Schweitzer Mauduit International Inc (SWM)
US8085411069 - Common Stock
Overall SWM gets a fundamental rating of 3 out of 10. We evaluated SWM against 84 industry peers in the Chemicals industry. SWM has a bad profitability rating. Also its financial health evaluation is rather negative. SWM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SWM had positive earnings in the past year.
In the past 5 years SWM has always been profitable.
SWM had a positive operating cash flow in each of the past 5 years.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWM is destroying value.
Compared to 1 year ago, SWM has more shares outstanding
SWM has a worse debt/assets ratio than last year.
2.2 Solvency
SWM has an Altman-Z score of 1.62. This is a bad value and indicates that SWM is not financially healthy and even 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
A Current Ratio of 2.62 indicates that SWM has no problem at all paying its short term obligations.
SWM has a Quick Ratio of 1.50. This is a normal value and indicates that SWM is financially healthy and should not expect problems in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
SWM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.73%.
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!
The Revenue has been growing by 11.39% on average over the past years. This is quite good.
EPS 1Y (TTM)-31.73%
EPS 3Y-8.57%
EPS 5Y-5.56%
EPS growth Q2Q-29.07%
Revenue 1Y (TTM)41.55%
Revenue growth 3Y11.41%
Revenue growth 5Y11.39%
Revenue growth Q2Q41.15%
3.2 Future
Based on estimates for the next years, SWM will show a very strong growth in Earnings Per Share. The EPS will grow by 38.51% on average per year.
The Revenue is expected to grow by 8.57% on average over the next years. This is quite good.
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
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
SWM is valuated reasonably with a Price/Earnings ratio of 9.71.
SWM is valuated cheaply when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.08 indicates a rather cheap valuation of SWM.
When comparing the Price/Forward Earnings ratio of SWM to the average of the S&P500 Index (20.20), we can say 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
SWM's 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 2.33, 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
SWM pays out 80.41% of its income as dividend. This is not a sustainable payout ratio.
SWM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP80.41%
EPS Next 2Y31.58%
EPS Next 3Y35.94%
Schweitzer Mauduit International Inc
NYSE:SWM (7/5/2022, 7:14:06 PM)
After market: 23.41 0 (0%)23.41
-1.55 (-6.21%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap742.33M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.12% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS beat(8)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 5.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.82% | ||
| ROE | 9.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.82% | ||
| PM (TTM) | 4.42% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.82 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-31.73%
EPS 3Y-8.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y49.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)41.55%
Revenue growth 3Y11.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y