Smurfit Kappa Group Plc (SK3.I) Stock Fundamental Analysis
Europe - Euronext Dublin - DUB:SK3 - IE00B1RR8406 - Common Stock
41.44 EUR
-0.16 (-0.38%)
Overall SK3 gets a fundamental rating of 5 out of 10. We evaluated SK3 against 13 industry peers in the Containers & Packaging industry. Both the profitability and the financial health of SK3 get a neutral evaluation. Nothing too spectacular is happening here. SK3 is valued correctly, but it does not seem to be growing. SK3 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SK3 had positive earnings in the past year.
SK3 had a positive operating cash flow in the past year.
Each year in the past 5 years SK3 has been profitable.
In the past 5 years SK3 always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SK3 (6.00%) is comparable to the rest of the industry.
SK3 has a better Return On Equity (13.63%) than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 12.36%, SK3 is doing good in the industry, outperforming 73.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SK3 is significantly above the industry average of 6.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 13.63% | ||
| ROIC | 12.36% |
ROA(3y)6.46%
ROA(5y)5.89%
ROE(3y)15.98%
ROE(5y)15.7%
ROIC(3y)12.82%
ROIC(5y)12.1%
1.3 Margins
Looking at the Profit Margin, with a value of 6.72%, SK3 is in line with its industry, outperforming 60.00% of the companies in the same industry.
SK3's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.45%, SK3 is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
SK3's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 33.60%, SK3 is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SK3 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.45% | ||
| PM (TTM) | 6.72% | ||
| GM | 33.6% |
OM growth 3Y4.99%
OM growth 5Y0.25%
PM growth 3Y1.72%
PM growth 5YN/A
GM growth 3Y-0.1%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
SK3 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, SK3 has more shares outstanding
Compared to 5 years ago, SK3 has more shares outstanding
SK3 has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.70 indicates that SK3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
SK3 has a Altman-Z score (2.70) which is comparable to the rest of the industry.
The Debt to FCF ratio of SK3 is 5.69, which is a neutral value as it means it would take SK3, 5.69 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.69, SK3 is in line with its industry, outperforming 53.33% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that SK3 is somewhat dependend on debt financing.
SK3's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. SK3 outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.69 | ||
| Altman-Z | 2.7 |
ROIC/WACC1.86
WACC6.65%
2.3 Liquidity
A Current Ratio of 1.51 indicates that SK3 should not have too much problems paying its short term obligations.
SK3's Current ratio of 1.51 is in line compared to the rest of the industry. SK3 outperforms 46.67% of its industry peers.
A Quick Ratio of 1.14 indicates that SK3 should not have too much problems paying its short term obligations.
SK3 has a better Quick ratio (1.14) than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
SK3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.05%.
Measured over the past years, SK3 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.84% on average per year.
Looking at the last year, SK3 shows a very negative growth in Revenue. The Revenue has decreased by -12.04% in the last year.
Measured over the past years, SK3 shows a small growth in Revenue. The Revenue has been growing by 4.73% on average per year.
EPS 1Y (TTM)-20.05%
EPS 3Y8.84%
EPS 5YN/A
EPS Q2Q%-24.66%
Revenue 1Y (TTM)-12.04%
Revenue growth 3Y9.74%
Revenue growth 5Y4.73%
Sales Q2Q%-15.47%
3.2 Future
Based on estimates for the next years, SK3 will show a small growth in Earnings Per Share. The EPS will grow by 5.86% on average per year.
Based on estimates for the next years, SK3 will show a small growth in Revenue. The Revenue will grow by 3.65% on average per year.
EPS Next Y-1.85%
EPS Next 2Y5.93%
EPS Next 3Y6.48%
EPS Next 5Y5.86%
Revenue Next Year-1.14%
Revenue Next 2Y1.64%
Revenue Next 3Y2.4%
Revenue Next 5Y3.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.19, the valuation of SK3 can be described as correct.
SK3's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.92, SK3 is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.26, which indicates a correct valuation of SK3.
Based on the Price/Forward Earnings ratio, SK3 is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
SK3 is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 12.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SK3 is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SK3 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.44 | ||
| EV/EBITDA | 6.7 |
4.3 Compensation for Growth
The decent profitability rating of SK3 may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.93%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, SK3 is a good candidate for dividend investing.
SK3's Dividend Yield is a higher than the industry average which is at 2.59.
Compared to an average S&P500 Dividend Yield of 2.00, SK3 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
5.2 History
The dividend of SK3 is nicely growing with an annual growth rate of 9.48%!
Dividend Growth(5Y)9.48%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
48.42% of the earnings are spent on dividend by SK3. This is a bit on the high side, but may be sustainable.
