Sonoco Products Company

Valuation Analysis

About the Company

Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in the United States, Europe, Canada, the Asia Pacific, and internationally. The company operates in two segments, Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers, as well as metal and peelable membrane ends, closures, and components. Its Industrial Paper Packaging segment provides paperboard tubes, cones, and cores; paper-based protective packaging; and uncoated recycled paperboards. The company also offers packaging materials, such as plastic, paper, foam, and various other specialty materials. It sells its products in various markets, i

Sonoco Products Company Stock at a Glance

Sonoco Products Company (SON) is currently trading at $50.57 with a market capitalization of $5B. The trailing P/E ratio stands at 8.28x, with a forward P/E of 7.89x. The 52-week range spans from $38.65 to $58.44; the current price is 13.5% below the yearly high. Year-over-year revenue growth stands at -1.9%. The net profit margin stands at 13.58%.

💰 Dividend

Sonoco Products Company pays an annual dividend of $2.13 per share, representing a yield of 4.21%. The payout ratio stands at 34.7%.

📊 Analyst Rating

9 analysts rate Sonoco Products Company (SON) on consensus: Buy. The average price target is $60.89, implying +20.41% from the current price. Analyst price targets range from $54.00 to $65.00.

Sonoco Products Company: The Investment Case in Detail

Sonoco Products Company (SON) operates in the Consumer Cyclical — specifically Packaging & Containers — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Wall Street consensus sits at Buy with an average price target implying roughly 20.41% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -1.9% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Short interest sits at 11.06% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.21, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 7.83x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The dividend yield near 4.21% combined with a payout ratio of 34.7% leaves room for further hikes — a track record of consecutive raises is a strong income signal.
• The analyst consensus price target implies 20.41% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (11.06%), higher leverage relative to equity.

Trading Data

💵 Dividend Info

Related Stocks in the Same Sector

Where can I buy Sonoco Products Company?

Compare top-rated brokers — low fees, trusted providers, fully regulated.