Latest Ratios: P/E Ratio 12.7x · EV/EBITDA 7.5x · ROE 13.4%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.0B | $4.3B | $4.9B | $5.5B | $6.0B | $5.8B | $6.0B | $6.2B | $5.4B | $5.4B | $5.4B |
| Enterprise Value | $9.2B | $8.6B | $11.7B | $8.6B | $9.3B | $7.4B | $7.4B | $8.1B | $6.6B | $6.6B | $6.2B |
| P/E Ratio → | 12.72 | 10.96 | 29.61 | 11.64 | 12.86 | — | 28.90 | 21.43 | 17.14 | 30.54 | 18.75 |
| P/S Ratio | 0.67 | 0.58 | 0.91 | 1.02 | 1.02 | 1.03 | 1.14 | 1.16 | 1.00 | 1.06 | 1.12 |
| P/B Ratio | 1.39 | 1.20 | 2.12 | 2.27 | 2.89 | 3.12 | 3.14 | 3.44 | 3.01 | 3.06 | 3.40 |
| P/FCF | 14.48 | 12.57 | 11.01 | 10.63 | 33.25 | 135.19 | 11.72 | 27.16 | 12.73 | 32.34 | 25.29 |
| P/OCF | 7.26 | 6.30 | 5.82 | 6.26 | 11.77 | 19.31 | 8.50 | 14.66 | 9.10 | 15.34 | 13.45 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.14 | 2.21 | 1.58 | 1.59 | 1.33 | 1.42 | 1.51 | 1.23 | 1.30 | 1.29 |
| EV / EBITDA | 7.48 | 6.95 | 16.71 | 9.26 | 10.65 | 10.16 | 12.03 | 11.45 | 9.84 | 10.40 | 8.68 |
| EV / EBIT | 12.94 | 8.49 | 49.63 | 13.80 | 16.57 | — | 22.52 | 18.07 | 15.01 | 17.62 | 12.43 |
| EV / FCF | — | 24.75 | 26.60 | 16.57 | 51.54 | 174.43 | 14.56 | 35.18 | 15.73 | 39.54 | 29.05 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.9% | 20.9% | 21.5% | 22.1% | 20.9% | 19.0% | 20.0% | 19.7% | 19.3% | 19.0% | 19.8% |
| Operating Margin | 9.5% | 9.5% | 6.2% | 10.8% | 9.6% | 8.7% | 6.8% | 8.7% | 8.1% | 8.2% | 10.6% |
| Net Profit Margin | 5.3% | 5.3% | 3.1% | 8.7% | 8.0% | -1.5% | 4.0% | 5.4% | 5.8% | 3.5% | 6.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.4% | 13.4% | 6.9% | 21.1% | 23.8% | -4.5% | 11.1% | 16.2% | 17.7% | 10.5% | 18.3% |
| ROA | 3.3% | 3.3% | 1.7% | 6.7% | 7.7% | -1.7% | 4.0% | 6.0% | 6.9% | 4.1% | 7.2% |
| ROIC | 6.3% | 6.3% | 3.3% | 8.1% | 9.5% | 10.6% | 7.6% | 10.4% | 10.9% | 11.6% | 15.5% |
| ROCE | 8.3% | 8.3% | 4.5% | 10.4% | 12.7% | 13.3% | 9.6% | 12.9% | 12.4% | 12.4% | 16.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.26 | 1.26 | 3.19 | 1.33 | 1.70 | 1.00 | 1.05 | 1.10 | 0.78 | 0.83 | 0.67 |
| Debt / EBITDA | 3.73 | 3.73 | 10.41 | 3.47 | 4.04 | 2.52 | 3.25 | 2.82 | 2.06 | 2.30 | 1.48 |
| Net Debt / Equity | — | 1.16 | 3.00 | 1.27 | 1.59 | 0.91 | 0.76 | 1.02 | 0.71 | 0.68 | 0.50 |
| Net Debt / EBITDA | 3.42 | 3.42 | 9.79 | 3.32 | 3.78 | 2.29 | 2.34 | 2.61 | 1.88 | 1.89 | 1.12 |
| Debt / FCF | — | 12.18 | 15.59 | 5.95 | 18.29 | 39.24 | 2.83 | 8.02 | 3.00 | 7.20 | 3.75 |
| Interest Coverage | 4.32 | 4.32 | 1.37 | 4.61 | 5.56 | -1.52 | 4.41 | 6.70 | 6.99 | 6.50 | 9.15 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.05 | 1.05 | 0.79 | 1.76 | 1.35 | 1.09 | 1.21 | 1.08 | 1.40 | 1.56 | 1.68 |
| Quick Ratio | 0.60 | 0.60 | 0.54 | 1.24 | 0.73 | 0.72 | 0.91 | 0.72 | 0.95 | 1.09 | 1.22 |
| Cash Ratio | 0.15 | 0.15 | 0.11 | 0.12 | 0.13 | 0.11 | 0.37 | 0.10 | 0.11 | 0.25 | 0.32 |
