SYLVAMO CORP (SLVM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SLVM - US8713321029 - Common Stock
52.28 USD
+1.68 (+3.32%)
52.28 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to SLVM. SLVM was compared to 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 is cheap, but on the other hand it scores bad on growth. With these ratings, SLVM could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SLVM had positive earnings in the past year.
SLVM had a positive operating cash flow in the past year.
In the past 5 years SLVM has always been profitable.
In the past 5 years SLVM always reported a positive cash flow from operatings.
1.2 Ratios
SLVM has a Return On Assets of 6.66%. This is in the better half of the industry: SLVM outperforms 77.78% of its industry peers.
The Return On Equity of SLVM (18.42%) is better than 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.
The Average Return On Invested Capital over the past 3 years for SLVM is significantly above the industry average of 5.94%.
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
Looking at the Profit Margin, with a value of 5.25%, SLVM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
SLVM's Operating Margin has been stable in the last couple of years.
SLVM has a Gross Margin (22.59%) which is comparable to the rest of the industry.
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
SLVM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
SLVM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SLVM has less shares outstanding
Compared to 1 year ago, SLVM has an improved debt to assets ratio.
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.
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.
With an excellent Debt to FCF ratio value of 2.39, SLVM belongs to the best 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 (0.82) which is comparable to the rest of the 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 | 0.82 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 3.76 |
ROIC/WACC1.37
WACC7.26%
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.
SLVM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.34% yearly.
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
Based on estimates for the next years, SLVM will show a decrease in Earnings Per Share. The EPS will decrease by -3.86% on average per year.
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-49.8%
EPS Next 2Y-12.75%
EPS Next 3Y-3.86%
EPS Next 5YN/A
Revenue Next Year-11.97%
Revenue Next 2Y-7.4%
Revenue Next 3Y-5.09%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 11.75, which indicates a very decent valuation of SLVM.
Based on the Price/Earnings ratio, SLVM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.30, SLVM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.22, the valuation of SLVM can be described as reasonable.
Based on the Price/Forward Earnings ratio, SLVM is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
SLVM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SLVM indicates a rather cheap valuation: SLVM is cheaper than 88.89% of the companies listed 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 | 6.1 | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
The decent profitability rating of SLVM may justify a higher PE ratio.
SLVM's earnings are expected to decrease with -3.86% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-12.75%
EPS Next 3Y-3.86%
5. Dividend
5.1 Amount
SLVM has a Yearly Dividend Yield of 3.72%. Purely for dividend investing, there may be better candidates out there.
SLVM's Dividend Yield is a higher than the industry average which is at 2.64.
Compared to an average S&P500 Dividend Yield of 1.92, SLVM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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-12.75%
EPS Next 3Y-3.86%
52.28
+1.68 (+3.32%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners86.91%
Inst Owner Change0.48%
Ins Owners1.09%
Ins Owner Change-0.06%
Market Cap2.06B
Revenue(TTM)3.43B
Net Income(TTM)180.00M
Analysts84.44
Price Target62.22 (19.01%)
Short Float %5.72%
Short Ratio4.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.72% |
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)0%
PT rev (3m)13.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.63%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.75 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.6 | ||
| P/FCF | 6.1 | ||
| P/OCF | 6.1 | ||
| P/B | 2.11 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)4.45
EY8.51%
EPS(NY)5.67
Fwd EY10.85%
FCF(TTM)8.57
FCFY16.39%
OCF(TTM)8.57
OCFY16.39%
SpS86.99
BVpS24.77
TBVpS21.53
PEG (NY)N/A
PEG (5Y)N/A
Graham Number49.8
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 | 3.76 |
F-Score5
WACC7.26%
ROIC/WACC1.37
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-49.8%
EPS Next 2Y-12.75%
EPS Next 3Y-3.86%
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-11.97%
Revenue Next 2Y-7.4%
Revenue Next 3Y-5.09%
Revenue Next 5YN/A
EBIT growth 1Y-31.03%
EBIT growth 3Y11.8%
EBIT growth 5Y-1.74%
EBIT Next Year-4.05%
EBIT Next 3Y8.41%
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 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 11.75 and the Price/Book (PB) ratio is 2.11.
What is the financial health of SYLVAMO CORP (SLVM) stock?
The financial health rating of SYLVAMO CORP (SLVM) is 7 / 10.