Silgan Holdings (SLGN) AI Stock Analysis

• Market Cap: $5.79B
• Dividend Yield: 1.48%
• Average Volume (3M): 528.24K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.55
• Revenue Growth: 1.99%
• EPS Growth: -5.30%
• Country: US
• Employees: 17,315
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Packaging & Containers
• EPS (TTM): 0.82
• Shares Outstanding: 106,993,180
• 10 Day Avg. Volume: 482,830
• 30 Day Avg. Volume: 528,244
• PEG Ratio: -3.41
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.75
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 8.17
• Enterprise Value/Ebitda: 2.53
• 1Y Price Target: $62.38
• Price Target Upside: 15.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $62.00 ▲(14.50%Upside)

Silgan Holdings' overall stock score of 73.9 reflects its robust financial performance, strong technical indicators, and positive earnings call outlook. The company benefits from consistent revenue growth and efficient operations, though high leverage and moderate valuation are areas for attention. Recent corporate events and a track record of dividend increases further support investor confidence.

Positive Factors

Earnings

SLGN delivered Q4 EPS results ahead of the Street, with EPS FY'25 outlook in line with consensus.

Financial Performance

Silgan's acquisition of Weener is expected to add more than $100m to EBITDA annually, enhancing financial performance.

Growth Strategy

A successful divestiture should serve to accelerate growth in SLGN's more attractive dispensing systems / closures portfolio.

Negative Factors

Market Environment

SLGN's strategy of high-touch customer service and innovation sets it apart in an uncertain market environment.

Portfolio Optimization

Exiting Custom Containers is seen as a positive step towards further portfolio optimization.

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 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 shows solid financial performance with consistent revenue growth and strong operational efficiency. Despite a high debt-to-equity ratio, returns on equity remain strong. The company exhibits stable cash flows but should focus on improving net profitability and managing leverage.

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
6.00B	5.85B	5.99B	6.41B	5.68B	4.92B
	Gross Profit
1.06B	1.01B	992.56M	1.05B	918.40M	867.40M
	EBIT
592.26M	574.58M	603.85M	601.96M	591.10M	512.40M
	EBITDA
870.05M	789.92M	858.67M	964.03M	846.44M	770.01M
	Net Income Common Stockholders
289.21M	276.38M	325.96M	340.85M	359.08M	308.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
353.03M	822.85M	642.92M	585.60M	631.40M	409.50M
	Total Assets
8.77B	8.58B	7.61B	7.35B	7.77B	6.52B
	Total Debt
4.63B	4.14B	3.43B	3.51B	3.79B	3.25B
	Net Debt
4.28B	3.31B	2.78B	2.92B	3.16B	2.84B
	Total Liabilities
6.68B	6.60B	5.72B	5.63B	6.21B	5.27B
	Stockholders Equity
2.08B	1.99B	1.89B	1.72B	1.56B	1.25B
Cash Flow		Free Cash Flow
315.85M	459.09M	255.79M	532.60M	324.50M	378.30M
	Operating Cash Flow
586.27M	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
652.83M	662.52M	-211.39M	-569.60M	648.60M	759.90M

Silgan Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 54.15 is below the 20-day moving average (MA) of 54.67, above the 50-day MA of 52.48, and above the 200-day MA of 52.20, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 50.67 is Neutral, neither overbought nor oversold. The STOCH value of 73.69 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
SLGN	74 Outperform	$5.79B	20.07	14.52%	1.48%	1.99%	-5.30%
REYN	73 Outperform	$4.44B	13.27	16.30%	4.36%	-0.97%	1.45%
SEE	68 Neutral	$4.54B	14.90	43.40%	2.59%	-2.45%	-16.55%
AMBP	68 Neutral	$2.46B	―	-69.06%	9.73%	4.42%	70.21%
SON	67 Neutral	$4.38B	28.86	5.54%	4.77%	-4.58%	-61.14%
GPK	64 Neutral	$6.37B	10.34	20.62%	2.08%	-6.28%	-7.43%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%

Silgan Holdings Corporate Events

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.

The most recent analyst rating on (SLGN) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Silgan Holdings stock, see the SLGN Stock Forecast page.

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.

The most recent analyst rating on (SLGN) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on Silgan Holdings stock, see the SLGN Stock Forecast page.

Silgan Holdings Declares Quarterly Dividend Increase

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.