(a) General Development of Business – Sonoco Products Company (“Sonoco,” “the Company,” “we,” “us,” or “our”) is a South Carolina corporation founded in Hartsville, South Carolina, in 1899 as the Southern Novelty Company with the guiding principle that People Build Businesses by doing the right things. At its beginnings in 1899, a team of 12 people worked from a rented warehouse to produce the Company’s first product, a cone-shaped paper yarn carrier used for winding and transporting yarn. Since most of the textile cones of that day were wooden, paper cones were a novelty. The Company soon became the leading producer of cones in the United States. The Southern Novelty Company continued to diversify its product line and add new operations around the country. In 1923, the Southern Novelty Company name was changed to Sonoco Products Company, or “Sonoco,” using the first two letters from each word of its original name.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 7.5B | 7.5B | 5.3B | 5.4B | 5.9B | 5.7B |
| Net Income | 1.0B | 1.0B | 164M | 475M | 466M | -85M |
| EPS | $10.07 | $10.07 | $1.65 | $4.80 | $4.72 | $-0.86 |
| Free Cash Flow | 346M | 346M | 441M | 520M | 180M | 43M |
| ROIC | 10.5% | 7.8% | 4.4% | 6.9% | 8.5% | 14.1% |
| Gross Margin | 20.9% | 20.9% | 21.5% | 22.1% | 20.9% | 18.6% |
| Debt/Equity | 1.36 | 1.36 | 3.24 | 1.35 | 1.39 | 1.07 |
| Dividends/Share | $2.09 | $2.11 | $2.07 | $2.02 | $1.92 | $1.80 |
| Operating Income | 1.0B | 1.0B | 327M | 589M | 563M | 487M |
| Operating Margin | 13.5% | 13.5% | 6.2% | 10.8% | 9.6% | 8.5% |
| ROE | 27.8% | 34.1% | 7.0% | 21.2% | 23.9% | -4.6% |
| Shares Outstanding | 100M | 100M | 99M | 99M | 99M | 99M |
SONOCO PRODUCTS CO passes 5 of 9 quality checks, suggesting mixed fundamentals.
SONOCO PRODUCTS CO trades at 5.4x trailing earnings, compared to its 15-year median P/E of 13.9x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 15.7x vs a median of 12.4x. The company's 5-year average ROIC is 8.3% with a gross margin of 20.8%. Total shareholder yield (dividends + buybacks) is 4.0%. At current prices, the estimated annualized return to fair value is -0.3%.
SONOCO PRODUCTS CO (SON) has a current P/E ratio of 5.4, compared to its historical median P/E of 13.9. The stock is currently considered Cheap based on its historical valuation range.
SONOCO PRODUCTS CO (SON) has a 5-year average return on invested capital (ROIC) of 8.3%. This is below average and may indicate limited pricing power.
SONOCO PRODUCTS CO (SON) has a market capitalization of $5.5B. It is classified as a mid-cap stock.
Yes, SONOCO PRODUCTS CO (SON) pays a dividend with a trailing twelve-month yield of 3.81%. The company also returns capital through share buybacks, with a buyback yield of 0.20%.
Based on historical P/E analysis, SONOCO PRODUCTS CO (SON) appears cheap. The current P/E of 5.4 is 61% below its historical median of 13.9. The estimated fair value CAGR (P/E method) is 14.2%.
SONOCO PRODUCTS CO (SON) operates in the Paperboard Containers & Boxes industry, within the Materials sector.
SONOCO PRODUCTS CO (SON) reported annual revenue of $7.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
SONOCO PRODUCTS CO (SON) has a net profit margin of 13.3%. This is a healthy margin.
SONOCO PRODUCTS CO (SON) generated $346 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SONOCO PRODUCTS CO (SON) has a debt-to-equity ratio of 1.36. This indicates moderate leverage.
SONOCO PRODUCTS CO (SON) reported earnings per share (EPS) of $10.07 in its most recent fiscal year.
SONOCO PRODUCTS CO (SON) has a return on equity (ROE) of 34.1%. This indicates the company generates strong returns for shareholders.
SONOCO PRODUCTS CO (SON) has a 5-year average gross margin of 20.8%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for SONOCO PRODUCTS CO (SON), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SONOCO PRODUCTS CO (SON) has a book value per share of $36.28, based on its most recent annual SEC filing.
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