Portfolio: Zacks Deep Value

Sealed Air is a global packaging company focused on protecting food and goods in transit. It operates mainly in:

• Food packaging: Cryovac-branded materials and systems that vacuum-pack meat, poultry, dairy, and other foods to extend shelf life and improve food safety for processors, retailers, and foodservice.

• Protective packaging: Bubble Wrap and other cushioning, mailers, foams, and automated packaging systems (including Autobag) that protect products shipped via e‑commerce, industrial, medical, and consumer supply chains.

Management has been defending earnings power through productivity, expanding margins even on soft revenue. In 2025, Sealed Air reiterated/raised key profit and cash metrics (e.g., adjusted EBITDA around $1.12–$1.14B and free cash flow $350–$450M) despite modestly pressured pricing and volumes, signaling meaningful operating leverage when demand normalizes.​ As distribution/fulfillment and industrial packaging demand stabilizes, incremental volume plus ongoing productivity programs should drive EBITDA and FCF growth, supporting multiple expansion from a “low-growth” perception. At just 12x forward P/E, we think share price upside from multiple expansion as the business gains momentum remains significant.