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1. Company Snapshot

1.a. Company Description

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally.It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers.The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals.


The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for use in food, beverage, health care, garden, home, personal care, and beauty products, as well as capping/sealing equipment and detection systems.The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive; and marine chemical products.This segment also provides plastic thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products, including soft fabric wipes.


The company markets its products primarily through direct sales force, as well as through a network of distributors and an online shopping catalog.Silgan Holdings Inc.was founded in 1987 and is headquartered in Stamford, Connecticut.

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1.b. Last Insights on SLGN

Silgan Holdings' recent performance was negatively impacted by weaker volume trends, prompting the company to trim its 2025 outlook. Despite beating Q3 earnings estimates, the packaging specialist's growth prospects were dampened by low volumes. The company's Q3 revenue and earnings growth was driven by the Weener Packaging acquisition and a strong Dispensing and Specialty Closures segment. However, management's reduced guidance suggests cautious optimism, citing softer demand. This cautious stance likely concerns investors, given the uncertain business environment.

1.c. Company Highlights

2. Silgan Holdings' Q3 2025 Earnings: A Resilient Business Model

Silgan Holdings reported net sales of $2 billion, a 15% increase from the prior year, driven by the Weener acquisition and higher volumes of high-value dispensing products. Total adjusted EBIT was $221 million, an 8% increase, and adjusted EPS was $1.22, slightly above the prior year's $1.21 estimate. The company's Dispensing and Specialty Closures segment sales increased 23%, while Metal Container sales rose 13% due to favorable price/mix and higher unit volumes. The actual EPS of $1.22 beat estimates, indicating a strong performance.

Publication Date: Nov -11

📋 Highlights

Segment Performance

The Dispensing and Specialty Closures segment delivered significant year-over-year growth, with record adjusted EBIT. The Weener acquisition has been fully integrated, and the product portfolio is performing well, with synergies delivered as expected. However, the segment is expected to experience a mid-single-digit decline in volumes for Q4 versus the prior year. In contrast, the Metal Containers business delivered strong volume growth, with a 10% increase in products for pet food, and is expected to grow by a mid-single-digit percentage in Q4.

Outlook and Guidance

For the fourth quarter, Silgan expects adjusted earnings in the range of $0.62 to $0.72 per diluted share. The company anticipates a high single-digit percentage increase in total adjusted EBIT in 2025, driven by a 15% increase in Dispensing and Specialty closures adjusted EBIT. Silgan maintains its estimate of free cash flow of approximately $430 million, a 10% increase from the prior year. The company's guidance for 2026 may be conservative due to unknowns like customer bankruptcy.

Valuation and Growth Prospects

With a P/E Ratio of 12.89 and an EV/EBITDA of 10.49, Silgan's valuation appears reasonable. Analysts estimate next year's revenue growth at 2.4%. The company's ROE is 14.72%, indicating a strong return on equity. Silgan's Net Debt / EBITDA ratio is 5.54, which may be a concern for investors. However, the company's confidence in its growth profile and ability to deliver on expectations may justify the current valuation.

Capital Allocation and M&A

Silgan bought back $60 million in shares in Q3, taking advantage of a dislocated market. The company's leverage is expected to return to the midpoint of the range after the Weener acquisition integration, positioning Silgan for M&A opportunities. The company's strong free cash flow generation and confidence in its growth prospects may lead to more aggressive share buybacks or strategic acquisitions.

