ScoreWhy is Sonoco Products Co. ?
1
High Management Efficiency with a high ROCE of 12.89%
2
Poor long term growth as Operating profit has grown by an annual rate 4.74% of over the last 5 years
- DIVIDEND PER SHARE(HY) Highest at USD 5.7
- NET SALES(Q) Highest at USD 1,909.07 MM
- OPERATING PROFIT(Q) Highest at USD 325.27 MM
3
With ROCE of 7.06%, it has a very expensive valuation with a 1.21 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 -18.94%, its profits have fallen by -39.4%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -18.94% 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 ReportHow much should you buy?
- Overall Portfolio exposure to Sonoco Products Co. 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 Sonoco Products Co. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Sonoco Products Co.
14.27%
-0.99
29.03%
S&P 500
13.68%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.47%
EBIT Growth (5y)
7.45%
EBIT to Interest (avg)
6.17
Debt to EBITDA (avg)
3.44
Net Debt to Equity (avg)
2.85
Sales to Capital Employed (avg)
0.89
Tax Ratio
21.95%
Dividend Payout Ratio
53.00%
Pledged Shares
0
Institutional Holding
95.61%
ROCE (avg)
12.89%
ROE (avg)
15.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.46
EV to EBIT
12.24
EV to EBITDA
7.25
EV to Capital Employed
1.22
EV to Sales
1.23
PEG Ratio
0.04
Dividend Yield
NA
ROCE (Latest)
9.96%
ROE (Latest)
18.73%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend30What is working for the Company
NET SALES(HY)
At USD 3,899.81 MM has Grown at 43.39%
DIVIDEND PER SHARE(HY)
Highest at USD 7.14
PRE-TAX PROFIT(Q)
Highest at USD 457.41 MM
NET PROFIT(Q)
Highest at USD 345.48 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 115.97 %
EPS(Q)
Highest at USD 3.52
-9What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 689.79 MM
INTEREST(HY)
At USD 113.09 MM has Grown at 35.28%
RAW MATERIAL COST(Y)
Grown by 5.91% (YoY
Here's what is working for Sonoco Products Co.
Pre-Tax Profit
At USD 457.41 MM has Grown at 397.9%
over average net sales of the previous four periods of USD 91.87 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 345.48 MM has Grown at 327.09%
over average net sales of the previous four periods of USD 80.89 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Pre-Tax Profit
Highest at USD 457.41 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 345.48 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
At USD 3,899.81 MM has Grown at 43.39%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Dividend per share
Highest at USD 7.14 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
EPS
Highest at USD 3.52
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 115.97 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at USD 136.73 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Sonoco Products Co.
Operating Cash Flow
Lowest at USD 689.79 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest
At USD 113.09 MM has Grown at 35.28%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Raw Material Cost
Grown by 5.91% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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