SON:NYSESonoco Products Company Analysis
Data as of 2026-06-15 - not real-time
$50.57
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Sonoco Products (SON) trades around $50.6, roughly 20% below its DCF‑derived fair value of $62.5, suggesting a material upside. The stock benefits from a low PE of 8.3, a robust 4.2% dividend yield with a modest 34.7% payout ratio, and a bullish MACD histogram (+0.36) despite a neutral RSI (55). Recent news of price hikes on paperboard products and a return to the Fortune 500 list underline a strategic push to improve margins and scale.
Technical signals are mixed: the 20‑day SMA (48.6) sits below price while the 50‑day SMA (50.9) is slightly above, and the stock hovers near the $51.24 resistance level. Low beta (0.52) tempers market‑wide swings, but a 30‑day volatility of ~33% signals notable price swings. Overall, the combination of valuation upside, dividend strength, and improving pricing dynamics supports a positive outlook, while short‑term price action remains range‑bound.
Technical signals are mixed: the 20‑day SMA (48.6) sits below price while the 50‑day SMA (50.9) is slightly above, and the stock hovers near the $51.24 resistance level. Low beta (0.52) tempers market‑wide swings, but a 30‑day volatility of ~33% signals notable price swings. Overall, the combination of valuation upside, dividend strength, and improving pricing dynamics supports a positive outlook, while short‑term price action remains range‑bound.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bullish MACD histogram indicating short‑term momentum
- Price near resistance with limited upside on a neutral trend
- High dividend yield providing downside cushion
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- ~20% upside to DCF fair value
- Pricing increases expected to lift margins
- Stable cash flow and low leverage supporting earnings
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Sustainable dividend supported by strong free cash flow
- Undervalued relative to fundamentals and long‑term growth prospects
- Strategic market position reinforced by Fortune 500 re‑entry
Key Metrics & Analysis
Financial Health
Revenue Growth-1.90%
Profit Margin13.58%
P/E Ratio8.3
ROE20.15%
ROA3.83%
Debt/Equity139.64
P/B Ratio1.4
Op. Cash Flow$529.9M
Free Cash Flow$828.5M
Technical Analysis
TrendNeutral
RSI55.1
Support$45.91
Resistance$51.24
MA 20$48.62
MA 50$50.91
MA 200$47.49
MACDBullish
VolumeStable
Fear & Greed Index89.86
Valuation
Fair Value$62.52
Target Price$60.89
Upside/Downside20.41%
GradeUndervalued
TypeValue
Dividend Yield4.21%
Risk Assessment
Beta0.52
Volatility32.78%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.