Sealed Air Corp. (SEE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sonoco Products Co.

Amcor Plc

Sealed Air Corp.

Avery Dennison Corp.

Crown Holdings, Inc.

Owens Corning

AptarGroup, Inc.

WestRock Co.

International Paper Co.

Graphic Packaging Holding Co.

Packaging Corporation of America

Why is Sealed Air Corp. ?

High Management Efficiency with a high ROCE of 20.53%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.92% and Operating profit at 0.70% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 1.92% and Operating profit at 0.70% over the last 5 years

DEBT-EQUITY RATIO (HY) Lowest at 428.9 %
INTEREST COVERAGE RATIO(Q) Highest at 426.47
DIVIDEND PAYOUT RATIO(Y) Highest at 31.29%

With ROCE of 16.12%, it has a fair valuation with a 2.36 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 15.37%, its profits have risen by 2.6% ; the PEG ratio of the company is 10.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sealed Air Corp. should be less than 10%
Overall Portfolio exposure to Packaging should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sealed Air Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sealed Air Corp.

42.22%

0.22

37.09%

S&P 500

13.68%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.86%

EBIT Growth (5y)

1.67%

EBIT to Interest (avg)

4.00

Debt to EBITDA (avg)

3.67

Net Debt to Equity (avg)

5.12

Sales to Capital Employed (avg)

1.03

Tax Ratio

35.03%

Dividend Payout Ratio

43.34%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

20.53%

ROE (avg)

205.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

8.10

EV to EBIT

15.57

EV to EBITDA

12.21

EV to Capital Employed

2.66

EV to Sales

2.54

PEG Ratio

1.76

Dividend Yield

1.20%

ROCE (Latest)

17.07%

ROE (Latest)

42.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 334.87 %

RAW MATERIAL COST(Y)

Fallen by 0.61% (YoY

NET PROFIT(Q)

Highest at USD 212.9 MM

EPS(Q)

Highest at USD 1.26

-3What is not working for the Company

ROCE(HY)

Lowest at 40.42%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 15.91%

Here's what is working for Sealed Air Corp.

Net Profit

At USD 212.9 MM has Grown at 155.87%

over average net sales of the previous four periods of USD 83.21 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 334.87 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Profit

Highest at USD 212.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.26

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by 0.61% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sealed Air Corp.

Dividend Payout Ratio

Lowest at 15.91%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)