Sonoco Products Company (NYSE:SON), settled the day at a share price of $50.61 after seeing a rise of 2.41% that brought its market cap to $5.1 billion. The company closed the session with a trading volume of 488.66 thousand shares, below from its average daily trading volume of 648.98 thousand. It has been generating revenue of $5.33 billion while net income posted by the company in last 12 months was $298.6 million.
Sonoco Products Company (NYSE: SON), on Feb. 26, 2020, came announcing that its recently acquired subsidiary TEQ Thermoform Engineered Quality, a global manufacturer of thermoformed packaging, serving healthcare, medical device and consumer markets, will rename and brand all its manufacturing locations strictly as TEQ. This includes facilities across Europe, currently branded as Plastique. The legal name will become SONOCO TEQ, with the appropriate company type dependent on the region of the facility. In January 2020, Sonoco, one of the most sustainable, diversified global packaging companies, completed the acquisition of Thermoform Engineered Quality, LLC, and Plastique Holdings, LTD, (together TEQ). The comprehensive rebrand will unite manufacturing locations globally and focus on creating a more seamless customer experience. TEQ operates three thermoforming facilities as well as one extrusion operation in the United States, a thermoforming operation in the United Kingdom, and thermoforming and molded-fiber manufacturing in Poland. Each facility has state-of-the-art cleanroom capabilities enabling the production of sterile, barrier packaging systems for pharmaceuticals and medical devices. In addition, TEQ produces recyclable, molded-pulp-fiber packaging and thermoformed plastic packaging for multiple consumer products.
“The rebranding of TEQ Thermoform Engineered Quality and Plastique to the TEQ name displays the evolution of how our brands have grown more cohesive to address the needs of our mutual customers,” said Todd McDonald, director of sales and marketing for TEQ. Fibrepak, the fiber molding division of TEQ, will retain its own separate brand identity. Fibrepak uses the latest ‘Cure-In-The-Mold’ technology to produce the highest quality, most well-defined fiber packaging available. Products differ from traditional molded pulp packaging in several ways. For example, the packaging boasts a high tolerance that enables accurate registration to ensure a consistent fit. The process also allows for thin walls, defined hinges and a smooth premium finish. TEQ has recently made significant investments at all their business locations. This includes building ISO 7 controlled environments certified to ISO 13485 at the facilities in Nottingham, United Kingdom, and Poznan, Poland. The company has also added Kiefel KMD 78’s in both locations, making them one of the largest users of Kiefel thermoforming machines in the world. Additionally, an extrusion facility has been installed at the manufacturing facility in Huntley, Ill. This expansion will help provide proprietary materials: TEQethylene, TEQpropylene and TEQconnex.
When looking at performance, we see the stock demonstrating a weekly performance of 7.59% while keeping a monthly performance of 7.84%. Quarterly performance saw a drop of -13.12% and continued the negative trend with a yearly performance of -19.74% while showing YTD performance of -18% which was -13.83% for last six months.
The 52-week range for the stock was 37.30 – 66.57 that put its current price at a premium of 35.68% to the 52-week low price whereas it is trading at a discount of -23.98% to the 52-week high price. The Packaging & Containers company is currently upholding a gross margin of 19.8% while maintaining a net profit margin of 6.1%. Operating margin for the last 12 months remained 9%. The company’s EPS for trailing 12 months is $2.95 and its annual dividend yield is 3.4% with a payout ratio of 52.2%. It is estimated to be posting an EPS of $0.79 for the current quarter. The Beta number showed the stock is subject to risk -16% more than the market as a whole.
In the trailing twelve months, its return on assets (ROA) is 6.5% while ROE for the same period is 17.9% and have seen an average of 10.7% return on investment (ROI). The outstanding share count is 100.68 million shares but the size of available float is 99.77 million shares. The stock’s current price is lagging SMA-200 by -9.8% which is also 5.48% up from SMA-50. Reducing that period to a shorter term, we see the price is trailing 5.94% to the SMA-20. Volatility for the week was 2.86%, which was 4.32% in the previous month.