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Sonoco Products

NYSE:SON
Snowflake Description

Established dividend payer with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SON
NYSE
$7B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

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 46 days ago. More info.


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SON Share Price and Events
7 Day Returns
0.4%
NYSE:SON
-1.4%
US Packaging
0.5%
US Market
1 Year Returns
23.8%
NYSE:SON
1.7%
US Packaging
0.8%
US Market
SON Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Sonoco Products (SON) 0.4% 3.6% 9.3% 23.8% 37.6% 50.1%
US Packaging -1.4% 0.6% 2.3% 1.7% 26.1% 22.7%
US Market 0.5% -0.1% 1% 0.8% 37.5% 37.5%
1 Year Return vs Industry and Market
  • SON outperformed the Packaging industry which returned 1.7% over the past year.
  • SON outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
SON
Industry
5yr Volatility vs Market

Value

 Is Sonoco Products undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Sonoco Products.

NYSE:SON Discounted Cash Flow Data Sources
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 8.6%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:SON
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 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 21%) (26.38%))
0.984
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.984 * 5.96%)
8.59%

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.

NYSE:SON DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.59%)
2019 399.55 Analyst x4 367.93
2020 408.38 Analyst x4 346.29
2021 393.00 Analyst x1 306.88
2022 385.66 Est @ -1.87% 277.31
2023 383.77 Est @ -0.49% 254.11
2024 385.60 Est @ 0.48% 235.12
2025 390.04 Est @ 1.15% 219.00
2026 396.38 Est @ 1.63% 204.95
2027 404.14 Est @ 1.96% 192.42
2028 412.99 Est @ 2.19% 181.07
Present value of next 10 years cash flows $2,585.07
NYSE:SON DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $412.99 × (1 + 2.73%) ÷ (8.59% – 2.73%)
$7,234.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,234.04 ÷ (1 + 8.59%)10
$3,171.68
NYSE:SON Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,585.07 + $3,171.68
$5,756.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,756.76 / 100.05
$57.54
NYSE:SON Discount to Share Price
Calculation Result
Value per share (USD) From above. $57.54
Current discount Discount to share price of $65.49
= -1 x ($65.49 - $57.54) / $57.54
-13.8%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:SON PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.11
NYSE:SON Share Price ** NYSE (2019-06-14) in USD $65.49
United States of America Packaging Industry PE Ratio Median Figure of 15 Publicly-Listed Packaging Companies 17.14x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Sonoco Products.

NYSE:SON PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SON Share Price ÷ EPS (both in USD)

= 65.49 ÷ 3.11

21.04x

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?
Raw Data
NYSE:SON PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
7.5%per year
United States of America Packaging Industry PEG Ratio Median Figure of 15 Publicly-Listed Packaging Companies 1.12x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:SON PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.04x ÷ 7.5%

2.79x

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?
Raw Data
NYSE:SON PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $17.88
NYSE:SON Share Price * NYSE (2019-06-14) in USD $65.49
United States of America Packaging Industry PB Ratio Median Figure of 19 Publicly-Listed Packaging Companies 3.66x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:SON PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SON Share Price ÷ Book Value per Share (both in USD)

= 65.49 ÷ 17.88

3.66x

* 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.
X
Value checks
We assess Sonoco Products's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check)
  5. 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

 How is Sonoco Products expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

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!
Annual Growth Rate
7.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Sonoco Products expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:SON Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SON Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 7.5%
NYSE:SON Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 1.2%
United States of America Packaging Industry Earnings Growth Rate Market Cap Weighted Average 15.6%
United States of America Packaging Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
Raw Data
NYSE:SON Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SON Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,685 3
2020-12-31 5,637 593 362 11
2019-12-31 5,577 581 340 11
NYSE:SON Past Financials Data
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 5,169 401 196
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.

Super high growth metrics
High Growth Checks
  • Sonoco Products's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • Sonoco Products's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:SON Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months 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 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SON Future Estimates Data
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 3.67 3.80 3.32 6.00
2019-12-31 3.40 3.48 3.19 4.00
NYSE:SON Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Sonoco Products is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Sonoco Products's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Sonoco Products's growth in the last year to its industry (Packaging).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 -13.8%).
Earnings and Revenue History
Sonoco Products's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Sonoco Products Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:SON Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,438.46 313.17 537.30 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 5,168.51 195.67 530.18 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).
X
Past performance checks
We assess Sonoco Products's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Sonoco Products's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Sonoco Products Company Filings, last reported 2 months ago.

NYSE:SON Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,801.14 1,728.26 124.33
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).
X
Financial health checks
We assess Sonoco Products's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Sonoco Products has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
2.63%
Current annual income from Sonoco Products dividends. Estimated to be 2.72% next year.
If you bought $2,000 of Sonoco Products shares you are expected to receive $53 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Sonoco Products's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Sonoco Products's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
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.
Raw Data
NYSE:SON Annualized Past and Future Dividends
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 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:SON Future Dividends Estimate Data
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 1.71 6.00
NYSE:SON Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-17 1.720 2.728
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

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Sonoco Products's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Sonoco Products's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rob Tiede
COMPENSATION $6,811,241
AGE 59
TENURE AS CEO 1.2 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 been consistent with company performance over the past year, both up more than 20%.
  • 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:

2.5
Average Tenure
56
Average Age
  • The tenure for the Sonoco Products management team is about average.
Management Team

Rob Tiede

TITLE
President
COMPENSATION
$7M
AGE
59
TENURE
1.2 yrs

Rodger Fuller

TITLE
Senior Vice President of Global Consumer Packaging
COMPENSATION
$2M
AGE
56
TENURE
2.4 yrs

