Sonoco Products Company cash flow to debt ratio of 15.03% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Sonoco Products Company's free cash flow has decreased 21.53% from $440.61M last year to $345.76M, signaling decreasing performance

Sonoco Products Company's debt to equity ratio is 1.31, which means that the company's assets are unhealthy financed, signaling financial risk.

Sonoco Products Company's debt has decreased relative to shareholder equity from 3.21 last year to 1.31 today, signaling strengthened financials

Sonoco Products Company has a net debt to EBITDA ratio of 2.76x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Sonoco Products Company's interest coverage ratio of 3.28 indicates that earnings with margin can cover interest payments on company debt

Sonoco Products Company's profit margin has increased (180.53%) in the last year from 3.09% to 8.67%, signaling increasing performance

Sonoco Products Company's short-term assets of $2.65B exceed its short-term liabilities of $2.53B

Sonoco Products Company's return on assets of 5.89% is higher than the 5.00% threshold, indicating efficient asset utilization

Sonoco Products Company's return on equity of 18.34%, is higher than 15.00%, indicating good performance

Sonoco Products Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Sonoco Products Company had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Sonoco Products Company has positive free cash flow, indicating the company generates cash after capital expenditures

Sonoco Products Company has a free cash flow yield of 6.04%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Sonoco Products Company's yearly earnings has increased 141.77% since last year from $163.95M to $396.38M, signaling increasing performance

Sonoco Products Company's yearly revenue has increased 41.72% since last year from $5.31B to $7.52B, signaling increasing performance

ROIC 5.75% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Sonoco Products Company's 3-year revenue CAGR of 8.67% is positive, indicating growing revenue over the past 3 years

Sonoco Products Company had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Sonoco Products Company had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Sonoco Products Company has insufficient data to evaluate this check.

Sonoco Products Company has an earnings yield of 11.20%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Sonoco Products Company is undervalued relative to its fair value price of 63.04 based on EBITDA multiple model

Sonoco Products Company has an EV/EBITDA ratio of 6.50x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Sonoco Products Company is undervalued relative to its fair value price of 139.52 based on Earnings Fair Value model

Sonoco Products Company has a PEG-ratio under 1 which is considered undervalued

Sonoco Products Company has a price-to-book ratio of 1.60x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Sonoco Products Company has a price-to-sales ratio of 0.77x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue