Morningstar Rating

Stock Research and Analysis

by Todd Wenning, CFA

Bulls Say

Sonoco is uniquely diversified across a number of consumer and industrial packaging substrates, which reduces substitution risk for its products.
Most of Sonoco's sales are under long-term contracts with price escalators that help maintain stable margins.
Sonoco is conservatively managed, and a rash of expensive empire-building acquisitions is unlikely. Read more 

Bears Say

A few major customers account for a substantial amount of Sonoco's revenue. Those customers tend to have bargaining power, and if one of them were to switch to another packaging provider, it would have a materially adverse effect on Sonoco.
Slower dividend growth rates in recent years are an indication that the board is less confident about the business's prospects.
Sonoco competes in many fragmented product markets that primarily rely on price to win business. Read more 

Management

We assign Sonoco a Standard Stewardship Rating. Harris E. DeLoach Jr. has been chairman since 2005 and was CEO for 12 years, until April 2013. He has been with Sonoco since 1986. His successor, M. Jack Sanders, has been with Sonoco since 1988 and is   Read more 

Profile

Over its 100-year-plus history, Sonoco Products has steadily assembled a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid   Read more 

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