Sonoco Products Company (SON) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+129.2%

$115.00

vs $50.17 price

Levered DCF

$131.29

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.61

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.96×	29.43×	11.57×	12.75×	-61.59×	28.76×	21.28×	16.92×
P/B	1.2×	2.12×	2.27×	2.88×	3.14×	3.15×	3.45×	2.99×
P/S	0.58×	0.91×	1.01×	1.02×	1.03×	1.14×	1.16×	0.98×
EV / EBITDA	5.6×	19.13×	8.89×	10.63×	50.21×	12.55×	11.74×	9.69×
Gross margin	20.9%	21.5%	22.1%	20.9%	19.0%	20.0%	19.7%	19.3%
Operating margin	9.5%	6.2%	10.8%	9.6%	8.7%	6.8%	8.7%	8.1%
Net margin	5.3%	3.1%	8.7%	8.0%	-1.5%	4.0%	5.4%	5.8%
Current ratio	1.05×	0.79×	1.76×	1.35×	1.09×	1.21×	1.08×	1.4×
Debt / equity	1.27×	3.21×	1.33×	1.71×	1×	1.06×	1.1×	0.78×
Interest coverage	3.05×	1.89×	4.35×	5.58×	7.61×	4.77×	6.99×	6.93×
Dividend yield	4.8%	4.2%	3.6%	3.1%	3.1%	2.9%	2.7%	3.0%
Payout ratio	52.5%	124.1%	41.6%	40.1%	-209.0%	83.2%	58.3%	51.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.0%	7.2%	19.6%	22.6%	-4.7%	10.9%	16.2%	17.7%
Return on invested capital	5.9%	2.9%	7.4%	7.7%	6.8%	6.7%	8.3%	9.5%
Return on assets	3.6%	1.3%	6.6%	6.6%	-1.7%	3.9%	5.7%	6.8%
Free cash flow yield	8.0%	9.1%	9.5%	3.0%	0.7%	8.6%	3.7%	7.9%
Earnings yield	9.1%	3.4%	8.6%	7.8%	-1.5%	3.5%	4.7%	5.9%
Enterprise value	$8.6B	$11.7B	$8.6B	$9.2B	$7.4B	$7.4B	$8.1B	$6.6B
Net debt / EBITDA	2.76×	11.24×	3.2×	3.79×	11.3×	2.45×	2.69×	1.87×
Cash conversion cycle (days)	4	65	56	82	43	46	52	52