Sealed Air Stock To $30?

Sealed Air (SEE) stock has jumped 17% during the past day, and is currently trading at $42.50. Our multi-factor assessment suggests that it may be time to sell SEE stock. We have, overall, a pessimistic view of the stock, and a price of $30 may not be out of reach. We believe there are several things to fear in SEE stock given its overall Weak operating performance and financial condition. Hence, despite its Low valuation, this makes the stock look Risky.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $6.3 Bil in market cap, Sealed Air provides food safety, product protection, and packaging solutions, including integrated materials, automation equipment, foam, inflatable, suspension, and temperature assurance packaging.

[1] Valuation Looks Low

This table highlights how SEE is valued vs broader market. For more details see: SEE Valuation Ratios

[2] Growth Is Very Weak

• Sealed Air has seen its top line shrink at an average rate of -2.6% over the last 3 years
• Its revenues have fallen -1.2% from $5.4 Bil to $5.3 Bil in the last 12 months
• Also, its quarterly revenues grew 0.5% to $1.4 Bil in the most recent quarter from $1.3 Bil a year ago.

This table highlights how SEE is growing vs broader market. For more details see: SEE Revenue Comparison

[3] Profitability Appears Moderate

• SEE last 12 month operating income was $808 Mil representing operating margin of 15.1%
• With cash flow margin of 10.9%, it generated nearly $579 Mil in operating cash flow over this period
• For the same period, SEE generated nearly $454 Mil in net income, suggesting net margin of about 8.5%

This table highlights how SEE profitability vs broader market. For more details see: SEE Operating Income Comparison

[4] Financial Stability Looks Weak

• SEE Debt was $4.3 Bil at the end of the most recent quarter, while its current Market Cap is $6.3 Bil. This implies Debt-to-Equity Ratio of 67.8%
• SEE Cash (including cash equivalents) makes up $283 Mil of $7.1 Bil in total Assets. This yields a Cash-to-Assets Ratio of 4.0%

[5] Downturn Resilience Is Very Weak

SEE has fared much worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• SEE stock fell 59.3% from a high of $70.17 on 29 March 2022 to $28.58 on 23 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is $42.50 on 13 November 2025 $42.50

 
2020 Covid Pandemic

• SEE stock fell 55.9% from a high of $39.83 on 1 January 2020 to $17.55 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 6 August 2020

 
2008 Global Financial Crisis

• SEE stock fell 69.1% from a high of $33.72 on 21 February 2007 to $10.43 on 3 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 24 December 2013

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read SEE Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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