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Sonoco Products
(NYSE:SON)
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Rating:53Neutral
Price Target:
$51.00
▼(-11.89% Downside)
Action:Reiterated
Date:10/23/26
The score is held back primarily by the sharp TTM profitability reversal (net loss/negative EBIT) and still-elevated leverage, partially offset by solid and improving free cash flow. Earnings call messaging is mixed but somewhat supportive due to maintained full-year guidance, debt actions, and productivity savings momentum, while technicals and valuation are modestly supportive rather than clearly bullish.
Positive Factors
Strong cash generation
Positive and improving free cash flow gives Sonoco internally generated funds to reduce debt, reinvest in plants and products, and support dividends. This cash-generation capability provides resilience across packaging cycles, although leverage still limits how much flexibility it creates.
Negative Factors
Profitability reversal
The shift from solid prior-year profitability to a net loss and negative EBIT is a significant deterioration in earnings quality. Because revenue fell only modestly, the reversal points to substantial operating pressure and leaves less internal funding for debt reduction or growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Positive and improving free cash flow gives Sonoco internally generated funds to reduce debt, reinvest in plants and products, and support dividends. This cash-generation capability provides resilience across packaging cycles, although leverage still limits how much flexibility it creates.
Read all positive factors
Sonoco Products Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Reveals the revenue generated by each business segment, indicating which parts of the company are growing or declining and providing insight into market demand and competitive position.
Reveals the revenue generated by each business segment, indicating which parts of the company are growing or declining and providing insight into market demand and competitive position.
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The Fly
The FlySonoco Products (SON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.87B
Dividend Yield4.34%
Average Volume (3M)1.22M
Price to Earnings (P/E)―
Beta (1Y)0.64
Revenue Growth3.57%
EPS GrowthN/A
CountryUS
Employees22,000
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)-2.11
Shares Outstanding98,875,000
10 Day Avg. Volume1,537,284
30 Day Avg. Volume1,218,307
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.20
Price to Sales (P/S)0.58
P/FCF Ratio12.57
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit6.28
Enterprise Value/Ebitda12.91
Forecast
1Y Price Target
$55.60Price Target Upside-3.94% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)5.46
Revenue Forecast (FY)$7.36B
Sonoco Products Business Overview & Revenue Model
Company Description
Sonoco Products Company (SON), through its numerous subsidiaries, operates as a worldwide producer and vendor of both industrial and consumer packaging solutions. Its extensive reach covers markets across North and South America, Europe, Australia...
How the Company Makes Money
Sonoco makes money primarily by selling packaging products and related services to brand owners and industrial customers under customer contracts and purchase orders. Its core revenue streams come from: (1) manufacturing and selling consumer packa...
Sonoco Products Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Neutral
The call presented a mixed picture. Sonoco delivered Industrial sales growth, strong cash flow, debt reduction, productivity savings and continued progress on pricing and restructuring initiatives. However, these positives were offset by Consumer volume and EBITDA declines, significant weather-driven food can weakness, elevated input and freight costs, a large noncash goodwill impairment and ongoing uncertainty around the fourth quarter and 2027 outlook. Management remained confident in its strategy, but the balance of operating challenges and mitigation efforts supports a neutral overall assessment.Positive Updates
Industrial Segment Sales Growth
Industrial sales increased 5% year-over-year to $646 million, supported by pricing realization, healthy URB demand and strong North American execution.
Negative Updates
Third-Quarter Sales and Earnings Declines
Net sales were $2 billion, down 4% year-over-year, although sales were essentially flat excluding the ThermoSafe divestiture. Adjusted EBITDA was $352 million with a 17.2% margin, down 9% year-over-year or 4% excluding ThermoSafe. Adjusted EPS was $1.67, down 13% year-over-year or 7% excluding ThermoSafe.
Read all updates
Q3-2026 Updates
Positive
Negative
Industrial Segment Sales Growth
Industrial sales increased 5% year-over-year to $646 million, supported by pricing realization, healthy URB demand and strong North American execution.
