Want to see SON full AI Analyst Report?
Top Page
Sonoco Products
(NYSE:SON)
Select Model
Select Model
Rating:71Outperform
Price Target:
$65.00
▲(11.63% Upside)
Action:Reiterated
Date:08/05/26
SON scores as above-average primarily due to attractive valuation (low P/E and solid dividend) and constructive technical momentum (price above key moving averages with positive MACD). The score is tempered by mid-tier fundamentals—revenue volatility, meaningful leverage, and weak recent cash conversion versus earnings—while the earnings call adds moderate support via maintained guidance and strong Q2 cash generation amid inflation-recovery timing risks.
Positive Factors
Margin Sustainability
Profitability has meaningfully rebounded to mid‑teens margins, reflecting sustained pricing, productivity gains and stable gross margins. Higher operating leverage and the Profitability Performance Plan suggest margins are structurally improved, supporting cash flow resilience if volumes normalize.
Negative Factors
Leverage
Debt remains meaningfully above equity, leaving the company exposed to earnings volatility and interest rate moves. Although leverage improved from extremely elevated levels, a still‑moderate debt load limits strategic optionality and increases refinancing and covenant risk if cash flow weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Sustainability
Profitability has meaningfully rebounded to mid‑teens margins, reflecting sustained pricing, productivity gains and stable gross margins. Higher operating leverage and the Profitability Performance Plan suggest margins are structurally improved, supporting cash flow resilience if volumes normalize.
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.
Data provided by:
The Fly
The FlySonoco Products (SON) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.57B
Dividend Yield3.78%
Average Volume (3M)1.24M
Price to Earnings (P/E)8.7
Beta (1Y)0.65
Revenue Growth12.01%
EPS GrowthN/A
CountryUS
Employees22,000
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)6.48
Shares Outstanding98,875,000
10 Day Avg. Volume1,358,165
30 Day Avg. Volume1,240,831
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$64.00Price Target Upside9.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)5.81
Revenue Forecast (FY)$7.46B
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 supply agreements and ongoing purchasing relationships. Key revenue streams include: (1) Consumer packaging sales—supply...
Sonoco Products Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic outlook: operational execution, strong cash generation, EPS growth and tangible productivity gains were highlighted as evidence the company’s strategy is working. However, management acknowledged near-term headwinds from inflation, freight, certain consumer-category volume softness and dependence on contractual/index-based price recoveries. Guidance was maintained but left intentionally wide given Q3 sensitivity (pack season) and inflation recovery timing.Positive Updates
Earnings Per Share Growth
Adjusted EPS of $1.51 in Q2 2026 vs $1.37 prior year, an increase of $0.14 (10% YoY). Excluding divested ThermoSafe, adjusted EPS rose 17% YoY.
Negative Updates
Top-Line Pressure
Net sales of $1.9 billion were down 1% YoY and adjusted EBITDA was down 1% YoY, reflecting mixed demand and the impact of the ThermoSafe divestiture on comparatives.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings Per Share Growth
Adjusted EPS of $1.51 in Q2 2026 vs $1.37 prior year, an increase of $0.14 (10% YoY). Excluding divested ThermoSafe, adjusted EPS rose 17% YoY.
Read all positive updates
Company Guidance
Sunoco reiterated 2026 guidance of net sales $7.25–7.75 billion, adjusted EBITDA $1.25–1.35 billion, adjusted EPS $5.80–6.20 and operating cash flow $700–800 million; Q2 results that underlie the guide included net sales of $1.9 billion, adjusted EBITDA $324 million (17.2% margin), adjusted EPS $1.51 (vs. $1.37 LY), operating cash flow $301 million (up 56% YoY), free cash flow $237 million (up 139%), and gross capex of $64 million. Management cited $16 million of segment productivity gains, a $0.07 quarterly benefit from the profitability performance plan and $0.14 benefit from lower net interest expense; consumer sales were $1.24 billion (+1%) with paper can volumes +9% (EMEA/APAC) and Asia +29%, industrial sales were $643 million (+4%) with mill utilization at 95%, trade tons +6.4% and reels volumes +10%. They flagged a roughly $10 million quarter inflation hit (OCC up $40/ton YTD to $100/ton), noted a $60/ton URB price increase effective July 8 and additional contractual recoveries that should flow into Q3–Q4 to restore margins.Sonoco Products Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
54
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.46B | 7.52B | 5.31B | 5.44B | 5.86B | 5.59B |
| Gross Profit | 1.55B | 1.57B | 1.14B | 1.20B | 1.23B | 1.06B |
| EBITDA | 1.55B | 1.53B | 610.97M | 965.41M | 869.63M | 148.19M |
| Net Income | 646.79M | 396.38M | 163.95M | 474.96M | 466.44M | -85.48M |
Balance Sheet | ||||||
| Total Assets | 10.97B | 11.16B | 12.51B | 7.19B | 7.05B | 5.07B |
| Cash, Cash Equivalents and Short-Term Investments | 168.65M | 378.40M | 431.01M | 138.90M | 227.44M | 170.98M |
| Total Debt | 4.71B | 4.59B | 7.30B | 3.23B | 3.53B | 1.84B |
| Total Liabilities | 7.38B | 7.53B | 10.22B | 4.76B | 4.98B | 3.22B |
| Stockholders Equity | 3.60B | 3.61B | 2.27B | 2.42B | 2.07B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 403.68M | 345.76M | 440.61M | 519.84M | 180.28M | 42.65M |
| Operating Cash Flow | 637.13M | 689.78M | 833.85M | 882.92M | 509.05M | 298.67M |
| Investing Cash Flow | 420.44M | 2.20B | -4.11B | -619.34M | -1.74B | -165.90M |
| Financing Cash Flow | -1.20B | -2.99B | 3.67B | -351.99M | 1.29B | -513.54M |
Sonoco Products Technical Analysis
Positive
58.23
Price Trends
53.51
Positive
52.56
Positive
48.86
Positive
Market Momentum
1.22
Positive
59.01
Neutral
50.07
Neutral
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 58.23 is above the 20-day moving average (MA) of 56.41, above the 50-day MA of 53.51, and above the 200-day MA of 48.86, indicating a bullish trend. The MACD of 1.22 indicates Positive momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 50.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $5.57B | 8.70 | 18.34% | 3.66% | 12.01% | ― | |
68 Neutral | $5.26B | 15.21 | 15.32% | 3.59% | 2.69% | 10.81% | |
63 Neutral | $4.23B | 15.68 | 11.69% | 1.77% | 8.43% | -9.80% | |
62 Neutral | $2.83B | 91.31 | -6.61% | 8.37% | 14.53% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $3.17B | 11.54 | 8.38% | 3.99% | -0.17% | -55.17% |
* Consumer Cyclical Sector Average
SON
Sonoco Products
58.46
14.53
33.08%
GPK
Graphic Packaging
11.90
-10.18
-46.10%
SLGN
Silgan Holdings
42.66
-3.04
-6.65%
REYN
Reynolds Consumer Products
26.76
5.13
23.73%
AMBP
Ardagh Metal Packaging
5.09
1.57
44.64%
Sonoco Products Corporate Events
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...
Executive/Board Changes
Sonoco Products Announces Chief Accounting Officer Leadership Transition
Neutral
May 11, 2026
On May 5, 2026, Sonoco Products Company announced that Chief Accounting Officer Aditya Gandhi intends to resign from his role, effective May 29, 2026, noting that his departure does not stem from any disagreement over the company’s operation...
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.