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Sonoco Products
(NYSE:SON)
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Rating:65Neutral
Price Target:
$59.00
â–²(2.77% Upside)
Action:Reiterated
Date:04/23/26
Overall score reflects improved balance-sheet risk and solid margins, supported by an attractive dividend yield. These positives are tempered by weak recent cash-flow momentum and significant revenue volatility, plus a bearish technical setup with the stock below major moving averages; the latest call adds cautious guidance (lower-end bias) despite clear cost/pricing initiatives.
Positive Factors
Improved balance sheet
Sonoco's materially reduced leverage and sizable equity base improve financial flexibility for capital investment, dividend continuity and opportunistic M&A. Lower balance-sheet risk supports durable capital allocation and reduces refinancing pressure across business cycles.
Negative Factors
Revenue volatility
Large swings in top-line make forecasting and capacity planning difficult and can erode investor confidence in sustainable growth. Persistent revenue volatility raises execution risk for margin targets and complicates long-term return predictability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved balance sheet
Sonoco's materially reduced leverage and sizable equity base improve financial flexibility for capital investment, dividend continuity and opportunistic M&A. Lower balance-sheet risk supports durable capital allocation and reduces refinancing pressure across business cycles.
Read all positive factors
Sonoco Products Key Performance Indicators (KPIs)
Sonoco Products (SON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.57B
Dividend Yield4.33%
Average Volume (3M)1.29M
Price to Earnings (P/E)5.4
Beta (1Y)0.64
Revenue Growth17.41%
EPS Growth167.71%
CountryUS
Employees23,400
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)10.39
Shares Outstanding98,868,690
10 Day Avg. Volume1,345,408
30 Day Avg. Volume1,289,304
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.20
Price to Sales (P/S)0.58
P/FCF Ratio12.57
Enterprise Value/Market Cap1.75
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit6.22
Enterprise Value/Ebitda6.40
Forecast
1Y Price Target
$60.50Price Target Upside5.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)5.82
Revenue Forecast (FY)$7.45B
Sonoco Products Business Overview & Revenue Model
Company Description
Sonoco Products Company (SON), through its numerous subsidiaries, operates as a worldwide producer and vendor of both industrial and consumer packaging solutions. Its extensive reach covers markets across North and South America, Europe, Australia...
How the Company Makes Money
Sonoco makes money primarily by selling packaging products and related services to brand owners and industrial customers under supply agreements and ongoing purchasing relationships. Key revenue streams include: (1) Consumer packaging sales—supply...
Sonoco Products Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and strategic progress against meaningful near‑term headwinds. Positives include disciplined pricing, procurement and productivity gains (Q1: $8M of profitability plan savings; annualized ~$32M), successful capacity investments (new Thailand paper can plant, reels capacity expansion) and continued shareholder returns (43rd consecutive dividend increase to $2.16). However, the company faced volume declines and demand variability driven by severe winter weather and geopolitical tensions, a one‑time $2M facility loss, Q1 adjusted EBITDA and segment EBITDA declines (~4% and ~7% in segments), a seasonal operating cash outflow of $368M and expected inflation of $8M–$10M in Q2. Management reiterated full‑year guidance and emphasized recovery levers, but also flagged EPS sensitivity and continuing uncertainty. Overall, positives (portfolio repositioning, pricing, procurement, early profitability savings and strategic investments) are balanced by near‑term operational and inflationary challenges.Positive Updates
Adjusted EPS and Earnings Performance
Adjusted EPS of $1.20 for Q1 2026, essentially flat year‑over‑year on a consistent continuing‑operations basis; results driven by productivity savings, pricing realization and early benefits from the 3‑year profitability performance plan.
Negative Updates
Revenue and Volume Pressure
Net sales from continuing operations down 2% YoY to $1.7B; management cited lower‑than‑expected volumes (weather, macro/geopolitical pressures) as a primary driver of the decline.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EPS and Earnings Performance
Adjusted EPS of $1.20 for Q1 2026, essentially flat year‑over‑year on a consistent continuing‑operations basis; results driven by productivity savings, pricing realization and early benefits from the 3‑year profitability performance plan.
