Sonoco's Updated 20/20 Vision Doesn't Change Our No-Moat Perspective on Long-Term Margins
Following updated guidance for both 2018 and 2019, along with added details on Sonoco's strategy, we've adjusted our forecasts to incorporate the increased guidance, the relatively small Conitex acquisition, and the time value of money. As a result, our fair value estimate rises slightly to $42 from $41, and our no-moat rating is unchanged. In our view, Sonoco's trading price around $55 per share embeds expectations of far higher growth and profitability than we think are reasonable for the indu...Sonoco Products is a manufacturer of industrial and consumer packaging products and a provider of packaging services. The company's segments are: Consumer Packaging, which includes round composite cans, shaped rigid paperboard containers, fiber and plastic caulk/adhesive tubes, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; Paper and Industrial Converted Products, which include recycled paperboard, chipboard, tubeboard, lightweight corestock, boxboard, linerboard, corrugating medium, edgeboard, paper grades, and adhesives; Display and Packaging, which include point-of-purchase displays; and Protective Solutions, which include packaging and components.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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