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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Amcor Plc

Crown Holdings, Inc.

Sonoco Products Co.

Sealed Air Corp.

Packaging Corporation of America

AptarGroup, Inc.

Owens Corning

Silgan Holdings, Inc.

International Paper Co.

WestRock Co.

Graphic Packaging Holding 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 -28.48%, 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 -28.48% 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 sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Silgan Holdings, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Silgan Holdings, Inc.

-11.57%

-0.46

31.04%

S&P 500

15.76%

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)

5.66%

EBIT Growth (5y)

6.13%

EBIT to Interest (avg)

4.30

Debt to EBITDA (avg)

4.31

Net Debt to Equity (avg)

2.03

Sales to Capital Employed (avg)

0.98

Tax Ratio

20.65%

Dividend Payout Ratio

29.62%

Pledged Shares

Institutional Holding

97.37%

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

2.85

EV to EBIT

14.86

EV to EBITDA

10.00

EV to Capital Employed

1.76

EV to Sales

1.51

PEG Ratio

Dividend Yield

138.52%

ROCE (Latest)

11.82%

ROE (Latest)

14.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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 4.96

DIVIDEND PAYOUT RATIO(Y)

Highest at 29.33%

CASH AND EQV(HY)

Highest at USD 786.96 MM

-12What is not working for the Company

NET PROFIT(9M)

At USD 188.11 MM has Grown at -25.53%

ROCE(HY)

Lowest at 11.75%

INTEREST(Q)

At USD 47.12 MM has Grown at 13.72%

INTEREST COVERAGE RATIO(Q)

Lowest at 356.76

RAW MATERIAL COST(Y)

Grown by 8.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.96 times

OPERATING PROFIT(Q)

Lowest at USD 168.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.23 %

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

Dividend per share

Highest at USD 4.96 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 786.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 29.33%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Silgan Holdings, Inc.

Interest

At USD 47.12 MM has Grown at 13.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 356.76

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At USD 188.11 MM has Grown at -25.53%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Operating Profit

Lowest at USD 168.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 10.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 4.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.08% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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