Silgan Holdings Return On Equity vs. Price To Earning

SLGN Stock  USD 57.53  0.08  0.14%   
Based on Silgan Holdings' profitability indicators, Silgan Holdings may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Silgan Holdings' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.17252686
Current Value
0.16
Quarterly Volatility
0.06849318
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 30th of November 2024, Price To Sales Ratio is likely to drop to 0.49. In addition to that, Days Sales Outstanding is likely to drop to 25.13. At this time, Silgan Holdings' Net Income is very stable compared to the past year. As of the 30th of November 2024, Net Income Applicable To Common Shares is likely to grow to about 411.6 M, though Accumulated Other Comprehensive Income is likely to grow to (238.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.120.1658
Way Down
Slightly volatile
Operating Profit Margin0.06950.1008
Way Down
Pretty Stable
Return On Equity0.160.1725
Significantly Down
Pretty Stable
For Silgan Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Silgan Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Silgan Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Silgan Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Silgan Holdings over time as well as its relative position and ranking within its peers.
  

Silgan Holdings' Revenue Breakdown by Earning Segment

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Is Metal, Glass & Plastic Containers space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Silgan Holdings. If investors know Silgan will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Silgan Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.09)
Dividend Share
0.75
Earnings Share
2.76
Revenue Per Share
54.197
Quarterly Revenue Growth
(0.03)
The market value of Silgan Holdings is measured differently than its book value, which is the value of Silgan that is recorded on the company's balance sheet. Investors also form their own opinion of Silgan Holdings' value that differs from its market value or its book value, called intrinsic value, which is Silgan Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Silgan Holdings' market value can be influenced by many factors that don't directly affect Silgan Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Silgan Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Silgan Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Silgan Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Silgan Holdings Price To Earning vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Silgan Holdings's current stock value. Our valuation model uses many indicators to compare Silgan Holdings value to that of its competitors to determine the firm's financial worth.
Silgan Holdings is rated fifth in return on equity category among its peers. It is rated below average in price to earning category among its peers reporting about  118.35  of Price To Earning per Return On Equity. At this time, Silgan Holdings' Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Silgan Holdings' earnings, one of the primary drivers of an investment's value.

Silgan Holdings' Earnings Breakdown by Geography

Silgan Price To Earning vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Silgan Holdings

Return On Equity

 = 

Net Income

Total Equity

 = 
0.15
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Silgan Holdings

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
18.25 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Silgan Price To Earning Comparison

Silgan Holdings is currently under evaluation in price to earning category among its peers.

Silgan Holdings Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Silgan Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Silgan Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Silgan Holdings' change in net profit over the period of time. It can combine multiple indicators of Silgan Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-251.4 M-238.8 M
Operating Income122 M115.9 M
Income Before Tax83.6 M79.4 M
Total Other Income Expense Net-38.4 M-40.3 M
Net Income326 M342.3 M
Income Tax Expense19.2 M18.2 M
Net Income Applicable To Common Shares392 M411.6 M
Net Income From Continuing Ops286.1 M248.7 M
Interest Income121.5 M102.7 M
Net Interest Income-165.4 M-173.7 M
Change To Netincome69.2 M72.7 M
Net Income Per Share 3.00  3.15 
Income Quality 1.48  1.58 
Net Income Per E B T 0.77  0.85 

Silgan Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Silgan Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Silgan Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Silgan Holdings' important profitability drivers and their relationship over time.

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When determining whether Silgan Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Silgan Holdings' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Silgan Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Silgan Holdings Stock:
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To learn how to invest in Silgan Stock, please use our How to Invest in Silgan Holdings guide.
You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Silgan Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Silgan Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Silgan Holdings' income statement, its balance sheet, and the statement of cash flows.
Potential Silgan Holdings investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Silgan Holdings investors may work on each financial statement separately, they are all related. The changes in Silgan Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Silgan Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.