Silgan Holdings Inc. (SLGN)
Consumer Cyclical · NYQ · US
Fundamentals
Valuation and ratings
Silgan Holdings Inc. trades at USD47.40, which is 52% above the USD22.70 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 28 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Silgan Holdings Inc.
Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging solutions for consumer goods products in the United States and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The company offers integrated dispensing packaging solutions, proprietary metal and plastic specialty closures, and capping/sealing equipment and detection systems for fragrance and beauty, food, beverage, personal and health care, home care, and lawn and garden markets. It also provides steel and aluminum containers used by processors and packagers for food products, such as pet food, vegetables and fruits, soup, proteins, and other miscellaneous food products, as well as general line metal containers for products, including promotional products. In addition, the company offers custom designed polyethylene, polyethylene terephthalate, containers, thermoformed barrier and non-barrier bowls, trays for shelf-stable food products, and plastic caps, sifters and fitments for food and household products, including salad dressings, condiments, peanut butter, spices, liquid margarine, powdered drink mixes, and arts and crafts supplies. It markets its products primarily through direct sales force, as well as through a network of distributors, and an online shopping catalog. The company was founded in 1987 and is headquartered in Norwalk, Connecticut.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Israel Englander, MILLENNIUM MANAGEMENT LLC$75.85M · 0.0% of book
- Steve Cohen, Point72 Asset Management, L.P.$28.55M · 0.0% of book
- Arrowstreet Capital, ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$12.73M · 0.0% of book
- Two Sigma, TWO SIGMA INVESTMENTS, LP$10.94M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$7.98M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Silgan Holdings Inc. (SLGN) undervalued?
Against our discounted cash flow estimate of USD22.70, SLGN at USD47.40 is 52% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own SLGN?
5 of the institutions we track reported a position in SLGN in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is SLGN's P/E ratio?
SLGN trades at 17.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.