Sonoco Products Company manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. More Details
+ 1 more risk
Established dividend payer with adequate balance sheet.
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 +/- 2% a week.
Volatility Over Time: SON's weekly volatility (2%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: SON underperformed the US Packaging industry which returned 48.6% over the past year.
Return vs Market: SON underperformed the US Market which returned 39% over the past year.
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 StDoes The Market Have A Low Tolerance For Sonoco Products Company's (NYSE:SON) Mixed Fundamentals?
1 week ago | Simply Wall StHere's What To Make Of Sonoco Products' (NYSE:SON) Decelerating Rates Of Return
3 weeks ago | Simply Wall StIs There An Opportunity With Sonoco Products Company's (NYSE:SON) 32% Undervaluation?
Is Sonoco Products undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: SON ($66.01) is trading above our estimate of fair value ($64.45)
Significantly Below Fair Value: SON is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: SON is poor value based on its PE Ratio (33.4x) compared to the US Packaging industry average (24.7x).
PE vs Market: SON is poor value based on its PE Ratio (33.4x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: SON's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: SON's PB Ratio (3.5x) is in line with the US Packaging industry average.
How is Sonoco Products forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SON's earnings are forecast to decline over the next 3 years (-0.4% per year).
Earnings vs Market: SON's earnings are forecast to decline over the next 3 years (-0.4% per year).
High Growth Earnings: SON's earnings are forecast to decline over the next 3 years.
Revenue vs Market: SON's revenue (2.6% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: SON's revenue (2.6% 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 (16%).
How has Sonoco Products performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SON has a large one-off loss of $173.4M impacting its April 4 2021 financial results.
Growing Profit Margin: SON's current net profit margins (3.8%) are lower than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: SON's earnings have grown by 1.8% 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 (-32.9%) over the past year, making it difficult to compare to the Packaging industry average (24.2%).
Return on Equity
High ROE: SON's Return on Equity (10.4%) is considered low.
How is Sonoco Products's financial position?
Financial Position Analysis
Short Term Liabilities: SON's short term assets ($2.0B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: SON's short term assets ($2.0B) exceed its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: SON's debt to equity ratio (86.2%) is considered high.
Reducing Debt: SON's debt to equity ratio has increased from 71.4% to 86.2% over the past 5 years.
Debt Coverage: SON's debt is well covered by operating cash flow (45.9%).
Interest Coverage: SON's interest payments on its debt are well covered by EBIT (6.6x coverage).
What is Sonoco Products's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SON's dividend (2.73%) is higher than the bottom 25% of dividend payers in the US market (1.29%).
High Dividend: SON's dividend (2.73%) is low compared to the top 25% of dividend payers in the US market (3.45%).
Stability and Growth of Payments
Stable Dividend: SON's dividends per share have been stable in the past 10 years.
Growing Dividend: SON's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (88.2%), SON's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SON's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Robert Coker (57 yo)
Mr. Robert Howard Coker has been Chief Executive Officer, President and Director of Sonoco Products Company since February 2, 2020. He was Senior Vice President of Global Paper and Industrial Converted Pro...
CEO Compensation Analysis
Compensation vs Market: Robert's total compensation ($USD6.82M) is about average for companies of similar size in the US market ($USD6.67M).
Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: SON's management team is considered experienced (4.7 years average tenure).
Experienced Board: SON's board of directors are considered experienced (6.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SON insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Sonoco Products Company's company bio, employee growth, exchange listings and data sources
- Name: Sonoco Products Company
- Ticker: SON
- Exchange: NYSE
- Founded: 1899
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: US$6.642b
- Shares outstanding: 100.61m
- Website: https://www.sonoco.com
Number of Employees
- Sonoco Products Company
- 1 North Second Street
- South Carolina
- United States
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||2021/06/23 00:10|
|End of Day Share Price||2021/06/22 00:00|
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.