2024-02-16 23:50:57 ET
Summary
- SEE is a low-growth company in a low-growth global packaging sector. But it has delivered double-digit operating returns and outperformed its peers in terms of ROA.
- The company's 2018 Reinvent SEE strategy did not result in significant improvements, but this was measured against a high starting point. The company is a profitable one.
- The market price of Sealed Air Corp has declined, creating an investment opportunity with a margin of safety.
Investment Thesis
Sealed Air Corp ( SEE ) is a global provider of packaging solutions. Over the past 6 years, revenue only grew at 3.1 % CAGR. This was despite having both organic and acquisition growths. At the same time, the global packaging sector is also not a high-growth one.
Despite being a low-growth company, SEE was able to deliver double-digit operating returns. It also led its peers when it came to ROA. It may not be a wonderful company when looking at how it performed under its 2018 Reinvent SEE strategy. But this was looking at improvements from a high starting bar....
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For further details see:
Sealed Air: The Market Has Overshot On Its Way Down