SK3's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP48.42%
EPS Next 2Y5.93%
EPS Next 3Y6.48%
DUB:SK3 (7/2/2024, 7:00:00 PM)
41.44
-0.16 (-0.38%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap10.82B
Revenue(TTM)11.27B
Net Income(TTM)758.00M
Analysts84.62
Price Target50.43 (21.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend1.41
Dividend Growth(5Y)9.48%
DP48.42%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.91%
PT rev (3m)9.24%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)4.78%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 12.26 | ||
| P/S | 0.96 | ||
| P/FCF | 16.44 | ||
| P/OCF | 7.13 | ||
| P/B | 1.95 | ||
| P/tB | 3.74 | ||
| EV/EBITDA | 6.7 |
EPS(TTM)2.92
EY7.05%
EPS(NY)3.38
Fwd EY8.16%
FCF(TTM)2.52
FCFY6.08%
OCF(TTM)5.81
OCFY14.02%
SpS43.17
BVpS21.3
TBVpS11.07
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6% | ||
| ROE | 13.63% | ||
| ROCE | 14.12% | ||
| ROIC | 12.36% | ||
| ROICexc | 13.6% | ||
| ROICexgc | 19.31% | ||
| OM | 12.45% | ||
| PM (TTM) | 6.72% | ||
| GM | 33.6% | ||
| FCFM | 5.84% |
ROA(3y)6.46%
ROA(5y)5.89%
ROE(3y)15.98%
ROE(5y)15.7%
ROIC(3y)12.82%
ROIC(5y)12.1%
ROICexc(3y)14.78%
ROICexc(5y)13.59%
ROICexgc(3y)22.11%
ROICexgc(5y)20.55%
ROCE(3y)14.65%
ROCE(5y)13.83%
ROICexgc growth 3Y7.64%
ROICexgc growth 5Y-0.28%
ROICexc growth 3Y9.58%
ROICexc growth 5Y1.3%
OM growth 3Y4.99%
OM growth 5Y0.25%
PM growth 3Y1.72%
PM growth 5YN/A
GM growth 3Y-0.1%
GM growth 5Y0.33%
F-Score7
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 5.69 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 135.28% | ||
| Cap/Sales | 7.62% | ||
| Interest Coverage | 7.88 | ||
| Cash Conversion | 74.44% | ||
| Profit Quality | 86.81% | ||
| Current Ratio | 1.51 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 2.7 |
F-Score7
WACC6.65%
ROIC/WACC1.86
Cap/Depr(3y)129.25%
Cap/Depr(5y)119.37%
Cap/Sales(3y)6.88%
Cap/Sales(5y)6.73%
Profit Quality(3y)66.99%
Profit Quality(5y)89.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.05%
EPS 3Y8.84%
EPS 5YN/A
EPS Q2Q%-24.66%
EPS Next Y-1.85%
EPS Next 2Y5.93%
EPS Next 3Y6.48%
EPS Next 5Y5.86%
Revenue 1Y (TTM)-12.04%
Revenue growth 3Y9.74%
Revenue growth 5Y4.73%
Sales Q2Q%-15.47%
Revenue Next Year-1.14%
Revenue Next 2Y1.64%
Revenue Next 3Y2.4%
Revenue Next 5Y3.65%
EBIT growth 1Y-15.99%
EBIT growth 3Y15.21%
EBIT growth 5Y5%
EBIT Next Year48.99%
EBIT Next 3Y18.99%
EBIT Next 5Y14.85%
FCF growth 1Y17.08%
FCF growth 3Y-3.53%
FCF growth 5Y6.51%
OCF growth 1Y4.48%
OCF growth 3Y6.75%
OCF growth 5Y7.99%
Smurfit Kappa Group Plc / SK3.I FAQ
What is the fundamental rating for SK3 stock?
ChartMill assigns a fundamental rating of 5 / 10 to SK3.I.
What is the valuation status for SK3 stock?
ChartMill assigns a valuation rating of 4 / 10 to Smurfit Kappa Group Plc (SK3.I). This can be considered as Fairly Valued.
How profitable is Smurfit Kappa Group Plc (SK3.I) stock?
Smurfit Kappa Group Plc (SK3.I) has a profitability rating of 6 / 10.
How financially healthy is Smurfit Kappa Group Plc?
The financial health rating of Smurfit Kappa Group Plc (SK3.I) is 4 / 10.
What is the expected EPS growth for Smurfit Kappa Group Plc (SK3.I) stock?
The Earnings per Share (EPS) of Smurfit Kappa Group Plc (SK3.I) is expected to decline by -1.85% in the next year.