| Asset Turnover | — | 0.67 | 0.42 | 0.76 | 0.83 | 1.10 | 0.99 | 1.05 | 1.18 | 1.11 | 1.22 |
| Inventory Turnover | 5.30 | 5.30 | 4.10 | 7.02 | 4.23 | 8.06 | 9.30 | 8.57 | 8.81 | 8.60 | 10.29 |
| Days Sales Outstanding | — | 49.59 | 74.54 | 49.92 | 59.94 | 55.60 | 53.14 | 55.14 | 57.51 | 57.24 | 51.05 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.1% | 4.8% | 4.2% | 3.6% | 3.1% | 3.1% | 2.9% | 2.7% | 3.0% | 2.9% | 2.7% |
| Payout Ratio | 52.5% | 52.5% | 124.1% | 41.6% | 40.1% | — | 83.2% | 58.3% | 51.5% | 87.3% | 51.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.9% | 9.1% | 3.4% | 8.6% | 7.8% | — | 3.5% | 4.7% | 5.8% | 3.3% | 5.3% |
| FCF Yield | 6.9% | 8.0% | 9.1% | 9.4% | 3.0% | 0.7% | 8.5% | 3.7% | 7.9% | 3.1% | 4.0% |
| Buyback Yield | 0.2% | 0.3% | 0.2% | 0.2% | 0.1% | 3.8% | 0.1% | 0.2% | 0.3% | 0.1% | 2.0% |
| Total Shareholder Yield | 4.3% | 5.0% | 4.4% | 3.8% | 3.2% | 6.9% | 3.0% | 2.9% | 3.3% | 3.0% | 4.7% |
| Shares Outstanding | — | $100M | $99M | $99M | $99M | $100M | $101M | $101M | $101M | $101M | $102M |
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Quick answers to the most common questions about buying SON stock.
Sonoco Products Company's current P/E ratio is 12.7x. The historical average is 18.3x. This places it at the 11th percentile of its historical range.
Sonoco Products Company's current EV/EBITDA is 7.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.7x.
Sonoco Products Company's return on equity (ROE) is 13.4%. The historical average is 14.2%.
Based on historical data, Sonoco Products Company is trading at a P/E of 12.7x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sonoco Products Company's current dividend yield is 4.13% with a payout ratio of 52.5%.
Sonoco Products Company has 20.9% gross margin and 9.5% operating margin.
Sonoco Products Company's Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Integration and inflation risks
Metrics are mathematically derived from official filings.
Discounted Multiple Masks Integration Risk
Sonoco trades at 14.2x trailing earnings and 7.9x EV/EBITDA, a discount to packaging peers like Sealed Air and AptarGroup. According to reported figures, the forward P/E of 9.7x implies the market expects margin recovery, but the recent EPS miss suggests otherwise.
The valuation appears to price in a return to normalized earnings, yet the 2026Q2 EPS miss of $1.51 versus $1.95 estimate indicates that cost pressures may persist. The EV/EBITDA multiple of 7.9x is in line with Silgan's 7.9x but well below Sealed Air's 14.3x, reflecting the market's skepticism about Sonoco's growth trajectory. Investors should monitor whether the discount narrows as the company integrates acquisitions and demonstrates organic growth, or if it widens due to continued margin compression.
