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Sealed Air (SEE)
NYSE:SEE
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Sealed Air
(NYSE:SEE)67Neutral
Positive Factors
Business Strategy
Sealed Air's former interim co-CEO is focusing on accelerating a more streamlined go-to-market strategy, with favorable early customer feedback.
Financial Performance
Sealed Air's fourth-quarter revenue exceeded expectations, with improvements in adjusted EBITDA margins and adjusted EPS.
Negative Factors
Market Challenges
The protective segment continues to face challenges, with unclear underlying demand and market share issues.
Sealed Air (SEE) vs. S&P 500 (SPY)
Market Cap
$4.62B
Dividend Yield2.52%
Average Volume (3M)1.49M
Price to Earnings (P/E)17.2
Beta (1Y)1.13
Revenue Growth-1.75%
EPS Growth-21.15%
CountryUS
Employees17,000
SectorConsumer Cyclical
Sector Strength53
IndustryContainers & Packaging
Share Statistics
EPS (TTM)1.85
Shares Outstanding145,761,890
10 Day Avg. Volume2,006,903
30 Day Avg. Volume1,487,725
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)N/A
Price to Sales (P/S)0.86
Price to Cash Flow (P/CF)4.70
P/FCF Ratio5.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.73Price Target Upside27.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Sealed Air Business Overview & Revenue Model
Company DescriptionSealed Air (SEE) is a global leader in essential packaging solutions, known for its innovative approaches to protect and preserve goods. Operating across various sectors, the company specializes in the design and manufacture of a wide range of packaging materials and systems. Its core products include food packaging, protective packaging, and hygiene solutions, serving industries such as food, e-commerce, electronics, and healthcare. With a commitment to sustainability, Sealed Air focuses on reducing waste and enhancing the recyclability of its products.
How the Company Makes MoneySealed Air makes money primarily through the sale of its packaging products and solutions. The company's revenue model is based on providing customized packaging solutions that cater to the specific needs of its clients across diverse industries. Key revenue streams include food packaging products, which ensure the safety and freshness of perishable goods, and protective packaging solutions that shield valuable items during shipping and handling. Sealed Air also generates income from its hygiene and cleaning solutions tailored for the food service and healthcare sectors. Significant partnerships with major global brands and a focus on sustainability initiatives further enhance its earnings potential, as companies increasingly seek eco-friendly and effective packaging alternatives.
Sealed Air Financial Statement Overview
Summary
Sealed Air exhibits solid operational performance with healthy EBIT and EBITDA margins. However, challenges include a decline in revenue and net profit margin, along with a high leverage ratio despite improved debt positions.Income Statement
Sealed Air has shown a decline in Total Revenue over the past year, with a revenue decrease from $5.49 billion in 2023 to $5.39 billion in TTM. The gross profit margin remains strong at approximately 29.5%, but the net profit margin has decreased to 5.0% from 6.2% in 2023. The EBIT and EBITDA margins are healthy at 14.2% and 17.3% respectively, indicating a solid operational performance despite the revenue decline.65
Positive
Balance Sheet
Sealed Air's balance sheet shows a significant improvement in its debt position, with total debt reducing from $4.79 billion in 2023 to $309.6 million in TTM. However, the debt-to-equity ratio is still elevated due to low stockholders' equity, leading to a risky leverage profile. The equity ratio is modest at 8.9%, indicating limited equity buffer.55
Neutral
Cash Flow
The company has improved its free cash flow from $272 million in 2023 to $322.7 million in TTM, marking a healthy growth trend. The operating cash flow to net income ratio stands at 1.78, reflecting strong cash conversion capabilities, while the free cash flow to net income ratio is 1.19, highlighting efficient cash generation relative to net income.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.39B | 5.49B | 5.64B | 5.53B | 4.90B | Gross Profit |
| 1.63B | 1.64B | 1.77B | 1.68B | 1.61B | EBIT |
| 735.90M | 754.60M | 944.80M | 900.90M | 788.10M | EBITDA |
| 735.90M | 946.30M | 1.15B | 1.06B | 991.30M | Net Income Common Stockholders |
| 264.70M | 341.60M | 491.60M | 506.80M | 502.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 371.80M | 346.10M | 456.10M | 561.00M | 548.70M | Total Assets |
| 7.02B | 7.20B | 6.21B | 6.23B | 6.08B | Total Debt |
| 309.60M | 4.79B | 3.75B | 3.77B | 3.84B | Net Debt |
| -62.20M | 4.44B | 3.30B | 3.21B | 3.29B | Total Liabilities |
| 6.40B | 6.65B | 5.87B | 5.98B | 5.91B | Stockholders Equity |
| 624.50M | 549.50M | 344.10M | 248.70M | 172.50M |
| Cash Flow | Free Cash Flow | |||
| 507.80M | 272.00M | 376.00M | 496.60M | 555.90M | Operating Cash Flow |
| 728.00M | 516.20M | 613.30M | 709.70M | 737.00M | Investing Cash Flow |
| -232.50M | -1.38B | -243.00M | -125.70M | -159.80M | Financing Cash Flow |
| -432.80M | 755.70M | -446.70M | -575.80M | -261.70M |
Sealed Air Technical Analysis
Negative
31.93
Price Trends
33.89
Negative
34.85
Negative
35.05
Negative
Market Momentum
-0.65
Positive
41.42
Neutral
14.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEE, the sentiment is Negative. The current price of 31.93 is below the 20-day moving average (MA) of 33.11, below the 50-day MA of 33.89, and below the 200-day MA of 35.05, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SEE.
