Sonoco Products (SON) AI Stock Analysis

• Market Cap: $4.27B
• Dividend Yield: 4.89%
• Average Volume (3M): 961.62K
• Price to Earnings (P/E): 4464.9
• Beta (1Y): 0.58
• Revenue Growth: 8.31%
• EPS Growth: -99.39%
• Country: US
• Employees: 23,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 1.92
• Shares Outstanding: 98,633,010
• 10 Day Avg. Volume: 1,103,255
• 30 Day Avg. Volume: 961,618
• 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: 2.25
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 11.75
• 1Y Price Target: $51.83
• Price Target Upside: 20.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 5.67
• Revenue Forecast (FY): $7.66B

• Rating: 63 Neutral
• Price Target: $44.00 ▲(1.92% Upside)

Sonoco Products' overall score is driven by strong financial performance and strategic corporate actions, such as the ThermoSafe sale. However, the high P/E ratio and neutral technical indicators temper the outlook. The earnings call provided a mixed picture, with strong results offset by challenges in certain markets.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, enhancing Sonoco's competitive position and financial stability.

Portfolio Transformation

The sale of ThermoSafe simplifies operations and focuses resources on core segments, potentially improving efficiency and strategic alignment.

Operational Efficiency

Achieving significant synergies enhances operational efficiency, reducing costs and increasing profitability across Sonoco's portfolio.

Negative Factors

Challenges in European Market

Macroeconomic headwinds in Europe could impact revenue and profitability, posing a risk to Sonoco's growth and financial performance.

Volume Softness

Volume softness in key segments may hinder revenue growth and operational efficiency, affecting long-term profitability and market position.

Pressure on Operating Cash Flows

Reduced cash flow guidance indicates potential liquidity constraints, limiting Sonoco's ability to invest in growth and manage debt effectively.

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 streams, primarily by selling packaging products and services to a wide array of industries, including food and beverage, personal care, and pharmaceuticals. The company's revenue model includes the manufacturing and distribution of packaging materials, which are sold to both large multinational brands and smaller companies. Significant revenue is derived from its consumer packaging and industrial segments, with a focus on providing customized solutions that enhance product protection and shelf appeal. Additionally, Sonoco benefits from strategic partnerships and collaborations with key clients that drive long-term contracts and recurring revenue. The company also invests in innovative technologies and sustainable practices, which not only attract new customers but also help reduce costs and improve margins.

Sonoco Products Financial Statement Overview

Summary

Sonoco Products shows strong financial health with robust revenue growth and improved profitability margins. The balance sheet indicates a favorable trend in leverage reduction, although the equity ratio suggests reliance on debt. Cash flow generation is a notable strength, supporting the company's operational and strategic initiatives.

Income Statement

Sonoco Products has demonstrated strong revenue growth with an 8.04% increase in the TTM period. The gross profit margin remains stable at around 21%, indicating consistent cost management. However, the net profit margin has improved significantly to 10.26% in the TTM, reflecting enhanced profitability. The EBIT and EBITDA margins are relatively modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.49 in the TTM, indicating a healthier leverage position compared to previous years. Return on equity is strong at 22.27%, showcasing effective utilization of shareholder funds. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Sonoco Products has shown impressive free cash flow growth of 110.72% in the TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion. However, the free cash flow to net income ratio suggests that a significant portion of earnings is being reinvested or used for debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.12B	5.31B	5.44B	5.86B	5.59B	5.24B
Gross Profit	1.31B	1.14B	1.20B	1.23B	1.06B	1.05B
EBITDA	817.18M	610.97M	965.41M	869.63M	148.19M	591.93M
Net Income	627.81M	163.95M	474.96M	466.44M	-85.48M	207.46M
Balance Sheet
Total Assets	11.72B	12.51B	7.19B	7.05B	5.07B	5.28B
Cash, Cash Equivalents and Short-Term Investments	244.85M	431.01M	138.90M	227.44M	170.98M	564.85M
Total Debt	5.40B	7.30B	3.23B	3.53B	1.84B	2.01B
Total Liabilities	8.40B	10.22B	4.76B	4.98B	3.22B	3.37B
Stockholders Equity	3.30B	2.27B	2.42B	2.07B	1.84B	1.90B
Cash Flow
Free Cash Flow	298.40M	440.61M	519.84M	180.28M	42.65M	511.49M
Operating Cash Flow	673.10M	833.85M	882.92M	509.05M	298.67M	705.62M
Investing Cash Flow	-2.34B	-4.11B	-619.34M	-1.74B	-165.90M	-126.33M
Financing Cash Flow	48.67M	3.67B	-351.99M	1.29B	-513.54M	-162.87M

Sonoco Products Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 43.17 is above the 20-day moving average (MA) of 42.04, above the 50-day MA of 40.81, and below the 200-day MA of 43.45, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 63.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.37 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	75 Outperform	$5.01B	16.49	14.32%	3.91%	0.76%	-17.69%
SEE	71 Outperform	$6.08B	15.35	40.42%	1.94%	-1.22%	-0.76%
SLGN	68 Neutral	$4.32B	13.88	14.58%	1.95%	11.10%	6.54%
GPK	64 Neutral	$4.55B	9.09	16.24%	2.87%	-3.93%	-27.37%
SON	63 Neutral	$4.27B	4,464.95	6.39%	4.89%	8.31%	-99.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AMBP	56 Neutral	$2.43B	-301.49	―	9.90%	10.34%	87.86%

Sonoco Products Corporate Events

Sonoco Products Completes Sale of ThermoSafe Unit

On November 3, 2025, Sonoco Products Company announced the completion of the sale of its ThermoSafe business unit to Arsenal Capital Partners for up to $725 million. This transaction marks a significant step in Sonoco’s portfolio transformation, simplifying its operations into two core segments focused on metal and paper packaging. The proceeds from the sale are intended to reduce the company’s net leverage ratio and support its strategic goals of organizational streamlining and capital investments.