| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 4/6 |
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
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$58.66 |
| 52 Week High | US$48.20 |
| 52 Week Low | US$69.83 |
| Beta | 0.85 |
| 1 Month Change | -2.72% |
| 3 Month Change | -6.86% |
| 1 Year Change | 13.70% |
| 3 Year Change | 10.55% |
| 5 Year Change | 16.64% |
| Change since IPO | 261.35% |
Recent News & Updates
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.
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...
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
| SON | US Packaging | US Market | |
|---|---|---|---|
| 7D | -4.4% | 0.03% | 1.9% |
| 1Y | 13.7% | 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
| SON volatility | |
|---|---|
| SON Beta | 0.85 |
| Industry Beta | 0.97 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1899 | 19,000 | Robert Coker | https://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
| SON fundamental statistics | |
|---|---|
| Market Cap | US$5.77b |
| Earnings (TTM) | -US$162.28m |
| Revenue (TTM) | US$5.53b |
1.0x
P/S Ratio-35.5x
P/E RatioIs SON overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SON income statement (TTM) | |
|---|---|
| Revenue | US$5.53b |
| Cost of Revenue | US$4.45b |
| Gross Profit | US$1.07b |
| Expenses | US$1.24b |
| Earnings | -US$162.28m |
Last Reported Earnings
Oct 03, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -1.65 |
| Gross Margin | 19.41% |
| Net Profit Margin | -2.94% |
| Debt/Equity Ratio | 78.9% |
How did SON perform over the long term?
See historical performance and comparisonDividends
3.1%
Current Dividend Yield-110%
Payout RatioDoes SON pay a reliable dividends?
See SON dividend history and benchmarks| Sonoco Products dividend dates | |
|---|---|
| Ex Dividend Date | Nov 09 2021 |
| Dividend Pay Date | Dec 10 2021 |
| Days until Ex dividend | 13 days |
| Days until Dividend pay date | 44 days |
Does SON pay a reliable dividends?
See SON dividend history and benchmarksValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/25 23:11 |
| End of Day Share Price | 2021/10/25 00:00 |
| Earnings | 2021/10/03 |
| 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.