Sonoco Products AI Stock Analysis
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Sonoco Products (SON) AI Stock Analysis
Sonoco Products
(NYSE:SON)
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.
Sonoco Products Key Performance Indicators (KPIs)
Net Sales by SegmentReveals 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.
Consumer Packaging has emerged as Sonoco’s growth engine, surging in 2025 into billion‑dollar quarters while Industrial Paper Packaging stays largely stable; the timing—large negative eliminations and a precipitous collapse of “Other” revenue—points to acquisition-driven reclassification or divestiture rather than organic demand. That concentrates top‑line exposure in Consumer Packaging: potential scale upside but higher integration and margin‑mix risk and diminished diversification, so watch deal disclosures and segment margins closely.
The FlySonoco Products (SON) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $4.92B
- Dividend Yield
- 4.33%
- Average Volume (3M)
- 1.19M
- Price to Earnings (P/E)
- -23.5
- Beta (1Y)
- 0.65
- Revenue Growth
- 3.56%
- EPS Growth
- -11673.60%
- Country
- US
- Employees
- 22,000
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Packaging & Containers
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, a...
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 packagin...
Sonoco Products Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative 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
Profitability deteriorated sharply in the TTM period (swing to a net loss and negative EBIT), which is a major drag despite only modest revenue decline. The balance sheet is still meaningfully levered (debt-to-equity ~1.62) though improved versus 2024. Offsetting this, operating cash flow (~$630M) and free cash flow (~$412M) are solid and improving, but debt coverage remains modest.
Income Statement
38NegativeBalance Sheet
52NeutralCash Flow
63Positive| 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 | 2.80B | 3.61B | 2.27B | 2.42B | 2.07B | 1.84B |
Cash Flow | ||||||
| Free Cash Flow | 400.01M | 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 | 430.49M | 2.20B | -4.11B | -619.34M | -1.74B | -165.90M |
| Financing Cash Flow | -1.10B | -2.99B | 3.67B | -351.99M | 1.29B | -513.54M |
Sonoco Products Technical Analysis
Price Trends
Market Momentum
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 49.60 is above the 20-day moving average (MA) of 49.55, above the 50-day MA of 49.08, and below the 200-day MA of 51.35, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 33.80 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.
Latest Risks Added
0 New RisksSonoco Products Peers Comparison
Overall Rating
SLGN72Outperform
AMCR69Neutral
GEF68Neutral
SW54Neutral- SON53Neutral
GPK50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SLGN | 72Outperform | $4.42B | 16.73 | 11.09% | 2.00% | 4.48% | -16.03% |
| AMCR | 69Neutral | $20.89B | 18.96 | 9.32% | 5.86% | 37.30% | 36.83% |
| GEF | 68Neutral | $4.00B | 16.08 | 8.80% | 3.25% | -2.47% | 409.77% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| SW | 54Neutral | $23.20B | 49.47 | 2.61% | 4.06% | 1.11% | -37.06% |
| SON | 53Neutral | $4.92B | -23.51 | -6.12% | 4.33% | 3.56% | -11673.60% |
| GPK | 50Neutral | $3.30B | 44.28 | 2.27% | 3.97% | 0.35% | -85.33% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SON | Sonoco Products Company | 49.60 | 9.66 | 24.19% | |
| GPK | Graphic Packaging Holding | 11.07 | -4.41 | -28.50% | |
| GEF | Greif Class A | 72.51 | 13.06 | 21.96% | |
| SLGN | Silgan | 41.50 | 3.80 | 10.08% | |
| SW | Smurfit Westrock PLC | 44.03 | 10.38 | 30.85% | |
| AMCR | Amcor | 44.39 | 3.95 | 9.76% |
Sonoco Products Corporate Events
Sonoco Products Expands Credit Facilities, Extends Debt Maturities
PositiveOn 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 delayed...
Sonoco Reorganizes Global Consumer Packaging Leadership Structure
PositiveOn 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 segm...
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: Oct 23, 2026