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Silgan Holdings (SLGN)
NYSE:SLGN
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Silgan Holdings
(NYSE:SLGN)
Rating:73Outperform
Price Target:
$61.00
▲( 12.03% Upside)
Positive Factors
Acquisitions
Silgan's acquisition of Weener is expected to add more than $100m to EBITDA annually, enhancing financial performance.
Earnings
SLGN delivered Q4 EPS results ahead of the Street, with EPS FY'25 outlook in line with consensus.
Financial Performance
SLGN delivered a solid Q1 and reaffirmed its EPS growth, highlighting resilience amid macro uncertainty.
Negative Factors
Portfolio Optimization
The sale of Custom Containers would offer SLGN with more firepower to pursue more attractive acquisition opportunities.
Silgan Holdings (SLGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.83B
Dividend Yield1.41%
Average Volume (3M)717.15K
Price to Earnings (P/E)20.2
Beta (1Y)0.55
Revenue Growth1.99%
EPS Growth-5.30%
CountryUS
Employees17,315
SectorConsumer Cyclical
Sector Strength75
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.82
Shares Outstanding106,993,180
10 Day Avg. Volume550,451
30 Day Avg. Volume717,151
Financial Highlights & Ratios
PEG Ratio-3.03
Price to Book (P/B)2.74
Price to Sales (P/S)0.00
P/FCF Ratio11.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$62.38Price Target Upside14.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Silgan Holdings Business Overview & Revenue Model
Company DescriptionSilgan Holdings Inc. (SLGN) is a leading supplier of rigid packaging for consumer goods products. The company operates through three primary segments: metal containers, closures, and plastic containers. Silgan Holdings is known for providing packaging solutions to a wide range of markets, including food and beverage, household, healthcare, and personal care. With a strong presence in North America, Europe, and other international markets, Silgan is recognized for its commitment to innovation, quality, and customer service.
How the Company Makes MoneySilgan Holdings generates revenue primarily through the manufacturing and sale of packaging products. The company's key revenue streams include the production of metal containers, primarily for food products, closures for food and beverage as well as household and health care products, and plastic containers serving a variety of end markets. Silgan's revenue model is heavily reliant on long-term contracts with established consumer goods companies, ensuring a stable and recurring income. The company benefits from scale efficiencies and innovations in packaging technology, enhancing its competitive edge. Significant partnerships with major consumer packaged goods companies also contribute to Silgan's financial performance, as these collaborations often lead to long-term supply agreements and co-development of packaging solutions.
Silgan Holdings Financial Statement Overview
Summary
Silgan Holdings demonstrates strong financial health with consistent revenue growth and effective cash flow management. While profitability margins are stable, high leverage could be a concern, impacting balance sheet strength and financial flexibility.Income Statement
Silgan Holdings shows consistent revenue growth from 2019 to 2023, with a notable increase from 2020 to 2021. The gross profit margin has remained stable around 15-16%, indicating consistent cost management. Although the net profit margin has slightly decreased from 2021 to 2023, it is still robust at 5.44% in 2023. The EBIT and EBITDA margins reflect strong operational efficiency with stable figures over the years.78
Positive
Balance Sheet
The company's debt-to-equity ratio remains high, showing significant leverage with a ratio above 2 over the years, which could pose financial risks. However, the return on equity (ROE) has been strong, reaching 17.25% in 2023, indicating efficient use of equity. Equity ratio remains low due to high leverage, which could impact financial flexibility.65
Positive
Cash Flow
Silgan Holdings presents strong cash flow management with increasing operating cash flows and positive free cash flow throughout the years. The Free Cash Flow to Net Income ratio indicates a high conversion of net income into cash, enhancing liquidity and financial stability. The Free Cash Flow Growth Rate is positive, reflecting good cash generation capability.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.85B | 5.99B | 6.41B | 5.68B | 4.92B | Gross Profit |
| 1.01B | 992.56M | 1.05B | 918.40M | 867.40M | EBIT |
| 573.38M | 603.85M | 601.96M | 591.10M | 512.40M | EBITDA |
| 789.92M | 858.67M | 964.03M | 846.44M | 770.01M | Net Income Common Stockholders |
| 276.38M | 325.96M | 340.85M | 359.08M | 308.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 822.85M | 642.92M | 585.60M | 631.40M | 409.50M | Total Assets |
| 8.58B | 7.61B | 7.35B | 7.77B | 6.52B | Total Debt |
| 4.14B | 3.43B | 3.51B | 3.79B | 3.25B | Net Debt |
| 3.31B | 2.78B | 2.92B | 3.16B | 2.84B | Total Liabilities |
| 6.60B | 5.72B | 5.63B | 6.21B | 5.27B | Stockholders Equity |
| 1.99B | 1.89B | 1.72B | 1.56B | 1.25B |
| Cash Flow | Free Cash Flow | |||
| 459.09M | 255.79M | 532.60M | 324.50M | 378.30M | Operating Cash Flow |
| 721.87M | 482.60M | 748.40M | 556.80M | 602.50M | Investing Cash Flow |
| -1.18B | -223.81M | -215.60M | -976.00M | -1.16B | Financing Cash Flow |
| 662.52M | -211.39M | -569.60M | 648.60M | 759.90M |
Silgan Holdings Technical Analysis
Positive
54.45
Price Trends
51.49
Positive
52.09
Positive
52.02
Positive
Market Momentum
1.09
Positive
56.27
Neutral
41.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLGN, the sentiment is Positive. The current price of 54.45 is above the 20-day moving average (MA) of 54.18, above the 50-day MA of 51.49, and above the 200-day MA of 52.02, indicating a bullish trend. The MACD of 1.09 indicates Positive momentum. The RSI at 56.27 is Neutral, neither overbought nor oversold. The STOCH value of 41.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLGN.
