Sealed Air (SEE) AI Stock Analysis

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Sealed Air

(NYSE:SEE)

71Outperform

Sealed Air's overall stock score reflects strong operational profitability and improving leadership, which are counterbalanced by challenges in growth, leverage, and segment-specific weaknesses. The stock's technical indicators show short-term bullish momentum, while its valuation suggests it is fairly priced. The cautious sentiment from the earnings call and potential strategic benefits from the new CEO also influence the score.

Positive Factors

Analyst Recommendation

The analyst upgrades SEE to Buy, seeing the recent 30% share price drop as a good buying opportunity.

Financial Performance

SEE reported solid Q1 results largely driven by cost control and operational performance improvements.

Market Strategy

Sealed Air is implementing a customer-centric, go-to-market strategy throughout the protective segment, with potential for market outgrowth as benefits begin to show.

Negative Factors

Market Expectations

The stock is trading below its 10-year average, with expectations of a prolonged lower performance, potentially delaying financial targets.

Protective Segment Performance

Protective segment experienced a decline with -8% organizational growth, driven by continued softness in industrial and fulfillment.

Volume and Demand Challenges

SEE has faced challenges in the Protective business for a number of years, and weaker demand could continue to affect volumes.

Sealed Air (SEE) vs. S&P 500 (SPY)

Market Cap

$4.75B

Dividend Yield2.48%

Average Volume (3M)2.25M

Price to Earnings (P/E)15.6

Beta (1Y)1.16

Revenue Growth-2.45%

EPS Growth-16.55%

CountryUS

Employees16,400

SectorConsumer Cyclical

Sector Strength74

IndustryPackaging & Containers

Share Statistics

EPS (TTM)0.81

Shares Outstanding147,053,300

10 Day Avg. Volume2,469,783

30 Day Avg. Volume2,246,413

Financial Highlights & Ratios

PEG Ratio-0.54

Price to Book (P/B)7.14

Price to Sales (P/S)0.00

P/FCF Ratio8.85

Enterprise Value/Market Cap1.82

Enterprise Value/Revenue0.40

Enterprise Value/Gross Profit5.42

Enterprise Value/Ebitda2.09

Forecast

1Y Price Target

$36.25

Price Target Upside12.23% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering12

Sealed Air Business Overview & Revenue Model

Company DescriptionSealed Air (SEE) is a global leader in essential packaging solutions, known for its innovative approaches to protect and preserve goods. Operating across various sectors, the company specializes in the design and manufacture of a wide range of packaging materials and systems. Its core products include food packaging, protective packaging, and hygiene solutions, serving industries such as food, e-commerce, electronics, and healthcare. With a commitment to sustainability, Sealed Air focuses on reducing waste and enhancing the recyclability of its products.

How the Company Makes MoneySealed Air makes money primarily through the sale of its packaging products and solutions. The company's revenue model is based on providing customized packaging solutions that cater to the specific needs of its clients across diverse industries. Key revenue streams include food packaging products, which ensure the safety and freshness of perishable goods, and protective packaging solutions that shield valuable items during shipping and handling. Sealed Air also generates income from its hygiene and cleaning solutions tailored for the food service and healthcare sectors. Significant partnerships with major global brands and a focus on sustainability initiatives further enhance its earnings potential, as companies increasingly seek eco-friendly and effective packaging alternatives.

Sealed Air Financial Statement Overview

Summary

Sealed Air shows solid operational margins with improvements in cash flow, but faces challenges with declining revenue and net profit margin. The balance sheet reflects a high leverage risk despite reduced debt.

Income Statement

Positive

Sealed Air has shown a decline in Total Revenue over the past year, with a revenue decrease from $5.49 billion in 2023 to $5.39 billion in TTM. The gross profit margin remains strong at approximately 29.5%, but the net profit margin has decreased to 5.0% from 6.2% in 2023. The EBIT and EBITDA margins are healthy at 14.2% and 17.3% respectively, indicating a solid operational performance despite the revenue decline.

Balance Sheet

Neutral

Sealed Air's balance sheet shows a significant improvement in its debt position, with total debt reducing from $4.79 billion in 2023 to $309.6 million in TTM. However, the debt-to-equity ratio is still elevated due to low stockholders' equity, leading to a risky leverage profile. The equity ratio is modest at 8.9%, indicating limited equity buffer.

Cash Flow

Positive

The company has improved its free cash flow from $272 million in 2023 to $322.7 million in TTM, marking a healthy growth trend. The operating cash flow to net income ratio stands at 1.78, reflecting strong cash conversion capabilities, while the free cash flow to net income ratio is 1.19, highlighting efficient cash generation relative to net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.39B	5.49B	5.64B	5.53B	4.90B
	Gross Profit
1.63B	1.64B	1.77B	1.68B	1.61B
	EBIT
735.90M	754.60M	944.80M	900.90M	788.10M
	EBITDA
735.90M	946.30M	1.15B	1.06B	991.30M
	Net Income Common Stockholders
264.70M	341.60M	491.60M	506.80M	502.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
371.80M	346.10M	456.10M	561.00M	548.70M
	Total Assets
7.02B	7.20B	6.21B	6.23B	6.08B
	Total Debt
4.51B	4.79B	3.75B	3.77B	3.84B
	Net Debt
4.14B	4.44B	3.30B	3.21B	3.29B
	Total Liabilities
6.40B	6.65B	5.87B	5.98B	5.91B
	Stockholders Equity
624.50M	549.50M	344.10M	248.70M	172.50M
Cash Flow		Free Cash Flow
507.80M	272.00M	376.00M	496.60M	555.90M
	Operating Cash Flow
728.00M	516.20M	613.30M	709.70M	737.00M
	Investing Cash Flow
-232.50M	-1.38B	-243.00M	-125.70M	-159.80M
	Financing Cash Flow
-432.80M	755.70M	-446.70M	-575.80M	-261.70M

