📊 SON Key Takeaways
Is Sonoco Products Co (SON) a Good Investment?
Sonoco demonstrates solid profitability and cash generation with excellent ROE of 27.8% and $345.8M free cash flow, but is constrained by 0% revenue growth, tight liquidity (1.05x current ratio), and elevated leverage (1.05x debt-to-equity). The dramatic EPS growth appears engineered through share buybacks rather than operational expansion, signaling capital allocation focused on managing shareholder returns amid stagnant top-line performance.
Why Buy Sonoco Products Co Stock? SON Key Strengths
- Exceptional ROE of 27.8% and ROA of 9.0% demonstrate efficient capital deployment
- Stable operating margins at 13.5% with positive free cash flow of $345.8M provides financial flexibility for debt service
- Strong interest coverage ratio of 8.3x indicates solid capacity to service $3.8B debt obligation
- Consistent gross and net margins (20.9% and 13.3%) reflect stable pricing power in containers sector
SON Stock Risks: Sonoco Products Co Investment Risks
- Zero revenue and net income growth YoY signals stagnation in core business with no organic expansion
- Weak liquidity position with current ratio of 1.05x and quick ratio of 0.60x limits operational flexibility during downturns
- Elevated leverage at 1.05x debt-to-equity with $3.8B long-term debt and only $378.4M cash creates refinancing risk
- EPS growth of 510% driven by financial engineering (likely share buybacks) rather than operational performance masks underlying business weakness
Key Metrics to Watch
- Year-over-year revenue growth trajectory - any return to growth would strengthen thesis
- Current and quick ratios - monitor for deterioration below thresholds
- Free cash flow conversion and sustainability - ensure not declining amid capital intensity
- Debt reduction progress and leverage ratio trend - critical given tight liquidity
Sonoco Products Co (SON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.6% FCF margin may limit capital allocation flexibility.
SON Profit Margin, ROE & Profitability Analysis
SON vs Materials Sector: How Sonoco Products Co Compares
How Sonoco Products Co compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sonoco Products Co Stock Overvalued? SON Valuation Analysis 2026
Based on fundamental analysis, Sonoco Products Co has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sonoco Products Co Balance Sheet: SON Debt, Cash & Liquidity
SON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sonoco Products Co's revenue has grown significantly by 34% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.80 reflects profitable operations.
SON Revenue Growth, EPS Growth & YoY Performance
SON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.4B | $50.9M | $0.51 |
| Q2 2025 | $1.3B | $90.8M | $0.92 |
| Q1 2025 | $1.3B | $54.4M | $0.55 |
| Q3 2024 | $1.7B | $50.9M | $0.51 |
| Q2 2024 | $1.6B | $90.8M | $0.92 |
| Q1 2024 | $1.6B | $65.2M | $0.66 |
| Q3 2023 | $1.7B | $122.2M | $1.24 |
| Q2 2023 | $1.7B | $114.6M | $1.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sonoco Products Co Dividends, Buybacks & Capital Allocation
SON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sonoco Products Co (CIK: 0000091767)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SON
What is the AI rating for SON?
Sonoco Products Co (SON) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SON's key strengths?
Claude: Exceptional ROE of 27.8% and ROA of 9.0% demonstrate efficient capital deployment. Stable operating margins at 13.5% with positive free cash flow of $345.8M provides financial flexibility for debt service.
What are the risks of investing in SON?
Claude: Zero revenue and net income growth YoY signals stagnation in core business with no organic expansion. Weak liquidity position with current ratio of 1.05x and quick ratio of 0.60x limits operational flexibility during downturns.
What is SON's revenue and growth?
Sonoco Products Co reported revenue of $7.5B.
Does SON pay dividends?
Sonoco Products Co pays dividends, with $208.1M distributed to shareholders in the trailing twelve months.
Where can I find SON SEC filings?
Official SEC filings for Sonoco Products Co (CIK: 0000091767) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SON's EPS?
Sonoco Products Co has a diluted EPS of $10.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SON a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sonoco Products Co has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SON stock overvalued or undervalued?
Valuation metrics for SON: ROE of 27.8% (sector avg: 14%), net margin of 13.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy SON stock in 2026?
Our dual AI analysis gives Sonoco Products Co a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is SON's free cash flow?
Sonoco Products Co's operating cash flow is $689.8M, with capital expenditures of $344.0M. FCF margin is 4.6%.
How does SON compare to other Materials stocks?
Vs Materials sector averages: Net margin 13.3% (avg: 10%), ROE 27.8% (avg: 14%), current ratio 1.05 (avg: 1.6).
Why is SON's return on equity (ROE) so high?
Sonoco Products Co has a return on equity of 27.8%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 13.3% net margin.