Silgan Holdings (SLGN) AI Stock Analysis

• Market Cap: $4.58B
• Dividend Yield: 1.85%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.65
• Revenue Growth: 5.49%
• EPS Growth: -1.01%
• Country: US
• Employees: 17,315
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 1.01
• Shares Outstanding: 106,993,180
• 10 Day Avg. Volume: 1,160,049
• 30 Day Avg. Volume: 1,041,614
• 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: 2.30
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 9.57
• Enterprise Value/Ebitda: 12.29
• 1Y Price Target: $60.00
• Price Target Upside: 40.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 61 Neutral
• Price Target: $48.00 ▲(12.15% 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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, ensuring long-term financial stability and expansion potential.

Segment Performance

Strong performance in the Dispensing segment highlights successful product integration and market demand, contributing to overall company growth and competitive positioning.

Dividend Consistency

Consistent dividend payments reflect financial stability and a commitment to shareholder returns, enhancing investor confidence and long-term investment appeal.

Negative Factors

High Leverage

Elevated leverage can limit financial flexibility and increase risk during economic downturns, potentially impacting long-term operational and strategic initiatives.

Declining Cash Flow

Reduced cash flow generation may constrain the company's ability to invest in growth opportunities and manage debt, affecting long-term financial health.

Leadership Change

Leadership changes can disrupt strategic continuity and operational efficiency, potentially affecting market positioning and long-term business performance.

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 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 shows stable revenue growth and profitability but faces challenges with high leverage and declining cash flow metrics. The company needs to focus on improving cash flow generation and reducing debt to enhance financial stability and flexibility.

Income Statement

Silgan Holdings shows a stable revenue growth trend with a 2.63% increase in TTM, recovering from previous declines. Gross profit margin is consistent, though slightly below industry averages. Net profit margin is stable at around 5%, indicating efficient cost management. However, EBIT and EBITDA margins have shown some volatility, suggesting potential operational challenges.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, which poses a risk of financial leverage. However, the return on equity remains healthy at 14.47% in TTM, reflecting effective use of equity. The equity ratio is moderate, indicating a balanced asset structure but with room for improvement in reducing leverage.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth, down by 82% in TTM, which is concerning. Operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. The free cash flow to net income ratio is also low, suggesting limited cash generation relative to profits.

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	857.83M	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: Negative
• Last Price: 42.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 42.8 is below the 20-day moving average (MA) of 44.84, below the 50-day MA of 47.96, and below the 200-day MA of 51.39, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 27.77 is Positive, neither overbought nor oversold. The STOCH value of 7.25 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
REYN	71 Outperform	4.79B	15.43	14.48%	4.04%	-0.49%	-13.92%
GPK	67 Neutral	5.78B	11.05	16.59%	2.20%	-5.05%	-24.52%
SEE	65 Neutral	5.02B	16.72	30.65%	2.35%	-2.00%	-18.50%
SON	65 Neutral	4.57B	-65.14	17.10%	4.53%	0.90%	-118.86%
SLGN	61 Neutral	$4.58B	15.20	14.54%	1.85%	5.49%	-1.01%
AMBP	58 Neutral	2.31B	-135.92	-2.15%	10.36%	8.39%	72.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Silgan Holdings Corporate Events

Silgan Holdings Prices €600 Million Senior Notes

On September 3, 2025, Silgan Holdings Inc. announced the pricing of its €600 million Senior Notes due 2031, which were sold in a private placement to Merrill Lynch International and other initial purchasers. The proceeds, approximately €592.8 million after expenses, will be used to repay revolving loan borrowings under Silgan’s senior secured credit facility and for other corporate purposes, potentially impacting its financial flexibility and market positioning.

Silgan Holdings Announces €600 Million Notes Offering

On September 3, 2025, Silgan Holdings announced plans to offer €600 million in new senior unsecured notes maturing in 2031, subject to favorable market conditions. The proceeds from this offering will be used to repay outstanding revolving loans under its senior secured credit facility and for general corporate purposes. This move is part of Silgan’s strategy to manage its financial obligations and strengthen its market position, although the notes will not be available to retail investors in the EEA or the UK.

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.