SON

Sonoco Products Company

Fundamental data last updated:August 11, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Packaging & Containers

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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.

 


VALUATION

P/E

4.77

Market Cap ($M USD)

$4.90B

Forward P/E

7.03

PEG

-0.22

PRICE TO SALES

0.65

PRICE TO BOOK

1.38

EV / EBITDA

6.24

5-Year Average P/E

Free Cash Flow Yield

5.43%

DCF Value

$132.55

Graham Number

$91.67

Price to FCF

18.42

EV to FCF

36.21

Earnings Yield

20.97%

FCF Yield

5.43%

DIVIDEND

Yield

4.30%

Annual Payout

$2.13

Payout Ratio

20.21%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$10.38

Next Year EPS Growth Estimate

$7.05

Next Year Revenue Growth Estimate

$7.76B

Return on Equity (ROE)

30.14%

FREE CASH FLOW

Operating Margin

8.66%

Debt-to-Equity

1.34

Piotroski F-Score

6

Altman Z-Score

1.79

Return on Invested Capital (ROIC)

7.88%

Current Ratio

0.96

Quick Ratio

0.54

Net Debt to EBITDA

3.06

Interest Coverage

2.92

Gross Profit margin

20.92%

FCF PER SHARE

$2.67

REVENUE PER SHARE

$75.08

Gainseekers Quantitative Analysis

Summary

The market appears to be significantly undervaluing Sonoco Products Company. With a DCF value of $136.35 and a Graham Number of $91.67, the stock traded well below these intrinsic valuations. The Forward P/E of 7.32 suggests a cautious growth outlook, yet the Earnings Yield of 20.14% indicates robust earnings potential. However, the Altman Z-score of 1.81 raises concerns about financial stability, hinting at potential distress. Overall, the valuation metrics suggest a mispricing, but caution is warranted given the financial health indicators.

AI Exposure / Tech Reliance

Operating in the Packaging & Containers industry, Sonoco is moderately positioned to adapt to AI and tech shifts. While not a tech-centric sector, advancements in automation and smart packaging could enhance operational efficiency. The company's ability to integrate these technologies will be crucial for maintaining competitiveness.

The Bull Case

For the value-driven investor, Sonoco offers compelling reasons to buy. A Return on Equity of 30.14% and a solid ROIC of 7.88% reflect strong capital efficiency. The Piotroski F-Score of 6 indicates decent financial health, while a 4.13% yield and a low payout ratio of 20.21% suggest sustainable dividends. These metrics paint a picture of a company with pricing power and efficient capital allocation.

The Bear Case

Despite its strengths, Sonoco faces significant risks. The Current Ratio of 0.96 and Quick Ratio of 0.54 highlight liquidity concerns, potentially limiting flexibility. The Price to FCF ratio of 19.18 suggests the stock is not cheap on a cash flow basis. Additionally, with a Net Debt to EBITDA of 3.06, the company carries a substantial debt burden, which could strain resources if earnings falter.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$59.00

Institutional Ownership %

1-Year Beta

0.39

Insider Buying % (6 Mo)

Distance to 52-Week High

18.01%

Distance to 52-Week Low

21.95%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$51.80

200-DAY SMA

$47.35

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.