Sonoco Products is a provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. The company was founded in 1899 and is based in Hartsville, South Carolina.
SON Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sonoco Products Co. To summarize, we found that Sonoco Products Co ranked in the 58th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for SON, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 5.56; that's higher than 70.06% of US stocks in the Consumer Cyclical sector that have positive free cash flow.
Sonoco Products Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 9.7% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LOCO, LSYN, PII, GOLF, and WSM can be thought of as valuation peers to SON, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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Pharma Portal Logo Pharma Portal Sonoco ThermoSafe Logo Sonoco ThermoSafeARLINGTON HEIGHTS, Ill., July 30, 2020 (GLOBE NEWSWIRE) -- Sonoco ThermoSafe, a unit of Sonoco (NYSE: SON), the largest global provider of temperature assurance packaging for pharmaceutical distribution, is building PharmaPortal™, a vendor-neutral blockchain platform for use by pharmaceutical manufacturers and carriers. Built on IBM Blockchain Transparent Supply, PharmaPortal intends to address the industry’s needs to trace assets across many different supply chain participants, record a single version of the truth on all events generated on a package’s journey, integrate this data with that of other businesses across an industry-scale network, and provide access controls to help ensure each data owner maintains co...