Silgan Holdings (SLGN) AI Stock Analysis

• Market Cap: $5.12B
• Dividend Yield: 1.97%
• Average Volume (3M): 982.78K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.53
• 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: 105,668,015
• 10 Day Avg. Volume: 1,030,655
• 30 Day Avg. Volume: 982,778
• 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: 1.64
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 7.30
• Enterprise Value/Ebitda: 9.15
• 1Y Price Target: $54.57
• Price Target Upside: 12.65% 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: $51.00 ▲(5.28% 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

Free Cash Flow Strength

Sustained FCF growth (≈+33% in 2025) demonstrates durable cash generation from operations. This supports ongoing CapEx for high-return dispensing investments, funds dividends and deleveraging, and provides flexibility to absorb working-capital swings or fund strategic initiatives over the next 2–6 months.

High‑value DSC Segment

Dispensing & Specialty Closures' rise to >50% of adjusted EBITDA and record margins shifts Silgan toward higher-margin, innovation-driven products. Durable organic volume growth and outsized new-product win rates improve earnings quality and reduce exposure to cyclical metal-container demand over the medium term.

Successful M&A and Cost Programs

Achieved M&A integration and cost-savings synergies indicate management executes strategic deals and captures planned benefits. Realized synergies boost margins, enable scalable production for new contracts, and lower structural operating costs, making future profitability less reliant on short-term volumes.

Negative Factors

Top-line Contraction

A ~20.7% revenue drop in 2025 signals material demand or mix deterioration that erodes operating leverage. Lower net margins versus prior years reduce earnings resilience; until volume trajectories stabilize, margin recovery and predictable earnings could remain pressured over the next several quarters.

Elevated Leverage

Debt at ~1.9x equity (down from ~2.8x in 2020 but still high) constrains strategic optionality. Elevated absolute debt raises refinancing and covenant sensitivity and makes the company more exposed to rising rates or weaker cash conversion, limiting M&A capacity and amplifying downside risk over a multi‑quarter horizon.

Rising Interest Expense

A step-up in interest cost (~$205M guidance) following note maturities materially reduces net income and free cash flow. Higher fixed financing costs will crowd capital allocation (CapEx, dividends, deleveraging) and increase earnings sensitivity to modest operating setbacks in the 2–6 month timeframe.

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 various industries. The company’s key revenue streams include the manufacturing and sale of metal containers, closures, and plastic packaging. Silgan typically enters long-term supply agreements with major consumer goods companies, providing a stable revenue base. Additionally, the company benefits from economies of scale and operational efficiencies in its manufacturing processes. Strategic partnerships with leading brands enhance its market position, while the growing demand for sustainable packaging solutions further drives revenue growth. Fluctuations in raw material costs and changes in consumer preferences also play significant roles in influencing the company’s earnings.

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	917.10M	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	4.35B	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: Positive
• Last Price: 48.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: 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 48.44 is above the 20-day moving average (MA) of 46.82, above the 50-day MA of 43.68, and above the 200-day MA of 46.09, indicating a bullish trend. The MACD of 1.52 indicates Positive momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 47.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLGN.

Silgan Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEE	71 Outperform	$6.18B	15.61	40.42%	1.94%	-1.22%	-0.76%
SON	71 Outperform	$5.63B	14.29	20.01%	4.33%	8.31%	-99.39%
SLGN	63 Neutral	$5.12B	17.90	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	$5.25B	17.24	13.70%	3.97%	0.76%	-17.69%
GPK	58 Neutral	$3.59B	8.17	13.99%	2.91%	-3.93%	-27.37%
AMBP	56 Neutral	$2.81B	-350.75	―	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.