SYLVAMO CORP (SLVM) Stock Fundamental Analysis
NYSE:SLVM - New York Stock Exchange, Inc. - US8713321029 - Common Stock - Currency: USD
Overall SLVM gets a fundamental rating of 6 out of 10. We evaluated SLVM against 9 industry peers in the Paper & Forest Products industry. SLVM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SLVM is cheap, but on the other hand it scores bad on growth. With these ratings, SLVM could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year SLVM was profitable.
SLVM had a positive operating cash flow in the past year.
In the past 5 years SLVM has always been profitable.
SLVM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SLVM has a Return On Assets of 10.88%. This is in the better half of the industry: SLVM outperforms 77.78% of its industry peers.
SLVM's Return On Equity of 31.50% is amongst the best of the industry. SLVM outperforms 100.00% of its industry peers.
SLVM has a Return On Invested Capital of 15.13%. This is amongst the best in the industry. SLVM outperforms 88.89% of its industry peers.
SLVM had an Average Return On Invested Capital over the past 3 years of 16.67%. This is significantly above the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 31.5% | ||
| ROIC | 15.13% |
ROA(3y)8.25%
ROA(5y)8.67%
ROE(3y)27.05%
ROE(5y)54.21%
ROIC(3y)16.67%
ROIC(5y)13.03%
1.3 Margins
SLVM's Profit Margin of 7.75% is fine compared to the rest of the industry. SLVM outperforms 77.78% of its industry peers.
SLVM's Profit Margin has declined in the last couple of years.
SLVM has a better Operating Margin (11.66%) than 77.78% of its industry peers.
In the last couple of years the Operating Margin of SLVM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 24.75%, SLVM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of SLVM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.66% | ||
| PM (TTM) | 7.75% | ||
| GM | 24.75% |
OM growth 3Y1.56%
OM growth 5Y-0.5%
PM growth 3Y-11.9%
PM growth 5Y-3.13%
GM growth 3Y1.05%
GM growth 5Y-6.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SLVM is creating value.
Compared to 1 year ago, SLVM has less shares outstanding
Compared to 5 years ago, SLVM has less shares outstanding
SLVM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.22 indicates that SLVM is not in any danger for bankruptcy at the moment.
SLVM has a better Altman-Z score (4.22) than 88.89% of its industry peers.
The Debt to FCF ratio of SLVM is 1.76, which is an excellent value as it means it would take SLVM, only 1.76 years of fcf income to pay off all of its debts.
SLVM's Debt to FCF ratio of 1.76 is fine compared to the rest of the industry. SLVM outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that SLVM is somewhat dependend on debt financing.
SLVM has a Debt to Equity ratio of 0.90. This is comparable to the rest of the industry: SLVM outperforms 44.44% of its industry peers.
Although SLVM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.22 |
ROIC/WACC2
WACC7.58%
2.3 Liquidity
SLVM has a Current Ratio of 1.64. This is a normal value and indicates that SLVM is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.64, SLVM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 1.04 indicates that SLVM should not have too much problems paying its short term obligations.
SLVM has a Quick ratio (1.04) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.25% over the past year.
SLVM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.34% yearly.
The Revenue has been growing slightly by 0.11% in the past year.
SLVM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
EPS 1Y (TTM)39.25%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-36.45%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-9.28%
3.2 Future
SLVM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.18% yearly.
The Revenue is expected to decrease by -4.76% on average over the next years.
EPS Next Y-15.43%
EPS Next 2Y0.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.42%
Revenue Next 2Y-4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.68, which indicates a rather cheap valuation of SLVM.
Based on the Price/Earnings ratio, SLVM is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of SLVM to the average of the S&P500 Index (25.82), we can say SLVM is valued rather cheaply.
The Price/Forward Earnings ratio is 7.25, which indicates a rather cheap valuation of SLVM.
