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SMURFIT WESTROCK PLC (SW) Stock Fundamental Analysis

NYSE:SW - New York Stock Exchange, Inc. - IE00028FXN24 - Common Stock - Currency: USD

53.26  -0.3 (-0.56%)

After market: 53.27 +0.01 (+0.02%)

Fundamental Rating

6

SW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Containers & Packaging industry. SW scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SW has a decent growth rate and is not valued too expensively. This makes SW very considerable for quality investing!


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

In the past year SW was profitable.
SW had a positive operating cash flow in the past year.
In the past 5 years SW has always been profitable.
SW had a positive operating cash flow in each of the past 5 years.
SW Yearly Net Income VS EBIT VS OCF VS FCFSW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M 1B 1.5B

1.2 Ratios

SW's Return On Assets of 5.05% is fine compared to the rest of the industry. SW outperforms 73.91% of its industry peers.
SW has a Return On Equity of 13.83%. This is in the better half of the industry: SW outperforms 65.22% of its industry peers.
SW has a better Return On Invested Capital (8.40%) than 69.57% of its industry peers.
Industry RankSector Rank
ROA 5.05%
ROE 13.83%
ROIC 8.4%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
SW Yearly ROA, ROE, ROICSW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20

1.3 Margins

SW has a better Profit Margin (6.72%) than 73.91% of its industry peers.
SW's Profit Margin has improved in the last couple of years.
The Operating Margin of SW (12.51%) is better than 78.26% of its industry peers.
SW's Operating Margin has been stable in the last couple of years.
SW has a Gross Margin of 33.60%. This is amongst the best in the industry. SW outperforms 91.30% of its industry peers.
In the last couple of years the Gross Margin of SW has remained more or less at the same level.
Industry RankSector Rank
OM 12.51%
PM (TTM) 6.72%
GM 33.6%
OM growth 3Y4.99%
OM growth 5Y0.25%
PM growth 3Y1.72%
PM growth 5YN/A
GM growth 3Y-0.1%
GM growth 5Y0.33%
SW Yearly Profit, Operating, Gross MarginsSW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

7

2. Health

2.1 Basic Checks

Compared to 1 year ago, SW has less shares outstanding
SW has less shares outstanding than it did 5 years ago.
There is no outstanding debt for SW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
SW Yearly Shares OutstandingSW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
SW Yearly Total Debt VS Total AssetsSW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

An Altman-Z score of 3.28 indicates that SW is not in any danger for bankruptcy at the moment.
SW's Altman-Z score of 3.28 is amongst the best of the industry. SW outperforms 86.96% of its industry peers.
SW has a debt to FCF ratio of 11.57. This is a negative value and a sign of low solvency as SW would need 11.57 years to pay back of all of its debts.
With a Debt to FCF ratio value of 11.57, SW perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
A Debt/Equity ratio of 1.02 is on the high side and indicates that SW has dependencies on debt financing.
The Debt to Equity ratio of SW (1.02) is better than 65.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 11.57
Altman-Z 3.28
ROIC/WACCN/A
WACCN/A
SW Yearly LT Debt VS Equity VS FCFSW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.3 Liquidity

SW has a Current Ratio of 2.30. This indicates that SW is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.30, SW belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
A Quick Ratio of 1.92 indicates that SW should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.92, SW belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.3
Quick Ratio 1.92
SW Yearly Current Assets VS Current LiabilitesSW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

5

3. Growth

3.1 Past

SW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.11%.
The Earnings Per Share has been growing slightly by 6.88% on average over the past years.
Looking at the last year, SW shows a decrease in Revenue. The Revenue has decreased by -9.53% in the last year.
The Revenue has been growing slightly by 2.92% on average over the past years.
EPS 1Y (TTM)-17.11%
EPS 3Y6.88%
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)-9.53%
Revenue growth 3Y7.82%
Revenue growth 5Y2.92%
Sales Q2Q%N/A

3.2 Future

Based on estimates for the next years, SW will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.08% on average per year.
The Revenue is expected to grow by 41.19% on average over the next years. This is a very strong growth
EPS Next Y-26.21%
EPS Next 2Y7.4%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue Next Year138.08%
Revenue Next 2Y65.16%
Revenue Next 3Y41.19%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SW Yearly Revenue VS EstimatesSW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B
SW Yearly EPS VS EstimatesSW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.87, the valuation of SW can be described as correct.
69.57% of the companies in the same industry are more expensive than SW, based on the Price/Earnings ratio.
SW is valuated cheaply when we compare the Price/Earnings ratio to 28.51, which is the current average of the S&P500 Index.
SW is valuated correctly with a Price/Forward Earnings ratio of 14.66.
Based on the Price/Forward Earnings ratio, SW is valued a bit more expensive than 60.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 93.88. SW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.87
Fwd PE 14.66
SW Price Earnings VS Forward Price EarningsSW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SW is valued a bit more expensive than the industry average as 78.26% of the companies are valued more cheaply.
SW's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. SW is more expensive than 69.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF 49.85
EV/EBITDA 14.17
SW Per share dataSW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

