| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 30.61 | -44 |
| Intrinsic value (DCF) | 11.35 | -79 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 15.55 | -72 |
Silgan Holdings Inc. (NYSE: SLGN) is a leading manufacturer of rigid packaging solutions for consumer goods, serving diverse industries across North America, Europe, and internationally. The company operates through three key segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. Silgan specializes in steel and aluminum containers for food products, plastic closures for personal care and healthcare, and custom thermoformed packaging for ready-to-eat meals and pet food. With a strong focus on sustainability and innovation, Silgan caters to major brands in food, beverage, healthcare, and household chemicals. Headquartered in Stamford, Connecticut, Silgan has built a reputation for reliability and efficiency in the packaging industry, leveraging a direct sales force and distributor network to maintain a competitive edge. Its diversified product portfolio and global footprint position it as a key player in the $1.2 trillion global packaging market.
Silgan Holdings presents a stable investment opportunity with steady revenue growth ($5.85B in FY 2023) and a solid market position in rigid packaging. The company benefits from recurring demand in food and consumer goods packaging, supported by long-term customer contracts. However, high total debt ($4.14B) and exposure to raw material price volatility (steel, aluminum, plastics) pose risks. Its low beta (0.734) suggests relative stability compared to broader markets, and the dividend yield (~1.4%) adds income appeal. Investors should monitor margin pressures from inflation and potential shifts toward sustainable packaging alternatives.
Silgan Holdings maintains competitive advantages through vertical integration, economies of scale, and long-standing customer relationships in the rigid packaging sector. Its three-segment structure provides diversification across food, beverage, and healthcare end markets, reducing reliance on any single industry. The company's metal container segment holds strong positions in pet food and protein packaging, where high barriers to entry (regulatory compliance, manufacturing expertise) limit competition. In dispensing closures, Silgan competes on innovation with patented designs like child-resistant and tamper-evident solutions. However, it faces pricing pressure from commoditized products in standard metal cans. Silgan's custom containers division differentiates through thermoforming capabilities for specialty food packaging, though smaller rivals may offer more flexibility for niche applications. Sustainability initiatives (lightweighting, recyclable materials) are becoming increasingly critical in maintaining competitiveness against larger peers like Ball Corporation in aluminum packaging.