Sealed Air Technical Analysis

Technical Analysis Sentiment

Positive

Last Price32.30

Price Trends

50DMA

28.56

Positive

100DMA

31.13

Positive

200DMA

32.98

Negative

Market Momentum

MACD

1.17

Negative

RSI

67.08

Neutral

STOCH

91.76

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SEE, the sentiment is Positive. The current price of 32.3 is above the 20-day moving average (MA) of 29.08, above the 50-day MA of 28.56, and below the 200-day MA of 32.98, indicating a neutral trend. The MACD of 1.17 indicates Negative momentum. The RSI at 67.08 is Neutral, neither overbought nor oversold. The STOCH value of 91.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SEE.

Sealed Air Risk Analysis

Sealed Air disclosed 31 risk factors in its most recent earnings report. Sealed Air reported the most risks in the “Macro & Political” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Sealed Air Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLGN	73 Outperform	$5.93B	20.55	14.52%	1.39%	1.99%	-5.30%
SEE	71 Outperform	$4.75B	15.60	43.40%	2.48%	-2.45%	-16.55%
SON	71 Outperform	$4.57B	30.14	5.54%	4.48%	-4.58%	-61.14%
AMBP	71 Outperform	$2.32B	―	-69.06%	10.31%	4.42%	70.21%
OI	65 Neutral	$2.05B	―	-13.85%	―	-5.29%	18.22%
GPK	64 Neutral	$7.11B	11.54	20.62%	1.74%	-6.28%	-7.43%
Sector *	61 Neutral	$6.98B	11.35	2.88%	3.90%	2.65%	-21.84%

* Consumer Cyclical Sector Average

Performance Comparison

SEE

Sealed Air

32.30

-4.88

-13.13%

GPK

Graphic Packaging

23.55

-3.34

-12.42%

O-I Glass

13.27

0.12

0.91%

SLGN

Silgan Holdings

55.45

9.28

20.10%

SON

Sonoco Products

46.38

-12.29

-20.95%

AMBP

Ardagh Metal Packaging

3.88

0.36

10.23%

Sealed Air Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 17.33%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted modest growth in the Food segment and improved EBITDA margins, driven by cost efficiencies. However, significant challenges remain in the Protective segment, with volume declines and softness in key markets. The uncertainty around trade policies and tariffs adds complexity to future performance. Despite efforts to mitigate these impacts, the overall sentiment remains cautious.

Q1-2025 Updates

Positive Updates

Modest Volume Growth in Food Segment

The Food segment delivered modest volume growth against a strong first quarter last year. Case-ready solutions grew low single digits in the first quarter compared to the prior year, benefiting from evolving consumer preferences and the strength of product offerings.

Improved EBITDA Margins

First quarter adjusted EBITDA margin was 21.7%, up 80 basis points. This improvement was driven by cost takeout and productivity efficiencies.

Strong Performance in EMEA and Asia

The EMEA region had its best quarter since 2021, with volumes down just 1%. Asia and Latin America showed growth, offsetting declines in North America.

Successful Mitigation of Tariff Impacts

The net tariff impact to the bottom line is minimal, and the company is actively taking pricing actions to mitigate exposure.

Negative Updates

Decline in Protective Segment Volumes

Protective segment net sales were down 8% organically, driven primarily by volume declines of 6%, with significant declines in North America.

Softness in Fulfillment and Industrial Portfolios

Continued softness in fulfillment and industrial portfolios was noted, with shipments in the U.S. down mid-single digits in the first quarter.

Challenges in North American Markets

North America experienced sluggish volumes in the Food segment and significant declines in the Protective segment, impacting overall performance.

Volatility in Trade Policies

Uncertainty around trade policies and tariffs, especially with the evolving global trade landscape, poses ongoing challenges.

Company Guidance

In the Sealed Air Q1 2025 earnings call, the company provided guidance reaffirming its full-year outlook despite a challenging macro environment. The guidance reflects a modest volume softness in both Food and Protective segments, offset by an improved foreign exchange outlook due to a weakening U.S. dollar. The company reported Q1 net sales of $1.27 billion, a 2% decrease on a constant currency basis, with adjusted EBIT at $276 million, up 2% on a constant currency basis. Adjusted earnings per share increased 4% to $0.81 on a reported basis, and 9% on a constant currency basis. The adjusted tax rate was 25.7%, and the net debt leverage ratio decreased to 3.7 times from 3.9 times a year ago. For Q2, Sealed Air anticipates net sales of approximately $1.3 billion, adjusted EBITDA of $270 million, and adjusted earnings per share around $0.71. The company is actively managing potential tariff impacts and is focused on cost control and productivity actions to offset possible further volume softness while maintaining a strong orientation towards growth and customer satisfaction.

Sealed Air Corporate Events

Executive/Board Changes

Sealed Air COO Emile Chammas to Depart April 2025

Neutral

Mar 3, 2025

On February 26, 2025, Sealed Air Corporation announced that Emile Chammas, the Senior Vice President and Chief Operating Officer, will be leaving his position on April 1, 2025. The company confirmed that there will be no changes to Mr. Chammas’ severance package, and additional considerations were made to fully vest his restricted stock unit award as part of his departure agreement.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.