SYLVAMO CORP (SLVM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SLVM - US8713321029 - Common Stock
48.03 USD
+2.22 (+4.85%)
47.9 USD
-0.13 (-0.27%)
Overall SLVM gets a fundamental rating of 6 out of 10. We evaluated SLVM against 9 industry peers in the Paper & Forest Products industry. Both the health and profitability get an excellent rating, making SLVM a very profitable company, without any liquidiy or solvency issues. SLVM has a bad growth rate and is valued cheaply. These ratings would make SLVM suitable 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.
In the past 5 years SLVM has always been profitable.
Each year in the past 5 years SLVM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.66%, SLVM is doing good in the industry, outperforming 77.78% of the companies in the same industry.
SLVM has a better Return On Equity (18.42%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.96%, SLVM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
SLVM had an Average Return On Invested Capital over the past 3 years of 16.67%. This is significantly above the industry average of 5.80%.
The 3 year average ROIC (16.67%) for SLVM is well above the current ROIC(9.96%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of SLVM (5.25%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of SLVM has declined.
SLVM has a Operating Margin of 8.42%. This is in the better half of the industry: SLVM outperforms 77.78% of its industry peers.
SLVM's Operating Margin has been stable in the last couple of years.
SLVM's Gross Margin of 22.59% is in line compared to the rest of the industry. SLVM outperforms 55.56% of its industry peers.
In the last couple of years the Gross Margin of SLVM has declined.
| 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.
Compared to 1 year ago, SLVM has less shares outstanding
The number of shares outstanding for SLVM has been reduced compared to 5 years ago.
SLVM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.74 indicates that SLVM is not in any danger for bankruptcy at the moment.
SLVM's Altman-Z score of 3.74 is amongst the best of the industry. SLVM outperforms 88.89% of its industry peers.
SLVM has a debt to FCF ratio of 2.39. This is a good value and a sign of high solvency as SLVM would need 2.39 years to pay back of all of its debts.
SLVM's Debt to FCF ratio of 2.39 is amongst the best of the industry. SLVM outperforms 100.00% of its industry peers.
SLVM has a Debt/Equity ratio of 0.82. This is a neutral value indicating SLVM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, SLVM is in line with its industry, outperforming 55.56% of the companies in the same industry.
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 | 3.74 |
ROIC/WACC1.4
WACC7.09%
2.3 Liquidity
SLVM has a Current Ratio of 1.52. 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 (1.52) is worse than 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's Quick ratio of 0.85 is on the low side compared to the rest of the industry. SLVM is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for SLVM have decreased strongly by -33.08% in the last 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 decrease in Revenue. The Revenue has decreased by -8.92% in the last year.
The Revenue has been decreasing by -1.25% on average over the past years.
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 -2.55% on average over the next years.
SLVM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.91% yearly.
EPS Next Y-46.24%
EPS Next 2Y-10.12%
EPS Next 3Y-2.55%
EPS Next 5YN/A
Revenue Next Year-11.55%
Revenue Next 2Y-4.88%
Revenue Next 3Y-1.91%
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 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
A Price/Earnings ratio of 10.79 indicates a reasonable valuation of SLVM.
SLVM's Price/Earnings ratio is rather cheap when compared to the industry. SLVM is cheaper than 88.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of SLVM to the average of the S&P500 Index (25.98), we can say SLVM is valued rather cheaply.
A Price/Forward Earnings ratio of 7.98 indicates a rather cheap valuation of SLVM.
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.
The average S&P500 Price/Forward Earnings ratio is at 35.79. SLVM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 7.98 |
4.2 Price Multiples
SLVM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SLVM is cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SLVM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.74 | ||
| EV/EBITDA | 5.51 |
4.3 Compensation for Growth
SLVM has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as SLVM's earnings are expected to decrease with -2.55% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.12%
EPS Next 3Y-2.55%
5. Dividend
5.1 Amount
SLVM has a Yearly Dividend Yield of 4.02%, which is a nice return.
