AI Spotlight on SON
Company Description
Sonoco Products Company, together with its subsidiaries, manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia.The company operates through two segments: Consumer Packaging and Industrial Paper Packaging.The Consumer Packaging segment round and shaped rigid paper containers; metal and peelable membrane ends and closures; thermoformed plastic trays and containers; printed flexible packaging; and global brand artwork management.
The Industrial Paper Packaging segment provides fiber-based tubes, cones, and cores; fiber-based construction tubes; fiber-based protective packaging and components; wooden, metal, and composite wire and cable, as well as reels and spools; and recycled paperboard, corrugating medium, recovered paper, and material recycling services.Sonoco Products Company offers thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools, and parts; retail security packaging, including printed backer cards, thermoformed blisters, and heat-sealing equipment; and paper amenities.The company sells its products in various markets, which include paper, textile, film, food, chemical, packaging, construction, and wire and cable.
Sonoco Products Company was founded in 1899 and is headquartered in Hartsville, South Carolina.
Market Data
Last Price | 48.39 |
Change Percentage | 0.21% |
Open | 48.02 |
Previous Close | 48.29 |
Market Cap ( Millions) | 4755 |
Volume | 76176 |
Year High | 61.73 |
Year Low | 45.93 |
M A 50 | 49.61 |
M A 200 | 53.17 |
Financial Ratios
FCF Yield | 8.50% |
Dividend Yield | 4.27% |
ROE | 9.71% |
Debt / Equity | 204.58% |
Net Debt / EBIDTA | 329.87% |
Price To Book | 1.92 |
Price Earnings Ratio | 20.06 |
Price To FCF | 11.76 |
Price To sales | 0.72 |
EV / EBITDA | 8.3 |
News
- Jan -28 - SON or PKG: Which Is the Better Value Stock Right Now?
- Jan -28 - Pick These 5 Bargain Stocks With Impressive EV-to-EBITDA Ratios
- Jan -21 - Sonnet BioTherapeutics Expands Phase 1 SB101 Trial to Evaluate Combination of SON-1010 with Trabectedin in Certain Sarcomas
- Jan -07 - Fairmarkit Expands Latin American Impact Through Partnership with Sonoco
- Jan -06 - Sonoco Announces Senior Leadership Changes for 2025
- Dec -19 - Sonoco Inks Agreement to Sell TFP Business to Focus on Core Business
- Dec -19 - TOPPAN Holdings Acquires Sonoco's TFP Business
- Dec -18 - Sonoco Completes Strategic Review, Announces Agreement to SellΒ Thermoformed and Flexibles Packaging (TFP) Business to TOPPAN Holdings Inc.
- Dec -09 - Sonnet BioTherapeutics Announces Topline Safety Data Following Successful Completion of SON-1010 Monotherapy Dose Escalation in Phase 1 SB101 Trial
- Dec -05 - Sonoco Boosts Portfolio With the Completion of Eviosys Buyout
- Dec -04 - Sonnet BioTherapeutics Announces Publication Detailing the Discovery and Development of SON-1010, an Albumin-Binding IL-12 Fusion Protein, Demonstrating Its Mechanism of Action
- Dec -04 - Sonoco Products: M&A Activity Should Support Shares In 2025 (Rating Upgrade)
- Dec -04 - Sonoco Completes Acquisition of Eviosys
- Nov -26 - Sonoco Targets Growth With Consumer Focus, European Expansion
- Nov -12 - Sonnet BioTherapeutics Releases Virtual Investor ββWhat this Meansβ Segment
- Nov -09 - Top Dividend Aristocrats To Buy Now After The Trump Sweep
- Nov -04 - Sonoco Earnings Surpass Estimates in Q3, Sales Decrease 2% Y/Y
- Nov -01 - Sonoco Products Company (SON) Q3 2024 Earnings Call Transcript
- Oct -31 - Sonoco (SON) Q3 Earnings Top Estimates
- Oct -31 - Sonoco Reports Third Quarter 2024 Results
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> Consumer Packaging
Expected Growth : 7.5 %
What the company do ?
Consumer Packaging from Sonoco Products Company offers innovative and sustainable packaging solutions for food, beverage, and personal care products.
Why we expect these perspectives ?
