Silgan Holdings (SLGN) AI Stock Analysis

• Market Cap: $5.02B
• Dividend Yield: 1.66%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.67
• Revenue Growth: 5.49%
• EPS Growth: -1.01%
• Country: US
• Employees: 17,315
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Packaging & Containers
• EPS (TTM): 1.01
• Shares Outstanding: 106,993,180
• 10 Day Avg. Volume: 939,656
• 30 Day Avg. Volume: 1,218,732
• PEG Ratio: -1.48
• Price to Book (P/B): 2.80
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 12.14
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 9.57
• Enterprise Value/Ebitda: 15.00
• 1Y Price Target: $59.57
• Price Target Upside: 26.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $48.00 ▲(2.30% Upside)

Silgan Holdings' overall stock score is primarily influenced by stable financial performance and recent corporate events that reflect confidence in its strategic direction. However, technical indicators suggest a bearish trend, and valuation metrics are moderate. The earnings call provided mixed signals, with strong segment performance offset by revised guidance due to external challenges.

Positive Factors

Acquisitions

Silgan's acquisition of Weener is expected to contribute an additional $100 million to EBITDA annually, boosting financial performance.

Financial Performance

SLGN's diverse portfolio, featuring niche businesses with innovative and low-cost manufacturing, offers resilience in challenging macroeconomic conditions.

Strategic Initiatives

The sale of Custom Containers would provide SLGN with more resources to pursue attractive acquisition opportunities, enhancing growth in its dispensing systems and closures portfolio.

Negative Factors

Cash Flow

The free cash flow outlook was reduced from $450 million to $430 million, indicating potential challenges in cash generation.

Earnings Guidance

SLGN surprised investors with an unexpected guidance cut due to a metal can customer's Chapter 11 filing and reduced near-term expectations for isotonic beverages in North America.

Earnings Impact

SLGN's earnings guidance was adversely impacted by a Chapter 11 filing from a key customer, leading to a $10 million impact.

Silgan Holdings Business Overview & Revenue Model

Company Description

Silgan Holdings Inc. is a leading supplier of rigid packaging for food, beverages, and other consumer goods. Founded in 1987 and headquartered in Stamford, Connecticut, the company operates through three primary segments: metal container manufacturing, plastic container manufacturing, and closures. Silgan is recognized for its innovative packaging solutions, including metal and plastic containers and closures that cater to the needs of various industries, emphasizing sustainability and efficiency in packaging.

How the Company Makes Money

Silgan Holdings generates revenue primarily through the sale of its packaging products across its three segments. The metal container segment contributes significantly to the company's earnings by supplying cans for food and beverage products, serving a diverse clientele including major consumer brands. The plastic container segment provides bottles and jars for food, personal care, and household products, leveraging trends in consumer preferences for lightweight and recyclable materials. Additionally, the closures segment offers various types of closures that enhance product preservation and usability. Silgan's revenue model is bolstered by long-term contracts with key customers, which provide a steady income stream. The company also focuses on strategic acquisitions to expand its product offerings and market reach, enhancing its competitive position in the packaging industry. Overall, Silgan's commitment to innovation, sustainability, and customer satisfaction plays a critical role in driving its financial performance.

Silgan Holdings Financial Statement Overview

Summary

Silgan Holdings demonstrates solid financial performance with consistent revenue growth and strong operational efficiency. Despite moderate net profitability and high leverage, the company maintains strong returns on equity and stable cash generation.

Income Statement

Silgan Holdings has shown consistent revenue growth with a TTM revenue surpassing previous annual figures, indicating positive momentum. The gross profit margin for the TTM is at 17.63%, reflecting strong cost management. However, the net profit margin stands at a moderate 4.82%, suggesting room for improvement in overall profitability. The EBIT and EBITDA margins are healthy at 9.86% and 14.49% respectively, showcasing efficient operations. The company has managed to increase its revenue from the previous period, which is a positive indicator of growth.

