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Silgan Holdings (SLGN)
NYSE:SLGN

Silgan Holdings (SLGN) AI Stock Analysis

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Silgan Holdings

(NYSE:SLGN)

Rating:74Outperform
Price Target:
$62.00
▲(14.05%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
Acquisition Strategy
Silgan's acquisition of Weener is expected to add more than $100m to EBITDA annually, enhancing financial performance.
Earnings Performance
SLGN delivered a solid Q1 and reaffirmed its EPS growth, highlighting resilience amid macro uncertainty.
Negative Factors
Divestiture Concerns
The cash from exiting Custom Containers could be better utilized towards acquisitions in the dispensing systems / specialty closures segment.
Operational Costs
Silgan plans to lower its cost structure by an additional $30m for 2025, which could improve profitability.

Silgan Holdings (SLGN) vs. SPDR S&P 500 ETF (SPY)

Silgan Holdings Business Overview & Revenue Model

Company DescriptionSilgan 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 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 4.02%|
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 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
72
Positive
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
68
Positive
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
75
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
6.00B5.85B5.99B6.41B5.68B4.92B
Gross Profit
1.06B1.01B992.56M1.05B918.40M867.40M
EBIT
592.26M574.58M603.85M601.96M591.10M512.40M
EBITDA
870.05M789.92M858.67M964.03M846.44M770.01M
Net Income Common Stockholders
289.21M276.38M325.96M340.85M359.08M308.72M
Balance SheetCash, Cash Equivalents and Short-Term Investments
203.80M822.85M642.92M585.60M631.40M409.50M
Total Assets
4.93B8.58B7.61B7.35B7.77B6.52B
Total Debt
2.24B4.14B3.43B3.51B3.79B3.25B
Net Debt
2.04B3.31B2.78B2.92B3.16B2.84B
Total Liabilities
3.91B6.60B5.72B5.63B6.21B5.27B
Stockholders Equity
1.02B1.99B1.89B1.72B1.56B1.25B
Cash FlowFree Cash Flow
315.85M459.09M255.79M532.60M324.50M378.30M
Operating Cash Flow
586.27M721.87M482.60M748.40M556.80M602.50M
Investing Cash Flow
-1.19B-1.18B-223.81M-215.60M-976.00M-1.16B
Financing Cash Flow
652.83M662.52M-211.39M-569.60M648.60M759.90M

Silgan Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price54.36
Price Trends
50DMA
52.19
Positive
100DMA
52.25
Positive
200DMA
52.12
Positive
Market Momentum
MACD
0.39
Positive
RSI
53.61
Neutral
STOCH
38.14
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 54.36 is below the 20-day moving average (MA) of 54.61, above the 50-day MA of 52.19, and above the 200-day MA of 52.12, indicating a neutral trend. The MACD of 0.39 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 38.14 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
SOSON
75
Outperform
$4.45B29.325.54%4.63%-4.58%-61.14%
74
Outperform
$5.80B20.0814.52%1.42%1.99%-5.30%
73
Outperform
$4.57B13.6616.30%4.23%-0.97%1.45%
SESEE
71
Outperform
$4.75B15.5943.40%2.48%-2.45%-16.55%
68
Neutral
$2.35B-69.06%10.15%4.42%70.21%
GPGPK
64
Neutral
$6.71B10.9020.62%1.84%-6.28%-7.43%
62
Neutral
$6.84B11.412.80%3.87%2.70%-24.58%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLGN
Silgan Holdings
54.36
9.35
20.77%
GPK
Graphic Packaging
22.48
-4.96
-18.08%
SEE
Sealed Air
32.89
-4.35
-11.68%
SON
Sonoco Products
46.02
-10.28
-18.26%
REYN
Reynolds Consumer Products
21.71
-5.73
-20.88%
AMBP
Ardagh Metal Packaging
4.15
0.79
23.51%

Silgan Holdings Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Silgan Holdings President Resigns Amid Leadership Change
Neutral
Jun 6, 2025

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.

Executive/Board ChangesShareholder Meetings
Silgan Holdings Stockholders Approve Key Governance Decisions
Positive
May 30, 2025

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.

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.