| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 41.54 | 31 |
| Intrinsic value (DCF) | 0.77 | -98 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 11.66 | -63 |
Sealed Air Corporation (NYSE: SEE) is a global leader in food safety, security, and product protection solutions, serving diverse industries through its two core segments: Food and Protective. The Food segment specializes in advanced packaging materials and automation equipment, enhancing food safety, shelf life, and operational efficiency for processors in meat, poultry, seafood, dairy, and plant-based markets under brands like CRYOVAC and Darfresh. The Protective segment offers innovative packaging solutions—including foam, inflatable, and temperature-controlled options—for e-commerce, pharmaceuticals, and industrial applications under iconic brands like BUBBLE WRAP and AUTOBAG. Headquartered in Charlotte, North Carolina, Sealed Air operates across North and South America, Europe, the Middle East, Africa, and Asia Pacific, leveraging direct sales and distributor networks. With a 60+ year legacy, the company combines sustainability with cutting-edge technology to reduce waste and optimize supply chains, positioning itself as a critical enabler in the $1 trillion+ global packaging industry.
Sealed Air presents a mixed investment profile. Strengths include its strong market position in niche segments like food packaging (CRYOVAC) and e-commerce protection (BUBBLE WRAP), with recurring revenue from essential industries. The company’s 2023 revenue of $5.4B and operating cash flow of $728M reflect stable demand, while its dividend yield (~1.7%) adds income appeal. However, high leverage (total debt of $4.5B vs. cash of $372M) and a beta of 1.36 signal sensitivity to economic cycles. Rising input costs and competition in sustainable packaging could pressure margins. Investors should weigh its innovation pipeline (e.g., plant-based and automation solutions) against execution risks in debt reduction and capex efficiency ($220M in 2023).
Sealed Air’s competitive advantage stems from its dual focus on high-value segments (food safety and e-commerce logistics) and strong brand equity (CRYOVAC, BUBBLE WRAP). In food packaging, its integrated solutions—combining materials with automation—create sticky customer relationships, while proprietary technologies like Darfresh for vacuum skin packaging differentiate it from generic competitors. The Protective segment benefits from e-commerce tailwinds, with BUBBLE WRAP being synonymous with protective packaging. However, the company faces pricing pressure from low-cost manufacturers (e.g., in Asia) and must continually innovate to counter substitutes like molded pulp. Sustainability is a growing battleground; Sealed Air’s “2025 Sustainability Pledge” (100% recyclable packaging) lags behind rivals like Amcor’s broader commitments. Geographic diversification (45% sales outside North America) provides resilience but exposes it to currency volatility. Its debt-heavy balance sheet limits M&A flexibility compared to peers like Berry Global.