Silgan Holdings Risk Analysis
Silgan Holdings disclosed 26 risk factors in its most recent earnings report. Silgan Holdings 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
Silgan Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.83B | 20.18 | 14.52% | 1.41% | 1.99% | -5.30% | |
73 Outperform | $4.62B | 13.81 | 16.30% | 4.18% | -0.97% | 1.45% | |
71 Outperform | $4.69B | 15.40 | 43.40% | 2.51% | -2.45% | -16.55% | |
71 Outperform | $2.29B | ― | -69.06% | 10.44% | 4.42% | 70.21% | |
70 Outperform | $4.51B | 29.69 | 5.54% | 4.55% | -4.58% | -61.14% | |
64 Neutral | $6.82B | 11.07 | 20.62% | 1.81% | -6.28% | -7.43% | |
62 Neutral | $6.84B | 11.23 | 3.09% | 3.95% | 2.66% | -25.23% |
* Consumer Cyclical Sector Average
Performance Comparison
SLGN
Silgan Holdings
54.45
8.52
18.55%
GPK
Graphic Packaging
22.59
-4.64
-17.04%
SEE
Sealed Air
31.89
-4.42
-12.17%
SON
Sonoco Products
45.69
-11.44
-20.02%
REYN
Reynolds Consumer Products
21.98
-4.76
-17.80%
AMBP
Ardagh Metal Packaging
3.83
0.46
13.65%
Silgan Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 3.81%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Silgan Holdings' strong financial performance in Q1 2025, driven by strategic acquisitions and organic growth across all segments. Despite some concerns about flat volume expectations in Metal Containers for Q2 and economic uncertainty, the overall outlook for 2025 remains positive, with significant growth anticipated in adjusted EPS and free cash flow.Q1-2025 Updates
Positive Updates
Record Financial Performance
Silgan Holdings reported record financial results for the first quarter of 2025, with net sales of approximately $1.5 billion, representing an 11% increase from the prior year period. Adjusted EBIT increased by 17%, and adjusted EPS grew by 19% to $0.82.
Strong Performance in Dispensing and Specialty Closures
The Dispensing and Specialty Closures segment saw a 25% increase in sales, primarily due to the Weener Packaging acquisition and a 4% increase in volume mix. This segment reported a 28% increase in adjusted EBIT.
Growth in Metal and Custom Containers
Metal Containers experienced a 2% increase in sales, driven by a 4% increase in unit volumes. Custom Containers also saw a 2% sales increase and a 22% rise in adjusted EBIT.
Positive Outlook for 2025
Silgan Holdings confirmed its estimate of adjusted EPS in the range of $4 to $4.20 for 2025, a 13% increase at the midpoint compared to 2024. Free cash flow is estimated at approximately $450 million, a 50% increase from the prior year.
Negative Updates
Flat Volume Expectations in Metal Containers for Q2
Although the Metal Containers segment saw growth, volumes are expected to be flat in the second quarter of 2025, primarily due to timing and tougher year-over-year comparisons.
Impact of Economic Uncertainty on Market Outlook
Despite strong performance, there is acknowledgment of potential economic uncertainty, which could impact future customer purchasing patterns and market dynamics.
Company Guidance
During Silgan Holdings' First Quarter 2025 Earnings Call, the company provided guidance reflecting strong performance and optimism for continued growth. Silgan reported record financial results with net sales of approximately $1.5 billion, an 11% increase from the prior year, driven by the Weener acquisition and organic growth. The company achieved record adjusted EBIT of $158.3 million, a 17% year-over-year increase, and record adjusted EPS of $0.82, a 19% increase. Silgan expects mid-single-digit organic volume growth in its Containers and Specialty Closures segments in 2025, supported by high single-digit growth in dispensing products. The company maintained its adjusted EPS estimate for 2025 in the range of $4 to $4.20, reflecting a 13% increase from 2024, and confirmed a free cash flow estimate of approximately $450 million. Silgan's strategy focuses on leveraging its customer relationships, innovation, and efficient operations to achieve record results despite macroeconomic uncertainties.Silgan Holdings Corporate Events
Dividends
Silgan Holdings Declares Quarterly Dividend Increase
Positive
May 6, 2025
On May 6, 2025, Silgan Holdings Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on June 16, 2025, to shareholders of record on June 2, 2025. This marks the 85th consecutive quarter since 2004 that Silgan has increased its dividend, highlighting its consistent financial performance and commitment to returning value to shareholders.
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.