Smurfit Kappa Group Plc (SK3.I) Fundamental Analysis & Valuation

DUB:SK3 • IE00B1RR8406

41.44 EUR
-0.16 (-0.38%)
Last: Jul 2, 2024, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This SK3.I fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, SK3 scores 5 out of 10 in our fundamental rating. SK3 was compared to 10 industry peers in the Containers & Packaging industry. SK3 has only an average score on both its financial health and profitability. SK3 has a valuation in line with the averages, but on the other hand it scores bad on growth. SK3 also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. SK3.I Profitability Analysis

1.1 Basic Checks

  • In the past year SK3 was profitable.
  • In the past year SK3 had a positive cash flow from operations.
  • SK3 had positive earnings in each of the past 5 years.
  • Each year in the past 5 years SK3 had a positive operating cash flow.
SK3.I Yearly Net Income VS EBIT VS OCF VS FCFSK3.I Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B

1.2 Ratios

  • With a Return On Assets value of 6.00%, SK3 perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
  • With a decent Return On Equity value of 13.63%, SK3 is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • 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.
  • The Average Return On Invested Capital over the past 3 years for SK3 is significantly above the industry average of 7.63%.
Industry RankSector 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%
SK3.I Yearly ROA, ROE, ROICSK3.I Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20

1.3 Margins

  • With a Profit Margin value of 6.72%, SK3 perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of SK3 has grown nicely.
  • The Operating Margin of SK3 (12.45%) is better than 66.67% of its industry peers.
  • SK3's Operating Margin has been stable in the last couple of years.
  • SK3 has a Gross Margin of 33.60%. This is in the lower half of the industry: SK3 underperforms 66.67% of its industry peers.
  • In the last couple of years the Gross Margin of SK3 has remained more or less at the same level.
Industry RankSector 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%
SK3.I Yearly Profit, Operating, Gross MarginsSK3.I Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. SK3.I Health Analysis

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.
  • SK3 has more shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, SK3 has an improved debt to assets ratio.
SK3.I Yearly Shares OutstandingSK3.I Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
SK3.I Yearly Total Debt VS Total AssetsSK3.I Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

  • SK3 has an Altman-Z score of 2.70. This is not the best score and indicates that SK3 is in the grey zone with still only limited risk for bankruptcy at the moment.
  • The Altman-Z score of SK3 (2.70) 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 has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: SK3 outperforms 46.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 5.69
Altman-Z 2.7
ROIC/WACC1.86
WACC6.65%
SK3.I Yearly LT Debt VS Equity VS FCFSK3.I Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.51 indicates that SK3 should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.51, SK3 perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
  • A Quick Ratio of 1.14 indicates that SK3 should not have too much problems paying its short term obligations.
  • SK3's Quick ratio of 1.14 is fine compared to the rest of the industry. SK3 outperforms 73.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.51
Quick Ratio 1.14
SK3.I Yearly Current Assets VS Current LiabilitesSK3.I Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. SK3.I Growth Analysis

3.1 Past

  • SK3 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.05%.
  • SK3 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.84% yearly.
  • Looking at the last year, SK3 shows a very negative growth in Revenue. The Revenue has decreased by -12.04% in the last year.
  • The Revenue has been growing slightly by 4.73% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 5.86% on average over the next years.
  • SK3 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.65% yearly.
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.
SK3.I Yearly Revenue VS EstimatesSK3.I Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B 10B
SK3.I Yearly EPS VS EstimatesSK3.I Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

More info and screens

Find the best growth stocksShow best growing peers

4

4. SK3.I Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 14.19 indicates a correct valuation of SK3.
  • Compared to the rest of the industry, the Price/Earnings ratio of SK3 is on the same level as its industry peers.
  • SK3 is valuated rather cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
  • SK3 is valuated correctly with a Price/Forward Earnings ratio of 12.26.
  • SK3's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SK3 is cheaper than 66.67% of the companies in the same industry.
  • SK3 is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.19
Fwd PE 12.26
SK3.I Price Earnings VS Forward Price EarningsSK3.I Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 16.44
EV/EBITDA 6.7
SK3.I Per share dataSK3.I EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • SK3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.93%
EPS Next 3Y6.48%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. SK3.I Dividend Analysis

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 3.15.
  • SK3's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 4.5%

5.2 History

  • On average, the dividend of SK3 grows each year by 9.48%, which is quite nice.
Dividend Growth(5Y)9.48%
Div Incr Years2
Div Non Decr Years2
SK3.I Yearly Dividends per shareSK3.I Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5

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%
SK3.I Yearly Income VS Free CF VS DividendSK3.I Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M
SK3.I Dividend Payout.SK3.I Dividend Payout, showing the Payout Ratio.SK3.I Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

SK3.I Fundamentals: All Metrics, Ratios and Statistics

Smurfit Kappa Group Plc

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)05-02
Earnings (Next)07-31
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.


Can you provide the valuation status for Smurfit Kappa Group Plc?

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.


What are the PE and PB ratios of Smurfit Kappa Group Plc (SK3.I) stock?

The Price/Earnings (PE) ratio for Smurfit Kappa Group Plc (SK3.I) is 14.19 and the Price/Book (PB) ratio is 1.95.


Can you provide the dividend sustainability for SK3 stock?

The dividend rating of Smurfit Kappa Group Plc (SK3.I) is 7 / 10 and the dividend payout ratio is 48.42%.