Sealed Air Risk Analysis
Sealed Air disclosed 34 risk factors in its most recent earnings report. Sealed Air reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sealed Air Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $18.30B | 22.81 | 19.03% | 2.42% | 7.45% | 5.43% | |
68 Neutral | $8.29B | 17.83 | 19.44% | 1.55% | -5.35% | -13.51% | |
68 Neutral | $4.61B | 28.40 | 6.42% | 4.36% | -6.93% | -65.66% | |
67 Neutral | $4.62B | 17.18 | 45.91% | 2.52% | -1.75% | -21.15% | |
61 Neutral | $14.61B | 18.35 | 20.60% | 4.91% | -3.54% | 25.25% | |
60 Neutral | $2.75B | 16.13 | 10.09% | 3.68% | 6.88% | -39.67% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
SEE
Sealed Air
31.93
-4.85
-13.19%
GEF
Greif Class A
57.55
-5.05
-8.07%
PKG
Packaging
206.65
23.61
12.90%
SON
Sonoco Products
47.75
-7.48
-13.54%
BERY
Berry Global Group
73.03
18.27
33.36%
AMCR
Amcor
10.29
1.27
14.08%
Sealed Air Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -0.62% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
Sealed Air delivered strong performance in its food segment and exceeded overall expectations for the quarter, showing consistent improvements over six quarters. However, the company faces significant challenges in its protective segment, with sales and EBITDA declines, along with external pressures from FX and tariffs.Highlights
Exceeded Fourth Quarter Expectations
Sealed Air exceeded its Q4 2024 expectations, coming in higher than the guided midpoint across adjusted EBITDA, adjusted EPS, and free cash flow, and achieving constant currency sales growth.
Consistent Performance
The company has consistently delivered against expectations for six straight quarters, reflecting improved discipline, fundamentals, and better commercial execution.
Strong Performance in Food Segment
Food sales were up 5% organically in Q4 2024, with adjusted EBITDA up 7% and a margin increase of 70 basis points.
Successful Cost Takeout Actions
Achieved $89 million in cost takeout actions in 2024, with plans for an additional $90 million in 2025.
Lowlights
Challenges in Protective Segment
Protective sales were down 7% in Q4 2024, with adjusted EBITDA declining by 26% due to lower volume and unfavorable net price realization.
Pressure on Shrink Bags Business
The North American beef cycle is expected to compress, putting pressure on shrink bag volumes.
Currency and Tariff Headwinds
FX headwinds and potential impacts of tariffs are creating uncertainties, with FX expected to be a 2% unfavorable impact on adjusted EBITDA for 2025.
Adjusted EPS Decline
Adjusted EPS for Q4 2024 was down 15% compared to the previous year, primarily due to higher tax rates.
Company Guidance
During the Q4 2024 Sealed Air earnings call, the management provided guidance for 2025, emphasizing continued efforts in their transformation journey. Despite a 2% decline in sales, the company achieved mid-single-digit adjusted EBITDA growth, surpassing expectations in adjusted EBITDA, adjusted EPS, and free cash flow while maintaining constant currency sales growth. For 2025, Sealed Air anticipates a 1% sales growth at the midpoint, excluding a 2% FX headwind, with adjusted EBITDA projected to grow by approximately 1% year-over-year. The company aims for deleveraging its balance sheet to three times over the next two years and expects to maintain a strong free cash flow conversion. In food, they target mid-single-digit earnings growth, leveraging innovations in automation and sustainability, despite potential pressures in the North American beef cycle. In protective, they foresee a second-half volume inflection, focusing on stabilizing the business and optimizing cost structures, including closing two plants by year-end. The leadership emphasized a shift towards a high-performing, accountable culture, with efforts to enhance commercial execution and service levels across both business segments.Sealed Air Corporate Events
Executive/Board Changes
Sealed Air COO Emile Chammas to Depart April 2025
Neutral
Mar 3, 2025
On February 26, 2025, Sealed Air Corporation announced that Emile Chammas, the Senior Vice President and Chief Operating Officer, will be leaving his position on April 1, 2025. The company confirmed that there will be no changes to Mr. Chammas’ severance package, and additional considerations were made to fully vest his restricted stock unit award as part of his departure agreement.
Executive/Board ChangesBusiness Operations and Strategy
Sealed Air Appoints Dustin Semach as New CEO
Positive
Feb 14, 2025
Sealed Air Corporation announced leadership changes with Dustin Semach appointed as the new CEO, effective February 12, 2025, succeeding Patrick Kivits. Semach, who was previously the President and CFO, will focus on enhancing customer-centric strategies and operational efficiency. The transition aligns with the company’s strategy of revitalizing its commercial approach and optimizing cost structures. Veronika Johnson has been named Interim CFO while the company searches for a permanent replacement. The leadership transition indicates a continued commitment to driving profitable growth and shareholder value, as Sealed Air reaffirms its financial guidance for 2024.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.