Financial PerformanceMargins contracted 380bps y/y and 360bps sequentially, indicating financial strain.
Market ConditionsH1 results confirmed a tricky market backdrop with higher containerboard and OCC prices and lower sales prices impacting earnings.
Valuation ConcernsDS Smith is considered expensive at 12-month forward EV/EBITDA of 10.8x, compared to its 5-year average, indicating a disconnect from the company's current financial challenges.