Morningstar Rating

Stock Research and Analysis

by Todd Wenning

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 products 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 company still has risks associated with a pending asbestos settlement in relation to its Cryovac acquisition from W.R. Grace & Co. Read more 

Management

We are increasing Sealed Air's stewardship rating to Standard from Poor after having sufficient time to review the new management team's progress following the disastrous Diversey acquisition made by another set of executives. The new management team   Read more 

Profile

Following the Diversey acquisition, Sealed Air reorganized into three reporting segments. The Food Care division includes its legacy food packaging products like Cryovac   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

The Friday Five 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.