(SON) Sonoco Products - Overview
Sector: Consumer Cyclical | Industry: Packaging & Containers | Exchange: NYSE (USA) | Market Cap: 4.922m USD | Total Return: 6.5% in 12m
Industry Rotation: -8.7
Avg Turnover: 73.3M
EPS Trend: -28.0%
Qual. Beats: 0
Rev. Trend: -12.0%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Sonoco Products Company (SON) is a global provider of diversified packaging solutions, operating through Consumer Packaging and Industrial Paper Packaging segments. Founded in 1899, the Hartsville-based firm manufactures rigid paper containers, metal closures, and recycled paperboard products for the food, construction, and textile industries. The company utilizes a vertically integrated business model, often sourcing raw materials from its own recycled paperboard mills to produce industrial tubes and cores.
The packaging sector is currently characterized by a structural shift toward sustainable materials, increasing the long-term relevance of Sonoco’s fiber-based product lines. As a mature industrial player, the company relies on global supply chain efficiency to serve its international markets across Europe, Canada, and the Asia Pacific. Investors may find ValueRay useful for further analyzing these fundamental trends.
- Acquisition integration and synergy capture drive post-merger earnings growth
- Recycled paperboard demand correlates with global industrial manufacturing activity
- Raw material cost volatility impacts margins for rigid paper packaging
- Consumer shift toward sustainable packaging accelerates market share expansion
- Interest rate fluctuations influence debt servicing for capital-intensive operations
| Net Income: 1.04b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 1.93 > 1.0 |
| NWC/Revenue: -1.39% < 20% (prev -15.08%; Δ 13.70% < -1%) |
| CFO/TA 0.05 > 3% & CFO 529.9m > Net Income 1.04b |
| Net Debt (4.73b) to EBITDA (1.54b): 3.06 < 3 |
| Current Ratio: 0.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (99.7m) vs 12m ago 0.36% < -2% |
| Gross Margin: 20.92% > 18% (prev 0.21%; Δ 2.07k% > 0.5%) |
| Asset Turnover: 63.04% > 50% (prev 42.40%; Δ 20.63% > 0%) |
| Interest Coverage Ratio: 4.60 > 6 (EBITDA TTM 1.54b / Interest Expense TTM 222.0m) |
| A: -0.01 (Total Current Assets 2.74b - Total Current Liabilities 2.85b) / Total Assets 11.07b |
| B: 0.31 (Retained Earnings 3.39b / Total Assets 11.07b) |
| C: 0.09 (EBIT TTM 1.02b / Avg Total Assets 11.88b) |
| D: 0.45 (Book Value of Equity 3.37b / Total Liabilities 7.48b) |
| Altman-Z'' Score: 1.99 = BBB |
| DSRI: 0.68 (Receivables 1.12b/1.19b, Revenue 7.49b/5.38b) |
| GMI: 1.03 (GM 20.92% / 21.49%) |
| AQI: 0.94 (AQ_t 0.48 / AQ_t-1 0.50) |
| SGI: 1.39 (Revenue 7.49b / 5.38b) |
| TATA: 0.05 (NI 1.04b - CFO 529.9m) / TA 11.07b) |
| Beneish M-Score: -2.97 (Cap -4..+1) = A |
Over the past week, the price has changed by -9.45%, over one month by -14.49%, over three months by -16.03% and over the past year by +6.52%.
- StrongBuy: 5
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 60.9 | 30.4% |
P/E Forward = 9.2421
P/S = 0.6575
P/B = 1.4284
P/EG = 0.2085
Revenue TTM = 7.49b USD
EBIT TTM = 1.02b USD
EBITDA TTM = 1.54b USD
Long Term Debt = 3.49b USD (from longTermDebt, last quarter)
Short Term Debt = 1.20b USD (from shortTermDebt, last quarter)
Debt = 4.95b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.73b USD (from netDebt column, last quarter)
Enterprise Value = 9.65b USD (4.92b + Debt 4.95b - CCE 224.5m)
Interest Coverage Ratio = 4.60 (Ebit TTM 1.02b / Interest Expense TTM 222.0m)
EV/FCF = 36.31x (Enterprise Value 9.65b / FCF TTM 265.8m)
FCF Yield = 2.75% (FCF TTM 265.8m / Enterprise Value 9.65b)
FCF Margin = 3.55% (FCF TTM 265.8m / Revenue TTM 7.49b)
Net Margin = 13.83% (Net Income TTM 1.04b / Revenue TTM 7.49b)
Gross Margin = 20.92% ((Revenue TTM 7.49b - Cost of Revenue TTM 5.92b) / Revenue TTM)
Gross Margin QoQ = 20.62% (prev 19.63%)
Tobins Q-Ratio = 0.87 (Enterprise Value 9.65b / Total Assets 11.07b)
Interest Expense / Debt = 0.90% (Interest Expense 44.5m / Debt 4.95b)
Taxrate = 12.33% (9.51m / 77.1m)
NOPAT = 894.6m (EBIT 1.02b * (1 - 12.33%))
Current Ratio = 0.96 (Total Current Assets 2.74b / Total Current Liabilities 2.85b)
Debt / Equity = 1.38 (Debt 4.95b / totalStockholderEquity, last quarter 3.59b)
Debt / EBITDA = 3.06 (Net Debt 4.73b / EBITDA 1.54b)
Debt / FCF = 17.79 (Net Debt 4.73b / FCF TTM 265.8m)
Total Stockholder Equity = 3.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.72% (Net Income 1.04b / Total Assets 11.07b)
RoE = 30.14% (Net Income TTM 1.04b / Total Stockholder Equity 3.44b)
RoCE = 14.74% (EBIT 1.02b / Capital Employed (Equity 3.44b + L.T.Debt 3.49b))
RoIC = 10.74% (NOPAT 894.6m / Invested Capital 8.33b)
WACC = 4.17% (E(4.92b)/V(9.88b) * Re(7.58%) + D(4.95b)/V(9.88b) * Rd(0.90%) * (1-Tc(0.12)))
Discount Rate = 7.58% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares (quarterly) Correlation: 91.11 | Cagr: 0.24%
[DCF] Terminal Value 86.97% ; FCFF base≈183.5m ; Y1≈196.1m ; Y5≈237.5m
[DCF] Fair Price = 23.01 (EV 7.00b - Net Debt 4.73b = Equity 2.28b / Shares 98.9m; r=6.0% [WACC]; 5y FCF grow 7.63% → 3.0% )
EPS Correlation: -28.00 | EPS CAGR: -9.71% | SUE: 0.03 | # QB: 0
Revenue Correlation: -11.98 | Revenue CAGR: -3.45% | SUE: -0.08 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.49 | Chg30d=-5.19% | Revisions=-69% | Analysts=10
EPS next Quarter (2026-09-30): EPS=1.95 | Chg30d=-2.92% | Revisions=-14% | Analysts=10
EPS current Year (2026-12-31): EPS=5.82 | Chg30d=-2.27% | Revisions=-71% | GrowthEPS=+2.0% | GrowthRev=-1.0%
EPS next Year (2027-12-31): EPS=6.41 | Chg30d=-2.24% | Revisions=-43% | GrowthEPS=+10.1% | GrowthRev=+2.1%
[Analyst] Revisions Ratio: -71%