Sonoco Products
Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The last earnings update was 2 days ago. More info.
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SON Share Price and Events
7 Day Returns
1 Year Returns
SON Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Sonoco Products (SON) | -3.4% | 0.4% | 10.4% | 16.9% | 27.5% | 43.8% |
| US Packaging | -3.5% | 0.7% | 7% | -4.7% | 21% | 27.7% |
| US Market | -0.3% | 2.2% | 8.5% | 7% | 37.7% | 46.8% |
1 Year Return vs Industry and Market
- SON outperformed the Packaging industry which returned -4.7% over the past year.
- SON outperformed the Market in United States of America which returned 7% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Sonoco Products
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Sonoco Products.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 11 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Packaging Unlevered Beta | Simply Wall St/ S&P Global | 0.89 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.892 (1 + (1- 21%) (23.3%)) |
1.038 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.04 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.038 * 5.96%) |
8.91% |
Discounted Cash Flow Calculation for NYSE:SON using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Sonoco Products is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 8.91%) |
|
|---|---|---|---|
| 2019 | 402.85 | Analyst x4 | 369.88 |
| 2020 | 406.98 | Analyst x4 | 343.08 |
| 2021 | 393.00 | Analyst x1 | 304.19 |
| 2022 | 386.60 | Est @ -1.63% | 274.74 |
| 2023 | 385.36 | Est @ -0.32% | 251.45 |
| 2024 | 387.65 | Est @ 0.59% | 232.24 |
| 2025 | 392.44 | Est @ 1.24% | 215.86 |
| 2026 | 399.05 | Est @ 1.68% | 201.53 |
| 2027 | 407.02 | Est @ 2% | 188.73 |
| 2028 | 416.04 | Est @ 2.22% | 177.13 |
| Present value of next 10 years cash flows | $2,558.83 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $416.04 × (1 + 2.73%) ÷ (8.91% – 2.73%) |
$6,911.12 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $6,911.12 ÷ (1 + 8.91%)10 |
$2,942.40 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $2,558.83 + $2,942.40 |
$5,501.23 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $5,501.23 / 100.03 |
$54.99 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $54.99 |
| Current discount | Discount to share price of
$60.51
= -1 x ($60.51 - $54.99) / $54.99 |
-10% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Sonoco Products is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Sonoco Products's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Sonoco Products's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $3.11 |
| NYSE:SON Share Price ** | NYSE (2019-04-18) in USD | $60.51 |
| United States of America Packaging Industry PE Ratio | Median Figure of 15 Publicly-Listed Packaging Companies | 18.1x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Sonoco Products.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:SON Share Price ÷ EPS (both in USD) = 60.51 ÷ 3.11 |
19.43x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Sonoco Products is overvalued based on earnings compared to the US Packaging industry average.
- Sonoco Products is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Sonoco Products's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 19.43x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts |
6%per year |
| United States of America Packaging Industry PEG Ratio | Median Figure of 15 Publicly-Listed Packaging Companies | 1.82x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.56x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 19.43x ÷ 6% |
3.21x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Sonoco Products is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Sonoco Products's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $17.82 |
| NYSE:SON Share Price * | NYSE (2019-04-18) in USD | $60.51 |
| United States of America Packaging Industry PB Ratio | Median Figure of 19 Publicly-Listed Packaging Companies | 3.76x |
| United States of America Market PB Ratio | Median Figure of 5,182 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:SON Share Price ÷ Book Value per Share (both in USD) = 60.51 ÷ 17.82 |
3.4x |
* Primary Listing of Sonoco Products.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Sonoco Products is good value based on assets compared to the US Packaging industry average.
Value checks
We assess Sonoco Products's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check) Sonoco Products has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Sonoco Products's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Sonoco Products's earnings growth is positive but not above the United States of America market average.
