SYLVAMO CORP (SLVM) Stock Fundamental Analysis
NYSE:SLVM - New York Stock Exchange, Inc. - US8713321029 - Common Stock - Currency: USD
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 is valued quite cheap, but it does not seem to be growing. These ratings would make SLVM suitable for value investing!
1. Profitability
1.1 Basic Checks
SLVM had positive earnings in the past year.
In the past year SLVM had a positive cash flow from operations.
Each year in the past 5 years SLVM has been profitable.
In the past 5 years SLVM always reported a positive cash flow from operatings.
1.2 Ratios
SLVM's Return On Assets of 11.60% is amongst the best of the industry. SLVM outperforms 88.89% of its industry peers.
SLVM has a better Return On Equity (35.66%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.53%, 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 16.57%. This is significantly above the industry average of 6.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.6% | ||
| ROE | 35.66% | ||
| ROIC | 16.53% |
ROA(3y)8.25%
ROA(5y)8.67%
ROE(3y)27.05%
ROE(5y)54.21%
ROIC(3y)16.57%
ROIC(5y)12.97%
1.3 Margins
SLVM has a better Profit Margin (8.00%) than 77.78% of its industry peers.
SLVM's Profit Margin has declined in the last couple of years.
SLVM's Operating Margin of 11.77% is fine compared to the rest of the industry. SLVM outperforms 77.78% of its industry peers.
SLVM's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 24.91%, SLVM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
SLVM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.77% | ||
| PM (TTM) | 8% | ||
| GM | 24.91% |
OM growth 3Y0.59%
OM growth 5Y-1.08%
PM growth 3Y-11.9%
PM growth 5Y-3.13%
GM growth 3Y0.94%
GM growth 5Y-6.21%
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.
Compared to 1 year ago, SLVM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.48 indicates that SLVM is not in any danger for bankruptcy at the moment.
SLVM has a Altman-Z score of 4.48. This is amongst the best in the industry. SLVM outperforms 88.89% of its industry peers.
The Debt to FCF ratio of SLVM is 1.71, which is an excellent value as it means it would take SLVM, only 1.71 years of fcf income to pay off all of its debts.
SLVM has a better Debt to FCF ratio (1.71) than 77.78% of its industry peers.
A Debt/Equity ratio of 0.92 indicates that SLVM is somewhat dependend on debt financing.
SLVM has a Debt to Equity ratio (0.92) 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 | 0.92 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | 4.48 |
ROIC/WACC2.13
WACC7.75%
2.3 Liquidity
SLVM has a Current Ratio of 1.56. This is a normal value and indicates that SLVM is financially healthy and should not expect problems in meeting its short term obligations.
SLVM's Current ratio of 1.56 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 1.03 indicates that SLVM should not have too much problems paying its short term obligations.
SLVM's Quick ratio of 1.03 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 | 1.56 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.44% over the past year.
SLVM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.34% yearly.
The Revenue has been growing slightly by 1.40% in the past year.
Measured over the past years, SLVM shows a decrease in Revenue. The Revenue has been decreasing by -1.25% on average per year.
EPS 1Y (TTM)14.44%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%68.97%
Revenue 1Y (TTM)1.4%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%0.62%
3.2 Future
SLVM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.36% yearly.
The Revenue is expected to decrease by -4.17% on average over the next years.
EPS Next Y-8.91%
EPS Next 2Y0.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-8.56%
Revenue Next 2Y-4.17%
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.
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 9.18 indicates a reasonable valuation of SLVM.
100.00% of the companies in the same industry are more expensive than SLVM, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SLVM to the average of the S&P500 Index (29.63), we can say SLVM is valued rather cheaply.
SLVM is valuated reasonably with a Price/Forward Earnings ratio of 10.07.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SLVM indicates a rather cheap valuation: SLVM is cheaper than 88.89% of the companies listed in the same industry.
SLVM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
SLVM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SLVM is cheaper than 88.89% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SLVM indicates a rather cheap valuation: SLVM is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.98 | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
The decent profitability rating of SLVM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.36%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SLVM has a Yearly Dividend Yield of 2.58%.