Read all positive updates
Company Guidance
Sonoco said it is maintaining full‑year guidance with sales of $7.25–$7.75 billion, adjusted EBITDA of $1.25–$1.35 billion and adjusted EPS of $5.80–$6.20 (with results expected to trend toward the lower end), and operating cash flow of $700–$800 million (inclusive of a $103 million tax payment); management flagged Q2 raw‑material/freight inflation of roughly $8–$10 million (energy/freight/other petrochemicals ≈10% of annual sales) but is pursuing price actions (e.g., URB +$70/ton U.S., +€80/ton Europe) and expects to recover most cost pressure later in the year, while its 3‑year profitability plan targets $150–$200 million of savings (Q1 delivered $8 million, ~ $32 million annualized); Q1 continuing‑ops metrics were: sales $1.7 billion (‑2% y/y), adjusted EBITDA $277 million (‑4%, margin down ~35 bps), adjusted EPS ~$1.20, operating cash flow use of $368 million, capex disciplined, and the dividend was raised to $2.16/share (≈3.8% yield).Sonoco Products Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
76
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.49B | 7.52B | 5.31B | 5.44B | 5.86B | 5.59B |
| Gross Profit | 1.57B | 1.57B | 1.14B | 1.20B | 1.23B | 1.06B |
| EBITDA | 1.52B | 1.53B | 610.97M | 965.41M | 869.63M | 148.19M |
| Net Income | 1.04B | 396.38M | 163.95M | 474.96M | 466.44M | -85.48M |
Balance Sheet | ||||||
| Total Assets | 11.07B | 11.16B | 12.51B | 7.19B | 7.05B | 5.07B |
| Cash, Cash Equivalents and Short-Term Investments | 224.48M | 378.40M | 431.01M | 138.90M | 227.44M | 170.98M |
| Total Debt | 4.95B | 4.59B | 7.30B | 3.23B | 3.53B | 1.84B |
| Total Liabilities | 7.48B | 7.53B | 10.22B | 4.76B | 4.98B | 3.22B |
| Stockholders Equity | 3.59B | 3.61B | 2.27B | 2.42B | 2.07B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 265.81M | 345.76M | 440.61M | 519.84M | 180.28M | 42.65M |
| Operating Cash Flow | 529.95M | 689.78M | 833.85M | 882.92M | 509.05M | 298.67M |
| Investing Cash Flow | 2.20B | 2.20B | -4.11B | -619.34M | -1.74B | -165.90M |
| Financing Cash Flow | -2.71B | -2.99B | 3.67B | -351.99M | 1.29B | -513.54M |
Sonoco Products Technical Analysis
Positive
57.41
Price Trends
50.17
Positive
51.79
Positive
47.08
Positive
Market Momentum
1.04
Negative
70.81
Negative
96.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SON, the sentiment is Positive. The current price of 57.41 is above the 20-day moving average (MA) of 50.99, above the 50-day MA of 50.17, and above the 200-day MA of 47.08, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 70.81 is Negative, neither overbought nor oversold. The STOCH value of 96.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SON.
Sonoco Products Risk Analysis
Sonoco Products disclosed 1 risk factors in its most recent earnings report. Sonoco Products reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sonoco Products Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $5.66B | 17.04 | 14.88% | 3.97% | 2.75% | -1.89% | |
65 Neutral | $5.57B | 5.45 | 30.14% | 4.33% | 17.41% | 167.71% | |
63 Neutral | $4.90B | 17.51 | 12.47% | 1.97% | 9.55% | -1.62% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $3.13B | 11.45 | 8.38% | 2.91% | -0.17% | -55.17% | |
52 Neutral | $2.83B | -561.76 | -2.15% | 9.90% | 13.86% | 74.85% |
* Consumer Cyclical Sector Average
SON
Sonoco Products
56.35
11.73
26.30%
GPK
Graphic Packaging
10.57
-10.72
-50.36%
SLGN
Silgan Holdings
46.39
-9.25
-16.62%
REYN
Reynolds Consumer Products
26.85
5.89
28.07%
AMBP
Ardagh Metal Packaging
4.74
0.74
18.62%
Sonoco Products Corporate Events
Executive/Board Changes
Sonoco Products Announces Chief Accounting Officer Leadership Transition
Neutral
May 11, 2026
On May 5, 2026, Sonoco Products Company announced that Chief Accounting Officer Aditya Gandhi intends to resign from his role, effective May 29, 2026, noting that his departure does not stem from any disagreement over the company’s operation...
Executive/Board ChangesShareholder Meetings
Sonoco Shareholders Approve Board, Pay Plan and Auditor
Positive
Apr 16, 2026
At its April 15, 2026 annual meeting, Sonoco Products shareholders elected the full slate of director nominees to one-year terms, signaling broad support for the existing board. Investors also ratified PricewaterhouseCoopers LLP as the independent...
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.