Sealed Air Intrinsic Value Calculation – SEALED AIR Reports Q2 Earnings for 2023 Fiscal Year
August 16, 2023
🌥️Earnings Overview
SEALED ($NYSE:SEE): SEALEAD AIR reported its Q2 earnings for the 2023 fiscal year on June 30 2023, with total revenue for the quarter at USD 1380.8 million, a decrease of 2.6% compared to the same quarter of the previous fiscal year. Net income also decreased by 13.0%, coming in at USD 99.1 million.
Stock Price
The company’s stock opened at $41.5 and, after a day of trading, closed at $39.9. This represented a drop of 9.5% from the previous closing price of 44.1. The results show a significant decline in the company’s performance compared to the same quarter from the previous year. Despite this decrease, analysts are still optimistic about the company’s future prospects. The company’s product offerings allow customers to ship fragile items with improved safety and cost-effectiveness.
The company is well-positioned to capitalize on the increased demand for protective packaging solutions as global e-commerce continues to grow. Moving forward, SEALED AIR is expected to focus on driving innovation in the packaging industry to remain competitive in a highly dynamic market. While investors were disappointed by this quarter’s results, the company is confident that its long-term outlook remains strong. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sealed Air. More…
| Total Revenues | Net Income | Net Margin |
| 5.54k | 389.5 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sealed Air. More…
| Operations | Investing | Financing |
| 393.8 | -1.39k | 1.02k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sealed Air. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.52k | 7.11k | 2.86 |
Key Ratios Snapshot
Some of the financial key ratios for Sealed Air are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.6% | 4.1% | 14.8% |
| FCF Margin | ROE | ROA |
| 2.7% | 135.0% | 6.8% |
Analysis – Sealed Air Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of SEALED AIR‘s fundamentals. After analyzing the company’s financials, we have determined that its fair value is around $54.8. This was calculated using our proprietary Valuation Line, which incorporates multiple metrics to assess the fair market value of a company’s stock. Currently, SEALED AIR stock is traded at $39.9, which is approximately 27.2% lower than its fair value. This suggests that the stock is undervalued and may represent an opportune time to invest in the company. More…
Peers
The company’s products are used in a variety of industries, including food, beverage, healthcare, and industrial. Sealed Air Corp has a number of competitors, including PT Megalestari Epack Sentosaraya Tbk, Huhtamäki Oyj, Raj Packaging Industries Ltd.
– PT Megalestari Epack Sentosaraya Tbk ($IDX:EPAC)
PT Megalestari Epack Sentosaraya Tbk has a market cap of 165.17B as of 2022. The company is engaged in the production of paper and paperboard products. It has a wide range of products that include corrugated board, Kraft paper, and tissue paper. The company has a strong presence in the Indonesian market and is one of the leading paper and paperboard manufacturers in the country.
– Huhtamäki Oyj ($LTS:0K9W)
Huthamäki Oyj is a Finnish packaging company that specializes in food and beverage packaging. The company has a market capitalization of 3.79 billion as of 2022 and a return on equity of 14.22%. Huthamäki Oyj is a leading provider of flexible packaging solutions and one of the largest manufacturers of plastic cups and lids in Europe. The company’s products are used by major food and beverage brands around the world.
– Raj Packaging Industries Ltd ($BSE:530111)
Raj Packaging Industries Ltd has a market cap of 185.53M as of 2022, a Return on Equity of 11.2%. The company is engaged in the business of manufacturing and marketing of corrugated packaging products and other flexible packaging products. It has a wide range of products catering to different industries such as food and beverage, pharmaceuticals, electronics, textiles, and many others. The company has a strong presence in the domestic market with a market share of around 60%. It also has a significant export business, accounting for around 20% of its total sales.
Summary
Sealed Air, a leading manufacturer of protective packaging, experienced a decline in its second quarter earnings for the 2023 fiscal year with total revenue dropping 2.6% to USD 1380.8 million and net income 13.0% lower to USD 99.1 million. Investors reacted to this news with the stock price dropping on the same day. Going forward, the company will have to focus on strategies to increase its performance, such as cost-cutting initiatives and expanding into new markets. To assess potential returns, investors should consider the company’s financials, competitive position, and future outlook.
