Sonoco Products (SON) AI Stock Analysis

• Market Cap: $4.54B
• Dividend Yield: 4.56%
• Average Volume (3M): 931.11K
• Price to Earnings (P/E): 31.0
• Beta (1Y): 0.64
• Revenue Growth: 0.90%
• EPS Growth: -118.86%
• Country: US
• Employees: 23,400
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Packaging & Containers
• EPS (TTM): 1.37
• Shares Outstanding: 98,631,070
• 10 Day Avg. Volume: 914,438
• 30 Day Avg. Volume: 931,111
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.16
• Enterprise Value/Revenue: 1.73
• Enterprise Value/Gross Profit: 8.12
• Enterprise Value/Ebitda: 10.93
• 1Y Price Target: $53.83
• Price Target Upside: 16.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: $49.00 ▲(5.95% Upside)

Sonoco Products' overall stock score reflects a balanced view of its financial performance, technical analysis, valuation, earnings call insights, and recent corporate events. The strong earnings call and strategic initiatives are significant positives, while the challenging valuation and mixed technical signals present caution. The new CFO appointment adds a positive outlook for future financial management.

Positive Factors

Business Restructuring

The transition of the portfolio to fewer larger businesses with scale advantages is viewed positively.

Stock Valuation

Shares are currently trading at depressed levels, making them attractive given the clear path to higher profits.

Synergies and Savings

The company is ahead of schedule in achieving Eviosys synergies, now targeting more significant savings.

Negative Factors

Earnings Guidance

Guidance for EPS and operating cash flow was trimmed due to higher interest expenses.

Economic Impact

The Industrial business could be pressured with slowing economic activity, impacting growth.

Leverage Concerns

The company's leverage is higher than it has maintained in the past, with 2025 leverage estimated at around 4.0x.

Sonoco Products Business Overview & Revenue Model

Company Description

Sonoco Products Company (SON) is a global provider of consumer packaging, industrial products, and protective solutions. Founded in 1899 and headquartered in Hartsville, South Carolina, Sonoco operates in several sectors, including flexible packaging, rigid paper containers, and molded products. The company serves a wide array of markets, including food and beverage, healthcare, and personal care, offering products such as paperboard tubes, containers, and flexible packaging solutions designed to meet the diverse needs of its customers.

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 demonstrates a solid financial foundation with areas for improvement. Revenue growth is positive, but profitability margins and leverage levels present potential risks. Cash flow management shows mixed results, with strong operational cash generation but limited free cash flow.

Income Statement

Sonoco Products shows moderate performance in revenue growth and profitability. The TTM data indicates a gross profit margin of 33.72% and net profit margin of 2.40%, reflecting a stable but low profitability profile. Revenue growth from the previous period is notable, signaling positive momentum. However, the EBIT margin of 5.97% and EBITDA margin of 8.87% suggest room for improvement in operational efficiency.

Balance Sheet

The balance sheet presents a mixed financial position. The debt-to-equity ratio is relatively high at 98.52%, signaling potential leverage concerns. Return on equity stands at 6.22%, indicating moderate returns for shareholders. The equity ratio of 19.41% highlights a lower reliance on equity financing, which could increase financial risk.

Cash Flow

Cash flow analysis reveals challenges in free cash flow generation with a recent decrease. The operating cash flow to net income ratio of 3.00 is strong and indicates efficient cash generation from operations. However, the free cash flow to net income ratio of 0.40 shows limited free cash flow relative to earnings, suggesting constraints on liquidity and reinvestment capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.31B	5.44B	5.86B	5.59B	5.24B
Gross Profit	1.14B	1.20B	1.23B	1.06B	1.05B
EBITDA	610.97M	965.41M	869.63M	148.19M	591.93M
Net Income	163.95M	474.96M	466.44M	-85.48M	207.46M
Balance Sheet
Total Assets	12.51B	7.19B	7.05B	5.07B	5.28B
Cash, Cash Equivalents and Short-Term Investments	431.01M	138.90M	227.44M	170.98M	564.85M
Total Debt	7.30B	3.23B	3.47B	1.84B	1.96B
Total Liabilities	10.22B	4.76B	5.02B	3.22B	3.37B
Stockholders Equity	2.27B	2.42B	2.07B	1.84B	1.91B
Cash Flow
Free Cash Flow	440.61M	519.84M	189.90M	55.82M	521.96M
Operating Cash Flow	833.85M	882.92M	509.05M	298.67M	705.62M
Investing Cash Flow	-4.11B	-619.34M	-1.75B	-173.49M	-127.01M
Financing Cash Flow	3.67B	-351.99M	1.33B	-513.54M	-162.87M

Sonoco Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 46.25 is above the 20-day moving average (MA) of 45.88, above the 50-day MA of 45.15, and above the 200-day MA of 45.99, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 86.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SON.

Sonoco Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REYN	71 Outperform	$4.87B	15.66	14.85%	4.07%	-0.49%	-13.92%
GPK	69 Neutral	$6.73B	12.87	17.71%	1.86%	-5.05%	-24.52%
SLGN	69 Neutral	$5.03B	16.69	14.54%	1.68%	5.49%	-1.01%
SEE	69 Neutral	$4.39B	14.63	37.35%	2.53%	-2.00%	-18.50%
SON	66 Neutral	$4.54B	30.97	3.98%	4.56%	0.90%	-118.86%
AMBP	57 Neutral	$2.31B	―	-69.06%	10.36%	8.39%	72.18%
Sector *	56 Neutral	HK$25.46B	5.06	-2.69%	5.60%	-0.43%	-53.15%

Sonoco Products Corporate Events

Sonoco Products Appoints New Chief Financial Officer

On June 17, 2025, Sonoco Products Company announced the appointment of Paul Joachimczyk as Chief Financial Officer, effective June 30, 2025. Joachimczyk, who has a robust background in financial leadership across various industries, will replace Jerry Cheatham, the Interim CFO. This transition is part of Sonoco’s ongoing transformation efforts, with Joachimczyk expected to drive long-term value for shareholders through sound financial management and strong operating initiatives.

The most recent analyst rating on (SON) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Sonoco Products stock, see the SON Stock Forecast page.