AI Spotlight on SLVM
Company Description
Sylvamo Corporation produces and supplies printing paper in Latin America, Europe, and North America.The company offers uncoated freesheet for paper products, such as cutsize and offset paper; and markets pulp, aseptic, and liquid packaging board, as well as coated unbleached kraft papers.It also produces hardwood pulp, including bleached hardwood kraft and bleached eucalyptus kraft; bleached softwood kraft; and bleached chemi-thermomechanical pulp.
The company distributes its products through a variety of channels, including merchants and distributors, office product suppliers, e-commerce, retailers, and dealers.It also sells directly to converters that produce envelopes, forms, and other related products.The company was founded in 1898 and is headquartered in Memphis, Tennessee.
Market Data
Last Price | 81.15 |
Change Percentage | -0.06% |
Open | 80.73 |
Previous Close | 81.2 |
Market Cap ( Millions) | 3328 |
Volume | 44249 |
Year High | 98.02 |
Year Low | 44.94 |
M A 50 | 84.09 |
M A 200 | 76.68 |
Financial Ratios
FCF Yield | 12.29% |
Dividend Yield | 2.03% |
ROE | 30.36% |
Debt / Equity | 98.83% |
Net Debt / EBIDTA | 75.10% |
Price To Book | 3.56 |
Price Earnings Ratio | 12.35 |
Price To FCF | 8.14 |
Price To sales | 0.88 |
EV / EBITDA | 3.45 |
News
- Jan -21 - 5 Low-Leverage Stocks to Buy as More Rate Cuts Look Likely in 2025
- Jan -21 - Zacks Industry Outlook International Paper, Suzano Klabin and Sylvamo
- Jan -17 - 4 Paper & Related Products Stocks Set to Capitalize on Promising Industry Trends
- Dec -17 - Sylvamo Announces Dividend
- Dec -03 - Sylvamo to Pay Down Debt With $60 Million Released From Escrow
- Nov -26 - Sylvamo: Asymmetrical Risk/Reward Setup For Long-Term Upside
- Nov -12 - Sylvamo Corporation (SLVM) Q3 2024 Earnings Call Transcript
- Nov -12 - Sylvamo Quarterly Results Exceed Outlook, Generates Strong Free Cash Flow
- Oct -31 - International Paper Announces Review of Strategic Options for Global Cellulose Fibers Business and Closure of Georgetown, S.C. Pulp and Paper Mill
- Oct -31 - Sylvamo, International Paper Terminate Georgetown Supply Agreement
- Oct -24 - 5 Paper & Related Products Stocks to Ride on Positive Industry Trends
- Oct -11 - Sylvamo to Release Third Quarter Earnings Nov. 12
- Oct -02 - 5 Stocks Trading Near 52-Week High With Room to Rise Further
- Sep -25 - Is Sylvamo (SLVM) Stock Outpacing Its Basic Materials Peers This Year?
- Sep -18 - 5 Stocks Trading Near 52-Week High With More Upside Potential
- Sep -18 - Sylvamo Chief Executive Officer to Host Meetings During RBC Capital Markets 2024 Global Industrials Conference
- Sep -13 - Undercovered Stock Picks From September 6-12: Lithium, Uranium, Gold, & Plastic
- Sep -10 - Sylvamo: Buy Thesis Remains Intact With Valuation Upsides + High Returns On Capital
- Aug -23 - 4 High Earnings Yield Value Bets to Shrug Off Market Volatility
- Aug -14 - Best Momentum Stocks to Buy for August 14th
Business Breakdown
Expected Mid-Term Growth
Segment nΒ°1 -> North America
Expected Growth : 4.65 %
What the company do ?
North America from Sylvamo Corporation refers to the region encompassing the United States, Canada, and Mexico, where the company operates its forestry and wood products business.
Why we expect these perspectives ?
Sylvamo Corporation's 4.65% growth in North America is driven by increasing demand for sustainable packaging, rising e-commerce sales, and growing preference for paper-based products. Additionally, the company's strategic investments in modernizing its mills and expanding its product offerings have improved operational efficiency and enhanced its competitive position.
