Sonoco Products Company (SON) Stock Analysis & Winston Score

Sonoco Products Company makes packaging materials used by businesses around the world. Its main products include industrial tubes and cores (the cardboard cylinders that hold paper, film, and textiles), rigid containers for food and consumer goods, and protective packaging for fragile items. The company sells mostly to manufacturers in industries like food, healthcare, textiles, and paper.

Sonoco earns money by selling packaging products directly to business customers, not to everyday shoppers. It operates globally, with facilities across North America, Europe, Asia, and South America, and generates roughly $6 billion in annual revenue. Its long-term contracts and the high cost of switching suppliers give it some pricing stability, but its margins are relatively thin and depend heavily on raw material costs like recycled paper and steel. The biggest risk the company faces is rising input costs and slowing industrial demand, which can quickly squeeze profits when the broader economy weakens.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+23.6% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

1.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~2 months

$224M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Sonoco Products Company has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 99.6M (2021) → 99.6M (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

20.6%

Thin — 20.6% gross margin

Operating Margin

8.6%

Modest — 8.6% operating margin

ROCE

1.7%

Weak — 1.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+39.2%

Fast-growing sales (39.2% YoY)

EPS YoY

+570.3%

Earnings growing fast (570.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

51%

Weak — only 51% of profit becomes cash

FCF Margin

3.6%

Thin free cash flow (3.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.31

Elevated debt (1.31)

Interest Cover

2.92x

Tight — interest eats into profit (2.9x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)

5.4x

Attractive valuation — P/E 5.4

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward

-4.4

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield

3.73%

Moderate income — 3.73% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth

+1.9%

Dividend flat

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