SMURFIT WESTROCK PLC (SW) Stock Fundamental Analysis
NYSE:SW - New York Stock Exchange, Inc. - IE00028FXN24 - Common Stock - Currency: USD
Overall SW gets a fundamental rating of 4 out of 10. We evaluated SW against 23 industry peers in the Containers & Packaging industry. The financial health of SW is average, but there are quite some concerns on its profitability. SW is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SW was profitable.
SW had a positive operating cash flow in the past year.
Each year in the past 5 years SW has been profitable.
Each year in the past 5 years SW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.97%, SW is in line with its industry, outperforming 43.48% of the companies in the same industry.
The Return On Equity of SW (5.38%) is worse than 60.87% of its industry peers.
With a Return On Invested Capital value of 6.87%, SW perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 5.38% | ||
| ROIC | 6.87% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SW has a worse Profit Margin (1.51%) than 65.22% of its industry peers.
In the last couple of years the Profit Margin of SW has declined.
SW has a worse Operating Margin (6.64%) than 65.22% of its industry peers.
SW's Operating Margin has declined in the last couple of years.
SW has a Gross Margin of 19.87%. This is in the lower half of the industry: SW underperforms 69.57% of its industry peers.
In the last couple of years the Gross Margin of SW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.64% | ||
| PM (TTM) | 1.51% | ||
| GM | 19.87% |
OM growth 3Y-14.47%
OM growth 5Y-10.76%
PM growth 3Y-39.18%
PM growth 5Y-22.08%
GM growth 3Y-13.39%
GM growth 5Y-9.76%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SW is destroying value.
SW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SW has an Altman-Z score of 3.44. This indicates that SW is financially healthy and has little risk of bankruptcy at the moment.
SW's Altman-Z score of 3.44 is amongst the best of the industry. SW outperforms 86.96% of its industry peers.
The Debt to FCF ratio of SW is 378.35, which is on the high side as it means it would take SW, 378.35 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 378.35, SW is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
SW has a Debt/Equity ratio of 1.02. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SW (1.02) is better than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 378.35 | ||
| Altman-Z | 3.44 |
ROIC/WACC0.89
WACC7.69%
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.
SW's Current ratio of 2.30 is amongst the best of the industry. SW outperforms 91.30% of its industry peers.
A Quick Ratio of 1.92 indicates that SW should not have too much problems paying its short term obligations.
The Quick ratio of SW (1.92) is better than 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
The earnings per share for SW have decreased strongly by -73.97% in the last year.
Measured over the past years, SW shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -18.21% on average per year.
The Revenue has grown by 73.22% in the past year. This is a very strong growth!
SW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.83% yearly.
EPS 1Y (TTM)-73.97%
EPS 3Y-35.74%
EPS 5Y-18.21%
EPS Q2Q%-91.16%
Revenue 1Y (TTM)73.22%
Revenue growth 3Y20.89%
Revenue growth 5Y15.83%
Sales Q2Q%-38.14%
3.2 Future
The Earnings Per Share is expected to grow by 30.48% on average over the next years. This is a very strong growth
Based on estimates for the next years, SW will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y55.16%
EPS Next 2Y37.78%
EPS Next 3Y30.48%
EPS Next 5YN/A
Revenue Next Year15.63%
Revenue Next 2Y9.45%
Revenue Next 3Y6.55%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 42.63, the valuation of SW can be described as expensive.
Based on the Price/Earnings ratio, SW is valued a bit more expensive than 78.26% of the companies in the same industry.
SW is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.60, which indicates a correct valuation of SW.
SW's Price/Forward Earnings is on the same level as the industry average.
SW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.63 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
SW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SW is cheaper than 60.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SW indicates a slightly more expensive valuation: SW is more expensive than 69.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1269.64 | ||
| EV/EBITDA | 8.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SW's earnings are expected to grow with 30.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y37.78%
EPS Next 3Y30.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.34%, SW has a reasonable but not impressive dividend return.
In the last 3 months the price of SW has falen by -21.92%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.58, SW pays a bit more dividend than its industry peers.
