Silgan Holdings (SLGN) AI Stock Analysis

• Market Cap: $4.44B
• Dividend Yield: 1.97%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.59
• Revenue Growth: 11.10%
• EPS Growth: 6.54%
• Country: US
• Employees: 17,315
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.67
• Shares Outstanding: 105,441,970
• 10 Day Avg. Volume: 878,745
• 30 Day Avg. Volume: 1,044,441
• PEG Ratio: 3.19
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 10.09
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 6.94
• Enterprise Value/Ebitda: 8.69
• 1Y Price Target: $54.57
• Price Target Upside: 29.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 3.81
• Revenue Forecast (FY): $6.66B

• Rating: 63 Neutral
• Price Target: $45.00 ▲(6.89% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by mixed fundamentals: strong and improving free cash flow but weakened by a sharp 2025 revenue decline and elevated leverage. Technicals are supportive (uptrend with positive MACD) though momentum is stretched (RSI/Stoch high). Guidance points to modest 2026 improvement, but higher interest expense and a softer Q1 outlook temper the near-term profile.

Positive Factors

Strong free cash flow generation

A roughly 33% increase in free cash flow in 2025 indicates durable cash conversion ability, supporting reinvestment, planned capex (~$310M) and continued shareholder returns. Strong FCF underpins deleveraging, funds bolt-on investments and cushions working-capital variability over the medium term.

Successful M&A integration and cost programs

Realized run-rate synergies from the Vayner deal and completion of multi-year cost programs yield persistent lower unit costs and higher operating efficiency. Achieved integration reduces execution risk on acquisitions, increases margin resilience and improves the return profile of future M&A opportunities.

Diversified segment strength with margin expansion

Custom Containers' record profitability and ~150bps margin expansion show the company can lift margins through product mix and cost control. Combined with robust DSC and metal-container performance, diversified segments reduce reliance on any single end market and sustain earnings through cycles.

Negative Factors

Sharp 2025 revenue decline

A ~20.7% top-line contraction in 2025 is a material structural headwind: revenue loss erodes operating leverage, pressures net margins and requires sustained volume or price recovery to restore prior profitability. Recovery will likely take multiple quarters and constrain margin expansion prospects.

Elevated leverage remains

Debt-to-equity near 1.9x limits financial flexibility and leaves the company more exposed to cyclical shocks. Although improved from earlier years, elevated absolute debt increases refinancing and covenant risk, constraining aggressive buybacks or large organic investments without incremental deleveraging.

Rising interest expense from upcoming maturities

Guidance for materially higher interest expense (~$205M) due to a note maturity will structurally reduce net income and free cash available for reinvestment. Elevated financing costs can compress margins and slow deleveraging, making cash generation and working-capital management more critical over the medium term.

Silgan Holdings Business Overview & Revenue Model

Company Description

Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for use in food, beverage, health care, garden, home, personal care, and beauty products, as well as capping/sealing equipment and detection systems. The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive; and marine chemical products. This segment also provides plastic thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products, including soft fabric wipes. The company markets its products primarily through direct sales force, as well as through a network of distributors and an online shopping catalog. Silgan Holdings Inc. was founded in 1987 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

Silgan makes money by manufacturing and selling rigid packaging products to brand owners and contract packers, generating revenue largely from high-volume, repeat purchase orders tied to customers’ ongoing production of packaged consumer goods. Key revenue streams include: - Metal Containers: Sales of steel and aluminum containers (e.g., food cans and specialty containers). Revenue is earned per unit shipped under customer supply arrangements, with demand influenced by packaged food consumption, customer production schedules, and the mix of container formats. - Closures (Metal Closures): Sales of metal closures such as lids, ends, and caps used on glass jars, cans, and other containers. Earnings come from supplying closures at scale, typically as recurring consumables aligned with customers’ filled-product volumes. - Plastic Containers: Sales of custom plastic bottles, containers, and related packaging components. Revenue is generated through production and sale of plastic packaging tailored to customer specifications for categories such as food, household, and personal care. Factors that contribute to earnings include operating leverage from high-throughput manufacturing, the ability to run long production programs for large customers, and pricing mechanisms that may reflect changes in key input costs (e.g., metals or resins) where contract terms allow. Significant partnerships or customer concentration details are null.

Silgan Holdings Financial Statement Overview

Summary

Cash generation is a relative strength (FCF up ~33% in 2025 and generally positive), but financial performance is held back by a sharp 2025 revenue decline (~-20.7%), lower net margins (~4.4% in 2025 vs. ~6% in 2020–2021), and still-elevated leverage (~1.9x debt-to-equity in 2025) despite improvement.

