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

-1.7%

NYSE:SON

-2.2%

US Packaging

-1.9%

US Market


1 Year Return

0.3%

NYSE:SON

1.0%

US Packaging

-3.3%

US Market

SON underperformed the Packaging industry which returned 1.4% over the past year.

SON outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

SONIndustryMarket
7 Day-1.7%-2.2%-1.9%
30 Day-8.9%-6.8%-6.2%
90 Day-10.9%2.6%0.3%
1 Year3.2%0.3%3.7%1.0%-1.1%-3.3%
3 Year18.7%8.6%19.8%12.2%37.9%28.9%
5 Year58.0%35.8%40.6%24.4%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

10%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sonoco Products's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sonoco Products's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

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

Sonoco Products is poor value based on expected growth next year.


Price Based on Value of Assets

Sonoco Products is good value based on assets compared to the US Packaging industry average.


Next Steps

Future Growth

How is Sonoco Products expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

9.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sonoco Products's revenue is expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).

Sonoco Products's earnings are expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

Sonoco Products's revenue growth is positive but not above the United States of America market average.

Sonoco Products's earnings growth is positive but not above the United States of America market average.

Sonoco Products's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sonoco Products is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 (26.3% vs 3.9%)

Sonoco Products's earnings growth has exceeded the US Packaging industry average in the past year (26.3% vs -1.4%).


Return on Equity

Sonoco Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sonoco Products used its assets more efficiently than the US Packaging industry average last year based on Return on Assets.


Return on Capital Employed

Sonoco Products's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sonoco Products's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Sonoco Products's level of debt (82.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (59% vs 82.3% today).

Debt is well covered by operating cash flow (24.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

3.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sonoco Products's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Sonoco Products's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

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

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2x coverage).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Rob Tiede (60yo)

1.3yrs

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

Rob's remuneration is about average for companies of similar size in United States of America.

Rob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

The tenure for the Sonoco Products management team is about average.


Board Age and Tenure

5.8yrs

Average Tenure

62.5yo

Average Age

The tenure for the Sonoco Products board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 8.5yrs
  • Rodger Fuller (57yo)

    Senior Vice President of Global Consumer Packaging

    • Tenure: 2.6yrs
    • Compensation: US$2.05m
  • Roger Schrum (63yo)

    Vice President of Investor Relations & Corporate Affairs

    • Tenure: 10.5yrs
  • Marcy Thompson (57yo)

    Vice President of Marketing & Innovation

    • Tenure: 6.1yrs
  • Robert Coker (56yo)

    Senior Vice President of Global Paper & Industrial Converted Products

    • Tenure: 2.6yrs
    • Compensation: US$1.59m
  • Rob Tiede (60yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.81m
  • Julie Albrecht (51yo)

    VP & CFO

    • Tenure: 0.4yrs
  • John Florence (40yo)

    VP of Human Resources

    • Tenure: 2.8yrs
  • James Kirkland (63yo)

    Principal Accounting Officer & Corporate Controller

    • Tenure: 2.8yrs
  • Richard Johnson

    Chief Information Officer

    • Tenure: 0.4yrs

Board Members

  • Tom Whiddon (66yo)

    Independent Director

    • Tenure: 18.6yrs
    • Compensation: US$248.25k
  • Marc Oken (73yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$244.75k
  • Pamela S. Davies (62yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$237.25k
  • Blythe McGarvie (63yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$226.75k
  • James Micali (71yo)

    Independent Lead Director

    • Tenure: 7.5yrs
    • Compensation: US$263.75k
  • Harry Cockrell (69yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$207.25k
  • Rob Tiede (60yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.81m
  • John Haley (57yo)

    Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: US$298.58k
  • Rich Kyle (53yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$228.25k
  • Sundaram Nagarajan (56yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$226.75k

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$5.594b
  • 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 Analysis2019/08/25 23:47
End of Day Share Price2019/08/23 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.