Read all positive updates
Company Guidance
For the full year, Sonoco now expects net sales of $7.2 billion to $7.4 billion, adjusted EBITDA of $1.2 billion to $1.25 billion, adjusted EPS of $5.30 to $5.50 and operating cash flow of $600 million to $650 million; for the fourth quarter, Consumer is forecast to be relatively flat year-over-year, Industrial up slightly, inflation fairly well leveled out with no expectation that things get worse, and OCC flat. For 2027, the company expects relatively flat volumes year-over-year, $15 million to $20 million of savings from 2 site closures in Europe, positive price/cost recovery on the Industrial side into the first half of '27, and PPP savings incrementally higher than '26, kind of you can call it $10 million to $15 million to $20 million higher; as we get into '28, it will be higher than '27, with a steady ramp of $50 million, $60 million, $70 million, targeting in the $180 million range right in the middle of the $150 million to $200 million. Reels are expected to deliver similar type growth rates that we've seen over the last couple of years, while aerosol growth is not expected to maintain itself at a 5% to 7% but should continue to flow through it.Sonoco Products Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.37B | 7.52B | 5.31B | 5.44B | 5.86B | 5.59B |
| Gross Profit | 1.49B | 1.57B | 1.14B | 1.20B | 1.23B | 1.06B |
| EBITDA | 724.61M | 1.53B | 610.97M | 965.41M | 869.63M | 148.19M |
| Net Income | -208.23M | 396.38M | 163.95M | 474.96M | 466.44M | -85.48M |
Balance Sheet | ||||||
| Total Assets | 10.13B | 11.16B | 12.51B | 7.19B | 7.05B | 5.07B |
| Cash, Cash Equivalents and Short-Term Investments | 183.10M | 378.40M | 431.01M | 138.90M | 227.44M | 170.98M |
| Total Debt | 4.56B | 4.59B | 7.30B | 3.23B | 3.53B | 1.84B |
| Total Liabilities | 7.32B | 7.53B | 10.22B | 4.76B | 4.98B | 3.22B |
| Stockholders Equity | 2.82B | 3.61B | 2.27B | 2.42B | 2.07B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 411.88M | 345.76M | 440.61M | 519.84M | 180.28M | 42.65M |
| Operating Cash Flow | 630.43M | 689.78M | 833.85M | 882.92M | 509.05M | 298.67M |
| Investing Cash Flow | 425.96M | 2.20B | -4.11B | -619.34M | -1.74B | -165.90M |
| Financing Cash Flow | -1.11B | -2.99B | 3.67B | -351.99M | 1.29B | -513.54M |
Sonoco Products Technical Analysis
Negative
57.88
Price Trends
51.15
Negative
52.81
Negative
51.74
Negative
Market Momentum
-0.17
Negative
45.29
Neutral
60.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SON, the sentiment is Negative. The current price of 57.88 is above the 20-day moving average (MA) of 49.11, above the 50-day MA of 51.15, and above the 200-day MA of 51.74, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 60.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.55B | 4.73 | 33.40% | 2.84% | -24.38% | 43.47% | |
67 Neutral | $4.07B | 15.10 | 11.69% | 2.16% | 8.43% | -9.80% | |
65 Neutral | $21.24B | 17.36 | 9.49% | 5.66% | 56.62% | 32.08% | |
62 Neutral | $22.24B | 44.78 | 2.68% | 4.20% | 1.69% | 42.09% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $2.57B | 13.17 | 5.92% | 5.06% | 0.02% | -63.11% | |
53 Neutral | $4.87B | -23.36 | -6.12% | 4.34% | 3.57% | ― |
* Consumer Cyclical Sector Average
SON
Sonoco Products
49.30
10.81
28.10%
GPK
Graphic Packaging
8.69
-7.89
-47.58%
GEF
Greif Class A
83.17
26.15
45.85%
SLGN
Silgan Holdings
38.50
-5.31
-12.13%
SW
Smurfit Westrock
42.54
1.21
2.92%
AMCR
Amcor
45.94
6.58
16.73%
Sonoco Products Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Sonoco Products Expands Credit Facilities, Extends Debt Maturities
Positive
Sep 30, 2026
On September 25, 2026, Sonoco Products Company amended its existing credit agreement with a consortium of Farm Credit System institutions and CoBank, ACB, adding a $400 million tranche A term loan maturing in 2029 and a $400 million tranche B dela...
Business Operations and StrategyExecutive/Board Changes
Sonoco Reorganizes Global Consumer Packaging Leadership Structure
Positive
Aug 5, 2026
On August 4, 2026, Sonoco announced that it is aligning its Global Consumer Packaging businesses under a single integrated leadership structure reporting to Ernest Haynes, who has been named President, Global Consumer Packaging. The reconfigured s...
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.