One-glance verdict
Undervalued
$59.21 our estimate vs market $38.50
Wall Street consensus: $51.09 (-13.7% lower than our fair-value estimate)
35% below our estimate, below the bear case
Fundamentals snapshot
Silgan Holdings Inc.
SLGN · NYQ · Consumer Cyclical · Packaging & Containers
Current price
$38.50
52-week range
$33.70 - $49.55
Market cap
$4.07B
Balance sheet
Stretched
3.48x Stretched
Net debt $4.48B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 3.1% last year.
- Reward Returns 11.7% on equity, ahead of 20% of its peers.
- Risk Net debt grew 15.0% over 3 years.
- Risk Operating margin compressed from 10.5% to 10.3% over 3 years.
What this company does
Silgan Holdings Inc.
Silgan Holdings makes and sells different types of packaging, like metal cans for food and plastic containers for things like lotions and cleaning supplies. The money they make comes from selling these packaging solutions to lots of different consumer product companies, which matters because it shows how much demand there is for their products.
How the company got here
Silgan Holdings was founded in 1987 by Phil Silver and Greg Horrigan, who had previously worked at Continental Can. They started the company by acquiring a metal food container business, establishing a strategy of buying market-leading operations, cutting costs, and using the resulting cash flow to fund further acquisitions. This approach, often involving significant debt, allowed Silgan to grow rapidly. The company went public in 1997, which provided a platform for continued expansion through numerous acquisitions, diversifying its product offerings beyond metal cans into closures, dispensing systems, and custom plastic packaging. This consistent strategy of acquiring and integrating businesses has been the primary driver of Silgan's evolution into a diversified packaging solutions provider.
What it actually does
Silgan Holdings manufactures and sells rigid packaging solutions for a wide variety of consumer goods. Think of the containers and closures you see every day on products in your pantry, bathroom, or under your sink. The company's products are essential for protecting and preserving goods, ensuring they reach consumers safely and maintain their quality. Silgan's focus is on providing reliable and cost-effective packaging that meets the needs of large consumer packaged goods companies, food processors, and contract fillers.
Dispensing and Specialty Closures
This segment is Silgan's largest and fastest-growing, focusing on products that help consumers dispense liquids and other products. This includes items like pumps and sprayers for personal care products (such as lotions and hairsprays), home cleaning supplies, and even lawn and garden products. It also encompasses specialty metal and plastic closures for food and beverage containers, like caps for jars of salsa or bottles of sports drinks. These closures are designed to keep products fresh and safe, and some are engineered for specific dispensing functions. This part of Silgan's business serves a broad range of markets, including beauty, health care, food, and beverage.
Metal Containers
This is Silgan's most established business, primarily focused on producing steel and aluminum cans for food products. These are the cans you'd find for items like pet food, soups, vegetables, fruits, and other preserved foods. Silgan is a major player in this market, especially in North America, where it's the largest manufacturer of metal food containers. The company emphasizes the sustainability of its metal containers, noting they are highly recyclable and can be made with significant recycled content. These containers are crucial for shelf-stable food products, reducing the need for refrigeration and minimizing waste.
Custom Containers
The Custom Containers segment designs and manufactures specialized plastic packaging solutions. These are often highly engineered containers made from various polymers, tailored for specific product needs. Examples include custom-designed bottles for shampoos, conditioners, and lotions in the personal care market, as well as containers for health care products, condiments like salad dressing and peanut butter, and household cleaning supplies. Silgan highlights its innovation in this area, particularly in using recycled and bio-based plastics and designing packaging to be more sustainable, reducing material use and improving recyclability.
