SYLVAMO CORP (SLVM) Stock Fundamental Analysis
NYSE:SLVM - New York Stock Exchange, Inc. - US8713321029 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to SLVM. SLVM was compared to 9 industry peers in the Paper & Forest Products industry. SLVM gets an excellent profitability rating and is at the same time showing great financial health properties. SLVM has a bad growth rate and is valued cheaply. These ratings could make SLVM a good candidate 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.
SLVM had positive earnings in each of the past 5 years.
In the past 5 years SLVM always reported a positive cash flow from operatings.
1.2 Ratios
SLVM has a Return On Assets of 10.88%. This is in the better half of the industry: SLVM outperforms 77.78% of its industry peers.
SLVM's Return On Equity of 31.50% is amongst the best of the industry. SLVM outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.13%, SLVM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SLVM is significantly above the industry average of 7.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 31.5% | ||
| ROIC | 15.13% |
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's Profit Margin of 7.75% is fine compared to the rest of the industry. SLVM outperforms 77.78% of its industry peers.
In the last couple of years the Profit Margin of SLVM has declined.
With a decent Operating Margin value of 11.66%, SLVM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Operating Margin of SLVM has remained more or less at the same level.
SLVM's Gross Margin of 24.75% is fine compared to the rest of the industry. SLVM outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of SLVM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.66% | ||
| PM (TTM) | 7.75% | ||
| GM | 24.75% |
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
SLVM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for SLVM has been reduced compared to 1 year ago.
SLVM has less shares outstanding than it did 5 years ago.
SLVM has a better debt/assets ratio than last year.
2.2 Solvency
SLVM has an Altman-Z score of 4.18. This indicates that SLVM is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.18, SLVM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
SLVM has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of all of its debts.
The Debt to FCF ratio of SLVM (1.76) is better than 77.78% of its industry peers.
A Debt/Equity ratio of 0.90 indicates that SLVM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.90, SLVM perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for SLVM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 1.76 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.91
WACC7.92%
2.3 Liquidity
SLVM has a Current Ratio of 1.64. This is a normal value and indicates that SLVM is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SLVM (1.64) is worse than 66.67% of its industry peers.
SLVM has a Quick Ratio of 1.04. This is a normal value and indicates that SLVM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SLVM (1.04) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.25% over the past year.
Measured over the past years, SLVM shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.34% on average per year.
Looking at the last year, SLVM shows a small growth in Revenue. The Revenue has grown by 0.11% in the last year.
SLVM shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.25% yearly.
EPS 1Y (TTM)39.25%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-36.45%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-9.28%
3.2 Future
The Earnings Per Share is expected to decrease by -0.62% 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 -4.76% on average per year.
EPS Next Y-23.65%
EPS Next 2Y-0.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-9.42%
Revenue Next 2Y-4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.51, the valuation of SLVM can be described as very cheap.
Based on the Price/Earnings ratio, SLVM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SLVM to the average of the S&P500 Index (27.45), we can say SLVM is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.20, the valuation of SLVM can be described as very cheap.
SLVM's Price/Forward Earnings ratio is rather cheap when compared to the industry. SLVM is cheaper than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, SLVM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 7.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SLVM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLVM indicates a rather cheap valuation: SLVM is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.64 | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
SLVM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SLVM has a Yearly Dividend Yield of 3.56%.
Compared to an average industry Dividend Yield of 3.32, SLVM pays a better dividend. On top of this SLVM pays more dividend than 88.89% of the companies listed in the same industry.
SLVM's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
5.2 History
SLVM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
23.78% of the earnings are spent on dividend by SLVM. This is a low number and sustainable payout ratio.
DP23.78%
EPS Next 2Y-0.62%
EPS Next 3YN/A
53.01
+0.24 (+0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners82.1%
Inst Owner Change-1.55%
Ins Owners1.16%
Ins Owner Change1.86%
Market Cap2.16B
Analysts50
Price Target70.72 (33.41%)
Short Float %2.17%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
Yearly Dividend1.52
Dividend Growth(5Y)N/A
DP23.78%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.52%
Min EPS beat(2)-2.91%
Max EPS beat(2)7.95%
EPS beat(4)3
Avg EPS beat(4)9.37%
Min EPS beat(4)-2.91%
Max EPS beat(4)22.86%
EPS beat(8)7
Avg EPS beat(8)13.91%
EPS beat(12)8
Avg EPS beat(12)7.79%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-1.49%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)-1.35%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)3
Avg Revenue beat(12)-1.75%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-11.86%
PT rev (3m)-19.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-67.62%
EPS NY rev (1m)-9.71%
EPS NY rev (3m)-16.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.51 | ||
| Fwd PE | 7.2 | ||
| P/S | 0.59 | ||
| P/FCF | 4.64 | ||
| P/OCF | 4.64 | ||
| P/B | 2.38 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)7.06
EY13.32%
EPS(NY)7.36
Fwd EY13.88%
FCF(TTM)11.42
FCFY21.54%
OCF(TTM)11.42
OCFY21.54%
SpS90.59
BVpS22.3
TBVpS19.38
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 31.5% | ||
| ROCE | 21.36% | ||
| ROIC | 15.13% | ||
| ROICexc | 16.37% | ||
| ROICexgc | 17.47% | ||
| OM | 11.66% | ||
| PM (TTM) | 7.75% | ||
| GM | 24.75% | ||
| FCFM | 12.61% |
ROA(3y)8.25%
ROA(5y)8.67%
ROE(3y)27.05%
ROE(5y)54.21%
ROIC(3y)16.67%
ROIC(5y)13.03%
ROICexc(3y)19.95%
ROICexc(5y)15.29%
ROICexgc(3y)21.59%
ROICexgc(5y)16.56%
ROCE(3y)23.57%
ROCE(5y)18.45%
ROICexcg growth 3Y12.63%
ROICexcg growth 5Y9.08%
ROICexc growth 3Y13.25%
ROICexc growth 5Y9.14%
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%
F-Score8
Asset Turnover1.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.9 | ||
| Debt/FCF | 1.76 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.81% | ||
| Profit Quality | 162.59% | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.18 |
F-Score8
WACC7.92%
ROIC/WACC1.91
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)247.83%
Profit Quality(5y)226.82%
High Growth Momentum
Growth
EPS 1Y (TTM)39.25%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-36.45%
EPS Next Y-23.65%
EPS Next 2Y-0.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-9.28%
Revenue Next Year-9.42%
Revenue Next 2Y-4.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y22.86%
EBIT growth 3Y11.8%
EBIT growth 5Y-1.74%
EBIT Next Year19.75%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.31%
FCF growth 3Y-5.34%
FCF growth 5Y-2.19%
OCF growth 1Y-2.31%
OCF growth 3Y-5.34%
OCF growth 5Y-2.19%