Silgan Holdings, Inc. (SLGN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Crown Holdings, Inc.

Sonoco Products Co.

Amcor Plc

Sealed Air Corp.

Silgan Holdings, Inc.

AptarGroup, Inc.

Owens Corning

Graphic Packaging Holding Co.

Packaging Corporation of America

WestRock Co.

International Paper Co.

Why is Silgan Holdings, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.90%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.31 times

Positive results in Jun 25

DIVIDEND PER SHARE(HY) Highest at USD 5.36
RAW MATERIAL COST(Y) Fallen by -5.13% (YoY)
OPERATING PROFIT MARGIN(Q) Highest at 16.45 %

With ROCE of 9.61%, it has a expensive valuation with a 2.14 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 -31.70%, its profits have risen by 10% ; the PEG ratio of the company is 2.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.70% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Silgan Holdings, Inc. 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 Silgan Holdings, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Silgan Holdings, Inc.

-31.7%

-0.51

31.00%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.13%

EBIT Growth (5y)

8.33%

EBIT to Interest (avg)

4.30

Debt to EBITDA (avg)

4.31

Net Debt to Equity (avg)

2.03

Sales to Capital Employed (avg)

1.00

Tax Ratio

20.65%

Dividend Payout Ratio

29.46%

Pledged Shares

Institutional Holding

83.15%

ROCE (avg)

10.90%

ROE (avg)

20.94%

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

4.47

EV to EBIT

22.29

EV to EBITDA

15.11

EV to Capital Employed

2.14

EV to Sales

2.26

PEG Ratio

2.73

Dividend Yield

92.89%

ROCE (Latest)

9.61%

ROE (Latest)

16.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 5.36

RAW MATERIAL COST(Y)

Fallen by -5.13% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 16.45 %

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 213.06 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.36 times

INTEREST(Q)

Highest at USD 48.7 MM

Here's what is working for Silgan Holdings, Inc.

Dividend per share

Highest at USD 5.36 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit Margin

Highest at 16.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -5.13% (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 Silgan Holdings, Inc.

Interest

At USD 48.7 MM has Grown at 13.44%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 48.7 MM

in the last five periods and Increased by 13.44% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 213.06 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 5.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio