Sealed Air (SEE) AI Stock Analysis

• Market Cap: $6.33B
• Dividend Yield: 1.86%
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.99
• Revenue Growth: -1.22%
• EPS Growth: -0.76%
• Country: US
• Employees: 16,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.87
• Shares Outstanding: 147,123,210
• 10 Day Avg. Volume: 5,372,420
• 30 Day Avg. Volume: 2,816,336
• PEG Ratio: -0.87
• Price to Book (P/B): 7.88
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 9.69
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $43.27
• Price Target Upside: 0.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 3.31
• Revenue Forecast (FY): $5.30B

• Rating: 65 Neutral
• Price Target: $46.00 ▲(6.95% Upside)

Sealed Air's strong financial performance and attractive valuation are offset by technical indicators suggesting overbought conditions and challenges highlighted in the earnings call. Continued focus on cost management and strategic initiatives will be crucial for future growth.

Positive Factors

Improved Leverage Management

Improved leverage management enhances financial stability and flexibility, allowing Sealed Air to invest in growth opportunities and withstand economic fluctuations.

Strong Free Cash Flow Growth

Strong free cash flow growth indicates effective cash generation, providing the company with the ability to fund operations, pay down debt, and invest in strategic initiatives.

Protective Segment Volume Growth

Growth in the Protective segment suggests successful market strategies and product demand, supporting long-term revenue stability and expansion.

Negative Factors

Declining Profitability Margins

Decreasing margins can pressure earnings and limit reinvestment capabilities, potentially affecting long-term competitiveness and financial health.

Food Segment Challenges in North America

Challenges in the North American food segment may hinder revenue growth and profitability, impacting Sealed Air's market position in a key region.

Negative Net Price Realization

Negative net price realization can erode profit margins, affecting long-term financial performance and necessitating cost management strategies.

Sealed Air Business Overview & Revenue Model

Company Description

Sealed Air Corporation (SEE) is a global leader in packaging solutions, specializing in protective packaging materials and systems that ensure the safe transportation and preservation of products across various industries. Founded in 1960, the company operates through several segments, including Food Care and Product Care, offering innovative products such as Bubble Wrap, Cryovac food packaging, and automated packaging solutions. Sealed Air serves a diverse clientele, including food manufacturers, e-commerce businesses, and manufacturers in sectors such as healthcare and electronics.

How the Company Makes Money

Sealed Air generates revenue primarily through the sale of its packaging products and solutions. Key revenue streams include the Food Care segment, which focuses on packaging for perishable goods, and the Product Care segment, which provides protective packaging solutions for various industries. The company employs a strategic pricing model that reflects the value of its innovative products and the cost savings they provide to customers. Additionally, Sealed Air has established significant partnerships with major retailers and manufacturers, enhancing its distribution network and increasing market penetration. Factors contributing to its earnings include the growing demand for sustainable packaging solutions, the expansion of e-commerce, and ongoing investments in research and development to innovate new products that meet changing customer needs.

Sealed Air Financial Statement Overview

Summary

Sealed Air shows strong revenue growth and improved leverage management, with a significant increase in free cash flow. However, declining profitability margins and reliance on debt financing are concerns.

Income Statement

Sealed Air's income statement shows a solid performance with a TTM gross profit margin of 30.1% and a net profit margin of 7.2%. The company has demonstrated a positive revenue growth rate of 11.6% in the TTM period, indicating a strong recovery from previous declines. However, the EBIT and EBITDA margins have decreased compared to previous years, suggesting potential cost pressures.

Balance Sheet

The balance sheet reflects a significant improvement in the debt-to-equity ratio, which decreased to 0.25 in the TTM period, indicating better leverage management. The return on equity remains strong at 43.2%, showcasing efficient use of equity. However, the equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

Cash flow analysis reveals a robust free cash flow growth rate of 115.3% in the TTM period, highlighting improved cash generation. The operating cash flow to net income ratio is moderate at 0.27, while the free cash flow to net income ratio is healthy at 0.65, indicating good cash conversion. However, the operating cash flow has decreased compared to previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.33B	5.39B	5.49B	5.64B	5.53B	4.90B
Gross Profit	1.59B	1.63B	1.64B	1.77B	1.68B	1.61B
EBITDA	975.70M	987.30M	940.60M	1.08B	1.08B	974.80M
Net Income	385.00M	264.70M	341.60M	491.60M	506.80M	502.90M
Balance Sheet
Total Assets	7.08B	7.02B	7.20B	6.21B	6.23B	6.08B
Cash, Cash Equivalents and Short-Term Investments	282.50M	371.80M	346.10M	456.10M	561.00M	548.70M
Total Debt	4.27B	4.51B	4.79B	3.75B	3.77B	3.84B
Total Liabilities	5.89B	6.40B	6.65B	5.87B	5.98B	5.91B
Stockholders Equity	1.19B	624.50M	549.50M	344.10M	248.70M	172.50M
Cash Flow
Free Cash Flow	385.90M	507.80M	272.00M	376.00M	496.60M	555.90M
Operating Cash Flow	578.60M	728.00M	516.20M	613.30M	709.70M	737.00M
Investing Cash Flow	-169.00M	-232.50M	-1.38B	-243.00M	-125.70M	-159.80M
Financing Cash Flow	-513.80M	-432.80M	755.70M	-446.70M	-575.80M	-261.70M

Sealed Air Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEE, the sentiment is Positive. The current price of 43.01 is above the 20-day moving average (MA) of 39.24, above the 50-day MA of 36.45, and above the 200-day MA of 31.94, indicating a bullish trend. The MACD of 2.25 indicates Negative momentum. The RSI at 70.04 is Negative, neither overbought nor oversold. The STOCH value of 69.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEE.

Sealed Air Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLGN	66 Neutral	$4.18B	13.44	14.58%	2.03%	11.10%	6.54%
SEE	65 Neutral	$6.33B	15.99	40.42%	1.86%	-1.22%	-0.76%
GPK	64 Neutral	$4.76B	9.50	16.24%	2.67%	-3.93%	-27.37%
SON	63 Neutral	$4.12B	4,310.31	6.39%	5.05%	8.31%	-99.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AMBP	56 Neutral	$2.24B	―	―	10.67%	10.34%	87.86%
OI	54 Neutral	$2.07B	―	-10.92%	―	-2.82%	65.31%

Sealed Air Corporate Events

Sealed Air Reports Strong Q3 2025 Earnings Growth

Sealed Air Corporation is a global leader in packaging solutions, providing sustainable, high-performance materials and automation services across various industries, including food, medical, and e-commerce. The company is renowned for its innovative packaging brands like CRYOVAC and BUBBLE WRAP.

Sealed Air’s Earnings Call: Growth Amid Challenges

Sealed Air’s recent earnings call painted a mixed picture for the company, highlighting both positive developments and ongoing challenges. The sentiment expressed during the call was cautiously optimistic, with growth in protective materials and foodservice volumes, alongside strong financial performance and competitive wins. However, these positives were tempered by difficulties in the Food segment, particularly in North America, as well as broader macroeconomic uncertainties and negative net price realization. The company’s strategic initiatives and transformation efforts are showing promise, but they are set against a backdrop of significant market pressures.