The stock price of SLVM dropped by -24.79% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SLVM's Dividend Yield is rather good when compared to the industry average which is at 2.22. SLVM pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, SLVM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
SLVM has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SLVM pays out 20.53% of its income as dividend. This is a sustainable payout ratio.
DP20.53%
EPS Next 2Y0.36%
EPS Next 3YN/A
68.37
-1.29 (-1.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners84.16%
Inst Owner Change-0.06%
Ins Owners0.95%
Ins Owner Change0.02%
Market Cap2.80B
Analysts50
Price Target88.06 (28.8%)
Short Float %2.02%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend1.52
Dividend Growth(5Y)N/A
DP20.53%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.76%
Min EPS beat(2)7.95%
Max EPS beat(2)9.56%
EPS beat(4)4
Avg EPS beat(4)10.68%
Min EPS beat(4)2.34%
Max EPS beat(4)22.86%
EPS beat(8)8
Avg EPS beat(8)14.61%
EPS beat(12)9
Avg EPS beat(12)8.54%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-1.5%
Max Revenue beat(2)-1.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-2.44%
Max Revenue beat(4)2.65%
Revenue beat(8)2
Avg Revenue beat(8)-2.12%
Revenue beat(12)3
Avg Revenue beat(12)-3.02%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.15%
PT rev (3m)1.87%
EPS NQ rev (1m)0.56%
EPS NQ rev (3m)-14.83%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-3.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 10.07 | ||
| P/S | 0.74 | ||
| P/FCF | 5.98 | ||
| P/OCF | 5.98 | ||
| P/B | 3.31 | ||
| P/tB | 3.81 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)7.45
EY10.9%
EPS(NY)6.79
Fwd EY9.93%
FCF(TTM)11.44
FCFY16.73%
OCF(TTM)11.44
OCFY16.73%
SpS92
BVpS20.65
TBVpS17.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.6% | ||
| ROE | 35.66% | ||
| ROCE | 23.1% | ||
| ROIC | 16.53% | ||
| ROICexc | 18.51% | ||
| ROICexgc | 19.79% | ||
| OM | 11.77% | ||
| PM (TTM) | 8% | ||
| GM | 24.91% | ||
| FCFM | 12.43% |
ROA(3y)8.25%
ROA(5y)8.67%
ROE(3y)27.05%
ROE(5y)54.21%
ROIC(3y)16.57%
ROIC(5y)12.97%
ROICexc(3y)19.44%
ROICexc(5y)14.98%
ROICexgc(3y)21.02%
ROICexgc(5y)16.22%
ROCE(3y)23.34%
ROCE(5y)18.31%
ROICexcg growth 3Y9.57%
ROICexcg growth 5Y7.29%
ROICexc growth 3Y10.3%
ROICexc growth 5Y7.43%
OM growth 3Y0.59%
OM growth 5Y-1.08%
PM growth 3Y-11.9%
PM growth 5Y-3.13%
GM growth 3Y0.94%
GM growth 5Y-6.21%
F-Score8
Asset Turnover1.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 1.71 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 77.78% | ||
| Profit Quality | 155.3% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.48 |
F-Score8
WACC7.75%
ROIC/WACC2.13
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)14.44%
EPS 3Y-1.48%
EPS 5Y-3.34%
EPS Q2Q%68.97%
EPS Next Y-8.91%
EPS Next 2Y0.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.4%
Revenue growth 3Y10.09%
Revenue growth 5Y-1.25%
Sales Q2Q%0.62%
Revenue Next Year-8.56%
Revenue Next 2Y-4.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2.54%
EBIT growth 3Y10.73%
EBIT growth 5Y-2.31%
EBIT Next Year36.76%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-6.94%
FCF growth 3Y-5.34%
FCF growth 5Y-2.19%
OCF growth 1Y-6.94%
OCF growth 3Y-5.34%
OCF growth 5Y-2.19%