air's financial position?


Financial Position Analysis

Short Term Liabilities: SEE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SEE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SEE has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SEE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: SEE's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: SEE's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SEE's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: SEE's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (4.48%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), SEE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEE's dividends in 3 years are forecast to be well covered by earnings (21.4% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Ted Doheny (58 yo)

2.58yrs

Tenure

US$8,972,537

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Ted's total compensation ($USD8.97M) is about average for companies of similar size in the US market ($USD7.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Edward Doheny
CEO, President & Director2.58yrsUS$8.97m0.052%
$ 3.0m
James Sullivan
Senior VP & CFO1.17yrsUS$1.71m0.0068%
$ 382.4k
Susan Edwards
VP & Chief Human Resources Officer1.58yrsUS$1.32m0.015%
$ 856.0k
Karl Deily
Senior VP & Chief Commercial Officer1.58yrsUS$2.60m0.16%
$ 9.1m
Emile Chammas
Senior VP9.67yrsUS$2.45m0.13%
$ 7.3m
Michael Leon
Chief Accounting Officer & Controller2.17yrsno data0.0054%
$ 301.9k
Lori Chaitman
Vice President of Investor Relationsno datano datano data
Angel Willis
VP, General Counsel & Secretary1.58yrsno data0.014%
$ 762.0k
Lori Tylinski
Chief Trademark Counsel & VP of Lawno datano datano data
Sergio Pupkin
VP and Chief Growth & Strategy Officerno datano data0.022%
$ 1.2m

1.6yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SEE's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Edward Doheny
CEO, President & Director2.58yrsUS$8.97m0.052%
$ 3.0m
Jacqueline Kosecoff
Independent Director15.25yrsUS$247.54k0.029%
$ 1.6m
Suzanne Rowland
Independent Director0.25yrno datano data
Zubaid Ahmad
Director0.083yrno datano data
Jerry Whitaker
Independent Chairman of the Board2.25yrsUS$352.02k0.0064%
$ 362.7k
Henry Keizer
Independent Director3.25yrsUS$267.54k0.0091%
$ 511.9k
Michael Doss
Independent Director0.25yrno datano data
Neil Lustig
Independent Director5.25yrsUS$243.54k0.014%
$ 778.9k
Françoise Colpron
Independent Director1.25yrsUS$225.04k0.0046%
$ 257.9k
Harry Lawton
Independent Director1.58yrsUS$301.10k0.0060%
$ 338.5k

1.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SEE's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

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


Key Information

  • Name: Sealed Air Corporation
  • Ticker: SEE
  • Exchange: NYSE
  • Founded: 1960
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: US$5.632b
  • Shares outstanding: 155.66m
  • 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
S1EA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 00:19
End of Day Share Price2020/08/05 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.