Income Statement

Profitability is steady for the sector, with gross margin improving from ~16.6% (2023) to ~17.7% (2025) and EBITDA margin holding in the mid-teens (about 14% in 2025). However, revenue momentum is a clear weak spot: after modest declines in 2023–2024, 2025 revenue fell sharply (about -20.7%), and net margin has trended lower versus earlier years (roughly 6% in 2020–2021 down to ~4.4% in 2025). Overall, earnings quality is acceptable, but the top-line contraction and margin compression at the net level reduce the score.

Balance Sheet

Leverage remains elevated, with debt running at roughly ~1.9x equity in 2025 (and above 2x in several prior years), which limits financial flexibility. A positive offset is improving capitalization: equity has grown meaningfully since 2020, and debt-to-equity has come down from the ~2.8x range (2020) to under ~2.0x (2025). Returns on equity remain solid (low-to-mid teens recently), but the balance sheet is still burdened by high absolute debt, keeping risk higher than ideal.

Cash Flow

Cash generation is a relative strength: free cash flow increased strongly in 2025 (about +33%) and has generally been positive across the period. That said, cash conversion is not consistently strong—free cash flow has been well below net income in recent years (about 0.58x in 2025), suggesting working-capital swings and/or higher investment or other cash uses. Operating cash flow also covers a modest portion of debt (about 0.40 in 2025), which is helpful but not robust given the company’s leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.48B	5.85B	5.99B	6.41B	5.68B
Gross Profit	1.15B	1.01B	992.56M	1.05B	918.42M
EBITDA	920.30M	789.92M	858.67M	863.27M	825.10M
Net Income	288.40M	276.38M	325.96M	340.85M	359.08M
Balance Sheet
Total Assets	9.40B	8.58B	7.61B	7.35B	7.77B
Cash, Cash Equivalents and Short-Term Investments	1.08B	822.85M	642.92M	585.62M	631.44M
Total Debt	4.62B	4.36B	3.66B	3.64B	4.03B
Total Liabilities	7.12B	6.60B	5.72B	5.63B	6.21B
Stockholders Equity	2.27B	1.99B	1.89B	1.72B	1.56B
Cash Flow
Free Cash Flow	422.70M	459.09M	255.79M	532.65M	324.50M
Operating Cash Flow	729.80M	721.87M	482.60M	748.41M	556.80M
Investing Cash Flow	-297.30M	-1.18B	-223.81M	-215.60M	-976.00M
Financing Cash Flow	-207.50M	662.52M	-211.39M	-569.59M	648.60M

Silgan Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLGN, the sentiment is Negative. The current price of 42.1 is below the 20-day moving average (MA) of 45.49, below the 50-day MA of 44.72, and below the 200-day MA of 45.16, indicating a bearish trend. The MACD of -1.10 indicates Positive momentum. The RSI at 34.19 is Neutral, neither overbought nor oversold. The STOCH value of 17.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLGN.

Silgan Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SON	71 Outperform	$5.29B	10.96	32.44%	4.33%	8.31%	-99.39%
SLGN	63 Neutral	$4.44B	14.78	13.03%	1.97%	11.10%	6.54%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SEE	60 Neutral	$6.16B	12.04	48.39%	1.94%	-1.22%	-0.76%
REYN	60 Neutral	$4.47B	16.01	13.83%	3.97%	0.76%	-17.69%
GPK	58 Neutral	$2.90B	15.73	13.67%	2.91%	-3.93%	-27.37%
AMBP	57 Neutral	$2.53B	-38.25	-2.78%	9.90%	10.34%	87.86%

Silgan Holdings Corporate Events

Silgan Holdings Raises Quarterly Dividend for 22nd Year

On February 24, 2026, Silgan Holdings Inc. announced that its board approved a 5 percent increase in its quarterly cash dividend to $0.21 per share, marking the 22nd consecutive annual dividend increase since cash dividends began in 2004. The dividend will be paid on March 31, 2026, to shareholders of record as of March 17, 2026, extending the company’s record to 88 consecutive quarterly dividend payments.

The move underscores Silgan’s continued strong financial performance and stable cash generation, reinforcing its shareholder-return track record in the packaging sector. The sustained pattern of annual dividend growth and uninterrupted quarterly payouts highlights management’s confidence in the business and may enhance the company’s appeal to income-focused investors and support its standing among peers in the rigid packaging industry.

The most recent analyst rating on (SLGN) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on Silgan Holdings stock, see the SLGN Stock Forecast page.