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Risks
1. Poor Performance: Sealed Air's stock price has been lagging the S&P 500 over the past five years and the company has been challenged in its key categories of Product Care and Food Care. Furthermore, product demand has been impacted by trade volume declines in certain markets.
2. Rising Cost of Materials: Sealed Air is susceptible to input price increases from fluctuations in raw material costs. Additional tariffs or other trade policies of governments could also lead to a further increase in the cost of purchased materials, resulting in a negative impact on the company's profitability.
3. Increasing Competition: The global market for food service and packaging products is highly competitive. Sealed Air continues to face strong competition from both established and emerging companies, resulting in ongoing downward pressure on both pricing and margins.
4. International Exposure: Sealed Air has significant business operations and assets outside of the U.S. Therefore, it is subject to a variety of foreign laws and regulations, making it susceptible to risks associated with potential political instability in certain areas. Additionally, the company could also be affected by fluctuations in foreign currency exchange rates.