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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

Breaking News: Sylvamo Corporation reported its Q4 2025 earnings on February 13 2026. The company's earnings call transcript revealed key financial information. Analysts have provided recommendations on the stock. One analyst from a reputable firm recently upgraded SLVM to a buy. The company reported significant revenue growth and improved profitability. SLVM's management team expressed optimism about future prospects. They highlighted the company's strong position in the market and its plans for continued growth. A few analysts recommend holding the stock while one downgraded to sell.

1.c. Company Highlights

2. Sylvamo's 2025 Earnings: A Resilient Performance Amidst Challenges

Sylvamo Corporation reported a robust financial performance in 2025, with adjusted EBITDA reaching $448 million at a 13% margin, and free cash flow of $44 million. The company's earnings per share (EPS) came in at $1.08, beating analyst estimates of $1.05. In the fourth quarter, adjusted EBITDA was $125 million with a 14% margin, driven by a 9% quarter-on-quarter increase in uncoated freesheet sales volume. The company's return on capital was 12%, and it maintained a strong financial position with a net debt to adjusted EBITDA of 1.6 times. As John Sims, CEO, noted, "We're executing our largest investment in the Eastover mill, driving significant value."

Publication Date: Feb -16

📋 Highlights
  • 2025 Financial Performance: Achieved 12% return on capital, $448M adjusted EBITDA (13% margin), and $44M free cash flow, with $155M returned to shareholders and $224M reinvested in manufacturing and Brazil.
  • 2026 Capital Investments: $245M allocated to Eastover mill expansion, adding 60,000 tons of uncoated freesheet capacity, but expected to reduce North American adjusted EBITDA by $65M due to lower sales volume and costs.
  • Shareholder Returns Strain: 2025 returns (dividends + buybacks) of $155M equaled 350% of free cash flow, highlighting aggressive payout despite lower Q4 2025 cash flow ($38M).
  • European Market Challenges: Pulp prices rose, prompting price hikes effective Q2 2026, while Säffle mill’s successful startup improved mix and filled order books, despite compressed margins in the region.
  • Long-Term Objectives: Targets $300M+ annual free cash flow and >15% returns on invested capital by 2026, supported by lean transformation and digital initiatives, with an investor day planned to outline progress.

Operational Highlights and Future Plans

The company is investing $245 million in 2026, primarily at its Eastover mill, to add 60,000 tons of uncoated freesheet and improve efficiency. This investment is expected to result in a negative $65 million adjusted EBITDA impact in North America in 2026. Despite the challenges, Sylvamo is confident in its ability to meet customer needs during the transition and is working to improve mix and win new customers in Europe. The company is also transforming its business through a lean transformation, starting in Latin America, to drive continuous improvement and reduce costs.

Valuation and Outlook

Based on the current stock price, the company's P/E Ratio stands at 15.29, and the EV/EBITDA ratio is 6.19. The Dividend Yield is 3.5%, and the Free Cash Flow Yield is 5.23%. Analysts estimate revenue growth of 2.6% for the next year. With a plan to generate over $300 million in free cash flow and greater than 15% returns on invested capital annually, Sylvamo is poised for long-term value creation. The company's decision to pause share repurchases in the quarter due to expected capital intensity and inventory build in 2026 demonstrates its commitment to disciplined capital allocation.

Capital Allocation and Shareholder Returns

In 2025, Sylvamo returned $155 million in cash to shareholders through share repurchases and dividends, which was 350% of its free cash flow. The company aims to maintain a strong balance sheet, reinvest in the business where it makes sense, and return cash to shareholders. With a ROIC of 7.7% and an ROE of 13.86%, Sylvamo is focused on generating strong and sustainable results by executing its growth strategy and adhering to disciplined capital allocation principles.

3. NewsRoom

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Sylvamo CEO to Host Meetings During BofA's 2026 Global Agriculture and Materials Conference

Feb -18

Source: businesswire.com

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Sylvamo Corporation (SLVM) Q4 2025 Earnings Call Transcript

Feb -13

Source: seekingalpha.com

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Sylvamo Corporation (SLVM) Q4 Earnings and Revenues Top Estimates

Feb -12

Source: zacks.com

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Sylvamo Releases Fourth Quarter, Full Year Earnings

Feb -12

Source: businesswire.com

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Analysts Estimate Sylvamo Corporation (SLVM) to Report a Decline in Earnings: What to Look Out for

Feb -05

Source: zacks.com

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Sylvamo CEO Releases Shareowner Letter

Jan -15

Source: businesswire.com

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Sylvamo to Release Fourth Quarter Earnings Feb. 12

Jan -12

Source: businesswire.com

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Sylvamo Welcomes John Sims as CEO, David Petratis as Chairman

Dec -17

Source: businesswire.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: 6.9/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

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Cabot

A-Score: 5.4/10

Value: 6.9

Growth: 6.4

Quality: 5.7

Yield: 5.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
UFP Industries

A-Score: 5.3/10

Value: 6.2

Growth: 6.4

Quality: 5.8

Yield: 3.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Steel Dynamics

A-Score: 5.2/10

Value: 3.5

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Sylvamo

A-Score: 4.7/10

Value: 7.9

Growth: 3.4

Quality: 5.6

Yield: 6.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
CMC

A-Score: 4.2/10

Value: 3.6

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 5.0

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

47.08$

Current Price

47.08$

Potential

-0.00%

Expected Cash-Flows