0.21%
-0.94%
-7.86%
-10.26%
-14.96%
-14.57%
-15.31%

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

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

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.

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.

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.

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.

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%

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 …
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 …
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. …
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 …
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 …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
48.36$
Current Price
48.37$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

πŸ₯‡

PCA Logo
PCA
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

πŸ₯ˆ

Greif Logo
Greif
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

πŸ₯‰

Graphic Packaging Logo
Graphic Packaging
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

4

Sonoco Logo
Sonoco
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

5

Reynolds Consumer Products Logo
Reynolds Consumer Products
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->

6

WestRock Logo
WestRock
A-Score # N/A

Value:# N/A

Growth: # N/A

Quality: # N/A

Yield: # N/A

Momentum: # N/A

Volatility: # N/A

1-Year Total Return ->