- Sonoco Products's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:SON Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts | 6% |
| NYSE:SON Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts | 1.6% |
| United States of America Packaging Industry Earnings Growth Rate | Market Cap Weighted Average | 13.9% |
| United States of America Packaging Industry Revenue Growth Rate | Market Cap Weighted Average | 2.5% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.4% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 weeks ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 5,685 | 3 | ||
| 2020-12-31 | 5,680 | 593 | 361 | 11 |
| 2019-12-31 | 5,554 | 580 | 350 | 8 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 5,438 | 562 | 313 |
| 2018-12-31 | 5,391 | 590 | 314 |
| 2018-09-30 | 5,334 | 520 | 242 |
| 2018-07-01 | 5,294 | 497 | 242 |
| 2018-04-01 | 5,169 | 402 | 196 |
| 2017-12-31 | 5,037 | 348 | 175 |
| 2017-10-01 | 4,880 | 331 | 275 |
| 2017-07-02 | 4,764 | 316 | 267 |
| 2017-04-02 | 4,729 | 400 | 280 |
| 2016-12-31 | 4,783 | 399 | 286 |
| 2016-10-02 | 4,908 | 483 | 238 |
| 2016-07-03 | 4,942 | 466 | 216 |
| 2016-04-03 | 4,985 | 459 | 224 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 weeks ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
All data from Sonoco Products Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 4.00 | 4.00 | 4.00 | 1.00 |
| 2020-12-31 | 3.66 | 3.80 | 3.31 | 6.00 |
| 2019-12-31 | 3.52 | 3.60 | 3.46 | 4.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2019-03-31 | 3.11 |
| 2018-12-31 | 3.12 |
| 2018-09-30 | 2.40 |
| 2018-07-01 | 2.41 |
| 2018-04-01 | 1.95 |
| 2017-12-31 | 1.75 |
| 2017-10-01 | 2.74 |
| 2017-07-02 | 2.66 |
| 2017-04-02 | 2.78 |
| 2016-12-31 | 2.83 |
| 2016-10-02 | 2.34 |
| 2016-07-03 | 2.13 |
| 2016-04-03 | 2.21 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Sonoco Products's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Sonoco Products has a total score of 1/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Sonoco Products performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Sonoco Products's year on year earnings growth rate has been positive over the past 5 years.
- Sonoco Products's 1-year earnings growth exceeds its 5-year average (60.2% vs 3.5%)
- Sonoco Products's earnings growth has exceeded the US Packaging industry average in the past year (60.2% vs 7.6%).
Earnings and Revenue History
All data from Sonoco Products Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2019-03-31 | 5,438.46 | 313.17 | 537.16 | 23.20 |
| 2018-12-31 | 5,390.94 | 313.56 | 525.70 | 23.20 |
| 2018-09-30 | 5,334.34 | 241.56 | 512.74 | 21.00 |
| 2018-07-01 | 5,294.21 | 241.95 | 537.70 | 21.00 |
| 2018-04-01 | 5,168.51 | 195.67 | 526.67 | 21.00 |
| 2017-12-31 | 5,036.65 | 175.35 | 518.14 | 21.00 |
| 2017-10-01 | 4,879.83 | 274.54 | 512.18 | 22.50 |
| 2017-07-02 | 4,763.92 | 267.13 | 502.60 | 22.50 |
| 2017-04-02 | 4,728.93 | 280.25 | 470.13 | 22.50 |
| 2016-12-31 | 4,782.88 | 286.43 | 487.79 | 22.50 |
| 2016-10-02 | 4,907.82 | 237.62 | 498.42 | 22.10 |
| 2016-07-03 | 4,941.68 | 216.14 | 477.11 | 22.10 |
| 2016-04-03 | 4,984.59 | 224.27 | 510.06 | 22.10 |
| 2015-12-31 | 4,964.37 | 250.14 | 505.02 | 22.10 |
| 2015-09-27 | 5,014.08 | 243.10 | 497.71 | 24.20 |
| 2015-06-28 | 5,033.99 | 266.24 | 482.19 | 24.20 |
| 2015-03-29 | 5,033.01 | 261.28 | 478.12 | 24.20 |
| 2014-12-31 | 5,016.99 | 225.92 | 473.58 | 24.20 |
| 2014-09-28 | 4,928.59 | 222.35 | 469.74 | 20.10 |
| 2014-06-29 | 4,893.84 | 216.54 | 473.72 | 20.10 |
| 2014-03-30 | 4,872.48 | 212.10 | 470.36 | 20.10 |
| 2013-12-31 | 4,861.66 | 209.83 | 466.59 | 20.10 |
| 2013-09-29 | 4,809.09 | 207.15 | 448.06 | 20.20 |
| 2013-06-30 | 4,776.87 | 204.75 | 443.70 | 20.20 |
| 2013-03-31 | 4,752.97 | 201.08 | 440.39 | 20.20 |
| 2012-12-31 | 4,813.57 | 195.30 | 443.20 | 20.20 |
| 2012-09-30 | 4,739.83 | 182.74 | 434.60 | 18.80 |
| 2012-07-01 | 4,668.47 | 201.11 | 411.13 | 18.80 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Sonoco Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Sonoco Products used its assets more efficiently than the US Packaging industry average last year based on Return on Assets.