Margins Capped by Input Cost Lag
Gross margin has hovered near 21% over the past year, with operating margin at 10.2% in 2026Q2, according to financial statements. This suggests limited pricing power against rising OCC and resin costs, despite vertical integration.
The stability in gross margin around 21% indicates that Sonoco is passing through some cost increases, but the operating margin of 10.2% remains below the 2025Q2 level of 9.2%, reflecting elevated SG&A and integration costs. The net margin of 5.6% in 2026Q2 is distorted by one-time items, as seen in the volatile swings in prior quarters. Core profitability appears stable but strained, with the price/cost lag likely to continue pressuring margins in the near term.
ROIC Stagnant Amid Acquisition Spree
Return on invested capital has remained below 2% for the last four quarters, despite a peak of 1.9% in 2024Q2, as per reported figures. This suggests that the Ball Metal acquisition has yet to generate returns above the cost of capital.
ROIC of 1.8% in 2026Q2 is far below the company's historical levels and peer averages, such as Sealed Air's 11.2% and Graphic Packaging's 7.7%. The decline in asset turnover to 0.17x indicates that the expanded asset base from acquisitions is not yet generating proportional revenue. If synergies fail to materialize, the goodwill of $2.5B may face impairment risk, further eroding returns.
Working Capital Swings Signal Integration Stress
Cash conversion cycle improved to 27 days in 2026Q2 from 57 days in 2025Q3, according to reported figures, but this masks significant volatility in DPO and DIO. The swings suggest acquisition-related disruptions in working capital management.
The sharp improvement in CCC is driven by a jump in DPO to 104 days, which may indicate stretched supplier payments, while DIO remains elevated at 75 days. The extreme working capital swings, with changes of plus or minus $567.9M in consecutive quarters, point to integration challenges and inventory management issues. Asset turnover of 0.17x is low, reflecting the capital-intensive nature of the acquired metal packaging business, and may not improve until operations stabilize.
Deleveraging Progress but Coverage Thin
Debt-to-equity fell from 3.19 in 2024Q4 to 1.31 in 2026Q2, according to financial statements, but interest coverage of 4.44x remains modest. This suggests the company is reducing leverage, yet debt service remains a significant burden.
The rapid deleveraging is positive, but the D/EBITDA ratio of 14.83x in 2026Q2 is elevated, indicating that EBITDA has not grown in line with debt reduction. Interest coverage of 4.44x is below the 2025Q4 peak of 9.97x, reflecting higher interest costs and lower operating income. The company's ability to continue deleveraging depends on sustained cash flow generation, which has been volatile due to acquisition-related working capital swings.
Thin Liquidity Buffer Raises Concern
Current ratio of 0.99 in 2026Q2 and quick ratio of 0.55 indicate a tight liquidity position, as per reported figures. This suggests limited cushion to absorb working capital shocks or further cost inflation.
The current ratio has hovered near 1.0 for several quarters, dipping to 0.96 in 2026Q1, which is low for an industrial company. The quick ratio of 0.55 highlights reliance on inventory, which may be difficult to liquidate quickly in a downturn. With cash of only $168.6M and significant debt maturities, the company may need to rely on credit facilities or asset sales if cash flow remains volatile.
P/E Misleads on Cyclical Earnings
The trailing P/E of 14.2x is commonly used to value Sonoco, but it is distorted by one-time gains and losses, as seen in the 2025Q4 net margin of 19.9%. According to reported figures, normalized earnings are more accurately reflected in EV/EBITDA.
The P/E ratio is unreliable for Sonoco due to significant non-recurring items, such as the $493.4M net income in 2025Q2 versus $104.9M in 2026Q2. Analysts should use EV/EBITDA, which at 7.9x is more stable and comparable to peers, but even this metric is affected by the price/cost lag. A better approach is to normalize EBITDA by adjusting for the timing of input cost pass-throughs and restructuring charges, which would provide a clearer picture of underlying earning power.