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Schweitzer Mauduit International Inc (SWM) Stock Fundamental Analysis

NYSE:SWM - New York Stock Exchange, Inc. - US8085411069 - Common Stock

23.41  -1.55 (-6.21%)

After market: 23.41 0 (0%)

Fundamental Rating

3

SWM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. Both the profitability and financial health of SWM have multiple concerns. SWM has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

SWM had positive earnings in the past year.
SWM Yearly Net Income VS EBIT VS OCF VS FCFSWM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M

1.2 Ratios

Industry RankSector 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
SWM Yearly ROA, ROE, ROICSWM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 5 10 15

1.3 Margins

Industry RankSector 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
SWM Yearly Profit, Operating, Gross MarginsSWM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 10 20 30

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWM is destroying value.
SWM has more shares outstanding than it did 1 year ago.
The debt/assets ratio for SWM is higher compared to a year ago.
SWM Yearly Shares OutstandingSWM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 10M 20M 30M
SWM Yearly Total Debt VS Total AssetsSWM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B

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.
A Debt/Equity ratio of 1.82 is on the high side and indicates that SWM has dependencies on debt financing.
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF N/A
Altman-Z 1.62
ROIC/WACC0.38
WACC8.78%
SWM Yearly LT Debt VS Equity VS FCFSWM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 200M 400M 600M 800M 1B

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 RankSector Rank
Current Ratio 2.62
Quick Ratio 1.5
SWM Yearly Current Assets VS Current LiabilitesSWM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M 500M

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6

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%.
The Earnings Per Share has been decreasing by -5.56% on average over the past years.
Looking at the last year, SWM shows a very strong growth in Revenue. The Revenue has grown by 41.55%.
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.
Based on estimates for the next years, SWM will show a quite strong growth in Revenue. The Revenue will grow by 8.57% on average per year.
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.
SWM Yearly Revenue VS EstimatesSWM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
SWM Yearly EPS VS EstimatesSWM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 9.71 indicates a reasonable valuation of SWM.
When comparing the Price/Earnings ratio of SWM to the average of the S&P500 Index (24.85), we can say SWM is valued rather cheaply.
The Price/Forward Earnings ratio is 5.08, which indicates a rather cheap valuation of SWM.
SWM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.89.
Industry RankSector Rank
PE 9.71
Fwd PE 5.08
SWM Price Earnings VS Forward Price EarningsSWM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.24
SWM Per share dataSWM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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.
A more expensive valuation may be justified as SWM's earnings are expected to grow with 35.94% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y31.58%
EPS Next 3Y35.94%

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5

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 2.40, SWM pays a better dividend.
Industry RankSector Rank
Dividend Yield 7.12%

5.2 History

The dividend of SWM has a limited annual growth rate of 0.57%.
SWM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.57%
Div Incr YearsN/A
Div Non Decr YearsN/A
SWM Yearly Dividends per shareSWM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 0.5 1 1.5 2

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%
SWM Yearly Income VS Free CF VS DividendSWM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M 100M
SWM Dividend Payout.SWM Dividend Payout, showing the Payout Ratio.SWM Dividend Payout.PayoutRetained Earnings

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Schweitzer Mauduit International Inc

NYSE:SWM (7/5/2022, 8:14:06 PM)

After market: 23.41 0 (0%)

23.41

-1.55 (-6.21%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)05-04 2022-05-04/amc
Earnings (Next)08-02 2022-08-02
Inst Owners159.77%
Inst Owner Change-17.47%
Ins Owners2.97%
Ins Owner Change0%
Market Cap742.33M
Analysts84
Price Target61.2 (161.43%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 7.12%
Yearly Dividend1.76
Dividend Growth(5Y)0.57%
DP80.41%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 9.71
Fwd PE 5.08
P/S 0.48
P/FCF N/A
P/OCF N/A
P/B 1.06
P/tB N/A
EV/EBITDA 10.24
EPS(TTM)2.41
EY10.29%
EPS(NY)4.61
Fwd EY19.67%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS49.15
BVpS22.12
TBVpSN/A
PEG (NY)0.2
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.82%
ROE 9.82%
ROCE N/A
ROIC 3.35%
ROICexc N/A
ROICexgc 6.97%
OM 5.82%
PM (TTM) 4.42%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score3
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 1.82
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.62
Quick Ratio 1.5
Altman-Z 1.62
F-Score3
WACC8.78%
ROIC/WACC0.38
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.73%
EPS 3Y-8.57%
EPS 5Y-5.56%
EPS Q2Q%-29.07%
EPS Next Y49.22%
EPS Next 2Y31.58%
EPS Next 3Y35.94%
EPS Next 5Y38.51%
Revenue 1Y (TTM)41.55%
Revenue growth 3Y11.41%
Revenue growth 5Y11.39%
Sales Q2Q%41.15%
Revenue Next Year16.55%
Revenue Next 2Y8.71%
Revenue Next 3Y8.44%
Revenue Next 5Y8.57%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A