SMURFIT WESTROCK PLC (SW) Stock Fundamental Analysis
NYSE:SW - New York Stock Exchange, Inc. - IE00028FXN24 - Common Stock - Currency: USD
SW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. SW has a bad profitability rating. Also its financial health evaluation is rather negative. SW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year SW was profitable.
SW had a positive operating cash flow in the past year.
In the past 5 years SW has always been profitable.
SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SW has a Return On Assets (1.53%) which is comparable to the rest of the industry.
SW's Return On Equity of 3.83% is on the low side compared to the rest of the industry. SW is outperformed by 63.64% of its industry peers.
SW has a worse Return On Invested Capital (4.53%) than 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SW is in line with the industry average of 7.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 3.83% | ||
| ROIC | 4.53% |
ROA(3y)4.68%
ROA(5y)5%
ROE(3y)11.21%
ROE(5y)12.65%
ROIC(3y)7.54%
ROIC(5y)7.52%
1.3 Margins
SW has a Profit Margin of 1.74%. This is in the lower half of the industry: SW underperforms 68.18% of its industry peers.
In the last couple of years the Profit Margin of SW has declined.
SW has a Operating Margin of 6.64%. This is in the lower half of the industry: SW underperforms 63.64% of its industry peers.
SW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 19.83%, SW is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.64% | ||
| PM (TTM) | 1.74% | ||
| GM | 19.83% |
OM growth 3Y-14.47%
OM growth 5Y-10.76%
PM growth 3Y-39.18%
PM growth 5Y-22.08%
GM growth 3Y-13.39%
GM growth 5Y-9.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SW is creating some value.
Compared to 1 year ago, SW has more shares outstanding
Compared to 5 years ago, SW has more shares outstanding
The debt/assets ratio for SW is higher compared to a year ago.
2.2 Solvency
SW has an Altman-Z score of 1.83. This is not the best score and indicates that SW is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.83, SW is in line with its industry, outperforming 45.45% of the companies in the same industry.
SW has a Debt/Equity ratio of 0.72. This is a neutral value indicating SW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, SW is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.71
WACC6.38%
2.3 Liquidity
SW has a Current Ratio of 1.43. This is a normal value and indicates that SW is financially healthy and should not expect problems in meeting its short term obligations.
SW has a better Current ratio (1.43) than 68.18% of its industry peers.
SW has a Quick Ratio of 1.43. This is a bad value and indicates that SW is not financially healthy enough and could expect problems in meeting its short term obligations.
SW has a Quick ratio of 0.93. This is comparable to the rest of the industry: SW outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The earnings per share for SW have decreased strongly by -73.97% in the last year.
Measured over the past years, SW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.21% on average per year.
Looking at the last year, SW shows a very strong growth in Revenue. The Revenue has grown by 73.22%.
SW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.83% yearly.
EPS 1Y (TTM)-73.97%
EPS 3Y-35.74%
EPS 5Y-18.21%
EPS Q2Q%0%
Revenue 1Y (TTM)73.22%
Revenue growth 3Y20.89%
Revenue growth 5Y15.83%
Sales Q2Q%161.3%
3.2 Future
Based on estimates for the next years, SW will show a very strong growth in Earnings Per Share. The EPS will grow by 29.13% on average per year.
The Revenue is expected to grow by 6.12% on average over the next years.
EPS Next Y39.38%
EPS Next 2Y31.46%
EPS Next 3Y29.13%
EPS Next 5YN/A
Revenue Next Year14.36%
Revenue Next 2Y8.61%
Revenue Next 3Y6.12%
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.
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
A Price/Earnings ratio of 28.38 indicates a quite expensive valuation of SW.
SW's Price/Earnings ratio is a bit more expensive when compared to the industry. SW is more expensive than 72.73% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.05. SW is around the same levels.
With a Price/Forward Earnings ratio of 13.27, SW is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SW is on the same level as its industry peers.
SW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
SW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SW is cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
SW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SW's earnings are expected to grow with 29.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y31.46%
EPS Next 3Y29.13%
5. Dividend
5.1 Amount
SW has a Yearly Dividend Yield of 2.89%.
