Consumer Discretionary
A long-time industry incumbent with an underappreciated upside story - SON has taken bold steps to reorient its businesses over the past few years under its new leadership team. The businesses have been streamlined, with non-core assets divested, while new, complementary product lines have been added both in North America and Europe. Capital allocation has been investor-friendly, with an unparalleled dividend track record within ERA’s universe and periodic share buybacks. Debt is well-managed at 2.6x with interest coverage of 9.2x. ERA views the current share price as an attractive entry point for investors.
Edition: 170
- 29 September, 2023