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Sealed Air (SEE)
NYSE:SEE

Sealed Air (SEE) AI Stock Analysis

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Sealed Air

(NYSE:SEE)

Rating:68Neutral
Price Target:
$34.00
▲(4.74%Upside)
Sealed Air's stock score reflects strong operational efficiency and a reasonable valuation, offset by challenges in revenue growth and leverage. Positive earnings call guidance and improved EBITDA margins in key regions support the score, but trade policy uncertainties and segment-specific volume declines remain concerns. Technical indicators suggest mixed signals with potential for stabilization.
Positive Factors
Earnings potential
Analyst maintains a Buy rating on Sealed Air (SEE) with a price objective of $39, implying a potential upside of approximately 25%.
Investment attractiveness
SEE trades at a lower EBITDA multiple compared to other companies, making it an attractive investment.
Operational performance
SEE reported solid Q1 results largely driven by cost control and operational performance improvements.
Negative Factors
Foreign exchange impact
The updated foreign-exchange assumptions have resulted in a lower estimate for second-quarter adjusted EBITDA.
Segment performance
The volume decline in the Protective segment was driven by continued softness in industrial and fulfillment.
Supply chain challenges
Cattle supplies will remain tight, and herd size could begin to grow modestly only in 2025 or 2026, impacting the supply chain for SEE.

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

Sealed Air Business Overview & Revenue Model

Company DescriptionSealed Air Corporation provides food safety and security, and product protection solutions and equipment in North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Food and Protective. The Food segment offers integrated packaging materials and automation equipment solutions to provide food safety and shelf life extension, reduce food waste, automate processes, and optimize total cost for food processors in the fresh red meat, smoked and processed meats, poultry, seafood, plant-based, and dairy markets under the CRYOVAC, CRYOVAC Grip & Tear, CRYOVAC Darfresh, Simple Steps, and Optidure brands. This segment sells its solutions directly to customers through its sales, marketing, and customer service personnel. The Protective segment provides foam, inflatable, suspension and retention, temperature assurance packaging solutions to protect goods to e-commerce, consumer goods, pharmaceutical and medical devices, and industrial manufacturing markets under the SEALED AIR, BUBBLE WRAP, AUTOBAG, SEALED AIR, AUTOBAG, Instapak, Korrvu, Kevothermal, and TempGuard brands. This segment sells its solutions through supply distributors, as well as directly to fabricators, original equipment manufacturers, contract manufacturers, logistics partners, and e-commerce/fulfillment operations. Sealed Air Corporation was incorporated in 1960 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneySealed Air makes money through the sale of its packaging products and solutions, which are tailored for different industries, including food and beverage, e-commerce, and healthcare. The company's key revenue streams include its Food Care division, which offers packaging solutions that improve food safety, extend shelf life, and reduce food waste, and its Product Care division, which provides protective packaging to prevent damage during shipping and handling. Sealed Air also generates revenue through equipment systems and aftermarket services that are integral to its packaging solutions. Strategic partnerships and a focus on innovation and sustainability further drive the company's earnings by enabling it to meet the evolving needs of its clients and capture new market opportunities.

Sealed Air Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 18.64%|
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 Financial Statement Overview

Summary
SEE demonstrates strong operational profitability with robust EBIT and EBITDA margins. However, the company faces challenges in revenue growth and leverage, as indicated by decreasing net margins and a high debt-to-equity ratio. Improved ROE reflects effective equity utilization, but liquidity pressures are noted due to declining free cash flow growth.
Income Statement
70
Positive
The income statement shows a stable gross profit margin of around 30% over recent periods, indicating efficient cost management in production. However, the net profit margin has declined, reflecting increased operational costs or interest burdens. Revenue growth has been inconsistent, with a recent downward trend, but the EBIT and EBITDA margins remain robust, indicating strong operational profitability.
Balance Sheet
65
Positive
The balance sheet reflects a relatively high debt-to-equity ratio, which could present leverage risks. However, the company's return on equity has been improving, driven by effective use of equity to generate earnings. The equity ratio is low, suggesting a high reliance on debt financing, which may pose financial stability concerns.
Cash Flow
68
Positive
Cash flows show a decline in free cash flow growth, indicating potential challenges in generating cash from operations. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation relative to reported earnings. However, the free cash flow to net income ratio has decreased, highlighting potential pressures on liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.34B5.39B5.49B5.64B5.53B4.90B
Gross Profit1.60B1.63B1.64B1.77B1.68B1.61B
EBITDA1.00B735.90M946.30M1.15B1.06B991.30M
Net Income296.20M264.70M341.60M491.60M506.80M502.90M
Balance Sheet
Total Assets7.05B7.02B7.20B6.21B6.23B6.08B
Cash, Cash Equivalents and Short-Term Investments335.20M371.80M346.10M456.10M561.00M548.70M
Total Debt4.50B4.51B4.79B3.75B3.77B3.84B
Total Liabilities6.25B6.40B6.65B5.87B5.98B5.91B
Stockholders Equity797.90M624.50M549.50M344.10M248.70M172.50M
Cash Flow
Free Cash Flow417.80M507.80M272.00M376.00M496.60M555.90M
Operating Cash Flow634.80M728.00M516.20M613.30M709.70M737.00M
Investing Cash Flow-238.00M-232.50M-1.38B-243.00M-125.70M-159.80M
Financing Cash Flow-409.00M-432.80M755.70M-446.70M-575.80M-261.70M

Sealed Air Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.46
Price Trends
50DMA
30.81
Positive
100DMA
30.23
Positive
200DMA
32.51
Negative
Market Momentum
MACD
0.26
Negative
RSI
58.76
Neutral
STOCH
83.53
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 32.46 is above the 20-day moving average (MA) of 31.56, above the 50-day MA of 30.81, and below the 200-day MA of 32.51, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 83.53 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$6.06B21.0014.52%1.41%1.99%-5.30%
SOSON
71
Outperform
$4.59B30.235.54%4.56%-4.58%-61.14%
SESEE
68
Neutral
$4.77B15.6843.40%2.46%-2.45%-16.55%
OIOI
65
Neutral
$2.42B-13.85%-5.29%18.22%
GPGPK
64
Neutral
$6.64B10.7920.62%2.00%-6.28%-7.43%
62
Neutral
$16.90B11.24-7.48%2.95%1.60%-23.76%
53
Neutral
$2.70B-69.06%8.87%4.42%70.21%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SEE
Sealed Air
32.46
-1.26
-3.74%
GPK
Graphic Packaging
22.02
-3.05
-12.17%
OI
O-I Glass
15.67
5.22
49.95%
SLGN
Silgan Holdings
56.67
14.61
34.74%
SON
Sonoco Products
46.51
-0.37
-0.79%
AMBP
Ardagh Metal Packaging
4.51
1.46
47.87%

Sealed Air Corporate Events

Executive/Board ChangesShareholder Meetings
Sealed Air Holds Annual Stockholders Meeting, Elects Directors
Neutral
May 30, 2025

On May 29, 2025, Sealed Air Corporation held its Annual Meeting of Stockholders, where several proposals were voted on. The stockholders elected directors for terms expiring in 2026, ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025, and approved the executive compensation on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (SEE) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Sealed Air stock, see the SEE Stock Forecast page.

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.Date of analysis: Jun 25, 2025