SW's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
5.2 History
The dividend of SW is nicely growing with an annual growth rate of 23.65%!
SW is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)23.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
203.76% of the earnings are spent on dividend by SW. This is not a sustainable payout ratio.
SW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP203.76%
EPS Next 2Y37.78%
EPS Next 3Y30.48%
41.35
+0.58 (+1.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryContainers & Packaging
Earnings (Last)
Earnings (Next)
Inst Owners90.83%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner Change7.91%
Market Cap21.58B
Analysts81.82
Price Target61.81 (49.48%)
Short Float %3.02%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.34% |
Yearly Dividend3.06
Dividend Growth(5Y)23.65%
DP203.76%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-75.31%
Min EPS beat(2)-138.26%
Max EPS beat(2)-12.36%
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)0
Avg Revenue beat(2)-7.02%
Min Revenue beat(2)-8.48%
Max Revenue beat(2)-5.56%
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)-1.14%
PT rev (3m)1.19%
EPS NQ rev (1m)-1.71%
EPS NQ rev (3m)-18.73%
EPS NY rev (1m)-4.73%
EPS NY rev (3m)-9.67%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.63 | ||
| Fwd PE | 12.6 | ||
| P/S | 1.02 | ||
| P/FCF | 1269.64 | ||
| P/OCF | 14.55 | ||
| P/B | 3.64 | ||
| P/tB | 7.29 | ||
| EV/EBITDA | 8.62 |
EPS(TTM)0.97
EY2.35%
EPS(NY)3.28
Fwd EY7.94%
FCF(TTM)0.03
FCFY0.08%
OCF(TTM)2.84
OCFY6.87%
SpS40.44
BVpS11.35
TBVpS5.67
PEG (NY)0.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 5.38% | ||
| ROCE | 10.66% | ||
| ROIC | 6.87% | ||
| ROICexc | 9.19% | ||
| ROICexgc | 13.16% | ||
| OM | 6.64% | ||
| PM (TTM) | 1.51% | ||
| GM | 19.87% | ||
| FCFM | 0.08% |
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 3Y-14.47%
OM growth 5Y-10.76%
PM growth 3Y-39.18%
PM growth 5Y-22.08%
GM growth 3Y-13.39%
GM growth 5Y-9.76%
F-Score6
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.02 | ||
| Debt/FCF | 378.35 | ||
| Debt/EBITDA | 2.11 | ||
| Cap/Depr | 100.14% | ||
| Cap/Sales | 6.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.74% | ||
| Profit Quality | 5.33% | ||
| Current Ratio | 2.3 | ||
| Quick Ratio | 1.92 | ||
| Altman-Z | 3.44 |
F-Score6
WACC7.69%
ROIC/WACC0.89
Cap/Depr(3y)125.56%
Cap/Depr(5y)116.04%
Cap/Sales(3y)7.17%
Cap/Sales(5y)6.72%
Profit Quality(3y)50.56%
Profit Quality(5y)68.16%
High Growth Momentum
Growth
EPS 1Y (TTM)-73.97%
EPS 3Y-35.74%
EPS 5Y-18.21%
EPS Q2Q%-91.16%
EPS Next Y55.16%
EPS Next 2Y37.78%
EPS Next 3Y30.48%
EPS Next 5YN/A
Revenue 1Y (TTM)73.22%
Revenue growth 3Y20.89%
Revenue growth 5Y15.83%
Sales Q2Q%-38.14%
Revenue Next Year15.63%
Revenue Next 2Y9.45%
Revenue Next 3Y6.55%
Revenue Next 5YN/A
EBIT growth 1Y-8.03%
EBIT growth 3Y3.39%
EBIT growth 5Y3.36%
EBIT Next Year169.41%
EBIT Next 3Y45.64%
EBIT Next 5YN/A
FCF growth 1Y-97.61%
FCF growth 3Y-66.16%
FCF growth 5Y-50.88%
OCF growth 1Y-9.58%
OCF growth 3Y8.36%
OCF growth 5Y2.64%