- Sonoco Products's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Sonoco Products's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Sonoco Products has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Sonoco Products's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Sonoco Products's finances.
The net worth of a company is the difference between its assets and liabilities.
- Sonoco Products is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Sonoco Products's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Sonoco Products Company Filings, last reported 2 weeks ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 1,801.14 | 1,410.61 | 124.33 |
| 2018-12-31 | 1,772.28 | 1,385.16 | 120.39 |
| 2018-09-30 | 1,832.93 | 1,386.58 | 250.42 |
| 2018-07-01 | 1,790.27 | 1,451.97 | 197.69 |
| 2018-04-01 | 1,796.46 | 1,464.58 | 305.25 |
| 2017-12-31 | 1,730.06 | 1,447.33 | 254.91 |
| 2017-10-01 | 1,758.63 | 1,426.11 | 247.91 |
| 2017-07-02 | 1,681.79 | 1,307.71 | 207.59 |
| 2017-04-02 | 1,608.87 | 1,253.90 | 212.79 |
| 2016-12-31 | 1,554.71 | 1,052.74 | 257.23 |
| 2016-10-02 | 1,589.64 | 1,091.13 | 159.32 |
| 2016-07-03 | 1,575.72 | 1,081.66 | 107.75 |
| 2016-04-03 | 1,585.34 | 1,132.94 | 152.34 |
| 2015-12-31 | 1,532.87 | 1,128.37 | 182.43 |
| 2015-09-27 | 1,499.29 | 1,202.07 | 193.42 |
| 2015-06-28 | 1,543.14 | 1,271.36 | 217.78 |
| 2015-03-29 | 1,499.80 | 1,252.45 | 200.80 |
| 2014-12-31 | 1,503.85 | 1,253.17 | 161.17 |
| 2014-09-28 | 1,735.83 | 1,017.60 | 231.56 |
| 2014-06-29 | 1,757.46 | 1,037.15 | 199.78 |
| 2014-03-30 | 1,741.17 | 985.42 | 191.41 |
| 2013-12-31 | 1,706.05 | 981.46 | 217.57 |
| 2013-09-29 | 1,593.99 | 1,099.63 | 287.58 |
| 2013-06-30 | 1,533.87 | 1,091.48 | 179.36 |
| 2013-03-31 | 1,519.37 | 1,114.58 | 163.45 |
| 2012-12-31 | 1,503.21 | 1,373.06 | 373.08 |
| 2012-09-30 | 1,535.78 | 1,236.47 | 201.14 |
| 2012-07-01 | 1,465.60 | 1,318.95 | 196.01 |
- Sonoco Products's level of debt (78.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (56.6% vs 78.3% today).
- Debt is well covered by operating cash flow (39.9%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 8.3x coverage).
Financial health checks
We assess Sonoco Products's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Sonoco Products has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Sonoco Products's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Sonoco Products
shares you are expected to receive
$57
in your first year as a dividend.
