Sonoco Products
Market Cap
US$5.8b
Last Updated
2019/10/19 23:41 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.
Snowflake
Fundamentals
Established dividend payer with proven track record.
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
Market Performance
7 Day Return
-0.6%
SON
1.8%
US Packaging
0.4%
US Market
1 Year Return
4.4%
SON
15.7%
US Packaging
6.9%
US Market
Return vs Industry: SON underperformed the US Packaging industry which returned 15.7% over the past year.
Return vs Market: SON underperformed the US Market which returned 6.9% over the past year.
Shareholder returns
| SON | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 1.8% | 0.4% |
| 30 Day | -0.1% | 2.2% | -1.1% |
| 90 Day | -4.8% | 0.4% | -0.5% |
| 1 Year | 7.4%4.4% | 18.5%15.7% | 9.3%6.9% |
| 3 Year | 24.6%14.0% | 26.0%18.0% | 45.8%36.4% |
| 5 Year | 65.5%42.3% | 47.7%30.3% | 62.9%45.1% |
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
4 days ago | Simply Wall St
Is Sonoco Products Company (NYSE:SON) A Smart Choice For Dividend Investors?2 weeks ago | Simply Wall St
Should You Think About Buying Sonoco Products Company (NYSE:SON) Now?3 weeks ago | Simply Wall St
Have Insiders Been Selling Sonoco Products Company (NYSE:SON) Shares This Year?Valuation
Is Sonoco Products undervalued compared to its fair value and its price relative to the market?
17.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: SON ($58.01) is trading below our estimate of fair value ($70.47)
Significantly Undervalued: SON is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: SON is poor value based on its PE Ratio (18x) compared to the Packaging industry average (17.4x).
PE vs Market: SON is poor value based on its PE Ratio (18x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
Low PEG Ratio: SON is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: SON is good value based on its PB Ratio (3.2x) compared to the US Packaging industry average (3.5x).
Next Steps
Future Growth
How is Sonoco Products forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
8.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SON's forecast earnings growth (8.1% per year) is above the savings rate (2.7%).
Earnings vs Market: SON's earnings (8.1% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: SON's earnings are forecast to grow, but not significantly.
Revenue vs Market: SON's revenue (1% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: SON's revenue (1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: SON's Return on Equity is forecast to be low in 3 years time (17.5%).
Next Steps
Past Performance
How has Sonoco Products performed over the past 5 years?
4.6%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: SON's earnings have grown by 4.6% per year over the past 5 years.
Accelerating Growth: SON's earnings growth over the past year (34.4%) exceeds its 5-year average (4.6% per year).
Earnings vs Industry: SON earnings growth over the past year (34.4%) exceeded the Packaging industry -1%.
Return on Equity
High ROE: SON's Return on Equity (17.5%) is considered low.
Return on Assets
ROA vs Industry: SON has a higher Return on Assets than the Packaging industry average last year.
Return on Capital Employed
ROCE Improving: SON has not improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Sonoco Products's financial position?
Financial Position Analysis
Short Term Liabilities: SON's short term assets ($1.6B) exceeds its short term liabilities ($1.3B)
Long Term Liabilities: SON's short term assets (1.6B) do not cover its long term liabilities (1.8B)
Debt to Equity History and Analysis
Debt Level: SON's debt to equity ratio (80.4%) is considered high
Reducing Debt: SON's debt to equity ratio has increased from 59.1% to 80.4% over the past 5 years.
Debt Coverage: SON's debt is well covered by operating cash flow (25.3%).
Interest Coverage: SON's interest payments on its debt are well covered by EBIT (8.4x coverage).
Balance Sheet
Inventory Level: SON has a high level of physical assets or inventory.
Debt Coverage by Assets: SON's debt is covered by short term assets (assets are 1.049500x debt).
Next Steps
Dividend
What is Sonoco Products's current dividend yield, its reliability and sustainability?
2.97%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Sonoco Products before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: SON's dividend (2.97%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: SON's dividend (2.97%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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: With its reasonable payout ratio (52.1%), SON's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SON's dividends in 3 years are forecast to be well covered by earnings (49.6% payout ratio).
Next Steps
Management
What is the CEO of Sonoco Products's salary, the management and board of directors tenure and is there insider trading?
2.8yrs
Average management tenure
CEO
Rob Tiede (60yo)
1.5yrs
Tenure
US$6,811,241
Compensation
Mr. Robert C. Tiede, also known as Rob, has been Chief Executive Officer, President and Director of Sonoco Products Company since April 2, 2018. Mr. Tiede served as Chief Operating Officer and Executive Vi ...
CEO Compensation Analysis
Compensation vs. Market: Rob has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.
Management Age and Tenure
2.8yrs
Average Tenure
57yo
Average Age
Experienced Management: SON's management team is considered experienced (2.8 years average tenure).
Board Age and Tenure
6.0yrs
Average Tenure
62.5yo
Average Age
Experienced Board: SON's board of directors are considered experienced (6 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Corporate Planning |
| Shares | 2,295 |
| Max Price | US$60.49 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Global Consumer Packaging |
| Shares | 5,085 |
| Max Price | US$60.25 |
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Corporate Planning |
| Shares | 1,119 |
| Max Price | US$59.57 |
Ownership Breakdown
Management Team
Kevin Mahoney (63yo)
Senior Vice President of Corporate Planning
- Tenure: 8.7yrs
Rodger Fuller (57yo)
Senior Vice President of Global Consumer Packaging
- Tenure: 2.8yrs
- Compensation: US$2.05m
Roger Schrum (63yo)
Vice President of Investor Relations & Corporate Affairs
- Tenure: 10.7yrs
Marcy Thompson (57yo)
Vice President of Marketing & Innovation
- Tenure: 6.3yrs
Robert Coker (56yo)
Senior Vice President of Global Paper & Industrial Converted Products
- Tenure: 2.8yrs
- Compensation: US$1.59m
Rob Tiede (60yo)
President
- Tenure: 1.5yrs
- Compensation: US$6.81m
Julie Albrecht (51yo)
VP & CFO
- Tenure: 0.6yrs
John Florence (40yo)
VP of Human Resources
- Tenure: 2.9yrs
James Kirkland (63yo)
Principal Accounting Officer & Corporate Controller
- Tenure: 3yrs
Richard Johnson
Chief Information Officer
- Tenure: 0.6yrs
Board Members
Tom Whiddon (66yo)
Independent Director
- Tenure: 18.8yrs
- Compensation: US$248.25k
Marc Oken (73yo)
Independent Director
- Tenure: 13.7yrs
- Compensation: US$244.75k
Pamela S. Davies (62yo)
Independent Director
- Tenure: 15.3yrs
- Compensation: US$237.25k
Blythe McGarvie (63yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: US$226.75k
James Micali (71yo)
Independent Lead Director
- Tenure: 7.7yrs
- Compensation: US$263.75k
Philippe Guillemot (60yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$217.75k
Harry Cockrell (69yo)
Director
- Tenure: 6.3yrs
- Compensation: US$207.25k
Rob Tiede (60yo)
President
- Tenure: 1.5yrs
- Compensation: US$6.81m
John Haley (57yo)
Chairman of the Board
- Tenure: 0.8yrs
- Compensation: US$298.58k
Rich Kyle (53yo)
Independent Director
- Tenure: 4.7yrs
- Compensation: US$228.25k
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$5.805b
- Shares outstanding: 100.08m
- 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 | 2019/10/19 23:41 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/09/29 |
| Annual Earnings | 2018/12/31 |
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.