SYLVAMO CORP (SLVM) Stock Fundamental Analysis
USA - NYSE:SLVM - US8713321029 - Common Stock
43.47 USD
-0.75 (-1.7%)
43.47 USD
0 (0%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. SLVM has a bad growth rate and is valued cheaply. This makes SLVM very considerable for value investing!
1. Profitability
1.1 Basic Checks
SLVM had positive earnings in the past year.
In the past year SLVM had a positive cash flow from operations.
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 8.17%. This is in the better half of the industry: SLVM outperforms 77.78% of its industry peers.
SLVM's Return On Equity of 22.73% is amongst the best of the industry. SLVM outperforms 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.65%, SLVM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SLVM is significantly above the industry average of 5.72%.
The 3 year average ROIC (16.67%) for SLVM is well above the current ROIC(11.65%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 22.73% | ||
| ROIC | 11.65% |
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
The Profit Margin of SLVM (6.14%) is better than 66.67% of its industry peers.
SLVM's Profit Margin has declined in the last couple of years.
The Operating Margin of SLVM (9.52%) is better 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.
SLVM has a Gross Margin (23.04%) which is in line with its industry peers.
In the last couple of years the Gross Margin of SLVM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.52% | ||
| PM (TTM) | 6.14% | ||
| GM | 23.04% |
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.
The number of shares outstanding for SLVM has been reduced compared to 1 year ago.
Compared to 5 years ago, SLVM has less shares outstanding
The debt/assets ratio for SLVM has been reduced compared to a year ago.
2.2 Solvency
SLVM has an Altman-Z score of 3.82. This indicates that SLVM is financially healthy and has little risk of bankruptcy at the moment.
SLVM's Altman-Z score of 3.82 is amongst the best of the industry. SLVM outperforms 88.89% of its industry peers.
The Debt to FCF ratio of SLVM is 1.96, which is an excellent value as it means it would take SLVM, only 1.96 years of fcf income to pay off all of its debts.
SLVM has a Debt to FCF ratio of 1.96. This is amongst the best in the industry. SLVM outperforms 88.89% of its industry peers.
SLVM has a Debt/Equity ratio of 0.84. This is a neutral value indicating SLVM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, SLVM perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
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 | 0.84 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | 3.82 |
ROIC/WACC1.65
WACC7.05%
2.3 Liquidity
SLVM has a Current Ratio of 1.54. This is a normal value and indicates that SLVM is financially healthy and should not expect problems in meeting its short term obligations.
SLVM's Current ratio of 1.54 is on the low side compared to the rest of the industry. SLVM is outperformed by 66.67% of its industry peers.
SLVM has a Quick Ratio of 1.54. This is a bad value and indicates that SLVM is not financially healthy enough and could expect problems in meeting its short term obligations.
SLVM's Quick ratio of 0.91 is on the low side compared to the rest of the industry. SLVM is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
SLVM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.78%.
The Earnings Per Share has been decreasing by -3.34% on average over the past years.
Looking at the last year, SLVM shows a decrease in Revenue. The Revenue has decreased by -4.03% in the last year.
Measured over the past years, SLVM shows a decrease in Revenue. The Revenue has been decreasing by -1.25% on average per year.
EPS 1Y (TTM)-7.78%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-81.31%
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-14.9%
3.2 Future
The Earnings Per Share is expected to decrease by -2.55% on average over the next years.
The Revenue is expected to decrease by -1.91% on average over the next years.
EPS Next Y-44%
EPS Next 2Y-9.62%
EPS Next 3Y-2.55%
EPS Next 5YN/A
Revenue Next Year-11.6%
Revenue Next 2Y-5.06%
Revenue Next 3Y-1.91%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
SLVM is valuated cheaply with a Price/Earnings ratio of 7.98.
SLVM's Price/Earnings ratio is rather cheap when compared to the industry. SLVM is cheaper than 88.89% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.79. SLVM is valued rather cheaply when compared to this.
SLVM is valuated cheaply with a Price/Forward Earnings ratio of 7.14.
Based on the Price/Forward Earnings ratio, SLVM is valued cheaper than 100.00% of the companies in the same industry.
SLVM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLVM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SLVM is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.24 | ||
| EV/EBITDA | 4.69 |
4.3 Compensation for Growth
The decent profitability rating of SLVM may justify a higher PE ratio.
A cheap valuation may be justified as SLVM's earnings are expected to decrease with -2.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-9.62%
EPS Next 3Y-2.55%
5. Dividend
5.1 Amount
SLVM has a Yearly Dividend Yield of 4.21%, which is a nice return.
SLVM's Dividend Yield is rather good when compared to the industry average which is at 4.53. SLVM pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, SLVM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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
33.49% of the earnings are spent on dividend by SLVM. This is a low number and sustainable payout ratio.
DP33.49%
EPS Next 2Y-9.62%
EPS Next 3Y-2.55%
43.47
-0.75 (-1.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners78.36%
Inst Owner Change-2.61%
Ins Owners1.13%
Ins Owner Change1.17%
Market Cap1.75B
Analysts50
Price Target54.74 (25.93%)
Short Float %3.44%
Short Ratio2.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.52
Dividend Growth(5Y)N/A
DP33.49%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.24%
Min EPS beat(2)-17.56%
Max EPS beat(2)-2.91%
EPS beat(4)2
Avg EPS beat(4)-0.74%
Min EPS beat(4)-17.56%
Max EPS beat(4)9.56%
EPS beat(8)6
Avg EPS beat(8)10.31%
EPS beat(12)8
Avg EPS beat(12)6.49%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.67%
Min Revenue beat(2)-5.99%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.58%
Min Revenue beat(4)-5.99%
Max Revenue beat(4)-1.35%
Revenue beat(8)2
Avg Revenue beat(8)-1.26%
Revenue beat(12)3
Avg Revenue beat(12)-2.18%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-22.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.24%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-26.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.91%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.98 | ||
| Fwd PE | 7.14 | ||
| P/S | 0.49 | ||
| P/FCF | 4.24 | ||
| P/OCF | 4.24 | ||
| P/B | 1.83 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 4.69 |
EPS(TTM)5.45
EY12.54%
EPS(NY)6.09
Fwd EY14%
FCF(TTM)10.26
FCFY23.59%
OCF(TTM)10.26
OCFY23.59%
SpS87.94
BVpS23.76
TBVpS20.63
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.17% | ||
| ROE | 22.73% | ||
| ROCE | 16.63% | ||
| ROIC | 11.65% | ||
| ROICexc | 12.32% | ||
| ROICexgc | 13.17% | ||
| OM | 9.52% | ||
| PM (TTM) | 6.14% | ||
| GM | 23.04% | ||
| FCFM | 11.66% |
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-Score5
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.82% | ||
| Profit Quality | 189.91% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 3.82 |
F-Score5
WACC7.05%
ROIC/WACC1.65
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)-7.78%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-81.31%
EPS Next Y-44%
EPS Next 2Y-9.62%
EPS Next 3Y-2.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.03%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-14.9%
Revenue Next Year-11.6%
Revenue Next 2Y-5.06%
Revenue Next 3Y-1.91%
Revenue Next 5YN/A
EBIT growth 1Y-13.11%
EBIT growth 3Y11.8%
EBIT growth 5Y-1.74%
EBIT Next Year1.57%
EBIT Next 3Y10.45%
EBIT Next 5YN/A
FCF growth 1Y-14.99%
FCF growth 3Y-5.34%
FCF growth 5Y-2.19%
OCF growth 1Y-14.99%
OCF growth 3Y-5.34%
OCF growth 5Y-2.19%