Stock fact sheet · data as of
Sonoco Products Company (SON): fair value, margin of safety and Wheel Score
Consumer Cyclical · Packaging & Containers · United States · High Yield Income
Is SON undervalued?
Sonoco Products Company (SON) closed at 49.12 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 91.55, which puts the price 46% below it. 8 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 9 models disagree widely: DDM gives 31.49 while Graham Growth gives 176.87. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files SON under High Yield Income: a dividend yield above 4%.
Nine valuation models for SON
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 108.12 | +120% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 72.55 | +48% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 176.87 | +260% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 62.89 | +28% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 71.92 | +46% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 129.65 | +164% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 98.44 | +100% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 31.49 | -36% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 72.05 | +47% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -49.40 | -201% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 58.67 | +19% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - SON passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 3.5 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 4.8%, ROE 11.0%, ROA 3.6% - with debt at 1.27 times equity and a free-cash-flow yield of 8.3%.
The dividend yield is high at 4.36% (payout ratio 33%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Consumer Packaging 65%, Industrial Paper Packaging 35% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales; the last recorded insider buy was on 10 Sep 2026.
| Piotroski F-score | 5 / 9 | ROIC | 4.8% |
|---|---|---|---|
| GLS Moat | 3.5 / 10 | ROE | 11.0% |
| Debt / equity | 1.27 | ROA | 3.6% |
| Free-cash-flow yield | 8.3% | Payout ratio | 33% |
| Institutions | 10 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 78: Good
SON scores 78 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (11/20), the GLS moat (5/15), the option premium on offer (20/20) and how easily the stock trades (17/20). Moat (5/15) is the part holding the score back.
Implied volatility is 44% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 6,850 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 941k shares a day on a market cap of $4.9B, with a beta of 0.33 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 46% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 5 / 15 | moat 3.5/10 | |
| Premium | 20 / 20 | implied volatility 44% | |
| Stability | 17 / 20 | 941k shares/day, $4.9B cap, beta 0.33 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Sonoco Products Company reports earnings on 21 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Packaging & Containers
The 12 companies below are the closest to Sonoco Products Company by market cap within the Packaging & Containers industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SLGN Silgan Holdings Inc. | 35.81 | 50.05 | +28% | 81Prime | $3.8B |
| GEF Greif, Inc. | 80.04 | 124.10 | +36% | 77Good | $3.7B |
| AMBP Ardagh Metal Packaging S.A. | 4.67 | 5.01 | +7% | 69Good | $2.8B |
| GPK Graphic Packaging Holding Company | 8.73 | 16.62 | +47% | 81Prime | $2.6B |
| CCK Crown Holdings, Inc. | 113.68 | 155.17 | +27% | 82Prime | $12.4B |
| AVY Avery Dennison Corporation | 175.88 | 155.64 | -13% | 64Fair | $13.3B |
| BALL Ball Corporation | 62.80 | 78.56 | +20% | 84Prime | $16.6B |
| TRS TriMas Corporation | 38.43 | 370.13 | +90% | 78Good | $1.4B |
| MYE Myers Industries, Inc. | 31.03 | 24.69 | -26% | 52Fair | $1.2B |
| AMCR Amcor plc | 43.74 | 46.21 | +5% | 73Good | $20.2B |
| PKG Packaging Corporation of America | 229.96 | 150.88 | -52% | 56Fair | $20.5B |
| SW Smurfit Westrock plc | 40.75 | 35.10 | -16% | 67Good | $21.4B |
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Start free See the Sunday ScanQuestions about SON
Is SON undervalued right now?
By the GLS models, yes: at 49.12 the stock is 46% below the average fair value of 91.55 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of SON and what does it mean?
SON scores 78 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SON?
91.55 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Sonoco Products Company report earnings next?
The next earnings report is due on 21 Oct 2026 (after the close), 5 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SON have listed options, and how liquid are they?
Yes. The nightly snapshot found 108 listed contracts with 6,850 open interest across all expiries and implied volatility of 44% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.