Silgan Holdings Inc

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SLGN : NASDAQ : Consumer Goods
$51.43 -0.96 | -1.80%
Today's Range: 52.23 - 52.88
Avg. Daily Volume: 212,000
07/27/16 - 9:30 AM ET

Financial Analysis


SILGAN HOLDINGS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. SILGAN HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 23.04% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)792.74816.6
EBITDA ($mil)93.69103.43
EBIT ($mil)58.5267.79
Net Income ($mil)26.5733.3


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)66.61129.08
Total Assets ($mil)3384.473353.31
Total Debt ($mil)1818.011910.81
Equity ($mil)668.03542.9


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin18.819.33
EBITDA Margin11.8112.66
Operating Margin7.388.3
Sales Turnover1.111.15
Return on Assets4.895.49
Return on Equity24.833.93
Debt Q1 FY16 Q1 FY15
Current Ratio1.291.36
Debt/Capital0.730.78
Interest Expense16.6216.62
Interest Coverage3.524.08


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)60.4760.52
Div / share0.170.16
EPS0.440.53
Book value / share11.058.97
Institutional Own % n/a n/a
Avg Daily Volume227466.0279038.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 32.50 for the Containers & Packaging industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 4.70 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.13. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SILGAN HOLDINGS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SLGN 18.93 Peers 32.50   SLGN 9.52 Peers 10.14

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SLGN is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SLGN is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SLGN 15.40 Peers 17.15   SLGN 5.92 Peers 1.37

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SLGN is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SLGN trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SLGN 4.70 Peers 11.13   SLGN -5.52 Peers -6.13

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SLGN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SLGN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SLGN 0.84 Peers 1.04   SLGN -3.42 Peers -0.99

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SLGN is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SLGN significantly trails its peers on the basis of sales growth

 

 

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