Sonoco Products (SON) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: 5.24%
• Average Volume (3M): 1.53M
• Price to Earnings (P/E): 4130.9
• Beta (1Y): 0.68
• Revenue Growth: 8.31%
• EPS Growth: -99.39%
• Country: US
• Employees: 23,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 1.92
• Shares Outstanding: 98,633,010
• 10 Day Avg. Volume: 2,264,185
• 30 Day Avg. Volume: 1,531,824
• PEG Ratio: -0.45
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.91
• P/FCF Ratio: 10.94
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 7.31
• Enterprise Value/Ebitda: 11.75
• 1Y Price Target: $52.43
• Price Target Upside: 30.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 5.76
• Revenue Forecast (FY): $7.67B

• Rating: 63 Neutral
• Price Target: $43.00 ▲(7.31% Upside)

Sonoco Products' overall stock score reflects strong financial performance and strategic achievements, particularly in the Consumer Packaging segment. However, technical indicators suggest bearish momentum, and the high P/E ratio raises valuation concerns. The earnings call provided a mixed outlook, with strong results overshadowed by macroeconomic challenges.

Positive Factors

Revenue Growth

Sonoco's significant revenue growth reflects strong demand and successful strategic initiatives, enhancing its market position and financial stability.

Portfolio Transformation

The sale of ThermoSafe allows Sonoco to streamline its operations and focus on core segments, potentially improving efficiency and profitability.

Operational Efficiency

Achieving operational synergies will enhance cost efficiency and competitiveness, supporting long-term profitability and shareholder value.

Negative Factors

Macroeconomic Challenges

Macroeconomic headwinds in Europe and Asia could impact revenue and profitability, posing risks to future financial performance.

Volume Softness

Softening demand in key markets may affect sales and operating profits, challenging Sonoco's ability to maintain growth momentum.

Cash Flow Pressure

Reduced cash flow guidance indicates potential liquidity constraints, which could limit investment capacity and strategic flexibility.

Sonoco Products Business Overview & Revenue Model

Company Description

Sonoco Products Company (SON) is a global provider of consumer packaging, industrial products, and protective solutions. Founded in 1899 and headquartered in Hartsville, South Carolina, Sonoco operates in several sectors, including flexible packaging, rigid paper containers, and molded products. The company serves a wide array of markets, including food and beverage, healthcare, and personal care, offering products such as paperboard tubes, containers, and flexible packaging solutions designed to meet the diverse needs of its customers.

How the Company Makes Money

Sonoco generates revenue through multiple key streams, primarily by manufacturing and selling a diverse range of packaging products and services. The company's revenue model includes sales from consumer packaging, which encompasses flexible and rigid packaging solutions, and industrial products, such as paperboard tubes and cores. Additionally, Sonoco earns revenue from its protective solutions segment, which provides packaging that safeguards products during shipping and handling. Significant partnerships with notable companies in various industries help secure long-term contracts and consistent revenue. The company's focus on innovation and sustainability also attracts customers seeking eco-friendly packaging solutions, further enhancing its profitability.

Sonoco Products Financial Statement Overview

Summary

Sonoco Products shows strong financial health with robust revenue growth and improved profitability margins. The balance sheet indicates a favorable trend in leverage reduction, although the equity ratio suggests reliance on debt. Cash flow generation is a notable strength, supporting the company's operational and strategic initiatives.

Income Statement

Sonoco Products has demonstrated strong revenue growth with an 8.04% increase in the TTM period. The gross profit margin remains stable at around 21%, indicating consistent cost management. However, the net profit margin has improved significantly to 10.26% in the TTM, reflecting enhanced profitability. The EBIT and EBITDA margins are relatively modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.49 in the TTM, indicating a healthier leverage position compared to previous years. Return on equity is strong at 22.27%, showcasing effective utilization of shareholder funds. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Sonoco Products has shown impressive free cash flow growth of 110.72% in the TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion. However, the free cash flow to net income ratio suggests that a significant portion of earnings is being reinvested or used for debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.12B	5.31B	5.44B	5.86B	5.59B	5.24B
Gross Profit	1.31B	1.14B	1.20B	1.23B	1.06B	1.05B
EBITDA	817.18M	610.97M	965.41M	869.63M	148.19M	591.93M
Net Income	627.81M	163.95M	474.96M	466.44M	-85.48M	207.46M
Balance Sheet
Total Assets	11.72B	12.51B	7.19B	7.05B	5.07B	5.28B
Cash, Cash Equivalents and Short-Term Investments	244.85M	431.01M	138.90M	227.44M	170.98M	564.85M
Total Debt	1.61B	7.30B	3.23B	3.47B	1.84B	1.96B
Total Liabilities	8.40B	10.22B	4.76B	5.02B	3.22B	3.37B
Stockholders Equity	3.32B	2.27B	2.42B	2.07B	1.84B	1.90B
Cash Flow
Free Cash Flow	302.95M	440.61M	519.84M	189.90M	55.82M	521.96M
Operating Cash Flow	673.10M	833.85M	882.92M	509.05M	298.67M	705.62M
Investing Cash Flow	-2.34B	-4.11B	-619.34M	-1.75B	-173.49M	-127.01M
Financing Cash Flow	48.67M	3.67B	-351.99M	1.33B	-513.54M	-162.87M

