Sonoco Products (SON) AI Stock Analysis

• Market Cap: $4.33B
• Dividend Yield: 4.78%
• Average Volume (3M): 985.71K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.63
• Revenue Growth: 0.90%
• EPS Growth: -118.86%
• Country: US
• Employees: 23,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 1.37
• Shares Outstanding: 98,631,070
• 10 Day Avg. Volume: 1,114,061
• 30 Day Avg. Volume: 985,713
• PEG Ratio: -0.45
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 10.94
• Enterprise Value/Market Cap: 2.26
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 8.12
• Enterprise Value/Ebitda: 13.61
• 1Y Price Target: $55.83
• Price Target Upside: 30.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 66 Neutral
• Price Target: $50.00 ▲(16.90% Upside)

Sonoco Products demonstrates strong financial performance and promising earnings call highlights, but faces challenges with valuation concerns and mixed technical indicators. The company's ability to manage leverage and navigate macroeconomic pressures will be crucial for future success.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term profitability.

Debt Reduction

Reducing leverage improves financial stability and flexibility, allowing for more strategic investments and growth opportunities.

Synergy Achievements

Achieving synergies enhances operational efficiency and cost savings, supporting sustainable competitive advantages.

Negative Factors

Higher Interest Expense

Rising interest expenses can erode profit margins and limit reinvestment capacity, impacting long-term financial health.

European Market Challenges

Challenges in Europe can hinder growth in a key market, affecting overall revenue and strategic positioning.

Stranded Costs

Stranded costs from divestitures can reduce profitability and complicate financial management, affecting long-term efficiency.

Sonoco Products Business Overview & Revenue Model

Company Description

Sonoco Products Company, together with its subsidiaries, manufactures and sells industrial and consumer packaging products in North and South America, Europe, Australia, and Asia. The company operates through two segments: Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment round and shaped rigid paper containers; metal and peelable membrane ends and closures; thermoformed plastic trays and containers; printed flexible packaging; and global brand artwork management. The Industrial Paper Packaging segment provides fiber-based tubes, cones, and cores; fiber-based construction tubes; fiber-based protective packaging and components; wooden, metal, and composite wire and cable, as well as reels and spools; and recycled paperboard, corrugating medium, recovered paper, and material recycling services. Sonoco Products Company offers thermoformed rigid plastic trays and devices; custom-engineered molded foam protective packaging and components; temperature-assured packaging; injection molded and extruded containers, spools, and parts; retail security packaging, including printed backer cards, thermoformed blisters, and heat-sealing equipment; and paper amenities. The company sells its products in various markets, which include paper, textile, film, food, chemical, packaging, construction, and wire and cable. Sonoco Products Company was founded in 1899 and is headquartered in Hartsville, South Carolina.

How the Company Makes Money

Sonoco generates revenue through multiple key streams, primarily by manufacturing and selling a diverse range of packaging products and services. The company's revenue model includes sales from consumer packaging, which encompasses flexible and rigid packaging solutions, and industrial products, such as paperboard tubes and cores. Additionally, Sonoco earns revenue from its protective solutions segment, which provides packaging that safeguards products during shipping and handling. Significant partnerships with notable companies in various industries help secure long-term contracts and consistent revenue. The company's focus on innovation and sustainability also attracts customers seeking eco-friendly packaging solutions, further enhancing its profitability.

Sonoco Products Financial Statement Overview

Summary

Sonoco Products shows strong revenue and profit growth with improved leverage and robust cash flow generation. However, historical volatility in cash flow and revenue growth, along with a recent revenue decline, are concerns.

Income Statement

Sonoco Products has demonstrated strong revenue growth in the TTM period with a 5.34% increase. The gross profit margin is stable at 21.26%, and the net profit margin has improved significantly to 9.81% from previous periods. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the company experienced a revenue decline in 2023, which could be a concern if it continues.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period to 0.22, indicating reduced leverage compared to previous years. Return on equity is strong at 21.28%, reflecting efficient use of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing historically, which poses a potential risk if not managed carefully.

Cash Flow

Sonoco Products has shown impressive free cash flow growth of 137.42% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, and the free cash flow to net income ratio is at 26.44%, showing good cash conversion. However, the company had a negative free cash flow growth in 2024, which could indicate volatility in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.66B	5.31B	5.44B	5.86B	5.59B	5.24B
Gross Profit	1.20B	1.14B	1.20B	1.23B	1.06B	1.05B
EBITDA	718.37M	610.97M	965.41M	869.63M	148.19M	591.93M
Net Income	555.81M	163.95M	474.96M	466.44M	-85.48M	207.46M
Balance Sheet
Total Assets	11.97B	12.51B	7.19B	7.05B	5.07B	5.28B
Cash, Cash Equivalents and Short-Term Investments	329.80M	431.01M	138.90M	227.44M	170.98M	564.85M
Total Debt	5.69B	7.30B	3.23B	3.47B	1.84B	1.96B
Total Liabilities	8.72B	10.22B	4.76B	5.02B	3.22B	3.37B
Stockholders Equity	3.24B	2.27B	2.42B	2.07B	1.84B	1.90B
Cash Flow
Free Cash Flow	143.77M	440.61M	519.84M	189.90M	55.82M	521.96M
Operating Cash Flow	543.70M	833.85M	882.92M	509.05M	298.67M	705.62M
Investing Cash Flow	-2.36B	-4.11B	-619.34M	-1.75B	-173.49M	-127.01M
Financing Cash Flow	2.07B	3.67B	-351.99M	1.33B	-513.54M	-162.87M

Sonoco Products Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.77
• 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 SON, the sentiment is Negative. The current price of 42.77 is below the 20-day moving average (MA) of 46.02, below the 50-day MA of 46.08, and below the 200-day MA of 45.53, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 28.42 is Positive, neither overbought nor oversold. The STOCH value of 6.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SON.

Sonoco Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REYN	70 Outperform	$4.90B	15.79	14.48%	3.95%	-0.49%	-13.92%
GPK	67 Neutral	$5.75B	10.98	16.59%	2.22%	-5.05%	-24.52%
SON	66 Neutral	$4.33B	30.97	3.98%	4.78%	0.90%	-118.86%
SEE	65 Neutral	$5.06B	16.87	30.65%	2.32%	-2.00%	-18.50%
SLGN	61 Neutral	$4.55B	15.09	13.59%	1.86%	5.49%	-1.01%
AMBP	58 Neutral	$2.35B	-138.73	-2.15%	10.15%	8.39%	72.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Sonoco Products Corporate Events

Sonoco Products Sells ThermoSafe Unit for $725 Million

On September 7, 2025, Sonoco Products Company announced the sale of its ThermoSafe business unit to Arsenal Capital Partners for up to $725 million. This transaction is part of Sonoco’s strategy to streamline its operations into two core global business segments, with the proceeds expected to reduce existing debt and support the company’s portfolio simplification and organizational streamlining efforts.

The most recent analyst rating on (SON) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Sonoco Products stock, see the SON Stock Forecast page.