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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on SLVM

Sylvamo Corporation's recent performance was positively driven by a 7% sales volume growth quarter-over-quarter and improved operational performance in Q3 2025. The company also returned substantial cash to shareholders, including $42 million in share repurchases and $18 million in dividends. Additionally, Sylvamo's adoption of a limited-duration shareholder rights plan aims to protect shareholder interests. The company's valuation is considered attractive, with shares trading at 6-7x EPS projections for 2026-27, and a 4.2% dividend yield provides downside protection. (Source: Sylvamo Corporation (SLVM) Q3 2025 Earnings Call Transcript)

1.c. Company Highlights

2. Sylvamo's Q3 2025 Earnings: Operational Improvements and Strategic Initiatives

Sylvamo reported adjusted operating earnings of $1.44 per share, below analyst estimates of $1.57. Adjusted EBITDA was $151 million, with a margin of 18%. The company's free cash flow was $33 million. Revenue growth was not explicitly stated, but the company's uncoated freesheet sales volume increased 7% quarter-over-quarter, indicating some operational momentum. The current valuation metrics suggest a relatively low P/E Ratio of 8.02 and an EV/EBITDA of 4.78, which may indicate that the stock is undervalued.

Publication Date: Nov -10

📋 Highlights
  • Operational Growth:: Uncoated freesheet sales volume rose 7% quarter-over-quarter in Q3 2025.
  • Shareholder Returns:: Returned $60 million to shareholders via a $18 million dividend and $42 million in share repurchases.
  • Financial Performance:: Adjusted EBITDA reached $151 million (18% margin), with free cash flow of $33 million and adjusted EPS of $1.44.
  • Q4 Guidance:: Projects $115–130 million adjusted EBITDA, offset by $20–25 million in price/mix headwinds from European paper prices.
  • Strategic Assets:: Brazilian forest lands valued at nearly BRL 5 billion, positioning as a key competitive advantage.

Operational Highlights and Outlook

The company is focused on improving its business, driving operational excellence, and strategic initiatives across all regions. Sylvamo expects fourth-quarter adjusted EBITDA of $115 million to $130 million, with price and mix unfavorable by $20 million to $25 million, primarily due to paper prices in Europe. According to CEO Jean-Michel Ribiéras, "We are focused on improving our business and driving operational excellence and strategic initiatives across all regions." Although Ribiéras is retiring, his statement suggests a strong foundation for the new CEO, John Sims, who will take over on January 1.

Strategic Initiatives and Capital Allocation

Sylvamo recently amended its supply agreement with International Paper, which will continue to supply uncoated freesheet from the Riverdale mill until May 2026. The company will optimize its product segment and customer mix and leverage its European mills to supply the U.S. and Mexico. Sylvamo's long-term capital allocation strategy drives shareholder value, focusing on maintaining a strong financial position, reinvesting in the business, and returning cash to shareholders. The company returned $60 million in cash to shareholders through a $18 million dividend and $42 million in share repurchases and has a new $150 million share repurchase authorization.

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at -2.2%, indicating a challenging environment for Sylvamo. However, the company's valuation metrics, such as a P/S Ratio of 0.49 and a Dividend Yield of 4.18%, suggest that the stock may be attractive to income investors. The Free Cash Flow Yield of 20.07% is also relatively high, indicating that the company is generating significant cash. With an ROE of 23.88% and an ROIC of 11.83%, Sylvamo appears to be efficiently using its capital to generate returns.

3. NewsRoom

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Handelsbanken Fonder AB Buys 2,100 Shares of Sylvamo Corporation $SLVM

Dec -01

Source: defenseworld.net

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Head-To-Head Contrast: Sylvamo (NYSE:SLVM) & Sappi (OTCMKTS:SPPJY)

Nov -29

Source: defenseworld.net

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Here Are Mondays Top Wall Street Analyst Research Calls: AppLovin, Block, Broadcom, DataDog, Dell Technologies, Gap, Pure Storage and More

Nov -17

Source: 247wallst.com

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The Bottom Fishing Club - Sylvamo: Ultralow Valuation On Boring Paper Business

Nov -11

Source: seekingalpha.com

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Sylvamo Adopts Limited-Duration Shareowner Rights Plan

Nov -10

Source: businesswire.com

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Sylvamo Corporation (SLVM) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Sylvamo Releases Third Quarter Earnings

Nov -07

Source: businesswire.com

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New Strong Sell Stocks for Nov. 5

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

North America

Expected Growth: 4.65%

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.

Latin America

Expected Growth: 4.83%

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.

Europe

Expected Growth: 4.83%

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.

Corporate and Intersegment Sales

Expected Growth: 4.65%

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.

7. Detailed Products

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.

8. Sylvamo Corporation's Porter Forces

Forces Ranking

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.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.56%
Debt Cost 4.41%
Equity Weight 48.44%
Equity Cost 8.49%
WACC 6.38%
Leverage 106.44%

11. Quality Control: Sylvamo Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.7/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 3.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Cabot

A-Score: 5.5/10

Value: 7.1

Growth: 6.4

Quality: 6.0

Yield: 5.0

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
UFP Industries

A-Score: 5.0/10

Value: 5.8

Growth: 6.4

Quality: 6.0

Yield: 3.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Steel Dynamics

A-Score: 4.9/10

Value: 3.4

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Sylvamo

A-Score: 4.7/10

Value: 8.3

Growth: 3.4

Quality: 5.6

Yield: 6.0

Momentum: 0.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
CMC

A-Score: 4.4/10

Value: 3.9

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.73$

Current Price

48.73$

Potential

-0.00%

Expected Cash-Flows