Sonoco Products
Market Cap
US$6.0b
Last Updated
2021/03/01 23:16 UTC
Data Sources
Company Financials +
Executive Summary
Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with moderate growth potential.
Similar Companies
Share Price & News
How has Sonoco Products's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SON is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SON's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-0.6%
SON
1.1%
US Packaging
-1.3%
US Market
1 Year Return
20.4%
SON
31.4%
US Packaging
41.9%
US Market
Return vs Industry: SON underperformed the US Packaging industry which returned 33.4% over the past year.
Return vs Market: SON underperformed the US Market which returned 36.5% over the past year.
Shareholder returns
| SON | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 1.1% | -1.3% |
| 30 Day | 5.4% | 5.3% | 7.5% |
| 90 Day | 3.7% | 1.9% | 15.9% |
| 1 Year | 24.5%20.4% | 34.1%31.4% | 44.8%41.9% |
| 3 Year | 39.2%27.0% | 34.9%25.2% | 49.1%41.0% |
| 5 Year | 55.8%33.8% | 105.6%81.9% | 113.1%92.8% |
Long-Term Price Volatility Vs. Market
How volatile is Sonoco Products's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
How Much Are Sonoco Products Company (NYSE:SON) Insiders Taking Off The Table?1 week ago | Simply Wall St
Just Four Days Till Sonoco Products Company (NYSE:SON) Will Be Trading Ex-Dividend2 weeks ago | Simply Wall St
Should You Be Impressed By Sonoco Products' (NYSE:SON) Returns on Capital?Valuation
Is Sonoco Products undervalued compared to its fair value and its price relative to the market?
28.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SON ($61.06) is trading below our estimate of fair value ($84.79)
Significantly Below Fair Value: SON is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SON is poor value based on its PE Ratio (29.7x) compared to the US Packaging industry average (25.5x).
PE vs Market: SON is poor value based on its PE Ratio (29.7x) compared to the US market (21.2x).
Price to Earnings Growth Ratio
PEG Ratio: SON is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: SON is overvalued based on its PB Ratio (3.2x) compared to the US Packaging industry average (3x).
Next Steps
Future Growth
How is Sonoco Products forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
24.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SON's forecast earnings growth (24.6% per year) is above the savings rate (2%).
Earnings vs Market: SON's earnings (24.6% per year) are forecast to grow faster than the US market (20% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SON's revenue (2.5% per year) is forecast to grow slower than the US market (10.4% per year).
High Growth Revenue: SON's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SON's Return on Equity is forecast to be low in 3 years time (18.7%).
Next Steps
Past Performance
How has Sonoco Products performed over the past 5 years?
3.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SON has a large one-off loss of $164.8M impacting its December 31 2020 financial results.
Growing Profit Margin: SON's current net profit margins (4%) are lower than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: SON's earnings have grown by 3.3% per year over the past 5 years.
Accelerating Growth: SON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SON had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Packaging industry average (-4%).
Return on Equity
High ROE: SON's Return on Equity (10.8%) is considered low.
Next Steps
Financial Health
How is Sonoco Products's financial position?
Financial Position Analysis
Short Term Liabilities: SON's short term assets ($1.8B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: SON's short term assets ($1.8B) do not cover its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: SON's debt to equity ratio (87%) is considered high.
Reducing Debt: SON's debt to equity ratio has increased from 73.6% to 87% over the past 5 years.
Debt Coverage: SON's debt is well covered by operating cash flow (42.4%).
Interest Coverage: SON's interest payments on its debt are well covered by EBIT (6.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Sonoco Products's current dividend yield, its reliability and sustainability?
2.95%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SON's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: SON's dividend (2.95%) is low compared to the top 25% of dividend payers in the US market (3.76%).
Stability and Growth of Payments
Stable Dividend: SON's dividends per share have been stable in the past 10 years.
Growing Dividend: SON's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (83.7%), SON's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SON's dividends in 3 years are forecast to be covered by earnings (51.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Robert Coker (57 yo)
1
Tenure
US$3,064,352
Compensation
Mr. Robert Howard Coker has been CEO, President and Director of Sonoco Products Company since February 2, 2020. He was Senior Vice President of Global Paper/Industrial Converted Products at Sonoco Products...
CEO Compensation Analysis
Compensation vs Market: Robert's total compensation ($USD3.06M) is below average for companies of similar size in the US market ($USD6.35M).
Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1yr | US$3.06m | 0.24% $ 14.5m | |
| VP & CFO | 1.92yrs | US$1.81m | 0.0084% $ 503.3k | |
| Executive Vice President of Global Industrial & Consumer | 4.08yrs | US$3.25m | 0.083% $ 5.0m | |
| Vice President North America Consumer & Global RPC | 1.25yrs | US$1.40m | 0.0049% $ 292.7k | |
| VP & Chief Information Officer | 1.92yrs | no data | 0.00054% $ 32.3k | |
| Vice President of Investor Relations & Corporate Affairs | 12yrs | no data | no data | |
| VP of Human Resources | 4.25yrs | no data | 0.0072% $ 430.3k | |
| Vice President of Marketing | 7.58yrs | no data | 0.011% $ 635.6k | |
| Vice President of Strategy & Corporate Development | 1.25yrs | no data | 0.0010% $ 59.8k | |
| Managing Director of Molded Plastics - Europe | 12.5yrs | no data | no data | |
| Managing Director of Industrial Converting & Consumer Packaging Businesses - Australia & New Zealand | 10.5yrs | no data | no data | |
| President of Matrix Packaging | 12.5yrs | no data | no data |
4.2yrs
Average Tenure
54.5yo
Average Age
Experienced Management: SON's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1yr | US$3.06m | 0.24% $ 14.5m | |
| Independent Director | 20.08yrs | US$257.00k | 0.016% $ 928.9k | |
| Independent Director | 15yrs | US$246.00k | 0.0073% $ 438.1k | |
| Independent Director | 16.58yrs | US$243.00k | no data | |
| Independent Director | 7yrs | US$238.50k | no data | |
| Independent Lead Director | 9yrs | US$238.75k | no data | |
| Independent Director | 3.58yrs | US$222.00k | no data | |
| Director | 7.58yrs | US$214.50k | no data | |
| Chairman of the Board | 1.83yrs | US$359.50k | 0.25% $ 14.7m | |
| Independent Director | 6yrs | US$231.00k | no data | |
| Independent Director | 6yrs | US$231.00k | no data | |
| Independent Director | 2.33yrs | US$216.00k | no data |
6.5yrs
Average Tenure
62.5yo
Average Age
Experienced Board: SON's board of directors are considered experienced (6.5 years average tenure).
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
Sonoco Products Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Sonoco Products Company
- Ticker: SON
- Exchange: NYSE
- Founded: 1899
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: US$5.985b
- Shares outstanding: 100.47m
- Website: https://www.sonoco.com
Number of Employees
Location
- Sonoco Products Company
- 1 North Second Street
- Hartsville
- South Carolina
- 29550
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SON | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Jan 1969 |
| SNS | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1969 |
Biography
Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company operates through four segments: Consumer Packa...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/01 23:16 |
| End of Day Share Price | 2021/03/01 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.