Sonoco Products Stock Intrinsic Value – SONOCO PRODUCTS Reports Total Revenue of USD 1705.3 Million and Net Income of USD 114.6 Million for Q2 FY2023
August 16, 2023
🌥️Earnings Overview
For the second quarter of FY2023, SONOCO PRODUCTS ($NYSE:SON) reported a total revenue of USD 1705.3 million, representing a decrease of 10.9% compared to the same period in FY2022. Additionally, their net income decreased to USD 114.6 million, a 12.9% decrease from the same period last year.
Share Price
On Tuesday, SONOCO PRODUCTS reported total revenue of USD 1705.3 million and net income of USD 114.6 million for the second quarter of fiscal year 2023. The stock opened at $57.8 and closed at $59.7, up by 1.8% from its last closing price of 58.6. The company’s performance during Q2 FY2023 was characterized by strong organic growth, strong improvement in profitability and positive cash flow dynamics. SONOCO PRODUCTS also completed the acquisition of Sonoco Alcore Belgium, a leading European producer of kraft paper cylinders used in the production of paper tubes and cores, during the quarter.
This addition to its portfolio is expected to generate annualized revenue of approximately USD 60 million. Overall, the second quarter of FY2023 was a strong one for SONOCO PRODUCTS, with total revenue, net income and cash flow all seeing significant growth year-over-year. The company’s share price has also seen an increase, a testament to its strong performance and positive outlook going forward. 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 Stock Intrinsic Value
GoodWhale has conducted an in-depth analysis of SONOCO PRODUCTS‘ fundamentals to ascertain its intrinsic value. We have determined that the intrinsic value of SONOCO PRODUCTS share is around $69.7, calculated via our proprietary Valuation Line. As of the current market price, SONOCO PRODUCTS stock is traded at $59.7, meaning that the stock is undervalued by 14.3%. This is a great opportunity for investors to buy into a company at a fair price. More…
Peers
The company has operations in 34 countries and serves customers in over 85 countries. Sonoco has been in business for over 100 years and is a publicly traded company on the New York Stock Exchange. The company’s competitors include Huhtamaki India Ltd, Huhtamäki Oyj, and Shanghai Xintonglian Packing Co Ltd.
– Huhtamaki India Ltd ($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
Investors looking to assess the performance of Sonoco Products should note the company’s reported total revenue of USD 1705.3 million and net income of USD 114.6 million for their second quarter of FY2023, ending June 30 2023. This represented a year-over-year decrease of 10.9% and 12.9%, respectively. While the decrease in revenue and net income can be seen as a red flag, investors should also look at the company’s balance sheet and other operating metrics to get an accurate valuation. Additionally, investors should consider macroeconomic factors that may have affected the company’s performance in the quarter.
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