Sealed Air (SEE) AI Stock Analysis

• Market Cap: $6.18B
• Dividend Yield: 1.94%
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.96
• Revenue Growth: -1.22%
• EPS Growth: -0.76%
• Country: US
• Employees: 16,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.77
• Shares Outstanding: 147,271,150
• 10 Day Avg. Volume: 2,652,941
• 30 Day Avg. Volume: 2,657,305
• PEG Ratio: 0.14
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 13.27
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 4.17
• Enterprise Value/Ebitda: 9.17
• 1Y Price Target: $44.38
• Price Target Upside: 5.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.4
• Revenue Forecast (FY): $5.38B

• Rating: 58 Neutral
• Price Target: $44.00 ▲(4.86% Upside)
• Action: Downgraded Date: 03/02/26
• Date: Action: Downgraded 03/02/26

The score is held back primarily by balance-sheet leverage and weaker recent cash-flow trends, despite improved TTM profitability. Offsetting factors include neutral-to-positive technicals, reasonable valuation, slightly constructive guidance with productivity support, and a positive take-private approval event.

Positive Factors

Market leadership & diversified portfolio

Sealed Air's broad, multi-segment platform (protective, food, and cleaning/hygiene) creates structural resilience across end markets. Diversification reduces reliance on any single demand cycle, supports cross-selling, and sustains revenue streams as customers seek integrated packaging and hygiene solutions.

TTM revenue rebound and improved margins

A material TTM revenue rebound and higher net income reflect regained demand and improved operating leverage. Sustained margins near 30% show product mix and pricing can support profitability, providing a firmer base for free cash flow and investment even if growth moderates from cyclical peaks.

Protective segment commercial wins and execution

Large national-account wins and the first year-over-year growth in Protective since 2021 indicate durable go-to-market strength and sticky customer relationships. These high-value contracts typically generate recurring revenue and improve utilization of production and distribution assets over multiple quarters.

Negative Factors

Elevated leverage / thin equity base

High leverage and a thin equity base constrain strategic flexibility, increasing refinancing and covenant risk if earnings slip. Leverage amplifies returns in good years but materially raises downside risk to investment-grade credit metrics and limits capacity for opportunistic M&A or capital deployment.

Weakened operating and free cash flow

Significant FCF deterioration and low operating cash conversion versus net income reduce the company's ability to de-lever, invest, or return capital. Structural working-capital variability and weaker cash conversion lower confidence in consistent funding of capex, dividends, or debt paydown over the medium term.

Food segment volume pressure & price headwinds

Sustained volume declines and negative net price realization in Food (notably North America) point to structural demand shifts and margin pressure. If consumer rotation to value channels and commodity cycles persist, food-packaging volumes and pricing power could remain constrained, dampening segment cash flow durability.

Sealed Air Business Overview & Revenue Model

Company Description

Sealed Air Corporation provides food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Food and Protective. The Food segment offers integrated packaging materials and automation equipment solutions to provide food safety and shelf life extension, reduce food waste, automate processes, and optimize total cost for food processors in the fresh red meat, smoked and processed meats, poultry, seafood, plant-based, and dairy markets under the CRYOVAC, CRYOVAC Grip & Tear, CRYOVAC Darfresh, Simple Steps, and Optidure brands. This segment sells its solutions directly to customers through its sales, marketing, and customer service personnel. The Protective segment provides foam, inflatable, suspension and retention, temperature assurance packaging solutions to protect goods to e-commerce, consumer goods, pharmaceutical and medical devices, and industrial manufacturing markets under the SEALED AIR, BUBBLE WRAP, AUTOBAG, SEALED AIR, AUTOBAG, Instapak, Korrvu, Kevothermal, and TempGuard brands. This segment sells its solutions through supply distributors, as well as directly to fabricators, original equipment manufacturers, contract manufacturers, logistics partners, and e-commerce/fulfillment operations. Sealed Air Corporation was incorporated in 1960 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

Sealed Air generates revenue primarily through the sale of its packaging products and solutions across its various business segments. Key revenue streams include the Food Care segment, which provides packaging solutions that extend the shelf life of food products, and the Product Care segment, which offers protective packaging materials for e-commerce and industrial applications. The company also derives income from its Diversey Holdings segment, which focuses on cleaning and hygiene solutions. Significant partnerships with major retailers and manufacturers, as well as ongoing innovation in sustainable packaging solutions, contribute to Sealed Air's earnings by meeting the evolving demands of customers and helping them optimize their supply chain efficiencies.