Balance Sheet

The debt-to-equity ratio is quite high at 2.22, which indicates a reliance on debt financing and potential risk in financial stability. However, the return on equity is robust at 13.88%, demonstrating effective use of equity to generate profits. The equity ratio is 23.76%, suggesting that a significant portion of the company’s assets is financed through debt. While leverage is a concern, the company’s ability to generate returns on equity remains a strong point.

Cash Flow

The company has experienced a decline in free cash flow growth with a TTM free cash flow of $315.85 million compared to the previous annual figure. However, the operating cash flow to net income ratio is strong at 2.03, indicating efficient cash generation from operations relative to net income. The free cash flow to net income ratio is at 1.09, showing that the company is generating enough free cash flow to cover its net income. Overall, cash flows remain stable despite the decrease in free cash flow, with strong operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.16B	5.85B	5.99B	6.41B	5.68B	4.92B
Gross Profit	1.10B	1.01B	992.56M	1.05B	918.40M	867.40M
EBITDA	703.06M	789.92M	858.67M	964.03M	846.44M	770.01M
Net Income	302.05M	276.38M	325.96M	340.85M	359.08M	308.72M
Balance Sheet
Total Assets	9.41B	8.58B	7.61B	7.35B	7.77B	6.52B
Cash, Cash Equivalents and Short-Term Investments	317.50M	822.85M	642.92M	585.60M	631.40M	409.50M
Total Debt	5.05B	4.36B	3.43B	3.51B	3.79B	3.25B
Total Liabilities	7.19B	6.60B	5.72B	5.63B	6.21B	5.27B
Stockholders Equity	2.22B	1.99B	1.89B	1.72B	1.56B	1.25B
Cash Flow
Free Cash Flow	56.87M	459.09M	255.79M	532.60M	324.50M	378.30M
Operating Cash Flow	343.87M	721.87M	482.60M	748.40M	556.80M	602.50M
Investing Cash Flow	-1.19B	-1.18B	-223.81M	-215.60M	-976.00M	-1.16B
Financing Cash Flow	847.46M	662.52M	-211.39M	-569.60M	648.60M	759.90M

Silgan Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 46.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLGN, the sentiment is Neutral. The current price of 46.92 is above the 20-day moving average (MA) of 46.46, below the 50-day MA of 51.23, and below the 200-day MA of 52.34, indicating a neutral trend. The MACD of -1.25 indicates Negative momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 57.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SLGN.

Silgan Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REYN	73 Outperform	$4.88B	15.71	14.85%	3.96%	-0.49%	-13.92%
GPK	67 Neutral	$6.60B	12.61	17.71%	1.89%	-5.05%	-24.52%
SON	66 Neutral	$4.66B	30.97	3.98%	4.44%	0.90%	-118.86%
SEE	65 Neutral	$4.78B	15.92	37.35%	2.46%	-2.00%	-18.50%
Sector *	61 Neutral	$17.64B	14.17	-5.23%	3.04%	1.43%	-15.11%
SLGN	61 Neutral	$5.02B	16.66	14.54%	1.66%	5.49%	-1.01%
AMBP	58 Neutral	$2.21B	―	-69.06%	10.84%	8.39%	72.18%

Silgan Holdings Corporate Events

Silgan Holdings Declares Quarterly Cash Dividend

On August 5, 2025, Silgan Holdings Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on September 16, 2025, to shareholders of record as of September 2, 2025. This marks the 86th consecutive quarterly dividend payment since 2004, reflecting the company’s consistent financial performance and commitment to returning value to shareholders.

Silgan Holdings President Resigns Amid Leadership Change

On June 3, 2025, Thomas J. Snyder, President of Silgan Containers, announced his resignation to pursue another opportunity, with his last day being June 4, 2025. This leadership change may impact Silgan Holdings‘ operations and its market positioning within the metal container industry.

Silgan Holdings Stockholders Approve Key Governance Decisions

On May 27, 2025, Silgan Holdings held its annual meeting of stockholders, where key decisions were made regarding the company’s governance and financial oversight. The stockholders elected three directors to the Board to serve until 2028, ratified the appointment of Ernst & Young LLP as the independent accounting firm for the fiscal year 2025, and approved the compensation of the Named Executive Officers, reflecting confidence in the company’s leadership and strategic direction.