Segment nΒ°2 -> Latin America
Expected Growth : 4.83 %
What the company do ?
Latin America, from Sylvamo Corporation, refers to the region comprising countries in Central and South America, where the company operates its pulp and paper business.
Why we expect these perspectives ?
Sylvamo Corporation's 4.83% growth in Latin America is driven by increasing demand for sustainable packaging, urbanization, and a growing middle class. The region's e-commerce boom and investments in infrastructure also contribute to the growth. Additionally, the company's strategic partnerships and expansion into new markets, such as Brazil and Mexico, further support this growth.
Segment nΒ°3 -> Europe
Expected Growth : 4.83 %
What the company do ?
Europe from Sylvamo Corporation refers to the European operations of the leading paper and packaging company, encompassing manufacturing facilities and sales offices across the continent.
Why we expect these perspectives ?
Sylvamo Corporation's 4.83% growth in Europe is driven by increasing demand for sustainable packaging, expansion in e-commerce, and growing need for paper-based products. Additionally, the region's focus on environmental sustainability and circular economy policies support the growth of recycled fiber-based products, contributing to the company's growth in the region.
Segment nΒ°4 -> Corporate and Intersegment Sales
Expected Growth : 4.65 %
What the company do ?
Corporate and Intersegment Sales from Sylvamo Corporation refers to the elimination of sales between its operating segments, ensuring accurate financial reporting and reflecting only external customer sales.
Why we expect these perspectives ?
Sylvamo Corporation's 4.65% corporate and intersegment sales growth is driven by increasing demand for sustainable packaging, expansion into emerging markets, and strategic pricing initiatives. Additionally, the company's focus on operational efficiency and cost savings has contributed to the growth. Furthermore, the rise of e-commerce and growing consumer preference for eco-friendly products have also boosted sales.
Sylvamo Corporation Products
Product Range | What is it ? |
---|---|
Packaging Papers | Sylvamo Corporation offers a range of packaging papers, including kraft papers, sack kraft papers, and specialty papers, designed for packaging, shipping, and storing goods. |
Printing Papers | Sylvamo's printing papers are designed for commercial printing, publishing, and digital printing, offering a range of textures, finishes, and weights. |
Specialty Papers | The company's specialty papers include filter papers, technical papers, and label papers, designed for specific industrial and commercial uses. |
Pulp and Biomass | Sylvamo Corporation produces pulp and biomass products, including market pulp, fluff pulp, and biomass energy products. |
Sylvamo Corporation's Porter Forces
Threat Of Substitutes
Sylvamo Corporation operates in the paper and packaging industry, where substitutes are available, but not easily accessible. The company's products are widely used in various industries, making it difficult for substitutes to gain significant market share.
Bargaining Power Of Customers
Sylvamo Corporation's customers are diverse and scattered, reducing their bargaining power. The company's products are essential to its customers' operations, making it difficult for them to negotiate prices or switch to alternative suppliers.
Bargaining Power Of Suppliers
Sylvamo Corporation relies on a few large suppliers for raw materials, giving them some bargaining power. However, the company's scale and diversification of suppliers mitigate this risk.
Threat Of New Entrants
The paper and packaging industry has high barriers to entry, including significant capital investments and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Sylvamo Corporation.
Intensity Of Rivalry
The paper and packaging industry is highly competitive, with several large players competing for market share. Sylvamo Corporation faces intense rivalry from its competitors, which can lead to pricing pressures and reduced profit margins.
Capital Structure
Value | |
---|---|
Debt Weight | 51.56% |
Debt Cost | 4.41% |
Equity Weight | 48.44% |
Equity Cost | 8.49% |
WACC | 6.38% |
Leverage | 106.44% |
Sylvamo Corporation : Quality Control
Sylvamo Corporation passed 4 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
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NEU | NewMarket Corporation, through its subsidiaries, engages in the petroleum additives business. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road β¦ |
CMC | Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. The company processes and sells ferrous β¦ |
CBT | Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through three segments: Reinforcement Materials, Performance Chemicals, and Purification Solutions. The company offers reinforcing carbons used in β¦ |