NYSE:SEE
SEALED AIR CORP/DE
A global innovator in sustainable packaging engineering and consumer products with a diversified revenue model across food service and industrial sectors.
Key Metrics
Investment Thesis
Bull Case
Investors may favor SEE for its dominant market position in essential food packaging where demand is relatively inelastic regardless of economic cycles. The company's transition toward sustainable materials aligns with long-term regulatory trends and consumer preferences, potentially unlocking new growth streams. Strong free cash flow generation supports a consistent dividend policy and provides a safety margin against industry downturns.
Bear Case
Bearish cases center on the stagnation in revenue growth over the last three years, dropping from $5.64B to $5.39B, which suggests a mature market with limited organic expansion opportunities. The significant accumulated other comprehensive loss of -$1.08B and retained earnings deficit of -$643.4M indicate underlying equity erosion that could limit future borrowing capacity. Declining net income trends suggest that current profitability levels may be unsustainable without further operational efficiency gains or price hikes.
About SEALED AIR CORP/DE
SEALED AIR (SEE) is a global leader in packaging solutions, engineering services, and consumer goods, primarily serving the food service, healthcare, and industrial markets. The company leverages its proprietary manufacturing capabilities to deliver high-performance packaging that extends product shelf life while minimizing waste. With operations spanning North America, Europe, and Asia-Pacific, SEE provides critical supply chain solutions for major brands.
Analysis
Management Discussion
Recent financial performance shows a stabilization in top-line growth with revenue at $5.39B, though net income declined to $264.7M compared to the previous year's $341.6M. The company continues to invest heavily in capital expenditures ($220.2M) and R&D ($93.4M) to drive innovation, resulting in a strong operating profit of $735.9M despite rising taxes. Cash flow from operations remains robust at $728.0M, providing ample liquidity to service debt obligations and return capital to shareholders.
Industry Overview
The global packaging industry is currently navigating a complex transition driven by sustainability mandates and shifting consumer preferences toward eco-friendly materials. Companies are under pressure to reduce single-use plastics while maintaining performance standards, creating opportunities for technological leaders like SEALED AIR. The sector is consolidating as demand concentrates around larger players who can invest in advanced material science and global logistics networks.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $5.64B | $5.49B | $5.39B |
| Cost of Revenue | $3.87B | $3.85B | $3.77B |
| Gross Profit | $1.77B | $1.64B | $1.63B |
| Operating Expenses | $828.1M | $886.7M | $889.2M |
| Operating Income | $944.8M | $754.6M | $735.9M |
| R&D | $102.5M | $96.9M | $93.4M |
| G&A | $786.2M | $759.1M | $752.6M |
| Stock-Based Comp | $50.5M | $33.0M | $31.6M |
| D&A | $184.6M | $233.4M | $240.9M |
| Amortization | $36.1M | $62.7M | $62.6M |
| Other OpEx | $-60.6M | $30.7M | $43.2M |
| Non-Operating Income | $-215.5M | $-324.9M | $-277.5M |
| Interest Expense | $162.3M | $263.0M | — |
| Pre-Tax Income | $729.3M | $429.7M | $458.4M |
| Income Tax | $238.0M | $90.4M | $188.9M |
| Continuing Ops | $491.3M | $339.3M | $269.5M |
| Discontinued Ops | $300.0K | $2.3M | $-4.8M |
| Net Income | $491.6M | $341.6M | $264.7M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $491.6M | $341.6M | $264.7M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $2.12B | $1.96B | $1.89B |
| Cash & Equivalents | $456.1M | $346.1M | $371.8M |
| Accounts Receivable | $592.4M | $442.6M | $443.1M |
| Inventory | $866.3M | $774.3M | $722.2M |
| Prepaid Expenses | $57.5M | $188.4M | $193.8M |
| Other Current Assets | $144.5M | $211.9M | $160.9M |
| Long-Term Assets | $4.10B | $5.24B | $5.13B |
| PP&E (Net) | $1.28B | $1.42B | $1.40B |
| Intangibles | $138.4M | $439.0M | $381.6M |
| Goodwill | $2.17B | $2.89B | $2.88B |
| Operating Leases | $70.2M | $86.5M | $98.0M |
| Other LT Assets | $438.9M | $402.9M | $374.3M |
| Total Assets | $6.21B | $7.20B | $7.02B |
| Current Liabilities | $2.08B | $1.51B | $1.64B |
| Accounts Payable | $865.6M | $764.6M | $771.0M |
| Current Leases | $24.0M | $29.2M | $29.7M |
| Taxes Payable | $19.9M | $28.7M | $53.3M |
| Other Current Liab | $1.17B | $686.5M | $781.5M |
| Long-Term Liabilities | $3.79B | $5.14B | $4.76B |
| LT Operating Leases | $49.6M | $66.7M | $74.8M |
| Other LT Liab | $3.74B | $5.08B | $4.69B |
| Total Liabilities | $5.87B | $6.65B | $6.40B |
| Shareholders' Equity | $344.1M | $549.5M | $624.5M |
| Retained Earnings | $3.16B | $496.5M | $643.4M |
| AOCI | $-978.8M | $-955.5M | $-1.08B |
| Treasury Stock | $4.02B | $436.4M | $404.2M |
| Total L&E | $6.21B | $7.20B | $7.02B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $491.6M | $341.6M | $264.7M |
| Non-Cash Adjustments | $79.0M | $444.3M | $466.6M |
| Working Capital Changes | $42.7M | $-269.7M | $-3.3M |
| Cash from Operations | $613.3M | $516.2M | $728.0M |
| Capital Expenditures | $237.3M | $244.2M | $220.2M |
| Cash from Investing | $-243.0M | $-1.38B | $-232.5M |
| Debt Issuances | $423.3M | $1.83B | $416.2M |
| Debt Repayments | $425.0M | $958.4M | $710.5M |
| Share Buybacks | $280.2M | $79.9M | $0 |
| Dividends Paid | $118.5M | $117.9M | $118.0M |
| Cash from Financing | $-446.7M | $755.7M | $-432.8M |
| FX Effect | $-28.5M | $-3.7M | $-37.0M |
| Net Change in Cash | $-104.9M | $-110.0M | $25.7M |
| Beginning Cash | $561.0M | $456.1M | $346.1M |
| Ending Cash | $456.1M | $346.1M | $371.8M |
Frequently Asked Questions
How does SEALED AIR CORP/DE make money?
The company's revenue is driven by three primary pillars: engineered packaging solutions (including trays, cups, and lidding) for the food and beverage industry; healthcare and pharmaceutical packaging systems; and its own branded consumer goods portfolio including snacks and frozen desserts. These segments are supported by a robust services division offering design and engineering support to global clients.
What are the main risks for SEE?
The company faces margin compression risks due to fluctuating raw material costs, particularly aluminum foil and resin prices, which directly impact its cost of revenue. Exposure to foreign exchange volatility remains a concern given the $37.0M negative fx effect on cash in the latest period, impacting reported earnings. Intense competition from low-cost manufacturers in emerging markets poses a threat to market share in price-sensitive segments.
What is SEE's competitive advantage?
SEE possesses a deep proprietary know-how in material science and barrier technology that allows it to extend food shelf life without preservatives, creating a high entry barrier for competitors. Its integrated manufacturing footprint across multiple continents provides significant cost efficiencies and supply chain resilience against regional disruptions. A strong balance sheet with substantial cash reserves ($371.8M) and low leverage offers financial flexibility for strategic acquisitions and R&D investment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.