Sonoco Products Company
Sonoco Products Company Fundamental Analysis
Sonoco Products Company (SON) shows strong financial fundamentals with a PE ratio of 4.84, profit margin of 13.83%, and ROE of 30.14%. The company generates $7.4B in annual revenue with strong year-over-year growth of 41.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SON's fundamental strength across five key dimensions:
Efficiency Score
WeakSON struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSON trades at attractive valuation levels.
Growth Score
ModerateSON shows steady but slowing expansion.
Financial Health Score
WeakSON carries high financial risk with limited liquidity.
Profitability Score
ModerateSON maintains healthy but balanced margins.
Key Financial Metrics
Is SON Expensive or Cheap?
P/E Ratio
SON trades at 4.84 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SON's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Sonoco Products Company at 1.40 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.14 times EBITDA. This is generally considered low.
How Well Does SON Make Money?
Net Profit Margin
For every $100 in sales, Sonoco Products Company keeps $13.83 as profit after all expenses.
Operating Margin
Core operations generate 8.66 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.14 in profit for every $100 of shareholder equity.
ROA
Sonoco Products Company generates $9.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sonoco Products Company generates limited operating cash flow of $524.26M, signaling weaker underlying cash strength.
Free Cash Flow
Sonoco Products Company produces free cash flow of $262.95M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.67 in free cash annually.
FCF Yield
SON converts 5.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.008
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.30
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How SON Stacks Against Its Sector Peers
| Metric | SON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.84 | 24.36 | Better (Cheaper) |
| ROE | 30.14% | 1166.00% | Weak |
| Net Margin | 13.83% | 871.00% | Weak |
| Debt/Equity | 1.38 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.96 | 2.84 | Weak Liquidity |
| ROA | 9.35% | -30137.00% (disorted) | Weak |
SON outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sonoco Products Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.53%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
93.68%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-0.90%
Industry Style: Cyclical, Growth, Discretionary
Declining