SMURFIT WESTROCK PLC (SW) Stock Fundamental Analysis
USA - NYSE:SW - IE00028FXN24 - Common Stock
41.4 USD
+0.08 (+0.19%)
41.4 USD
0 (0%)
SW gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Containers & Packaging industry. Both the profitability and financial health of SW have multiple concerns. SW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SW had positive earnings in the past year.
SW had a positive operating cash flow in the past year.
SW had positive earnings in each of the past 5 years.
SW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.15%, SW is in line with its industry, outperforming 40.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.87%, SW is doing worse than 63.64% of the companies in the same industry.
With a Return On Invested Capital value of 4.84%, SW is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for SW is in line with the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 2.87% | ||
| ROIC | 4.84% |
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
With a Profit Margin value of 1.18%, SW is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
SW's Profit Margin has declined in the last couple of years.
The Operating Margin of SW (6.46%) is worse than 68.18% of its industry peers.
SW's Operating Margin has declined in the last couple of years.
The Gross Margin of SW (19.46%) is worse than 68.18% of its industry peers.
SW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.46% | ||
| PM (TTM) | 1.18% | ||
| GM | 19.46% |
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
SW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SW has a worse debt to assets ratio.
2.2 Solvency
SW has an Altman-Z score of 1.82. 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 1.82, SW is in line with its industry, outperforming 50.00% of the companies in the same industry.
SW has a debt to FCF ratio of 168.98. This is a negative value and a sign of low solvency as SW would need 168.98 years to pay back of all of its debts.
With a Debt to FCF ratio value of 168.98, SW is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
SW has a Debt/Equity ratio of 0.73. This is a neutral value indicating SW is somewhat dependend on debt financing.
The Debt to Equity ratio of SW (0.73) is better than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 168.98 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.77
WACC6.32%
2.3 Liquidity
A Current Ratio of 1.45 indicates that SW should not have too much problems paying its short term obligations.
SW has a better Current ratio (1.45) than 77.27% of its industry peers.
A Quick Ratio of 0.95 indicates that SW may have some problems paying its short term obligations.
SW has a better Quick ratio (0.95) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
SW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.97%.
SW shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.21% yearly.
Looking at the last year, SW shows a very strong growth in Revenue. The Revenue has grown by 73.22%.
Measured over the past years, SW shows a quite strong growth in Revenue. The Revenue has been growing by 15.83% on average per year.
EPS 1Y (TTM)-73.97%
EPS 3Y-35.74%
EPS 5Y-18.21%
EPS Q2Q%15.69%
Revenue 1Y (TTM)73.22%
Revenue growth 3Y20.89%
Revenue growth 5Y15.83%
Sales Q2Q%167.43%
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 23.69% on average per year.
Based on estimates for the next years, SW will show a small growth in Revenue. The Revenue will grow by 6.49% on average per year.
EPS Next Y29.25%
EPS Next 2Y30.14%
EPS Next 3Y23.69%
EPS Next 5YN/A
Revenue Next Year14.44%
Revenue Next 2Y8.62%
Revenue Next 3Y6.49%
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
SW is valuated rather expensively with a Price/Earnings ratio of 23.13.
Based on the Price/Earnings ratio, SW is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of SW to the average of the S&P500 Index (27.40), we can say SW is valued inline with the index average.
A Price/Forward Earnings ratio of 11.56 indicates a reasonable valuation of SW.
Based on the Price/Forward Earnings ratio, SW is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, SW is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 11.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SW indicates a rather cheap valuation: SW is cheaper than 95.45% of the companies listed in the same industry.
68.18% of the companies in the same industry are cheaper than SW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 254.31 | ||
| EV/EBITDA | 6.72 |
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.
A more expensive valuation may be justified as SW's earnings are expected to grow with 23.69% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y30.14%
EPS Next 3Y23.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, SW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.35, SW pays a better dividend. On top of this SW pays more dividend than 81.82% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, SW pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of SW is nicely growing with an annual growth rate of 8.23%!
SW is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)8.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
145.71% of the earnings are spent on dividend by SW. This is not a sustainable payout ratio.
SW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP145.71%
EPS Next 2Y30.14%
EPS Next 3Y23.69%
41.4
+0.08 (+0.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners91.39%
Inst Owner ChangeN/A
Ins Owners0.47%
Ins Owner Change2.08%
Market Cap21.62B
Analysts82.31
Price Target57.07 (37.85%)
Short Float %3.7%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.67
Dividend Growth(5Y)8.23%
DP145.71%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.12%
Min EPS beat(2)-3.1%
Max EPS beat(2)27.34%
EPS beat(4)1
Avg EPS beat(4)-31.6%
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)-3.65%
Min Revenue beat(2)-4.35%
Max Revenue beat(2)-2.95%
Revenue beat(4)0
Avg Revenue beat(4)-5.33%
Min Revenue beat(4)-8.48%
Max Revenue beat(4)-2.95%
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)0.35%
PT rev (3m)3.96%
EPS NQ rev (1m)-12.11%
EPS NQ rev (3m)-15.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.27%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)0.22%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.13 | ||
| Fwd PE | 11.56 | ||
| P/S | 0.49 | ||
| P/FCF | 254.31 | ||
| P/OCF | 9.98 | ||
| P/B | 1.18 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)1.79
EY4.32%
EPS(NY)3.58
Fwd EY8.65%
FCF(TTM)0.16
FCFY0.39%
OCF(TTM)4.15
OCFY10.02%
SpS84.99
BVpS35.04
TBVpS19.12
PEG (NY)0.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 2.87% | ||
| ROCE | 7.51% | ||
| ROIC | 4.84% | ||
| ROICexc | 4.94% | ||
| ROICexgc | 6.35% | ||
| OM | 6.46% | ||
| PM (TTM) | 1.18% | ||
| GM | 19.46% | ||
| FCFM | 0.19% |
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-Score5
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 168.98 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 87.69% | ||
| Cap/Sales | 4.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 41.34% | ||
| Profit Quality | 16.19% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 1.82 |
F-Score5
WACC6.32%
ROIC/WACC0.77
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%15.69%
EPS Next Y29.25%
EPS Next 2Y30.14%
EPS Next 3Y23.69%
EPS Next 5YN/A
Revenue 1Y (TTM)73.22%
Revenue growth 3Y20.89%
Revenue growth 5Y15.83%
Sales Q2Q%167.43%
Revenue Next Year14.44%
Revenue Next 2Y8.62%
Revenue Next 3Y6.49%
Revenue Next 5YN/A
EBIT growth 1Y-8.03%
EBIT growth 3Y3.39%
EBIT growth 5Y3.36%
EBIT Next Year155.63%
EBIT Next 3Y44.22%
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%