Dividend Amount
- Sonoco Products's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
- Sonoco Products's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| United States of America Packaging Industry Average Dividend Yield | Market Cap Weighted Average of 13 Stocks | 2.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2009 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 1.89 | 3.00 |
| 2020-12-31 | 1.81 | 6.00 |
| 2019-12-31 | 1.70 | 5.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-04-17 | 1.720 | 2.832 |
| 2019-02-13 | 1.640 | 2.728 |
| 2018-10-15 | 1.640 | 2.973 |
| 2018-07-18 | 1.640 | 2.943 |
| 2018-04-18 | 1.640 | 3.140 |
| 2018-02-14 | 1.560 | 3.214 |
| 2017-10-16 | 1.560 | 2.955 |
| 2017-07-19 | 1.560 | 3.170 |
| 2017-04-19 | 1.560 | 3.034 |
| 2017-02-08 | 1.480 | 2.791 |
| 2016-10-18 | 1.480 | 2.787 |
| 2016-04-20 | 1.480 | 2.979 |
| 2016-02-10 | 1.400 | 3.051 |
| 2015-10-19 | 1.400 | 3.432 |
| 2015-07-14 | 1.400 | 3.475 |
| 2015-04-15 | 1.400 | 3.136 |
| 2015-02-11 | 1.280 | 2.788 |
| 2014-10-13 | 1.280 | 3.010 |
| 2014-07-16 | 1.280 | 3.189 |
| 2014-04-16 | 1.280 | 3.011 |
| 2014-02-12 | 1.240 | 2.997 |
| 2013-10-14 | 1.240 | 3.033 |
| 2013-07-17 | 1.240 | 3.217 |
| 2013-04-17 | 1.240 | 3.535 |
| 2013-02-13 | 1.200 | 3.589 |
| 2012-10-15 | 1.200 | 3.933 |
| 2012-07-18 | 1.200 | 3.929 |
| 2012-04-18 | 1.200 | 3.854 |
| 2012-02-07 | 1.160 | 3.503 |
| 2011-10-17 | 1.160 | 3.633 |
| 2011-07-20 | 1.160 | 3.838 |
| 2011-04-20 | 1.160 | 3.357 |
| 2011-02-09 | 1.120 | 3.138 |
| 2010-10-18 | 1.120 | 3.283 |
| 2010-07-21 | 1.120 | 3.403 |
| 2010-04-21 | 1.120 | 3.530 |
| 2010-02-10 | 1.080 | 3.516 |
| 2009-10-19 | 1.080 | 3.755 |
| 2009-07-15 | 1.080 | 4.026 |
| 2009-04-21 | 1.080 | 4.493 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Sonoco Products's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.9x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2x coverage).
Income/ dividend checks
We assess Sonoco Products's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Sonoco Products afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Sonoco Products has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $6,811,241 |
| AGE | 59 |
| TENURE AS CEO | 1 years |
CEO Bio
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 Vice President of Sonoco Products Company since January 3, 2017 until April 2, 2018. Mr. Tiede served as Senior Vice President of Global Consumer Packaging & Services and Protective Solutions & Reels at Sonoco Products Co. since November 2015 until December 5, 2016 and served as its Senior Vice President of Global Consumer Packaging and Services from January 1, 2013 to December 01, 2015. Mr. Tiede served as Vice President of Global Flexibles and Packaging Services at Sonoco Products Co. from February 2009 to January 1, 2013. He served as Vice President and General Manager of Flexible Packaging Division at Sonoco Products Co. since 2007 until 2009. Mr. Tiede served as Division Vice President of Sonoco Products Co. He is responsible for Sonoco's North American flexible packaging operations, including seven converting and two cylinder engraving plants in the United States and Canada. He also served as President of Sonoco CorrFlex. He joined Sonoco in May 2004 as Head of Sonoco CorrFlex following the acquisition of the CorrFlex Graphics' point-of-purchase (P-O-P) merchandising display and supply chain management business. In January 2006, Mr. Tiede picked up additional responsibility for Sonoco's global packaging services business. He has extensive experience in flexible packaging operations and from 1994 to 1998 and served as Executive Vice President of Graphic Packaging International, Inc., heading its flexible packaging division. He also served as the President of Sterling International from 1998 to 2000 and President of Bostic Packaging/CorrFlex from 2000 to 2004. Mr. Tiede holds a business administration diploma from Red River Community College in Winnipeg, Manitoba, Canada in 1980 and is a chartered accountant with the Canadian Institute of Charted Accountants for Manitoba and Canada. He is active in industry and community organizations and is the chairman of the Flexible Packaging Association of America and the Hartsville United Way. A native of Winnipeg, Manitoba, Canada, Tiede became a U.S. citizen in 2013, and he and his wife, Val, maintain a home in Hartsville and have three grown children.