3. NewsRoom

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Touchstone Small Company Fund Q3 2025 Performance Review

Nov -27

Source: seekingalpha.com

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Silgan Announces Organizational Updates

Nov -06

Source: businesswire.com

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Silgan Announces New Authorization for Stock Repurchases

Nov -05

Source: businesswire.com

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Silgan Beats Q3 Earnings Estimates, Trims '25 Outlook on Low Volumes

Oct -31

Source: zacks.com

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Victory Sycamore Small Company Opportunity Fund Q3 2025 Top Contributors And Detractors

Oct -30

Source: seekingalpha.com

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Why Silgan Holdings Stock Dove by Nearly 14% on Wednesday

Oct -29

Source: fool.com

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Silgan Holdings Inc. (SLGN) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Silgan Holdings (SLGN) Q3 Earnings and Revenues Top Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.90%)

6. Segments

Metal Containers

Expected Growth: 2.5%

Silgan Holdings Inc.'s Metal Containers segment growth of 2.5% is driven by increasing demand for sustainable packaging, growth in the food and beverage industry, and rising adoption of eco-friendly products. Additionally, the company's strategic acquisitions and investments in manufacturing capabilities have enhanced its production efficiency and capacity, contributing to the segment's growth.

Dispensing and Specialty Closure

Expected Growth: 3.5%

Silgan Holdings Inc.'s Dispensing and Specialty Closure segment growth of 3.5% is driven by increasing demand for sustainable and convenient packaging solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from a strong brand portfolio, innovative product offerings, and a focus on operational efficiency, leading to improved profitability and market share gains.

Custom Containers

Expected Growth: 2.8%

Silgan Holdings' Custom Containers segment growth of 2.8% is driven by increasing demand for sustainable and eco-friendly packaging solutions, expansion in e-commerce and online shopping, and rising need for customized packaging in the food and beverage industry. Additionally, strategic acquisitions and investments in innovation have contributed to the segment's growth.

7. Detailed Products

Metal Closures

Silgan Holdings Inc. provides metal closures for food and beverage products, including twist-off and pry-off caps, as well as custom-designed closures for specialty applications.

Plastic Closures

Silgan Holdings Inc. offers plastic closures for food and beverage products, including screw-top and snap-on caps, as well as custom-designed closures for specialty applications.

Metal Containers

Silgan Holdings Inc. provides metal containers for food and beverage products, including tin-free steel and tinplate containers for packaging of food, beverages, and personal care products.

Aerosol Cans

Silgan Holdings Inc. offers aerosol cans for packaging of personal care, household, and industrial products.

Custom Containers

Silgan Holdings Inc. provides custom-designed containers for specialty applications, including food, beverage, and personal care products.

8. Silgan Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Silgan Holdings Inc. operates in the metal and glass packaging industry, which has a moderate threat of substitutes. While there are some substitutes available, such as plastic packaging, they are not always suitable for certain products, and the company's products have a strong market presence.

Bargaining Power Of Customers

Silgan Holdings Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Silgan Holdings Inc. relies on a few large suppliers for raw materials, which gives them some bargaining power. However, the company's scale and diversification of suppliers mitigate this risk to some extent.

Threat Of New Entrants

The metal and glass packaging industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to join the market, reducing the threat of new entrants.

Intensity Of Rivalry

The metal and glass packaging industry is highly competitive, with several established players competing for market share. Silgan Holdings Inc. faces intense competition from companies such as Crown Holdings, Ball Corporation, and Owens-Illinois.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 64.53%
Debt Cost 6.13%
Equity Weight 35.47%
Equity Cost 7.38%
WACC 6.57%
Leverage 181.91%

11. Quality Control: Silgan Holdings Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Greif

A-Score: 5.6/10

Value: 6.9

Growth: 4.2

Quality: 4.2

Yield: 7.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Crown Holdings

A-Score: 5.5/10

Value: 6.2

Growth: 5.0

Quality: 5.0

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Sealed Air

A-Score: 5.2/10

Value: 5.3

Growth: 4.3

Quality: 4.9

Yield: 4.0

Momentum: 5.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Berry Global

A-Score: 5.1/10

Value: 6.0

Growth: 5.8

Quality: 4.3

Yield: 2.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Silgan

A-Score: 4.4/10

Value: 4.5

Growth: 5.2

Quality: 3.9

Yield: 3.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
WestRock

A-Score: 3.4/10

Value: 4.9

Growth: 2.7

Quality: 2.7

Yield: 2.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

38.69$

Current Price

38.69$

Potential

-0.00%

Expected Cash-Flows