Sonoco Products Company (SON) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: Sonoco Products Company

Market cap $5B · 52 weeks $39 – $61 (18 % below the high) · P/E 7.5× · 2027 expected P/E 8.3× · Dividend 4.5 % · 11 years rising · Next earnings February 15, 2027 · expected EPS $1.20 · Closing price, Oct 28 · accounts published Oct 21.

• Valuation: P/E 7.5× (cheap).
• Business: 5-year ROIC 6.1 % (weak).
• Balance sheet: Net debt/EBITDA 2.8× (passes, near the threshold).
• Earnings: 3 of 8 (disappointing).

What would it be worth at its usual multiples?

At the decade median (19.1×) $124 (+154 %); at its sector median (17.9×) $116 (+137 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in consumer cyclicals: 4 of 8 pass

• 5y avg ROIC 6.1 %, fails.
• Current Ratio 1.18, fails.
• Altman Z-Score 1.7, fails.
• P/E read in reverse (cyclicals) 7.5×, fails.
• 5y avg operating margin 9.0 %, passes.
• Inventory turnover 5.3×, passes.
• Net debt / EBITDA 2.8×, passes, near the threshold.
• EV/Sales vs history 1.1×, passes.

Against its peers (reference peers) — Sonoco Products Company: P/E 7.5×; EV/EBITDA 12.8×; ROIC -2.0 %; $4.8B. Silgan Holdings Inc. (P/E 14.9×; EV/EBITDA 9.3×; ROIC 5.1 %; $4.0B), Greif, Inc. (P/E 4.7×; EV/EBITDA 9.2×; ROIC 2.1 %; $3.8B), Sealed Air Corporation (P/E 15.8×; EV/EBITDA 10.2×; ROIC 9.6 %; $6.2B).

Expensive or cheap against its last 8 years?

P/E at each close: today 7.5× · median 19.1× · minimum 7.5× · maximum 34.1× · cheap below 17.8× · expensive above 29.7×. It has been cheaper than today only 0% of the time over its last 8 years.

Dividend

solid · Yield 4.5 % ($2.09 per share in 2025) · Years raising it ≥ 11 · 5-year growth +4 % a year · Free cash flow coverage 2.1× · With $1,000 invested today you'd collect $44.60 a year ($3.72 a month).