Sonoco Products Intrinsic Value Calculation – SONOCO PRODUCTS Reports Earnings Results for Second Quarter of FY2023
August 22, 2023
🌥️Earnings Overview
On August 1 2023, Sonoco Products ($NYSE:SON) released their earnings report for the second quarter of 2023 (ending June 30 2023). Total revenue for the quarter was USD 1705.3 million, a decrease of 10.9% compared to the same quarter in the previous year. Net income for the quarter was USD 114.6 million, a decrease of 12.9% from the same period in the previous year.
Stock Price
The company’s stock opened at $57.8 and closed at $59.7, representing an increase of 1.8% from its last closing price of $58.6. This was primarily driven by strong pricing and cost controls. Overall, SONOCO PRODUCTS delivered solid performance for the quarter, with a healthy growth in net sales and gross margin expansion. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sonoco Products. More…
| Total Revenues | Net Income | Net Margin |
| 7k | 482.4 | 6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sonoco Products. More…
| Operations | Investing | Financing |
| 673.17 | -341.6 | -194.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sonoco Products. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.05k | 4.75k | 23.4 |
Key Ratios Snapshot
Some of the financial key ratios for Sonoco Products are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | 10.9% | 10.3% |
| FCF Margin | ROE | ROA |
| 4.7% | 20.1% | 6.4% |
Analysis – Sonoco Products Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of SONOCO PRODUCTS‘ wellbeing. After thorough examination of the company’s financials, our proprietary Valuation Line indicated a fair value of $69.5 for SONOCO PRODUCTS’ stock. Now, the stock is trading at $59.7 – a price that is undervalued by 14.1%. To the informed investor, this presents an opportunity to purchase a bargain and benefit from the eventual rise in price when it reaches its fair value. More…
Peers
The company has operations in 34 countries and serves customers in over 85 countries. Sonoco has been in business for over 100 years and is a publicly traded company on the New York Stock Exchange. The company’s competitors include Huhtamaki India Ltd, Huhtamäki Oyj, and Shanghai Xintonglian Packing Co Ltd.
– Huhtamaki India Ltd ($BSE:509820)
Huthamaki India Ltd is a food packaging company with a market cap of 16.63B as of 2022. The company has a return on equity of 2.38%. Huthamaki India Ltd is a leading manufacturer of food packaging products and solutions. The company provides innovative and sustainable packaging solutions for food and beverage products. Huthamaki India Ltd has a strong presence in the Indian market with a wide range of products. The company has a strong commitment to quality and customer satisfaction.
– Huhtamäki Oyj ($LTS:0K9W)
Huhtamäki Oyj is a Finnish packaging company. It is headquartered in Espoo, Finland and has operations in over 40 countries. The company is listed on the Nasdaq Helsinki stock exchange.
Huhtamäki Oyj has a market cap of 3.7B as of 2022. The company has a Return on Equity of 14.22%. Huhtamäki Oyj is a Finnish packaging company. It is headquartered in Espoo, Finland and has operations in over 40 countries. The company is listed on the Nasdaq Helsinki stock exchange.
– Shanghai Xintonglian Packing Co Ltd ($SHSE:603022)
Shanghai Xintonglian Packing Co Ltd is a company that produces and sells packaging products. It has a market cap of 2.02B as of 2022 and a Return on Equity of 3.94%. The company has a wide range of products that include paper bags, plastic bags, and other packaging materials.
Summary
SONOCO PRODUCTS reported a 10.9% decrease in total revenue and a 12.9% decrease in net income for the second quarter of FY2023 (ending June 30 2023). This indicates that the company is currently not performing as well as it did in the same quarter the prior year. Investors should pay close attention to the company’s upcoming financial statements, as well as any potential changes in its operating or strategic plans, to determine the potential impact for their investments. Additionally, investors should review the company’s future performance and financial outlook in order to assess whether it is a good long-term investment.
