Schweitzer Mauduit International Inc (SWM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWM - US8085411069 - Common Stock
23.41
-1.55 (-6.21%)
23.41
0 (0%)
Taking everything into account, SWM scores 3 out of 10 in our fundamental rating. SWM was compared to 83 industry peers in the Chemicals industry. SWM may be in some trouble as it scores bad on both profitability and health. SWM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SWM was profitable.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 9.82% | ||
| ROIC | 3.35% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| PM (TTM) | 4.42% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- SWM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for SWM has been increased compared to 1 year ago.
- The debt/assets ratio for SWM is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.62, we must say that SWM is in the distress zone and has some risk of bankruptcy.
- SWM has a Debt/Equity ratio of 1.82. This is a high value indicating a heavy dependency on external financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.62 |
ROIC/WACC0.38
WACC8.78%
2.3 Liquidity
- SWM has a Current Ratio of 2.62. This indicates that SWM is financially healthy and has no problem in meeting its short term obligations.
- A Quick Ratio of 1.50 indicates that SWM should not have too much problems paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
- The earnings per share for SWM have decreased strongly by -31.73% in the last year.
- SWM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.56% yearly.
- The Revenue has grown by 41.55% in the past year. This is a very strong growth!
- SWM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.39% yearly.
EPS 1Y (TTM)-31.73%
EPS 3Y-8.57%
EPS 5Y-5.56%
EPS Q2Q%-29.07%
Revenue 1Y (TTM)41.55%
Revenue growth 3Y11.41%
Revenue growth 5Y11.39%
Sales Q2Q%41.15%
3.2 Future
- SWM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.51% yearly.
- SWM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.57% yearly.
EPS Next Y49.22%
EPS Next 2Y31.58%
EPS Next 3Y35.94%
EPS Next 5Y38.51%
Revenue Next Year16.55%
Revenue Next 2Y8.71%
Revenue Next 3Y8.44%
Revenue Next 5Y8.57%
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
- SWM is valuated reasonably with a Price/Earnings ratio of 9.71.
- SWM is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 5.08, which indicates a rather cheap valuation of SWM.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, SWM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 5.08 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.24 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- SWM's earnings are expected to grow with 35.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y31.58%
EPS Next 3Y35.94%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.12%, SWM is a good candidate for dividend investing.
- Compared to an average S&P500 Dividend Yield of 1.82, SWM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
5.2 History
- The dividend of SWM has a limited annual growth rate of 0.57%.
- SWM has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)0.57%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 80.41% of the earnings are spent on dividend by SWM. This is not a sustainable payout ratio.
- The dividend of SWM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP80.41%
EPS Next 2Y31.58%
EPS Next 3Y35.94%
Schweitzer Mauduit International Inc / SWM FAQ
What is the fundamental rating for SWM stock?
ChartMill assigns a fundamental rating of 4 / 10 to SWM.
What is the valuation status of Schweitzer Mauduit International Inc (SWM) stock?
ChartMill assigns a valuation rating of 7 / 10 to Schweitzer Mauduit International Inc (SWM). This can be considered as Undervalued.
Can you provide the profitability details for Schweitzer Mauduit International Inc?
Schweitzer Mauduit International Inc (SWM) has a profitability rating of 1 / 10.
What is the valuation of Schweitzer Mauduit International Inc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Schweitzer Mauduit International Inc (SWM) is 9.71 and the Price/Book (PB) ratio is 1.06.
What is the financial health of Schweitzer Mauduit International Inc (SWM) stock?
The financial health rating of Schweitzer Mauduit International Inc (SWM) is 3 / 10.