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Sonoco Products Co SON

Morningstar Rating
$52.14 +0.85 (1.66%)
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Company Report

Sonoco's Transformation Could Unlock Shareholder Value, but Some Headwinds Remain

Sonoco Products makes a wide range of consumer and industrial packaging, from Pringles cans to foam automotive bumpers to toilet paper cores. The firm operates over 300 manufacturing facilities and serves customers across 85 countries, with North America accounting for roughly 75% of sales. Its two primary segments, consumer packaging and industrial paper packaging, supply customers with both flexible and rigid packaging products that serve nearly any packaging need. In recent years, Sonoco has undergone a portfolio transformation; it now focuses on a few core businesses and has divested from nonprioritized products and markets like high-density film, European contract packaging, and more.

Price vs Fair Value

SON is trading at a 543% premium.
Price
$52.14
Fair Value
$42.00
Uncertainty
Medium
1-Star Price
$27.97
5-Star Price
$51.50
Economic Moat
Pdc
Capital Allocation
Chrwhxp

Bulls Say, Bears Say

Bulls

Sonoco is diversified across a number of consumer and industrial packaging substrates, which reduces its reliance on certain substrates and end markets.

Bears

A few major customers account for a substantial amount of Sonoco's revenue. They tend to have bargaining power, and if one of them were to switch to another packaging provider, it would have a materially adverse effect on Sonoco.

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News

Trading Information

Previous Close Price
$51.29
Day Range
$50.6552.26
52-Week Range
$48.2261.73
Bid/Ask
$51.92 / $52.56
Market Cap
$5.12 Bil
Volume/Avg
714,458 / 721,616

Key Statistics

Price/Earnings (Normalized)
10.47
Price/Sales
0.77
Dividend Yield (Trailing)
3.93%
Dividend Yield (Forward)
3.99%
Total Yield
4.11%

Company Profile

Over its 100-year-plus history, Sonoco Products has steadily assembled a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid plastics, reels and spools, pallets, and composite cans. The company serves a variety of consumer and industrial end markets throughout North America. Sonoco has raised its dividend each year for more than 40 years.
Sector
Consumer Cyclical
Industry
Packaging & Containers
Stock Style Box
Small Value
Total Number of Employees
23,000

Competitors

Valuation

Metric
SON
SEE
AMC
Price/Earnings (Normalized)
10.4711.4114.48
Price/Book Value
2.128.973.60
Price/Sales
0.770.981.04
Price/Cash Flow
7.197.5610.38
Price/Earnings
SON
SEE
AMC

Financial Strength

Metric
SON
SEE
AMC
Quick Ratio
0.770.620.61
Current Ratio
1.311.331.29
Interest Coverage
4.672.513.47
Quick Ratio
SON
SEE
AMC

Profitability

Metric
SON
SEE
AMC
Return on Assets (Normalized)
6.90%6.37%5.88%
Return on Equity (Normalized)
21.16%100.90%24.70%
Return on Invested Capital (Normalized)
10.20%12.73%10.64%
Return on Assets
SON
SEE
AMC
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