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SON

Sonoco ProductsNYSE:SON Stock Report

Market Cap

US$5.8b

7D

-4.4%

1Y

13.7%

Updated

25 Oct, 2021

Data

Company Financials +
SON fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends4/6

SON Overview

Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia.

Sonoco Products Competitors

International Paper

NYSE:IP

US$20.7b

Avery Dennison

NYSE:AVY

US$18.1b

WestRock

NYSE:WRK

US$13.0b

Sealed Air

NYSE:SEE

US$8.9b

Price History & Performance

Summary of all time highs, changes and price drops for Sonoco Products
Historical stock prices
Current Share PriceUS$58.66
52 Week HighUS$48.20
52 Week LowUS$69.83
Beta0.85
1 Month Change-2.72%
3 Month Change-6.86%
1 Year Change13.70%
3 Year Change10.55%
5 Year Change16.64%
Change since IPO261.35%

Recent News & Updates

Oct 25

Sonoco Stock: It's All About Passing On Higher Expenses To Its Customers

Sonoco is a major player in the packaging industry, both for consumers as well as industrial purposes. The focus in Q3 was on limiting the damage while waiting for price hikes to kick in. Sonoco continues to invest in expansion, which weighs on the reported free cash flow.

Oct 08
Sonoco Products (NYSE:SON) Is Making Moderate Use Of Debt

Sonoco Products (NYSE:SON) Is Making Moderate Use Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 25

Sonoco: Mixed Q2, Dividend Thesis Intact

SON is one of the highest-yielding mid-cap dividend aristocrats at the moment. While the Q2 revenues improved by 11% touching $1.38 billion, its net margin turned negative for the first time in a decade, creeping to as low as (3.5)%. The reinvigorated economic activity was both a curse and a blessing for it. While the IPP segment enjoyed buoyant demand, Consumer Packaging was suffering from raw materials inflation. However, the balance sheet remains fairly strong, and the full-year adjusted cash flow should cover the dividend more than excessively.

Shareholder Returns

SONUS PackagingUS Market
7D-4.4%0.03%1.9%
1Y13.7%19.2%33.4%

Return vs Industry: SON underperformed the US Packaging industry which returned 18.4% over the past year.

Return vs Market: SON underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is SON's price volatile compared to industry and market?
SON volatility
SON Beta0.85
Industry Beta0.97
Market Beta1

Stable Share Price: SON is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SON's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
189919,000Robert Cokerhttps://www.sonoco.com

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 provides paper 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.

Sonoco Products Fundamentals Summary

How do Sonoco Products's earnings and revenue compare to its market cap?
SON fundamental statistics
Market CapUS$5.77b
Earnings (TTM)-US$162.28m
Revenue (TTM)US$5.53b

1.0x

P/S Ratio

-35.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SON income statement (TTM)
RevenueUS$5.53b
Cost of RevenueUS$4.45b
Gross ProfitUS$1.07b
ExpensesUS$1.24b
Earnings-US$162.28m

Last Reported Earnings

Oct 03, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.65
Gross Margin19.41%
Net Profit Margin-2.94%
Debt/Equity Ratio78.9%

How did SON perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

-110%

Payout Ratio

Does SON pay a reliable dividends?

See SON dividend history and benchmarks
When do you need to buy SON by to receive an upcoming dividend?
Sonoco Products dividend dates
Ex Dividend DateNov 09 2021
Dividend Pay DateDec 10 2021
Days until Ex dividend13 days
Days until Dividend pay date44 days

Does SON pay a reliable dividends?

See SON dividend history and benchmarks

Valuation

Is Sonoco Products undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SON ($58.66) is trading below our estimate of fair value ($135.75)

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


Price To Earnings Ratio

PE vs Industry: SON is unprofitable, so we can't compare its PE Ratio to the US Packaging industry average.

PE vs Market: SON is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SON is good value based on its PB Ratio (3.1x) compared to the US Packaging industry average (3.3x).


Future Growth

How is Sonoco Products forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

95.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SON is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SON is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SON's is expected to become profitable in the next 3 years.

Revenue vs Market: SON's revenue (3.6% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: SON's revenue (3.6% 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 (19.7%).


Past Performance

How has Sonoco Products performed over the past 5 years?

-16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SON is currently unprofitable.

Growing Profit Margin: SON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SON is unprofitable, and losses have increased over the past 5 years at a rate of 16.8% per year.

Accelerating Growth: Unable to compare SON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SON is unprofitable, making it difficult to compare its past year earnings growth to the Packaging industry (41%).


Return on Equity

High ROE: SON has a negative Return on Equity (-8.69%), as it is currently unprofitable.


Financial Health

How is Sonoco Products's financial position?


Financial Position Analysis

Short Term Liabilities: SON's short term assets ($1.6B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: SON's short term assets ($1.6B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: SON's debt to equity ratio (78.9%) is considered high.

Reducing Debt: SON's debt to equity ratio has increased from 68.6% to 78.9% over the past 5 years.

Debt Coverage: SON's debt is well covered by operating cash flow (29.7%).

Interest Coverage: Insufficient data to determine if SON's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Sonoco Products's current dividend yield, its reliability and sustainability?

3.07%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 26 2021Ex Dividend DateNov 09 2021Dividend Pay DateDec 10 202131 days from Ex DividendBuy in the next 13 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SON's dividend (3.07%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: SON's dividend (3.07%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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: SON is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: SON's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Robert Coker (58 yo)

1.67yrs

Tenure

US$6,815,923

Compensation

Mr. Robert Howard Coker has been Chief Executive Officer, President and Director of Sonoco Products Company since February 2, 2020. He was Senior Vice President of Global Paper and Industrial Converted Pro...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD6.82M) is about average for companies of similar size in the US market ($USD6.33M).

Compensation vs Earnings: Robert's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SON's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: SON's board of directors are considered experienced (6.7 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 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$5.768b
  • Shares outstanding: 98.32m
  • Website: https://www.sonoco.com

Number of Employees


Location

  • Sonoco Products Company
  • 1 North Second Street
  • Hartsville
  • South Carolina
  • 29550
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:11
End of Day Share Price2021/10/25 00:00
Earnings2021/10/03
Annual Earnings2020/12/31


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.