Monday, November 8, 2010

Sonoco Dividend Stock Analysis

Sonoco Products Company (NYSE: SON) is a manufacturer of industrial and consumer packaging products and a provider of packaging services with 312 locations in 35 countries. 

The company was founded in 1899 and operates in six segments: Global Rigid, Global Flexible, Global Services, Global Plastics, Industrial Converted, and Primary Materials. The Company serves two markets: consumer and industrial.  It provides packaging solutions to many of the world's most recognized brands.



Category
Investment Ideal
SON
Points




Earnings




10 yr Avg. EPS Growth > 10%
-1.11%
0
Margins




10 yr. Gross Margin Avg. > 35%
19.26%
0

10 yr Net Margin Avg. > 15%
4.83%
0
Debt




Debt to Total Capital < 35%
29.61%
1

Current Ratio > 1
1.24
1
Return




10 yr Avg. Return on Equity > 15%
14.62%
0

10 yr Avg. Cash Return on Capital > 20%
12.14%
0
Dividends




Years Dividend Growth > 10
27
1

10 years Annual Average Growth > 10%
3.50%
0

1 year Growth > 5 year Growth
No
0

Any years of FCF Payout Ratio > 100%
No
1
Valuation




Trailing P/E < 15
22.45
0

Forward P/E < 12
14.33
0

Dividend Yield > 3%
3.21%
1






Total Points
5
 

A total score of 5 ranks Sonoco as a low watch company

I will watch SON and if the price dips I will work up a deeper analysis 

Full Disclosure:  I do not own any SON.  My portfolio holdings can be seen here






































































































No comments:

Post a Comment