Sonoco Products (SON)
NYSE:SON
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Sonoco Products
(NYSE:SON)
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Rating:65Neutral
Price Target:
$51.00
▼(-11.17% Downside)
Action:ReiteratedDate: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
Balance-sheet Deleveraging
Material deleveraging meaningfully strengthens financial flexibility and credit resilience, enabling durable capital allocation for dividends, targeted capex and opportunistic M&A while lowering covenant and refinancing risk through economic cycles.
Negative Factors
Top-line Volatility
Wide swings in revenue reduce predictability of earnings and cash flow, complicate planning and capital allocation, and increase execution risk for margin targets; persistent volatility can weaken long-term investor confidence and hinder strategic initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet Deleveraging
Material deleveraging meaningfully strengthens financial flexibility and credit resilience, enabling durable capital allocation for dividends, targeted capex and opportunistic M&A while lowering covenant and refinancing risk through economic cycles.
Read all positive factors
Sonoco Products (SON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.79B
Dividend Yield4.33%
Average Volume (3M)871.63K
Price to Earnings (P/E)19.6
Beta (1Y)0.64
Revenue Growth17.41%
EPS GrowthN/A
CountryUS
Employees23,400
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)1.20
Shares Outstanding98,871,590
10 Day Avg. Volume783,495
30 Day Avg. Volume871,635
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.20
Price to Sales (P/S)0.58
P/FCF Ratio11.06
Enterprise Value/Market Cap2.02
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit6.18
Enterprise Value/Ebitda6.28
Forecast
1Y Price Target
$62.57Price Target Upside8.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)5.85
Revenue Forecast (FY)$7.44B
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 I...
How the Company Makes Money
Sonoco primarily makes money by manufacturing and selling packaging products and related services to consumer packaged goods companies and industrial customers. Key revenue streams generally include: (1) Consumer-oriented packaging sales, where So...
Sonoco Products Key Performance Indicators (KPIs)
Sonoco Products Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 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 | 1.54B | 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 | 4.85B | 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 | 392.73M | 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
53.98
Positive
49.22
Positive
46.16
Positive
Market Momentum
0.80
Negative
66.85
Neutral
63.55
Neutral
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 54.33, above the 50-day MA of 53.98, and above the 200-day MA of 46.16, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 66.85 is Neutral, neither overbought nor oversold. The STOCH value of 63.55 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $4.79B | 19.61 | 30.14% | 4.33% | 17.41% | ― | |
63 Neutral | $4.12B | 14.78 | 13.03% | 1.97% | 10.73% | 4.38% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $4.44B | 16.01 | 13.83% | 3.97% | 0.73% | -14.80% | |
56 Neutral | $2.77B | 10.06 | 13.67% | 2.91% | -2.16% | -31.44% | |
52 Neutral | $2.40B | -121.03 | -2.15% | 9.90% | 13.86% | 74.85% |
* Consumer Cyclical Sector Average
SON
Sonoco Products
50.25
5.88
13.26%
GPK
Graphic Packaging
9.60
-15.00
-60.98%
SLGN
Silgan Holdings
39.08
-11.73
-23.08%
REYN
Reynolds Consumer Products
20.84
-1.62
-7.22%
AMBP
Ardagh Metal Packaging
3.98
0.64
19.27%
Sonoco Products Corporate Events
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...
Private Placements and Financing
Sonoco Products Secures New $300 Million Term Loan
Positive
Mar 23, 2026
On March 23, 2026, Sonoco Products Company entered into a new unsecured delayed draw term loan facility of up to $300 million with a syndicate of lenders and Wells Fargo Bank as administrative agent, which can be drawn through September 13, 2026 a...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Sonoco Outlines 2026–2028 Strategy at Investor Day
Positive
Feb 17, 2026
On February 17, 2026, Sonoco Products hosted its 2026 Investor Day, where President and CEO Howard Coker and senior leaders outlined an updated value creation strategy centered on sustainable growth, margin improvement and disciplined capital allo...
Business Operations and StrategyExecutive/Board Changes
Sonoco Products Adds Veteran Finance Executive to Board
Positive
Feb 12, 2026
On February 10, 2026, Sonoco Products appointed Craig L. Nix, the chief financial officer of First Citizens BancShares, Inc., to its Board of Directors as an independent member, assigning him to the Audit and Financial Policy committees, with plan...
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.