Sealed Air Financial Statement Overview

Summary

Income statement trends improved with a sharp TTM revenue rebound and higher net income, but overall financial quality is constrained by historically high leverage (thin equity base) and a recent deterioration in operating/free cash flow, which reduces flexibility and confidence in consistency.

Income Statement

TTM (Trailing-Twelve-Months) revenue rebounded sharply (+52.9%), and profitability improved versus 2024, with net income rising to $505.5M (from $264.7M). Margins are healthy for the group (TTM gross margin ~29.8% and net margin ~7.2%), but they remain below the stronger 2020–2022 period when margins were higher. A key weakness is the choppy top-line trend in recent years (declines in 2023–2024 before the TTM jump), suggesting less consistent demand/pricing momentum.

Balance Sheet

Leverage is the main constraint: debt relative to equity is elevated across the annual periods (roughly 7x–22x), indicating a thin equity base and reduced balance-sheet flexibility. While TTM shows a much lower total debt figure and a better debt-to-equity level (~3.6x) versus prior years, leverage still screens high and remains a risk if earnings or cash generation softens. Returns on equity are very high, but they are amplified by the low equity base rather than purely by operating strength.

Cash Flow

Cash generation weakened in TTM (Trailing-Twelve-Months): operating cash flow fell to $334.4M and free cash flow to $200.8M, with free cash flow down ~48% versus the prior period. Cash conversion is mixed—free cash flow is about two-thirds of net income (supportive), but operating cash flow is low relative to net income (well under 1x), raising questions about working-capital swings or timing effects. Prior years show healthier absolute operating and free cash flow, but the recent deterioration lowers confidence in near-term consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.36B	5.39B	5.49B	5.64B	5.53B
Gross Profit	1.60B	1.63B	1.64B	1.77B	1.68B
EBITDA	695.40M	987.30M	940.60M	1.08B	1.08B
Net Income	505.50M	264.70M	341.60M	491.60M	506.80M
Balance Sheet
Total Assets	7.01B	7.02B	7.20B	6.21B	6.23B
Cash, Cash Equivalents and Short-Term Investments	344.00M	371.80M	346.10M	456.10M	561.00M
Total Debt	815.20M	4.51B	4.79B	3.75B	3.77B
Total Liabilities	5.78B	6.40B	6.65B	5.87B	5.98B
Stockholders Equity	1.24B	624.50M	549.50M	344.10M	248.70M
Cash Flow
Free Cash Flow	458.50M	507.80M	272.00M	376.00M	496.60M
Operating Cash Flow	628.00M	728.00M	516.20M	613.30M	709.70M
Investing Cash Flow	-133.60M	-232.50M	-1.38B	-243.00M	-125.70M
Financing Cash Flow	-567.60M	-432.80M	755.70M	-446.70M	-575.80M

Sealed Air Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 41.96 is above the 20-day moving average (MA) of 41.90, above the 50-day MA of 41.71, and above the 200-day MA of 35.82, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 47.20 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
SON	71 Outperform	$5.56B	14.19	20.07%	4.33%	8.31%	-99.39%
GEF	63 Neutral	$3.71B	19.30	2.08%	3.19%	-17.63%	-80.32%
SLGN	63 Neutral	$5.12B	17.79	13.53%	1.97%	11.10%	6.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
REYN	60 Neutral	$5.11B	17.34	13.70%	3.97%	0.76%	-17.69%
SEE	58 Neutral	$6.18B	15.57	40.42%	1.94%	-1.22%	-0.76%
GPK	58 Neutral	$3.47B	8.26	13.99%	2.91%	-3.93%	-27.37%

Sealed Air Corporate Events

Sealed Air Shareholders Approve Take-Private Acquisition by CD&R

On February 25, 2026, Sealed Air stockholders held a special meeting to vote on proposals connected to the company’s planned acquisition by an affiliate of private equity firm Clayton, Dubilier & Rice. Shareholders approved the merger agreement with 114.6 million votes in favor versus 1.1 million against, and also backed on an advisory basis the merger‑related compensation for Sealed Air’s named executive officers.