Based on the Price/Forward Earnings ratio, SLVM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SLVM to the average of the S&P500 Index (21.76), we can say SLVM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 7.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SLVM indicates a rather cheap valuation: SLVM is cheaper than 88.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SLVM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.75 | ||
| EV/EBITDA | 4.82 |
4.3 Compensation for Growth
The decent profitability rating of SLVM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SLVM has a Yearly Dividend Yield of 3.22%.
The stock price of SLVM dropped by -20.74% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.99, SLVM pays a better dividend. On top of this SLVM pays more dividend than 88.89% of the companies listed in the same industry.
SLVM's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
SLVM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
23.78% of the earnings are spent on dividend by SLVM. This is a low number and sustainable payout ratio.
DP23.78%
EPS Next 2Y0.18%
EPS Next 3YN/A
54.19
-1.46 (-2.62%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners84.16%
Inst Owner Change-1.55%
Ins Owners0.95%
Ins Owner Change1.1%
Market Cap2.21B
Analysts50
Price Target80.24 (48.07%)
Short Float %1.91%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend1.52
Dividend Growth(5Y)N/A
DP23.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.52%
Min EPS beat(2)-2.91%
Max EPS beat(2)7.95%
EPS beat(4)3
Avg EPS beat(4)9.37%
Min EPS beat(4)-2.91%
Max EPS beat(4)22.86%
EPS beat(8)7
Avg EPS beat(8)13.91%
EPS beat(12)8
Avg EPS beat(12)7.79%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-1.49%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)-1.35%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-8.88%
PT rev (3m)-13.55%
EPS NQ rev (1m)-18.5%
EPS NQ rev (3m)-18.5%
EPS NY rev (1m)-4.53%
EPS NY rev (3m)-7.16%
Revenue NQ rev (1m)-3.43%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.68 | ||
| Fwd PE | 7.25 | ||
| P/S | 0.6 | ||
| P/FCF | 4.75 | ||
| P/OCF | 4.75 | ||
| P/B | 2.43 | ||
| P/tB | 2.8 | ||
| EV/EBITDA | 4.82 |
EPS(TTM)7.06
EY13.03%
EPS(NY)7.48
Fwd EY13.8%
FCF(TTM)11.42
FCFY21.07%
OCF(TTM)11.42
OCFY21.07%
SpS90.59
BVpS22.3
TBVpS19.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 31.5% | ||
| ROCE | 21.36% | ||
| ROIC | 15.13% | ||
| ROICexc | 16.37% | ||
| ROICexgc | 17.47% | ||
| OM | 11.66% | ||
| PM (TTM) | 7.75% | ||
| GM | 24.75% | ||
| FCFM | 12.61% |
ROA(3y)8.25%
ROA(5y)8.67%
ROE(3y)27.05%
ROE(5y)54.21%
ROIC(3y)16.67%
ROIC(5y)13.03%
ROICexc(3y)19.95%
ROICexc(5y)15.29%
ROICexgc(3y)21.59%
ROICexgc(5y)16.56%
ROCE(3y)23.57%
ROCE(5y)18.45%
ROICexcg growth 3Y12.63%
ROICexcg growth 5Y9.08%
ROICexc growth 3Y13.25%
ROICexc growth 5Y9.14%
OM growth 3Y1.56%
OM growth 5Y-0.5%
PM growth 3Y-11.9%
PM growth 5Y-3.13%
GM growth 3Y1.05%
GM growth 5Y-6.15%
F-Score8
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.81% | ||
| Profit Quality | 162.59% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.22 |
F-Score8
WACC7.58%
ROIC/WACC2
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)247.83%
Profit Quality(5y)226.82%
High Growth Momentum
Growth
EPS 1Y (TTM)39.25%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-36.45%
EPS Next Y-15.43%
EPS Next 2Y0.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-9.28%
Revenue Next Year-9.42%
Revenue Next 2Y-4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y22.86%
EBIT growth 3Y11.8%
EBIT growth 5Y-1.74%
EBIT Next Year31.16%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.31%
FCF growth 3Y-5.34%
FCF growth 5Y-2.19%
OCF growth 1Y-2.31%
OCF growth 3Y-5.34%
OCF growth 5Y-2.19%