Sealed Air Corporation

Based on a comprehensive analysis of SEE, the technical, fundamental, and valuation factors outweigh the risks, presenting a compelling investment case.

From a technical perspective, SEE exhibits strong bullish momentum, having recovered significantly from its 52-week low and consistently outperformed the market in the short term. Fundamentally, the company has demonstrated a sharp improvement in profitability, with a net profit margin expanding to 13.74% in its latest quarter. The valuation is particularly attractive, with a forward P/E of approximately 7.0 and a very low PEG ratio of 0.07, indicating the stock price may not fully reflect its projected earnings growth.

The primary risks to consider are the stock's high volatility (beta of 1.36) and the company's elevated financial leverage, evidenced by a debt-to-equity ratio of 3.59 and a modest interest coverage ratio. However, the strong earnings growth trajectory and improved profitability provide a solid foundation to manage these risks.

Buy Recommendation: SEE presents a strong buy opportunity for investors comfortable with moderate volatility. The stock's impressive technical momentum, significantly improved profitability, and deeply attractive forward valuation metrics suggest considerable upside potential. While the high debt load and beta warrant monitoring, the compelling growth story at its current price justifies a bullish stance for growth-oriented portfolios.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the comprehensive analysis provided, the 12-month outlook for SEE (Sealed Air Corp) is bullish, driven by its compelling valuation and strong earnings trajectory.

12-Month Outlook for SEE:

Key catalysts for upside include the stock's strong technical momentum and exceptionally attractive valuation, with a forward P/E of ~7.0 and a PEG ratio of 0.07 suggesting significant room for price appreciation as earnings growth materializes. The primary risks to watch are the company's elevated financial leverage (Debt-to-Equity of 3.59) and high stock volatility (Beta of 1.36), which could amplify losses during broader market downturns. While no explicit analyst target price was provided, the combination of robust profitability improvement and deep value metrics suggests a target price range in the mid-$50s is achievable, representing substantial upside from the current $41.95.

Wall Street Consensus

Most Wall Street analysts are optimistic about Sealed Air Corporation's 12-month outlook, with consensus target around $41.92, indicating expected upside potential.

Overall, SEE has investment potential but also faces challenges. Here are key factors to weigh before investing.

SEE demonstrates strong performance with substantial recent gains and significant upside momentum from its 52-week low. The stock has shown impressive recovery from its yearly low and has maintained positive momentum in the shorter term. Overall, SEE presents a compelling technical picture with notable outperformance against the broader market.

In the short term, SEE shows robust performance with a 12.38% gain over three months significantly outpacing the market by 12.4%, indicating strong relative strength. The stock's 0.45% one-month gain, while more modest, still reflects positive momentum despite potential near-term consolidation. The high beta of 1.358 confirms the stock's above-average volatility, which has contributed to both strong outperformance and significant drawdowns.

Currently trading at $41.95, SEE sits near the upper end of its 52-week range, approximately 5.2% below its high of $44.27. This proximity to yearly highs suggests the stock is approaching overbought territory rather than oversold conditions given its substantial recovery from the $22.78 low. The stock's position reflects strong bullish momentum but warrants monitoring for potential resistance near the 52-week high.

Revenue & Profitability: SEE demonstrated modest revenue growth in Q3 2025, reaching $1.35 billion compared to $1.34 billion in the prior quarter. Profitability improved significantly, with the net profit margin expanding sharply from 6.97% to 13.74%; this was notably aided by a substantial income tax benefit of $70 million during the quarter.

Financial Health: The company maintains a relatively high degree of leverage with a debt-to-equity ratio of 3.59 and a total debt-to-capitalization of 78%. While generating positive EBITDA of $244 million, the interest coverage ratio sits at a modest 3.3, and the cash flow to debt ratio of 0.04 indicates that cash generation relative to its debt load warrants monitoring.

Operational Efficiency: SEE exhibits solid operational performance with a respectable return on equity (ROE) of 15.6%. However, asset utilization appears lower, as indicated by an asset turnover of 0.19, suggesting significant asset intensity relative to revenue generation. The cash conversion cycle of approximately 48 days indicates reasonably efficient working capital management.

Valuation Level: SEE's current PE ratio of 13.6 appears fundamentally sound, while its significantly lower forward PE of approximately 7.0 suggests strong anticipated earnings growth and potential undervaluation. This bullish outlook is further supported by an exceptionally low PEG ratio of approximately 0.07, which indicates the stock's price is not keeping pace with its projected growth rate. However, the elevated EV/EBITDA of 37.6 introduces a note of caution, potentially signaling high debt or capital expenditure levels that could pressure valuation.

Peer Comparison: A comparative analysis cannot be conclusively performed as the necessary industry average data is unavailable for benchmarking. Key valuation metrics like the PE, PB, and EV/EBITDA ratios lack the critical context of sector medians to determine SEE's relative standing. Therefore, while the forward-looking metrics suggest undervaluation, the absence of industry comparables prevents a definitive assessment of its relative value.

Of course. Here is a risk analysis for SEE based on the provided metrics.

SEE exhibits significant volatility risk. With a Beta of 1.358, the stock is approximately 36% more volatile than the broader market, meaning it will typically experience larger price swings both up and down. This elevated volatility is confirmed by the substantial maximum drawdown of -29.99% over the past year, indicating a pronounced period of significant loss from a previous peak, which underscores the potential for high short-term risk.

Regarding other market risks, the apparent absence of notable short interest is a positive signal, suggesting that professional investors do not have a strong, concentrated bearish thesis on the stock's immediate future. However, the high volatility and large drawdown could point to other underlying risks, such as sensitivity to economic cycles or company-specific events, that may not be fully captured by these few metrics alone.