Sealed Air Corporation (SEE) has a market cap of $9.3 billion. It fell by 0.08% to close at $48.33 per share on July 14, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 5.8%, 2.7%, and 9.0%, respectively, on the same day.
SEE is trading 4.1% above its 20-day moving average, 3.7% above its 50-day moving average, and 5.5% above its 200-day moving average.
Related ETF and peers
The Materials Select Sector SPDR ETF (XLB) invests 1.8% of its holdings in Sealed Air. The ETF tracks a market-cap-weighted index of US basic materials companies. The fund includes only the materials components of the S&P 500. The YTD price movement of XLB was 12.9% on July 14.
The iShares Russell 3000 ETF (IWV) invests 0.04% of its holdings in Sealed Air. The ETF tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps.
The market caps of Sealed Air’s competitors are as follows:
Sealed Air’s new acquisition
In a press release on July 14, 2016, Sealed Air reported, “Sealed Air Corporation (SEE) announced today that it has acquired Tampereen Teollisuussähkö Oy (TTS-Ciptec), a company that optimizes Cleaning in Place systems through remote monitoring capabilities and predictive analytics services for industrial use in brewing, beverage, and diary companies.”
The terms of the transaction, which closed on July 13, 2016, were not disclosed.
According to Karl R. Deily, Sealed Air’s Food Care division president, “Combined with Sealed Air’s expertise in data analytics and experience in the food and beverage industry, this acquisition enhances how we meet our customers’ sustainability needs by saving time, reducing product loss and water and energy consumption, and improving quality, hygiene and yield.”
Sealed Air’s performance in fiscal 1Q16
Sealed Air (SEE) reported fiscal 1Q16 net sales of $1.6 billion, a fall of 8.9% from its net sales of $1.7 billion in fiscal 1Q15. In fiscal 1Q16, SEE reported a stock appreciation rights expense and foreign exchange income related to Venezuelan subsidiaries of $0.3 million and -$1.7 million, respectively. This is compared with $2.9 million and $0.8 million in fiscal 1Q15.
Net income and earnings
SEE’s net income fell to $91.9 million in fiscal 1Q16, compared with $97.2 million in fiscal 1Q15. It reported EPS (earnings per share) of $0.46 in fiscal 1Q15 and fiscal 1Q16.
Sealed Air’s cash and cash equivalents fell by 11.9% and its inventories rose by 11.5% between fiscal 4Q15 and fiscal 1Q16. Its respective current ratio and debt-to-equity ratio fell to 1.2x and 12.4x in fiscal 1Q16, compared with 1.23x and 13.0x in fiscal 4Q15.
Sealed Air has declared a quarterly cash dividend of $0.16 per share on its common stock. The dividend will be paid on September 16, 2016, to shareholders on record at the close of business on September 2, 2016.
Sealed Air Corporation (SEE) made the following projections for fiscal 2016:
- net sales of ~$6.8 billion
- adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] in the range of $1.17–$1.19
- adjusted EPS in the range of $2.52–$2.60, excluding the impact of special items
- adjusted tax rate of 24%
- free cash flow of ~$550 million, which includes capital expenditures of ~$275 million and cash restructuring payments of ~$110 million
In the next part of this series, we’ll discuss Ball Corporation.