The strong level of support, with nearly 79% of outstanding shares represented, paves the way for Sealed Air to be taken private and become a wholly owned subsidiary of the CD&R‑affiliated buyer. The deal, which remains subject to customary closing conditions and required regulatory approvals, could reshape the company’s capital structure and strategic flexibility while potentially affecting relationships with customers, employees and other stakeholders as the transaction moves toward closing.

The most recent analyst rating on (SEE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Sealed Air stock, see the SEE Stock Forecast page.

Sealed Air Issues Supplemental Disclosures Amid Merger Lawsuits

On November 16, 2025, Sealed Air agreed to be acquired by an affiliate of private equity firm Clayton, Dubilier & Rice, with a merger sub to be folded into Sealed Air so it becomes a wholly owned subsidiary, a deal unanimously approved by the board and detailed in a proxy statement mailed in January 2026. After the merger announcement, three shareholder lawsuits filed in New York courts between January 28 and February 4, 2026, and several demand letters alleged the proxy was materially misleading, prompting Sealed Air—while denying any wrongdoing—to issue detailed supplemental financial and valuation disclosures intended to head off delays or added risk to closing the transaction, and showing that the $42.15 per-share consideration sits near or above ranges implied by Evercore’s DCF, trading, transaction and separation analyses, as well as equity research price targets.

Evercore’s revised analyses, based on management projections and updated assumptions for cash flows, discount rates, multiples and liabilities, yield implied standalone equity value ranges that both bracket and in some cases fall below the agreed merger price, supporting the board’s view of deal fairness despite the litigation. The enhanced disclosure provides investors with more granular insight into Sealed Air’s projected performance, leverage and potential alternative strategies, including a hypothetical sale of its protective packaging unit, and is aimed at reducing legal uncertainty ahead of the shareholder vote on the private equity transaction.

The most recent analyst rating on (SEE) stock is a Buy with a $49.00 price target. To see the full list of analyst forecasts on Sealed Air stock, see the SEE Stock Forecast page.

Sealed Air accelerates executive compensation ahead of buyout

On November 16, 2025, Sealed Air Corporation agreed to be acquired via a merger by Sword Purchaser, LLC, an affiliate of private equity firm Clayton, Dubilier & Rice, with Sealed Air to become a wholly owned subsidiary upon completion of the transaction, which will be submitted to shareholders for approval. In anticipation of the merger and to mitigate potential adverse tax consequences under U.S. Internal Revenue Code Sections 280G and 4999, the board and its People & Compensation Committee on December 18, 2025 approved the acceleration of 2025 bonuses and 2026-vesting restricted stock units for key executives, including the CEO, CFO, and other senior officers, structured so that these accelerated amounts offset future entitlements and preserve the company’s tax deductions while reducing or eliminating excise taxes for executives. The accelerated compensation is subject to detailed repayment and true-up provisions that require executives to return all or part of the after-tax bonuses and equity value if performance targets are not met or if they resign without good reason or are terminated for cause before the dates when the awards would originally have vested, thereby aligning executive incentives and protecting the company’s financial position ahead of the proposed buyout.

The most recent analyst rating on (SEE) stock is a Hold with a $42.00 price target. To see the full list of analyst forecasts on Sealed Air stock, see the SEE Stock Forecast page.

Sealed Air Ends Go-Shop Period for Merger

On December 17, 2025, Sealed Air Corporation announced the expiration of the 30-day ‘go-shop’ period outlined in its merger agreement with funds affiliated with Clayton, Dubilier & Rice. The agreement, valuing the company at $10.3 billion, marks Sealed Air’s transition to becoming a privately-held entity, expected to close by mid-2026. The announcement, which involved soliciting alternative acquisition proposals without success, signals a significant shift in operations, positioning the company for potentially enhanced focus under private ownership, with implications for shareholders and its market standing.

The most recent analyst rating on (SEE) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Sealed Air stock, see the SEE Stock Forecast page.