Sonoco Products Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SON, the sentiment is Neutral. The current price of 40.07 is below the 20-day moving average (MA) of 40.21, below the 50-day MA of 43.31, and below the 200-day MA of 44.66, indicating a neutral trend. The MACD of -0.81 indicates Negative momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 43.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SON.

Sonoco Products Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REYN	75 Outperform	$5.17B	17.03	14.32%	3.93%	0.76%	-17.69%
SEE	70 Outperform	$5.26B	13.30	40.42%	2.24%	-1.22%	-0.76%
SLGN	66 Neutral	$4.16B	13.20	14.58%	2.03%	11.10%	6.55%
SON	63 Neutral	$3.95B	4,130.93	6.39%	5.24%	8.31%	-99.39%
GPK	63 Neutral	$5.05B	10.04	16.24%	2.52%	-3.93%	-27.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AMBP	56 Neutral	$2.01B	―	―	11.90%	10.34%	87.86%

Sonoco Products Corporate Events

Sonoco Products Faces Legal Challenges: Potential Financial Impact and Investor Concerns

Sonoco Products Company faces potential business risks related to ongoing legal proceedings, as outlined in their recent disclosures. These legal challenges could result in significant financial liabilities or regulatory penalties, impacting the company’s overall financial health and operational stability. Investors and stakeholders should closely monitor the developments in these legal matters, as they may influence Sonoco’s market position and future profitability. The company’s ability to effectively manage and resolve these legal issues will be crucial in mitigating associated risks.

Sonoco’s Earnings Call: Record Growth Amid Challenges

The recent earnings call from Sonoco Products Company painted a mixed picture, highlighting both significant achievements and notable challenges. While the company celebrated record financial performance and strategic successes, concerns about the European market and adjustments to financial expectations tempered the overall outlook. Despite achieving record results and making successful strategic moves, macroeconomic headwinds and volume softness posed challenges to the company’s future prospects.

Sonoco Products Reports Strong Q3 2025 Results

Sonoco Products Company, a global leader in sustainable packaging, operates in the consumer and industrial packaging sectors, known for its innovative solutions and commitment to sustainability. In its third-quarter 2025 earnings report, Sonoco announced a significant increase in net sales and net income, driven by strategic acquisitions and operational efficiencies. The company reported a 57.3% increase in net sales to $2.1 billion and a 141% rise in GAAP net income to $122.9 million compared to the same period last year. Key highlights include the agreement to sell its ThermoSafe business unit for up to $725 million, which is expected to reduce existing debt, and the successful integration of the Metal Packaging EMEA business, contributing to record performance in the Consumer Packaging segment. Despite these achievements, Sonoco adjusted its full-year earnings guidance downward, citing anticipated volume weakness in the fourth quarter due to challenging macroeconomic conditions. Looking ahead, Sonoco remains focused on growth and cost reduction strategies, with new product and market launches planned for 2026, positioning the company for long-term shareholder value creation.

Sonoco Products Sells ThermoSafe Unit for $725 Million

On September 7, 2025, Sonoco Products Company announced the sale of its ThermoSafe business unit to Arsenal Capital Partners for up to $725 million. This transaction is part of Sonoco’s strategy to streamline its operations into two core global business segments, with the proceeds expected to reduce existing debt and support the company’s portfolio simplification and organizational streamlining efforts.

The most recent analyst rating on (SON) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Sonoco Products stock, see the SON Stock Forecast page.