Compared to an average industry Dividend Yield of 3.00, SW pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, SW pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of SW is nicely growing with an annual growth rate of 8.23%!
SW does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)8.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SW pays out 127.74% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP127.74%
EPS Next 2Y31.46%
EPS Next 3Y29.13%
48.53
-0.32 (-0.66%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners91.63%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner Change10.67%
Market Cap25.33B
Analysts80.8
Price Target55.24 (13.83%)
Short Float %3.45%
Short Ratio5.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend1.67
Dividend Growth(5Y)8.23%
DP127.74%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.49%
Min EPS beat(2)-12.36%
Max EPS beat(2)27.34%
EPS beat(4)1
Avg EPS beat(4)-39.53%
Min EPS beat(4)-138.26%
Max EPS beat(4)27.34%
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)0
Avg Revenue beat(2)-4.95%
Min Revenue beat(2)-5.56%
Max Revenue beat(2)-4.35%
Revenue beat(4)0
Avg Revenue beat(4)-6.45%
Min Revenue beat(4)-8.48%
Max Revenue beat(4)-4.35%
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)0.62%
PT rev (3m)-3.19%
EPS NQ rev (1m)-4.09%
EPS NQ rev (3m)-22.81%
EPS NY rev (1m)0.13%
EPS NY rev (3m)-10.16%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 13.27 | ||
| P/S | 0.64 | ||
| P/FCF | N/A | ||
| P/OCF | 15.12 | ||
| P/B | 1.42 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 8.58 |
EPS(TTM)1.71
EY3.52%
EPS(NY)3.66
Fwd EY7.53%
FCF(TTM)-0.11
FCFYN/A
OCF(TTM)3.21
OCFY6.62%
SpS75.49
BVpS34.22
TBVpS18.69
PEG (NY)0.72
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 3.83% | ||
| ROCE | 7.03% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.63% | ||
| ROICexgc | 5.96% | ||
| OM | 6.64% | ||
| PM (TTM) | 1.74% | ||
| GM | 19.83% | ||
| FCFM | N/A |
ROA(3y)4.68%
ROA(5y)5%
ROE(3y)11.21%
ROE(5y)12.65%
ROIC(3y)7.54%
ROIC(5y)7.52%
ROICexc(3y)8.19%
ROICexc(5y)8.25%
ROICexgc(3y)11.61%
ROICexgc(5y)12.08%
ROCE(3y)11.7%
ROCE(5y)11.67%
ROICexcg growth 3Y-37.76%
ROICexcg growth 5Y-25.16%
ROICexc growth 3Y-34.31%
ROICexc growth 5Y-22.5%
OM growth 3Y-14.47%
OM growth 5Y-10.76%
PM growth 3Y-39.18%
PM growth 5Y-22.08%
GM growth 3Y-13.39%
GM growth 5Y-9.76%
F-Score4
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 90.41% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.43 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 1.83 |
F-Score4
WACC6.38%
ROIC/WACC0.71
Cap/Depr(3y)125.56%
Cap/Depr(5y)116.04%
Cap/Sales(3y)7.17%
Cap/Sales(5y)6.72%
Profit Quality(3y)50.56%
Profit Quality(5y)68.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-73.97%
EPS 3Y-35.74%
EPS 5Y-18.21%
EPS Q2Q%0%
EPS Next Y39.38%
EPS Next 2Y31.46%
EPS Next 3Y29.13%
EPS Next 5YN/A
Revenue 1Y (TTM)73.22%
Revenue growth 3Y20.89%
Revenue growth 5Y15.83%
Sales Q2Q%161.3%
Revenue Next Year14.36%
Revenue Next 2Y8.61%
Revenue Next 3Y6.12%
Revenue Next 5YN/A
EBIT growth 1Y-8.03%
EBIT growth 3Y3.39%
EBIT growth 5Y3.36%
EBIT Next Year157.8%
EBIT Next 3Y44.04%
EBIT Next 5YN/A
FCF growth 1Y-97.61%
FCF growth 3Y-66.16%
FCF growth 5Y-50.88%
OCF growth 1Y-9.58%
OCF growth 3Y8.36%
OCF growth 5Y2.64%