Silgan Holdings Inc (SLGN) stock analysis

P/E above its 5-year median

Silgan's P/E of 16.7 is above its own 5-year median of 15.5.

P/E below the industry

Silgan's P/E of 16.7 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 22.3.

EV/EBITDA below its 5-year median

Silgan's EV/EBITDA of 9.5 is below its 5-year median of 10.5.

P/B below the industry

Silgan's price-to-book of 1.77 is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 2.80.

Trading below fair value

The share price of $41.50 is below our fair value estimate of $52.48.

Margin of safety over 20%

The price is 20.9% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 0.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -4.2% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -16.9% over the last twelve months, against a 5-year average of -1.4% a year.

Growing slower than the industry

Revenue grew 4.5% over the last twelve months; the Fabricated Metal Products, except Machinery and Transportation Equipment median is 10.2%.

Guidance lowered

Silgan lowered its Year Ended December 31, 2026 U.S. GAAP diluted EPS outlook on Jul 29, 2026.

Gross margin slipping

Gross margin was 17.0% over the last twelve months, against 17.7% a year earlier.

Return on equity under 15%

Return on equity was 11.0% over the last twelve months and averaged 18.4% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Silgan's return on equity of 11.0% is above the Fabricated Metal Products, except Machinery and Transportation Equipment median of 9.0%.

Earnings shrank over 5 years

Net income shrank 1.4% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.9% over the last twelve months, against a 5-year average of 5.3%.

Net margin below the industry

Silgan's net margin of 3.9% is below the Fabricated Metal Products, except Machinery and Transportation Equipment median of 4.5%.

High debt

Debt is 184% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 260% five years ago to 184%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 14.2% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.35 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.76; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Silgan paid dividends worth 2.0% of the share price over the last twelve months.

Yield below Treasuries

The 2.0% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Silgan yields 2.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 33.7% of net income.

Covered by free cash flow

Dividends take 25.5% of free cash flow.