CEO Compensation
- Rob's compensation has increased by more than 20% in the past year.
- Rob's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Sonoco Products management team in years:
- The tenure for the Sonoco Products management team is about average.
Management Team
Harris DeLoach
Executive Chairman
$821K
73
Rob Tiede
President
$7M
59
1 yrs
Rodger Fuller
Senior Vice President of Global Consumer Packaging
$2M
56
2.3 yrs
Robert Coker
Senior Vice President of Global Paper & Industrial Converted Products
$2M
55
2.3 yrs
Julie Albrecht
VP & CFO
50
0.1 yrs
James Kirkland
Principal Accounting Officer & Corporate Controller
62
2.5 yrs
Richard Johnson
Chief Information Officer
0.1 yrs
Roger Schrum
Corporate Vice President of Investor Relations & Corporate Affairs
62
10.2 yrs
John Florence
VP of Human Resources
39
2.4 yrs
Marcy Thompson
Vice President of Marketing & Innovation
56
5.8 yrs
Board of Directors Tenure
Average tenure and age of the Sonoco Products board of directors in years:
- The tenure for the Sonoco Products board of directors is about average.
Board of Directors
Rob Tiede
President
$7M
59
1 yrs
John Haley
Vice Chairman
$299K
56
Harris DeLoach
Executive Chairman
$821K
73
14 yrs
Tom Whiddon
Independent Director
$248K
65
18.3 yrs
James Micali
Independent Lead Director
$264K
70
7.2 yrs
Pamela S. Davies
Independent Director
$237K
61
14.8 yrs
Marc Oken
Independent Director
$245K
72
13.2 yrs
Harry Cockrell
Director
$207K
68
5.8 yrs
Blythe McGarvie
Independent Director
$227K
62
5.2 yrs
Sundaram Nagarajan
Independent Director
$227K
55
4.2 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 26. Feb 19 | Sell | Kevin Mahoney | Individual | 25. Feb 19 | 25. Feb 19 | -1,119 | $59.57 | $-66,654 | ||
| 03. Aug 18 | Sell | Kevin Mahoney | Individual | 02. Aug 18 | 02. Aug 18 | -1,138 | $56.11 | $-63,849 | ||
| 11. Jul 18 | Sell | Allan McLeland | Individual | 10. Jul 18 | 10. Jul 18 | -7,758 | $54.00 | $-418,932 | ||
| 10. May 18 | Sell | Vicki Arthur | Individual | 09. May 18 | 09. May 18 | -3,780 | $52.75 | $-199,395 | ||
Management checks
We assess Sonoco Products's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Sonoco Products has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Here's Why I Think Sonoco Products (NYSE:SON) Is An Interesting Stock
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … How Quickly Is Sonoco Products Increasing Earnings Per Share. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth.
Simply Wall St - – Full articleWhy Sonoco Products Company (NYSE:SON) Should Be In Your Portfolio
There is a lot to be liked about Sonoco Products Company (NYSE:SON) as an income stock. … The stock currently pays out a dividend yield of 2.6%, and has a market cap of US$6.2b. … Let's take a look at Sonoco Products in more detail.
Simply Wall St - – Full articleHow Many Insiders Sold Sonoco Products Company (NYSE:SON) Shares?
