Sonoco Products: Packaging Powerhouse With Promising Prospects

Aug. 02, 2023 11:01 AM ETSonoco Products Company (SON) StockSON1 Comment
Daniel Petersen
520 Followers

Summary

  • Sonoco Products has experienced minimal movement in its valuation despite a nearly twofold increase in earnings over the past two years.
  • The company has a strong track record in capital allocation, reinvesting back into their businesses, and engaging in share repurchases and dividends.
  • The stock appears undervalued by around 50% based on a standard P/E ratio, but this is largely due to current higher-than-normal margins.

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Introduction

Despite a nearly twofold increase in earnings over the past two years, Sonoco Products (NYSE:SON) has experienced minimal movement in its valuation. This comes as a surprise considering the low earnings multiple that the stock is assigned, despite management's consistent

This article was written by

520 Followers
Just sharing my thoughts. I love analysing companies and thought I would share my thoughts. Be sure to leave constructive feedback if you have any. Trust in your analysis and remember that value is often found when going against the crowd.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of SON either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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