SYLVAMO CORP (SLVM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SLVM - US8713321029 - Common Stock
50.42 USD
+0.1 (+0.2%)
50.42 USD
0 (0%)
SLVM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 9 industry peers in the Paper & Forest Products industry. SLVM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SLVM has a bad growth rate and is valued cheaply. This makes SLVM very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year SLVM was profitable.
- In the past year SLVM had a positive cash flow from operations.
- Each year in the past 5 years SLVM has been profitable.
- Each year in the past 5 years SLVM had a positive operating cash flow.
1.2 Ratios
- SLVM's Return On Assets of 6.66% is fine compared to the rest of the industry. SLVM outperforms 77.78% of its industry peers.
- SLVM has a Return On Equity of 18.42%. This is amongst the best in the industry. SLVM outperforms 100.00% of its industry peers.
- SLVM's Return On Invested Capital of 9.96% is amongst the best of the industry. SLVM outperforms 88.89% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for SLVM is significantly above the industry average of 5.94%.
- The last Return On Invested Capital (9.96%) for SLVM is well below the 3 year average (16.67%), which needs to be investigated, but indicates that SLVM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 18.42% | ||
| ROIC | 9.96% |
ROA(3y)8.25%
ROA(5y)8.67%
ROE(3y)27.05%
ROE(5y)54.21%
ROIC(3y)16.67%
ROIC(5y)13.03%
1.3 Margins
- SLVM has a better Profit Margin (5.25%) than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of SLVM has declined.
- The Operating Margin of SLVM (8.42%) is better than 77.78% of its industry peers.
- In the last couple of years the Operating Margin of SLVM has remained more or less at the same level.
- SLVM has a Gross Margin (22.59%) which is in line with its industry peers.
- SLVM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | 5.25% | ||
| GM | 22.59% |
OM growth 3Y1.56%
OM growth 5Y-0.5%
PM growth 3Y-11.9%
PM growth 5Y-3.13%
GM growth 3Y1.05%
GM growth 5Y-6.15%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so SLVM is creating value.
- SLVM has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for SLVM has been reduced compared to 5 years ago.
- The debt/assets ratio for SLVM has been reduced compared to a year ago.
2.2 Solvency
- SLVM has an Altman-Z score of 3.76. This indicates that SLVM is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 3.76, SLVM belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
- The Debt to FCF ratio of SLVM is 2.39, which is a good value as it means it would take SLVM, 2.39 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.39, SLVM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.82 indicates that SLVM is somewhat dependend on debt financing.
- SLVM has a Debt to Equity ratio of 0.82. This is comparable to the rest of the industry: SLVM outperforms 55.56% of its industry peers.
- Although SLVM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.38
WACC7.24%
2.3 Liquidity
- A Current Ratio of 1.52 indicates that SLVM should not have too much problems paying its short term obligations.
- SLVM's Current ratio of 1.52 is on the low side compared to the rest of the industry. SLVM is outperformed by 77.78% of its industry peers.
- A Quick Ratio of 0.85 indicates that SLVM may have some problems paying its short term obligations.
- SLVM has a worse Quick ratio (0.85) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- SLVM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.08%.
- The Earnings Per Share has been decreasing by -3.34% on average over the past years.
- The Revenue has decreased by -8.92% in the past year.
- SLVM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
EPS 1Y (TTM)-33.08%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-40.98%
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-12.33%
3.2 Future
- The Earnings Per Share is expected to decrease by -4.08% on average over the next years.
- Based on estimates for the next years, SLVM will show a decrease in Revenue. The Revenue will decrease by -5.09% on average per year.
EPS Next Y-51.49%
EPS Next 2Y-14.6%
EPS Next 3Y-4.08%
EPS Next 5YN/A
Revenue Next Year-11.91%
Revenue Next 2Y-7.35%
Revenue Next 3Y-5.09%
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 decreasing.
- 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
- SLVM is valuated reasonably with a Price/Earnings ratio of 11.33.
- Based on the Price/Earnings ratio, SLVM is valued cheaper than 88.89% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.82. SLVM is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 9.28, which indicates a very decent valuation of SLVM.
- 88.89% of the companies in the same industry are more expensive than SLVM, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, SLVM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 9.28 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SLVM is valued cheaper than 88.89% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SLVM is valued cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
- SLVM has a very decent profitability rating, which may justify a higher PE ratio.
- SLVM's earnings are expected to decrease with -4.08% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.6%
EPS Next 3Y-4.08%
5. Dividend
5.1 Amount
- SLVM has a Yearly Dividend Yield of 3.50%. Purely for dividend investing, there may be better candidates out there.
- SLVM's Dividend Yield is rather good when compared to the industry average which is at 1.45. SLVM pays more dividend than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, SLVM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
5.2 History
- SLVM has been paying a dividend for over 5 years, so it has already some track record.
- The dividend of SLVM decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- 41.11% of the earnings are spent on dividend by SLVM. This is a bit on the high side, but may be sustainable.
DP41.11%
EPS Next 2Y-14.6%
EPS Next 3Y-4.08%
SYLVAMO CORP / SLVM FAQ
Can you provide the ChartMill fundamental rating for SYLVAMO CORP?
ChartMill assigns a fundamental rating of 5 / 10 to SLVM.
What is the valuation status of SYLVAMO CORP (SLVM) stock?
ChartMill assigns a valuation rating of 7 / 10 to SYLVAMO CORP (SLVM). This can be considered as Undervalued.
What is the profitability of SLVM stock?
SYLVAMO CORP (SLVM) has a profitability rating of 7 / 10.
What is the valuation of SYLVAMO CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SYLVAMO CORP (SLVM) is 11.33 and the Price/Book (PB) ratio is 2.04.
What is the financial health of SYLVAMO CORP (SLVM) stock?
The financial health rating of SYLVAMO CORP (SLVM) is 7 / 10.