Sonoco Products Company (SON) AI Stock Analysis

Sonoco Products Company manufactures and distributes industrial and consumer packaging solutions across North and South America, Europe, Australia, and Asia. The company operates through two primary segments: Consumer Packaging and Industrial Paper Packaging. Its Consumer Packaging segment produces rigid paper containers, metal ends and closures, thermoformed plastic trays, printed flexible packaging, and global brand artwork management services. Its Industrial Paper Packaging segment manufactures fiber-based products such as tubes, cones, cores, and protective packaging, along with wire and cable reels, recycled paperboard, and corrugating medium. Founded in 1899 and headquartered in Hartsville, South Carolina, Sonoco serves sectors including food, chemicals, textiles, and construction.

Sonoco's revenue shifted from $5.59B in FY2021 to $5.86B in FY2022, before decreasing to $5.44B in FY2023 and $5.31B in FY2024. In FY2025, revenue rose 41.7% to $7.52B, contributing to a five-year revenue CAGR of 7.5% from FY2020 to FY2025. Gross margin was 20.9% in FY2025, while operating margin was 9.5% and net income totaled $396.4M. Over the trailing twelve months, revenue reached $7.46B with a profit margin of 8.4% and an operating margin of 10.0%. In the latest quarter ended June 30, 2026, quarterly revenue fell 1.3% and quarterly earnings declined 78.8% year-over-year.

As of June 30, 2026, Sonoco held $168.6M in cash and short-term investments alongside total debt of $4.71B, resulting in net debt of $4.54B. Shareholders' equity was $3.60B, corresponding to a debt-to-equity ratio of 1.31 and a current ratio of 0.99. In FY2025, the company generated $689.8M in operating cash flow and $345.8M in free cash flow after $344.0M in capital expenditures. Cash deployment in FY2025 included $208.1M in dividends paid and $10.9M in share buybacks.

Sonoco trades at a trailing P/E of 7.7x and a forward P/E of 7.9x, both below the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value of $9.56B reflects an EV to EBITDA ratio of 6.2x, below the peer median of 11.1x, while its price-to-sales multiple of 0.7x matches the peer median of 0.7x. Over the past year, the stock returned 29.3%, outperforming the S&P 500 return of 16.8%. Over five years, the stock generated a return of -1.8%, lagging the S&P 500 return of 83.0%.

Sonoco pays a quarterly dividend with a forward annual dividend of $2.16 per share, representing a dividend yield of 4.34%. The company carries a payout ratio of 37.7% and has paid dividends for 38 consecutive years. Its annualized dividend growth rate over five years is 4.2%, and its last ex-dividend date was August 10, 2026.

Consensus ratings include 5 Strong Buy and 6 Hold recommendations, with 0 Buy, Sell, or Strong Sell ratings. The mean price target is $59.33, which is 19.2% above the last close of $49.79. For the fiscal year ending December 31, 2026, analysts estimate revenue of $7.43B and EPS of $5.76. Sonoco beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is October 21, 2026.

This page is an AI-written research summary of Sonoco Products Company (SON). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SON income statement, SON balance sheet, SON key metrics, SON analyst forecast, SON chart. See the SON stock overview for the latest quote and news.