Compared to an average industry Dividend Yield of 6.38, SLVM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, SLVM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
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
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-10.12%
EPS Next 3Y-2.55%
48.03
+2.22 (+4.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners78.36%
Inst Owner Change0.58%
Ins Owners1.13%
Ins Owner Change0.72%
Market Cap1.94B
Revenue(TTM)3.43B
Net Income(TTM)180.00M
Analysts50
Price Target56.1 (16.8%)
Short Float %4.03%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.02% |
Yearly Dividend1.52
Dividend Growth(5Y)N/A
DP41.11%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.94%
Min EPS beat(2)-17.56%
Max EPS beat(2)-8.33%
EPS beat(4)1
Avg EPS beat(4)-5.21%
Min EPS beat(4)-17.56%
Max EPS beat(4)7.95%
EPS beat(8)5
Avg EPS beat(8)6.16%
EPS beat(12)8
Avg EPS beat(12)6.36%
EPS beat(16)10
Avg EPS beat(16)6.64%
Revenue beat(2)0
Avg Revenue beat(2)-3.59%
Min Revenue beat(2)-5.99%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.5%
Min Revenue beat(4)-5.99%
Max Revenue beat(4)-1.18%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)2
Avg Revenue beat(12)-2.65%
Revenue beat(16)3
Avg Revenue beat(16)-4.09%
PT rev (1m)2.48%
PT rev (3m)2.48%
EPS NQ rev (1m)-6.68%
EPS NQ rev (3m)-23.53%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)-1.37%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 7.98 | ||
| P/S | 0.57 | ||
| P/FCF | 5.74 | ||
| P/OCF | 5.74 | ||
| P/B | 1.98 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 5.51 |
EPS(TTM)4.45
EY9.27%
EPS(NY)6.02
Fwd EY12.53%
FCF(TTM)8.37
FCFY17.43%
OCF(TTM)8.37
OCFY17.43%
SpS84.99
BVpS24.2
TBVpS21.03
PEG (NY)N/A
PEG (5Y)N/A
Graham Number49.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.66% | ||
| ROE | 18.42% | ||
| ROCE | 14.1% | ||
| ROIC | 9.96% | ||
| ROICexc | 10.43% | ||
| ROICexgc | 11.15% | ||
| OM | 8.42% | ||
| PM (TTM) | 5.25% | ||
| GM | 22.59% | ||
| FCFM | 9.85% |
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%
ROICexgc growth 3Y12.63%
ROICexgc 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-Score5
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.72 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.38% | ||
| Profit Quality | 187.78% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.74 |
F-Score5
WACC7.09%
ROIC/WACC1.4
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)-33.08%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%-40.98%
EPS Next Y-46.24%
EPS Next 2Y-10.12%
EPS Next 3Y-2.55%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.92%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%-12.33%
Revenue Next Year-11.55%
Revenue Next 2Y-4.88%
Revenue Next 3Y-1.91%
Revenue Next 5YN/A
EBIT growth 1Y-31.03%
EBIT growth 3Y11.8%
EBIT growth 5Y-1.74%
EBIT Next Year1.57%
EBIT Next 3Y10.45%
EBIT Next 5YN/A
FCF growth 1Y-37.52%
FCF growth 3Y-5.34%
FCF growth 5Y-2.19%
OCF growth 1Y-37.52%
OCF growth 3Y-5.34%
OCF growth 5Y-2.19%
SYLVAMO CORP / SLVM FAQ
Can you provide the ChartMill fundamental rating for SYLVAMO CORP?
ChartMill assigns a fundamental rating of 6 / 10 to SLVM.
What is the valuation status for SLVM stock?
ChartMill assigns a valuation rating of 8 / 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 10.79 and the Price/Book (PB) ratio is 1.98.
What is the expected EPS growth for SYLVAMO CORP (SLVM) stock?
The Earnings per Share (EPS) of SYLVAMO CORP (SLVM) is expected to decline by -46.24% in the next year.