Morningstar Rating

Stock Research and Analysis

by Daniel Rohr, CFA

Bulls Say

Sealed Air's underlying businesses remain solid and will generate enough free cash flow to pay down Diversey-related debt.
Much of Sealed Air's business is based on a razor-and-blade model that produces high levels of valuable recurring revenue.
As one of two multinational companies in the institutional cleaning product market, Diversey will find success selling to other multinational companies that want consistency and a one-stop supplier. Read more 

Bears Say

The Diversey acquisition has been a massive distraction that will eventually weaken the company's competitive advantages.
Diversey operates in a highly fragmented market and has significant exposure to Europe.
The dividend could be at risk if Sealed Air is unable to deleverage its balance sheet or if global economic growth substantially slows. Read more 

Management

We award Sealed Air a Standard stewardship rating. The new management team was dealt a weak hand and we think it has made a number of difficult but necessary capital-allocation decisions, such as selling Diversey Japan and the rigid medical packaging   Read more 

Profile

Following the Diversey acquisition, Sealed Air reorganized into three reporting segments. Food care includes its legacy food packaging products like Cryovac as well as Diversey's   Read more 

A Deep Discount on This Narrow-Moat Metals Stock 
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