SYLVAMO CORP (SLVM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SLVM - US8713321029 - Common Stock
51.31 USD
-0.14 (-0.27%)
51.31 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. These ratings could make SLVM a good candidate 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.
Each year in the past 5 years SLVM has been profitable.
SLVM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.66%, SLVM is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
SLVM's Return On Equity of 18.42% is amongst the best of 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.
SLVM had an Average Return On Invested Capital over the past 3 years of 16.67%. This is significantly above the industry average of 5.94%.
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
With a decent Profit Margin value of 5.25%, SLVM is doing good in 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.
SLVM's Operating Margin of 8.42% 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.
Looking at the Gross Margin, with a value of 22.59%, SLVM is in line with its industry, outperforming 55.56% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), SLVM is creating value.
The number of shares outstanding for SLVM has been reduced compared to 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
An Altman-Z score of 3.77 indicates that SLVM is not in any danger for bankruptcy at the moment.
SLVM's Altman-Z score of 3.77 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.
The Debt to Equity ratio of SLVM (0.82) is comparable to the rest of the 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 | 3.77 |
ROIC/WACC1.38
WACC7.23%
2.3 Liquidity
A Current Ratio of 1.52 indicates that SLVM should not have too much problems paying its short term obligations.
SLVM has a Current ratio of 1.52. This is in the lower half of the industry: SLVM underperforms 77.78% of its industry peers.
SLVM has a Quick Ratio of 1.52. This is a bad value and indicates that SLVM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.85, SLVM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| 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.
SLVM shows a decrease in Revenue. In the last year, the revenue decreased by -8.92%.
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
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.
SLVM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.09% yearly.
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.
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 11.53 indicates a reasonable 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.
When comparing the Price/Earnings ratio of SLVM to the average of the S&P500 Index (26.43), we can say SLVM is valued rather cheaply.
SLVM is valuated reasonably with a Price/Forward Earnings ratio of 9.05.
88.89% of the companies in the same industry are more expensive than SLVM, based on the Price/Forward Earnings ratio.
SLVM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 9.05 |
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 cheaper than 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.99 | ||
| EV/EBITDA | 5.69 |
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 -3.86% in the coming years.
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 3.61%.
SLVM's Dividend Yield is rather good when compared to the industry average which is at 2.45. SLVM pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, SLVM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
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%
51.31
-0.14 (-0.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners86.91%
Inst Owner Change0.58%
Ins Owners1.09%
Ins Owner Change-0.07%
Market Cap2.02B
Revenue(TTM)3.43B
Net Income(TTM)180.00M
Analysts84.44
Price Target62.22 (21.26%)
Short Float %5.61%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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)15.82%
PT rev (3m)13.66%
EPS NQ rev (1m)-12.13%
EPS NQ rev (3m)-21.63%
EPS NY rev (1m)-6.62%
EPS NY rev (3m)-10.42%
Revenue NQ rev (1m)-1.03%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.53 | ||
| Fwd PE | 9.05 | ||
| P/S | 0.59 | ||
| P/FCF | 5.99 | ||
| P/OCF | 5.99 | ||
| P/B | 2.07 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 5.69 |
EPS(TTM)4.45
EY8.67%
EPS(NY)5.67
Fwd EY11.05%
FCF(TTM)8.57
FCFY16.7%
OCF(TTM)8.57
OCFY16.7%
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 | 3.77 |
F-Score5
WACC7.23%
ROIC/WACC1.38
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 for 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 11.53 and the Price/Book (PB) ratio is 2.07.
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 -49.8% in the next year.