What management is betting on now
Silgan's management is focused on several key priorities to drive future growth and efficiency. A major theme is continued strategic acquisitions, particularly in higher-value areas like dispensing and specialty closures, to further diversify the company's business mix. They are also emphasizing operational excellence, which means constantly looking for ways to improve manufacturing processes, control costs, and increase efficiency across all segments. Furthermore, Silgan is committed to sustainability, aiming to reduce waste, energy consumption, and material usage in its products, while also increasing the use of recycled materials and promoting recyclability. This focus on sustainability is increasingly important for their customers and the environment.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$252.43M
FY2024 Q4
$865.01M
FY2025 Q1
$-766.33M
FY2025 Q2
$-294.22M
FY2025 Q3
$260.79M
FY2025 Q4
$1.22B
FY2026 Q1
$-882.02M
FY2026 Q2
$-258.52M
Revenue
$1.64B
Net income
$75.76M
Diluted EPS
0.72
Operating cash flow
$-194.28M
Free cash flow
$-258.52M
Fetching…
Sources
Revenue
$1.56B
Net income
$63.04M
Diluted EPS
0.60
Operating cash flow
$-799.57M
Free cash flow
$-882.02M
Fetching…
Sources
Revenue
$1.47B
Net income
$18.20M
Diluted EPS
0.18
Operating cash flow
$1.29B
Free cash flow
$1.22B
Fetching…
Sources
Revenue
$2.01B
Net income
$113.29M
Diluted EPS
1.06
Operating cash flow
$340.89M
Free cash flow
$260.79M
Fetching…
Sources
Revenue
$1.54B
Net income
$88.94M
Diluted EPS
0.83
Operating cash flow
$-221.45M
Free cash flow
$-294.22M
Fetching…
Sources
Revenue
$1.47B
Net income
$67.96M
Diluted EPS
0.63
Operating cash flow
$-683.40M
Free cash flow
$-766.33M
Fetching…
Sources
Revenue
$1.41B
Net income
$45.06M
Diluted EPS
0.42
Operating cash flow
$935.76M
Free cash flow
$865.01M
Fetching…
Sources
Revenue
$1.75B
Net income
$100.05M
Diluted EPS
0.93
Operating cash flow
$313.02M
Free cash flow
$252.43M
Fetching…
Sources
Is it cheap or expensive?
Fair value $59.21 vs current price $38.50
Wall Street consensus is the average analyst price target: $51.09 (-13.7% lower than our fair-value estimate).
Our most-likely fair value is $59.21 a share — about 53.8% above today's price of $38.50, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $4.5B. Interest coverage 3.5x.
Net debt
$4.48B
Interest coverage
3.48x
Silgan Holdings Inc.'s profit covers its interest bill about 3.5 times over.
Stretched
Worse cushion
Baseline
Better cushion
SLGN
BASELINE
Silgan Holdings Inc.
Total debt $4.83B Interest coverage 3.48x This is the baseline the peer rows are being compared against.
Total debt $5.85B Interest coverage 4.11x +18% vs SLGN Carries about 1.2x more debt cushion than SLGN.
Total debt $1.41B Interest coverage 9.69x +179% vs SLGN Carries about 2.8x more debt cushion than SLGN.
Total debt $7.58B Interest coverage 4.43x +27% vs SLGN Carries about 1.3x more debt cushion than SLGN.
Total debt $4.99B Interest coverage 1.76x -49% vs SLGN Carries about 2.0x less debt cushion than SLGN.
What you should know
The case for and against SLGN
3 Rewards
2 Risks
Rewards
-
Revenue grew 3.1% last year.
-
Returns 11.7% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 15.0% over 3 years.
-
Operating margin compressed from 10.5% to 10.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
15.10x
Forward P/E
9.53x
P/B
1.71x
P/S
0.61x
EV/EBITDA
8.74x
PEG ratio
0.79x
Profitability
How much profit each dollar creates
Gross margin
17.1%
Operating margin
10.3%
Net margin
4.0%
ROE
11.7%
ROA
4.2%
Health
Liquidity and balance-sheet strength
Debt / equity
2.03x
Current ratio
1.27x
Quick ratio
0.70x
Total debt
$4.83B
Total cash
$351.53M
Growth
How the business has been compounding
Revenue TTM
$6.68B
Revenue 5Y CAGR
3.4%
EPS TTM
2.55
EPS 5Y CAGR
-4.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$640.84M
Free CF TTM
$422.75M
FCF margin
6.3%
Dividend
Shareholder payout
Yield
2.2%
Payout ratio
32.2%
Last ex-div date
2026-09-01