NYSE:SON

Stock Analysis Report

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Market Cap

US$6.6b

Last Updated

2021/06/23 00:10 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. More Details


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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

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.


Market Performance


7 Day Return

-2.0%

SON

-1.8%

US Packaging

-0.1%

US Market


1 Year Return

28.2%

SON

48.6%

US Packaging

39.0%

US Market

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.


Shareholder returns

SONIndustryMarket
7 Day-2.0%-1.8%-0.1%
30 Day-2.5%-5.6%2.6%
90 Day5.7%6.2%8.0%
1 Year32.1%28.2%51.2%48.6%41.2%39.0%
3 Year39.7%27.6%56.3%45.0%62.4%52.3%
5 Year63.8%40.8%106.8%85.4%132.3%106.2%

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

Valuation

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

33.45x

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.


Future Growth

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

-0.4%

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%).


Past Performance

How has Sonoco Products performed over the past 5 years?

1.8%

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.


Financial Health

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).


Balance Sheet


Dividend

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

2.73%

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).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Robert Coker (57 yo)

1.33yrs

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 ($USD6.82M) is about average for companies of similar size in the US market ($USD6.67M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: SON's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: SON's board of directors are considered experienced (6.3 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$6.642b
  • Shares outstanding: 100.61m
  • Website: https://www.sonoco.com

Number of Employees


Location

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

Listings


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/23 00:10
End of Day Share Price2021/06/22 00:00
Earnings2021/04/04
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.