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Sylvamo Corp (SLVM)
NYSE:SLVM
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Sylvamo Corp
(NYSE:SLVM)
68Neutral
Sylvamo Corp (SLVM) vs. S&P 500 (SPY)
Market Cap
$2.67B
Dividend Yield2.51%
Average Volume (3M)482.18K
Price to Earnings (P/E)9.2
Beta (1Y)1.11
Revenue Growth0.91%
EPS Growth22.51%
CountryUS
Employees6,500
SectorBasic Materials
Sector Strength62
IndustryForestry
Share Statistics
EPS (TTM)7.20
Shares Outstanding40,546,880
10 Day Avg. Volume700,696
30 Day Avg. Volume482,178
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)N/A
Price to Sales (P/S)0.71
Price to Cash Flow (P/CF)4.10
P/FCF Ratio3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$86.33Price Target Upside32.08% Upside
Rating ConsensusHold
Number of Analyst Covering3
Sylvamo Corp Business Overview & Revenue Model
Company DescriptionSylvamo Corp is engaged in producing various uncoated freesheet for paper products such as cutsize and offset paper, as well as market pulp, aseptic and liquid packaging board and coated unbleached kraft papers. The company offers Copy and Printer papers, Commercial Printing papers, Converting papers and Specialty papers.
How the Company Makes MoneySylvamo Corp makes money primarily through the manufacturing and sale of uncoated freesheet paper. The company's revenue model is centered around the production and distribution of various paper products used in offices, commercial settings, and industrial applications. Key revenue streams include sales of branded and private-label paper products to a diverse customer base that includes retailers, distributors, and direct consumers. Additionally, Sylvamo benefits from strategic partnerships and long-term contracts with major clients, which help stabilize its revenue flow. The company also focuses on optimizing its supply chain and production processes to manage costs effectively, contributing to its profitability.
Sylvamo Corp Financial Statement Overview
Summary
Sylvamo Corp exhibits strong financial performance with consistent revenue and cash flow growth. Despite high leverage, effective equity use mitigates risks, maintaining profitability and cash flow stability.Income Statement
Sylvamo Corp demonstrated steady revenue growth over the years, with a 1.40% increase in 2024. Gross profit margins have remained robust, although net profit margins are moderate. The EBIT and EBITDA margins are solid, indicating efficient operating performance. However, the decline in gross profit from 2023 to 2024 suggests potential cost pressures.75
Positive
Balance Sheet
The company's debt-to-equity ratio is relatively high, indicating significant leverage. However, the return on equity (ROE) is strong, reflecting effective use of shareholder capital. The equity ratio is moderate, suggesting a balanced approach to financing assets through equity and debt.68
Positive
Cash Flow
Sylvamo Corp has shown strong operating cash flow, consistently exceeding net income, which is a positive indicator of cash generation efficiency. Free cash flow growth is impressive, particularly in 2024, reflecting effective capital management. The company maintains a healthy free cash flow to net income ratio, enhancing financial flexibility.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.77B | 3.72B | 3.63B | 3.50B | 3.01B | Gross Profit |
| 940.00M | 912.00M | 1.01B | 1.19B | 908.00M | EBIT |
| 302.00M | 599.00M | 536.00M | 458.00M | 194.00M | EBITDA |
| 302.00M | 576.00M | 645.00M | 468.00M | 352.00M | Net Income Common Stockholders |
| 302.00M | 253.00M | 336.00M | 331.00M | 170.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 205.00M | 220.00M | 360.00M | 180.00M | 95.00M | Total Assets |
| 2.60B | 2.87B | 2.71B | 2.60B | 2.91B | Total Debt |
| 804.00M | 959.00M | 1.03B | 1.40B | 26.00M | Net Debt |
| 599.00M | 959.00M | 672.00M | 1.22B | -69.00M | Total Liabilities |
| 1.76B | 1.97B | 2.03B | 2.42B | 799.00M | Stockholders Equity |
| 847.00M | 901.00M | 678.00M | 182.00M | 2.11B |
| Cash Flow | Free Cash Flow | |||
| 469.00M | 294.00M | 289.00M | 473.00M | 284.00M | Operating Cash Flow |
| 469.00M | 504.00M | 438.00M | 549.00M | 359.00M | Investing Cash Flow |
| -221.00M | -377.00M | 180.00M | 127.00M | -79.00M | Financing Cash Flow |
| -310.00M | -219.00M | -470.00M | -589.00M | -350.00M |
Sylvamo Corp Technical Analysis
Negative
65.36
Price Trends
73.11
Negative
79.58
Negative
77.04
Negative
Market Momentum
-2.23
Negative
38.16
Neutral
53.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLVM, the sentiment is Negative. The current price of 65.36 is below the 20-day moving average (MA) of 67.26, below the 50-day MA of 73.11, and below the 200-day MA of 77.04, indicating a bearish trend. The MACD of -2.23 indicates Negative momentum. The RSI at 38.16 is Neutral, neither overbought nor oversold. The STOCH value of 53.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLVM.