So we'll take a look at whether insiders have been buying or selling shares in Sonoco Products Company (NYSE:SON). … In the last twelve months, the biggest single sale by an insider was when Senior Vice President of Global Consumer Packaging Rodger Fuller sold US$713k worth of shares at a price of US$51.05 per share. … Over the last year we saw more insider selling of Sonoco Products shares, than buying
Simply Wall St - – Full articleDoes Sonoco Products's (NYSE:SON) Share Price Gain of 44% Match Its Business Performance?
For example, the Sonoco Products Company (NYSE:SON) share price is up 44% in the last five years, slightly above the market return. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Sonoco Products achieved compound earnings per share (EPS) growth of 8.8% per year.
Simply Wall St - – Full articleShould We Worry About Sonoco Products Company's (NYSE:SON) P/E Ratio?
To keep it practical, we'll show how Sonoco Products Company's (NYSE:SON) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Sonoco Products's P/E ratio is 18.65. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleSonoco Products Company (NYSE:SON): Commentary On Fundamentals
Help shape the future of investing tools and receive a $20 prize! … Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Sonoco Products Company (NYSE:SON) due to its excellent fundamentals in more than one area.
Simply Wall St - – Full articleWhy Sonoco Products Company (NYSE:SON) Could Be Worth Watching
saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price
Simply Wall St - – Full articleShould Sonoco Products Company (NYSE:SON) Focus On Improving This Fundamental Metric?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.13 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHow Many Sonoco Products Company (NYSE:SON) Shares Do Institutions Own?
If you want to know who really controls Sonoco Products Company (NYSE:SON), then you'll have to look at the makeup of its share registry. … Generally speaking, as a company grows, institutions will increase their ownership. … We'd expect to see both institutions and retail investors owning a portion of the company.
Simply Wall St - – Full articleIs Sonoco Products Company's (NYSE:SON) Balance Sheet A Threat To Its Future?
Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Sonoco Products Company (NYSE:SON) with a market-capitalization of US$5.2b, rarely draw their attention. … Today we will look at SON’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of Sonoco Products’s financial health, so you should conduct further analysis.
Simply Wall St - – Full articleCompany Info
Description
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 Packaging, Display and Packaging, Paper and Industrial Converted Products, and Protective Solutions. The Consumer Packaging segment offers composite and thermoformed plastic round and shaped rigid containers and trays; extruded and injection-molded plastic products; printed flexible packaging products; brand artwork management; and metal and peelable membrane ends and closures. The Display and Packaging segment offers point-of-purchase displays; supply chain management services comprising contract packing, fulfillment, and scalable service centers; retail packaging, including printed backer cards, thermoformed blisters, and heat sealing equipment; and paper amenities, such as coasters and glass covers. The Paper and Industrial Converted Products segment provides paperboard tubes and cores; fiber-based construction tubes and forms; wooden, metal, and composite wire and cable reels and spools; and recycled paperboard, linerboard, corrugating medium, recovered paper, and material recycling services. The Protective Solutions segment provides custom-engineered, paperboard-based, and expanded foam protective packaging and components; and temperature-assurance packaging products. The company sells its products in various markets, which include paper, textile, film, food, chemical, packaging, construction, and wire and cable. Sonoco Products Company was founded in 1899 and is headquartered in Hartsville, South Carolina.
Details
| Name: | Sonoco Products Company |
| SON | |
| Exchange: | NYSE |
| Founded: | 1899 |
| $6,053,031,441 | |
| 100,033,572 | |
| Website: | http://www.sonoco.com |
| Address: |
Sonoco Products Company 1 North Second Street, Hartsville, South Carolina, 29550, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | SON | Common Shares | New York Stock Exchange | US | USD | 02. Jan 1969 | |
| DB | SNS | Common Shares | Deutsche Boerse AG | DE | EUR | 02. Jan 1969 |
Number of employees
Current staff
Industry
| Paper Packaging | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/20 23:43 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/19 |
| Last earnings filing: | 2019/04/18 |
| Last earnings reported: | 2019/03/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