Sonoco's Consumer Packaging segment growth is driven by increasing demand for sustainable packaging, e-commerce growth, and rising consumer spending on packaged goods. Additionally, the company's focus on innovation, strategic acquisitions, and operational efficiencies contribute to its 7.5% growth rate.
Segment nΒ°2 -> Industrial Paper Packaging
Expected Growth : 7.8 %
What the company do ?
Industrial Paper Packaging from Sonoco Products Company provides sustainable, innovative packaging solutions for various industries, including paper, packaging, and specialty products.
Why we expect these perspectives ?
Sonoco Products Company's Industrial Paper Packaging segment growth of 7.8% is driven by increasing demand for sustainable packaging, growth in e-commerce, and rising consumer preference for eco-friendly products. Additionally, the company's strategic acquisitions, investments in innovation, and operational efficiencies have contributed to the segment's growth.
Segment nΒ°3 -> All Other
Expected Growth : 7.2 %
What the company do ?
All Other from Sonoco Products Company refers to the remaining business segments, including Industrial Carriers, Protective Solutions, and Display and Packaging, which do not fit into the other reported segments.
Why we expect these perspectives ?
Sonoco's All Other segment growth of 7.2% is driven by increasing demand for sustainable and e-commerce packaging solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on innovation, operational efficiency, and cost savings initiatives have contributed to the segment's growth.
Sonoco Products Company Products
Product Range | What is it ? |
---|---|
Paperboard Containers | Sonoco's paperboard containers are used for packaging of food, beverages, and other consumer products |
Plastic Containers | Sonoco's plastic containers are used for packaging of food, beverages, and other consumer products |
Composite Containers | Sonoco's composite containers are used for packaging of food, beverages, and other consumer products |
Closures | Sonoco's closures are used for sealing of containers for food, beverages, and other consumer products |
Packaging Services | Sonoco's packaging services provide customized packaging solutions for consumer goods companies |
Display and Packaging | Sonoco's display and packaging solutions provide point-of-purchase displays and packaging for retail products |
Protective Packaging | Sonoco's protective packaging solutions provide customized packaging solutions for fragile and sensitive products |
Sonoco Products Company's Porter Forces
Threat Of Substitutes
The threat of substitutes for Sonoco Products Company is medium due to the availability of alternative packaging solutions. However, the company's focus on innovative and sustainable packaging solutions helps to mitigate this threat.
Bargaining Power Of Customers
The bargaining power of customers is high due to the concentration of major consumer goods companies that Sonoco Products Company supplies to. These customers have significant negotiating power, which can impact Sonoco's pricing and profitability.
Bargaining Power Of Suppliers
The bargaining power of suppliers is low due to the availability of multiple suppliers for raw materials and the company's diversified supply chain. This reduces the dependence on any single supplier and gives Sonoco Products Company more negotiating power.
Threat Of New Entrants
The threat of new entrants is low due to the high barriers to entry in the packaging industry, including significant capital investments and regulatory requirements. This makes it difficult for new companies to enter the market and compete with established players like Sonoco Products Company.
Intensity Of Rivalry
The intensity of rivalry in the packaging industry is medium due to the presence of several established players. However, Sonoco Products Company's focus on innovation and sustainability helps to differentiate it from competitors and reduce the intensity of rivalry.
Capital Structure
Value | |
---|---|
Debt Weight | 55.90% |
Debt Cost | 4.98% |
Equity Weight | 44.10% |
Equity Cost | 7.32% |
WACC | 6.01% |
Leverage | 126.78% |
Sonoco Products Company : Quality Control
Sonoco Products Company passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
---|---|
GPK | Graphic Packaging Holding Company, together with its subsidiaries, provides fiber-based packaging solutions to food, beverage, foodservice, and other consumer products companies. It operates through three segments: Paperboard Mills, Americas Paperboard β¦ |
PKG | Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products in the United States. The company operates through Packaging and Paper segments. The Packaging segment offers various containerboard β¦ |
GEF | Greif, Inc. engages in the production and sale of industrial packaging products and services worldwide. It operates in three segments: Global Industrial Packaging; Paper Packaging & Services; and Land Management. β¦ |
WRK | WestRock Company, together with its subsidiaries, provides fiber-based paper and packaging solutions in North America, South America, Europe, Asia, and Australia. It operates through two segments, Corrugated Packaging and Consumer β¦ |
REYN | Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking β¦ |