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:
We started the process of determining a valid price forecast for Sonoco Products Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sonoco Products Co ranked in the 59th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 37.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SON, they are:
Interest coverage, a measure of earnings relative to interest payments, is 5.56; that's higher than 69.95% 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 8%; for context, that number is higher than only 9.54% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SON, try BWA, FLXS, GFASY, GOLF, and NCMI.
Sonoco Products (SON) is a Dividend Champion, a company that has increased its dividend annually for at least 25 years. But challenges in 2020 led Sonoco to freeze its dividend. That doesn't necessarily mean the company has neglected its shareholders. Much of this story points back to China. The China...
HARTSVILLE, S.C., Jan. 04, 2021 (GLOBE NEWSWIRE) -- Sonoco (NYSE: SON), one of the most sustainable, diversified global packaging companies, will host its regular investor conference calls to discuss quarterly financial results on the below dates and times. Any updates to these reporting dates or times will be communicated in subsequent news releases. News Release (1)Conference Call (2) Fourth Quarter 2020 ResultsFeb. 11, 2021Feb. 11, 2021 11 a.m. ET First Quarter 2021 ResultsApril 22, 2021April 22, 2021 11 a.m. ET Second Quarter 2021 ResultsJuly 22, 2021July 22, 2021 11 a.m. ET Third Quarter 2021 ResultsOct. 21, 2021Oct. 21, 2021 11 a.m. ET (1) News releases will be issued on the dates noted before the opening of trading on the New York Stock Exchange. (2) T...