NYSE:SON

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

0.6%

SON

2.0%

US Packaging

1.8%

US Market


1 Year Return

4.0%

SON

14.0%

US Packaging

7.3%

US Market

Return vs Industry: SON underperformed the US Packaging industry which returned 14% over the past year.

Return vs Market: SON underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

SONIndustryMarket
7 Day0.6%2.0%1.8%
30 Day-2.4%-0.1%-0.7%
90 Day-6.0%-0.9%0.06%
1 Year7.0%4.0%16.8%14.0%9.7%7.3%
3 Year22.6%12.2%24.5%16.6%46.3%36.9%
5 Year64.2%41.1%46.7%29.4%64.5%46.5%

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?

3.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SON ($57.26) is trading below our estimate of fair value ($59.49)

Significantly Undervalued: SON is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SON is poor value based on its PE Ratio (18.9x) compared to the Packaging industry average (17.3x).

PE vs Market: SON is poor value based on its PE Ratio (18.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: SON is poor value based on its PEG Ratio (2.3x)


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 (3.4x).


Next Steps

Future Growth

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

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SON's forecast earnings growth (8.3% per year) is above the savings rate (2.7%).

Earnings vs Market: SON's earnings (8.3% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: SON's earnings are forecast to grow, but not significantly.

Revenue vs Market: SON's revenue (1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: SON's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: SON's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Sonoco Products performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SON's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: SON's earnings growth over the past year (26.3%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: SON earnings growth over the past year (26.3%) exceeded the Packaging industry -1%.


Return on Equity

High ROE: SON's Return on Equity (16.5%) is considered low.


Return on Assets

ROA vs Industry: SON has a higher Return on Assets than the Packaging industry average last year.


Return on Capital Employed

ROCE Improving: SON's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Sonoco Products's financial position?


Financial Position Analysis

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

Long Term Liabilities: SON's short term assets (1.6B) do not cover its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: SON's debt to equity ratio (82.3%) is considered high

Reducing Debt: SON's debt to equity ratio has increased from 59% to 82.3% over the past 5 years.

Debt Coverage: SON's debt is well covered by operating cash flow (24.8%).

Interest Coverage: SON's interest payments on its debt are well covered by EBIT (8.3x coverage).


Balance Sheet

Inventory Level: SON has a high level of physical assets or inventory.

Debt Coverage by Assets: SON's debt is covered by short term assets (assets are 1.034620x debt).


Next Steps

Dividend

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

3.00%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Sonoco Products before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.5%markettop25%3.7%industryaverage2.6%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SON's dividend (3%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: SON's dividend (3%) is low compared to the top 25% of dividend payers in the US market (3.72%).

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: With its reasonable payout ratio (54.8%), SON's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SON's dividends in 3 years are forecast to be well covered by earnings (49.4% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Rob Tiede (60yo)

1.5yrs

Tenure

US$6,811,241

Compensation

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 Vi ...


CEO Compensation Analysis

Compensation vs. Market: Rob has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Rob's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.8yrs

Average Tenure

57yo

Average Age

Experienced Management: SON's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: SON's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$138,83325 Apr 19
Kevin Mahoney
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Planning
Shares2,295
Max PriceUS$60.49
SellUS$306,37123 Apr 19
Rodger Fuller
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Global Consumer Packaging
Shares5,085
Max PriceUS$60.25
SellUS$66,65426 Feb 19
Kevin Mahoney
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Corporate Planning
Shares1,119
Max PriceUS$59.57

Ownership Breakdown


Management Team

  • Kevin Mahoney (63yo)

    Senior Vice President of Corporate Planning

    • Tenure: 8.7yrs
  • Rodger Fuller (57yo)

    Senior Vice President of Global Consumer Packaging

    • Tenure: 2.8yrs
    • Compensation: US$2.05m
  • Roger Schrum (63yo)

    Vice President of Investor Relations & Corporate Affairs

    • Tenure: 10.7yrs
  • Marcy Thompson (57yo)

    Vice President of Marketing & Innovation

    • Tenure: 6.3yrs
  • Robert Coker (56yo)

    Senior Vice President of Global Paper & Industrial Converted Products

    • Tenure: 2.8yrs
    • Compensation: US$1.59m
  • Rob Tiede (60yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$6.81m
  • Julie Albrecht (51yo)

    VP & CFO

    • Tenure: 0.6yrs
  • John Florence (40yo)

    VP of Human Resources

    • Tenure: 2.9yrs
  • James Kirkland (63yo)

    Principal Accounting Officer & Corporate Controller

    • Tenure: 3yrs
  • Richard Johnson

    Chief Information Officer

    • Tenure: 0.6yrs

Board Members

  • Tom Whiddon (66yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$248.25k
  • Marc Oken (73yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$244.75k
  • Pamela S. Davies (62yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$237.25k
  • Blythe McGarvie (63yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$226.75k
  • James Micali (71yo)

    Independent Lead Director

    • Tenure: 7.7yrs
    • Compensation: US$263.75k
  • Philippe Guillemot (60yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$217.75k
  • Harry Cockrell (69yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$207.25k
  • Rob Tiede (60yo)

    President

    • Tenure: 1.5yrs
    • Compensation: US$6.81m
  • John Haley (57yo)

    Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$298.58k
  • Rich Kyle (53yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$228.25k

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$5.730b
  • Shares outstanding: 100.08m
  • Website: https://www.sonoco.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SONNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1969
SNSDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1969

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 Analysis2019/10/17 23:41
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.