Robert Coker

TITLE
Senior Vice President of Global Paper & Industrial Converted Products
COMPENSATION
$2M
AGE
55
TENURE
2.4 yrs

Julie Albrecht

TITLE
VP & CFO
AGE
50
TENURE
0.3 yrs

James Kirkland

TITLE
Principal Accounting Officer & Corporate Controller
AGE
62
TENURE
2.7 yrs

Richard Johnson

TITLE
Chief Information Officer
TENURE
0.3 yrs

Roger Schrum

TITLE
Vice President of Investor Relations & Corporate Affairs
AGE
62
TENURE
10.3 yrs

John Florence

TITLE
VP of Human Resources
AGE
39
TENURE
2.6 yrs

Marcy Thompson

TITLE
Vice President of Marketing & Innovation
AGE
56
TENURE
5.9 yrs

Kevin Mahoney

TITLE
Senior Vice President of Corporate Planning
AGE
62
TENURE
8.3 yrs
Board of Directors Tenure

Average tenure and age of the Sonoco Products board of directors in years:

5.6
Average Tenure
61.5
Average Age
  • The tenure for the Sonoco Products board of directors is about average.
Board of Directors

John Haley

TITLE
Chairman of the Board
COMPENSATION
$299K
AGE
56
TENURE
0.4 yrs

Rob Tiede

TITLE
President
COMPENSATION
$7M
AGE
59
TENURE
1.2 yrs

Tom Whiddon

TITLE
Independent Director
COMPENSATION
$248K
AGE
65
TENURE
18.4 yrs

James Micali

TITLE
Independent Lead Director
COMPENSATION
$264K
AGE
70
TENURE
7.3 yrs

Pamela S. Davies

TITLE
Independent Director
COMPENSATION
$237K
AGE
61
TENURE
14.9 yrs

Marc Oken

TITLE
Independent Director
COMPENSATION
$245K
AGE
72
TENURE
13.3 yrs

Harry Cockrell

TITLE
Director
COMPENSATION
$207K
AGE
68
TENURE
5.9 yrs

Blythe McGarvie

TITLE
Independent Director
COMPENSATION
$227K
AGE
62
TENURE
5.3 yrs

Sundaram Nagarajan

TITLE
Independent Director
COMPENSATION
$227K
AGE
55
TENURE
4.3 yrs

Rich Kyle

TITLE
Independent Director
COMPENSATION
$228K
AGE
52
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • Sonoco Products insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Apr 19 Sell Kevin Mahoney Individual 23. Apr 19 23. Apr 19 -2,295 $60.49 $-138,833
23. Apr 19 Sell Rodger Fuller Individual 22. Apr 19 22. Apr 19 -5,085 $60.25 $-306,371
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
X
Management checks
We assess Sonoco Products's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

How Financially Strong Is Sonoco Products Company (NYSE:SON)?

See our latest analysis for Sonoco Products SON’s Debt (And Cash Flows) SON has built up its total debt levels in the last twelve months, from US$1.5b to US$1.7b , which accounts for long term debt. … Additionally, SON has generated US$562m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 33%, indicating that SON’s current level of operating cash is high enough to cover debt. … Next Steps: SON’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

When Should You Buy Sonoco Products Company (NYSE:SON)?

Sonoco Products Company (NYSE:SON), which is in the packaging business, and is based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $64.02 at one point, and dropping to the lows of $57.75. … It’s trading around 11.77% above my intrinsic value, which means if you buy Sonoco Products today, you’d be paying a relatively reasonable price for it. … In addition to this, Sonoco Products has a low beta, which suggests its share price is less volatile than the wider market.

Simply Wall St -

Is There More To Sonoco Products Company (NYSE:SON) Than Its 13% Returns On Capital?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Sonoco Products: 0.13 = US$500m ÷ (US$4.9b - US$1.2b) (Based on the trailing twelve months to March 2019.) Therefore, Sonoco Products has an ROCE of 13%. … Sonoco Products's Current Liabilities And Their Impact On Its ROCE Liabilities, such as supplier bills and bank overdrafts, are referred to as current liabilities if they need to be paid within 12 months. … What We Can Learn From Sonoco Products's ROCE This is good to see, and with a sound ROCE, Sonoco Products could be worth a closer look.

Simply Wall St -

Estimating The Intrinsic Value Of Sonoco Products Company (NYSE:SON)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. … Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $399.55 $408.38 $393.00 $385.66 $383.77 $385.60 $390.04 $396.38 $404.14 $412.99 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x1 Est @ -1.87% Est @ -0.49% Est @ 0.48% Est @ 1.15% Est @ 1.63% Est @ 1.96% Est @ 2.19% Present Value ($, Millions) Discounted @ 8.93% $366.79 $344.15 $304.03 $273.88 $250.19 $230.77 $214.29 $199.92 $187.11 $175.53 Present Value of 10-year Cash Flow (PVCF)= $2.55b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage.

Simply Wall St -

Read This Before Considering Sonoco Products Company (NYSE:SON) For Its Upcoming US$0.43 Dividend

To qualify for the dividend check of US$0.43 per share, investors must have owned the shares prior to 09 May 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St -

What Sonoco Products Company's (NYSE:SON) ROE Can Tell Us

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. … Our data shows Sonoco Products has a return on equity of 17% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

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 -

Why 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 -

How 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 -

Does 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 -

Company 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
$6,552,065,914
100,046,815
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
Staff numbers
23,000
Sonoco Products employees.
Industry
Paper Packaging
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 23:46
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/05/28
Last earnings filing: 2019/05/01
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.