SW has a very decent profitability rating, which may justify a higher PE ratio.
SW's earnings are expected to grow with 12.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.4%
EPS Next 3Y12.08%

3

5. Dividend

5.1 Amount

SW has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
SW's Dividend Yield is a higher than the industry average which is at 3.06.
Compared to an average S&P500 Dividend Yield of 2.27, SW has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.19%

5.2 History

On average, the dividend of SW grows each year by 23.65%, which is quite nice.
SW does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)23.65%
Div Incr Years0
Div Non Decr Years0
SW Yearly Dividends per shareSW Yearly Dividends per shareYearly Dividends per share 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

52.30% of the earnings are spent on dividend by SW. This is a bit on the high side, but may be sustainable.
SW's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.3%
EPS Next 2Y7.4%
EPS Next 3Y12.08%
SW Yearly Income VS Free CF VS DividendSW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M
SW Dividend Payout.SW Dividend Payout, showing the Payout Ratio.SW Dividend Payout.PayoutRetained Earnings

SMURFIT WESTROCK PLC

NYSE:SW (1/30/2025, 8:04:01 PM)

After market: 53.27 +0.01 (+0.02%)

53.26

-0.3 (-0.56%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-12 2025-02-12
Inst Owners70.79%
Inst Owner ChangeN/A
Ins Owners0.42%
Ins Owner Change-0.46%
Market Cap27.70B
Analysts81.82
Price Target61.09 (14.7%)
Short Float %3.92%
Short Ratio5.72
Dividend
Industry RankSector Rank
Dividend Yield 2.19%
Yearly Dividend3.06
Dividend Growth(5Y)23.65%
DP52.3%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.08%
PT rev (3m)2.92%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.6%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)1.17%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-4.96%
Valuation
Industry RankSector Rank
PE 13.87
Fwd PE 14.66
P/S 2.27
P/FCF 49.85
P/OCF 19.66
P/B 4.68
P/tB 9.36
EV/EBITDA 14.17
EPS(TTM)3.84
EY7.21%
EPS(NY)3.63
Fwd EY6.82%
FCF(TTM)1.07
FCFY2.01%
OCF(TTM)2.71
OCFY5.09%
SpS23.43
BVpS11.39
TBVpS5.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.05%
ROE 13.83%
ROCE 11.59%
ROIC 8.4%
ROICexc 11.24%
ROICexgc 16.09%
OM 12.51%
PM (TTM) 6.72%
GM 33.6%
FCFM 4.56%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y4.99%
OM growth 5Y0.25%
PM growth 3Y1.72%
PM growth 5YN/A
GM growth 3Y-0.1%
GM growth 5Y0.33%
F-Score6
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 1.02
Debt/FCF 11.57
Debt/EBITDA 2.77
Cap/Depr 129.12%
Cap/Sales 7%
Interest Coverage 12.17
Cash Conversion 64.48%
Profit Quality 67.81%
Current Ratio 2.3
Quick Ratio 1.92
Altman-Z 3.28
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)129.25%
Cap/Depr(5y)119.37%
Cap/Sales(3y)6.88%
Cap/Sales(5y)6.73%
Profit Quality(3y)66.99%
Profit Quality(5y)89.41%
High Growth Momentum
Growth
EPS 1Y (TTM)-17.11%
EPS 3Y6.88%
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y-26.21%
EPS Next 2Y7.4%
EPS Next 3Y12.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.53%
Revenue growth 3Y7.82%
Revenue growth 5Y2.92%
Sales Q2Q%N/A
Revenue Next Year138.08%
Revenue Next 2Y65.16%
Revenue Next 3Y41.19%
Revenue Next 5YN/A
EBIT growth 1Y-13.16%
EBIT growth 3Y13.2%
EBIT growth 5Y3.18%
EBIT Next Year180.64%
EBIT Next 3Y58.17%
EBIT Next 5YN/A
FCF growth 1Y20.42%
FCF growth 3Y-5.22%
FCF growth 5Y4.67%
OCF growth 1Y7.46%
OCF growth 3Y4.89%
OCF growth 5Y6.12%