Taking everything into account, SLVM scores 5 out of 10 in our fundamental rating. SLVM was compared to 9 industry peers in the Paper & Forest Products industry. SLVM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year SLVM was profitable.
SLVM had a positive operating cash flow in the past year.
SLVM had positive earnings in each of the past 5 years.
Each year in the past 5 years SLVM had a positive operating cash flow.

1.2 Ratios

SLVM's Return On Assets of 6.66% is fine compared to the rest 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.
The Return On Invested Capital of SLVM (9.96%) is better than 88.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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

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.
SLVM's Profit Margin has declined in the last couple of years.
SLVM has a better Operating Margin (8.42%) than 77.78% of its industry peers.
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 22.59% is in line compared to the rest of the industry. SLVM outperforms 55.56% of its industry peers.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
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.
Compared to 1 year ago, SLVM has an improved debt to assets ratio.

2.2 Solvency

SLVM has an Altman-Z score of 3.75. 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 3.75, SLVM belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
The Debt to FCF ratio of SLVM is 2.39, which is a good value as it means it would take SLVM, 2.39 years of fcf income to pay off 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.
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.
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	3.75

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's Current ratio of 1.52 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 0.85 indicates that SLVM may have some problems paying its short term obligations.
The Quick ratio of SLVM (0.85) is worse than 77.78% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.52
Quick Ratio	0.85

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
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 decreased by -8.92% in the past 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

SLVM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.08% yearly.
The Revenue is expected to decrease by -5.09% on average over the next years.

EPS Next Y-51.49%

EPS Next 2Y-14.6%

EPS Next 3Y-4.08%

EPS Next 5YN/A

Revenue Next Year-11.91%

Revenue Next 2Y-7.35%

Revenue Next 3Y-5.09%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

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4. Valuation

4.1 Price/Earnings Ratio

SLVM is valuated reasonably with a Price/Earnings ratio of 11.00.
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 28.30, SLVM is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.01, the valuation of SLVM can be described as reasonable.
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 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	11
Fwd PE	9.01

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	5.71
EV/EBITDA	5.55

4.3 Compensation for Growth

SLVM has a very decent profitability rating, which may justify a higher PE ratio.
SLVM's earnings are expected to decrease with -4.08% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-14.6%

EPS Next 3Y-4.08%

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5. Dividend

5.1 Amount

SLVM has a Yearly Dividend Yield of 3.63%.
Compared to an average industry Dividend Yield of 1.45, SLVM pays a better dividend. On top of this SLVM pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.82, SLVM pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	3.63%

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-14.6%

EPS Next 3Y-4.08%

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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 and the Price/Book (PB) ratio is 1.98.

What is the financial health of SYLVAMO CORP (SLVM) stock?

The financial health rating of SYLVAMO CORP (SLVM) is 7 / 10.