Sylvamo Corp Risk Analysis
Sylvamo Corp disclosed 1 risk factors in its most recent earnings report. Sylvamo Corp reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sylvamo Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $17.71B | 22.07 | 19.03% | 2.54% | 7.45% | 5.26% | |
68 Neutral | $2.67B | 9.15 | 34.55% | 2.51% | 0.91% | 22.51% | |
66 Neutral | $27.51B | 33.25 | 6.74% | 3.60% | -1.57% | 84.85% | |
64 Neutral | $4.72B | 28.97 | 6.42% | 4.46% | -6.93% | -65.66% | |
58 Neutral | $396.94M | 33.74 | -5.11% | ― | -10.55% | -203.13% | |
47 Neutral | $2.65B | -3.63 | -25.36% | 3.28% | 3.74% | -28.38% |
* Basic Materials Sector Average
Performance Comparison
SLVM
Sylvamo Corp
65.36
6.24
10.55%
CLW
Clearwater Paper
24.26
-17.97
-42.55%
IP
International Paper Co
51.39
12.05
30.63%
PKG
Packaging
194.41
11.69
6.40%
SON
Sonoco Products
46.68
-7.83
-14.36%
Sylvamo Corp Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -14.14% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call showcased strong financial performance, debt reduction, and successful cost reduction initiatives. However, there were challenges related to unfavorable price and mix trends, volume issues, and increased costs, which balanced the overall positive achievements.Highlights
Strong Financial Performance and Debt Reduction
Sylvamo generated a 23% return on invested capital, repaid $154 million in debt, achieving a net debt-to-adjusted EBITDA of 0.9x, and returned $130 million in cash to shareholders.
Exceeding Cost Reduction Goals
The Project Horizon cost reduction program exceeded its $110 million year-end run rate saving goals by $34 million.
High-Return Investments in Latin America
Investments in the Luiz Antonio mill in Latin America show promising returns, with a $7 million investment yielding 25% IRR and a $1 million investment yielding 40% IRR.
Resilient Safety Culture
Strong emphasis on safety culture with proactive risk elimination and commitment to a safer environment.
Lowlights
Unfavorable Price and Mix Trends
Price and mix were unfavorable by $18 million, with significant impacts from lower pulp and paper pricing in Europe and worse mix in North America.
Volume Challenges
Volume was lower than expected, particularly in North America, due to weak performance in the commercial printing and envelope market.
Higher Input and Transportation Costs
Input and transportation costs increased by $9 million due to transportation and seasonally higher energy prices.
Challenging Market Conditions
Lower demand projections in North America and pricing pressure in Brazilian export regions for paper.
Company Guidance
During Sylvamo's Fourth Quarter 2024 Earnings Call, Jean-Michel Ribiéras, Chairman and CEO, highlighted the company's strong performance metrics for the year. Sylvamo achieved a 23% return on invested capital, repaid $154 million in debt, and attained a net debt-to-adjusted EBITDA ratio of 0.9x. The company reported $632 million in adjusted EBITDA with a 17% margin, generated $248 million in free cash flow, and returned $130 million to shareholders. Additionally, Sylvamo reinvested $221 million to bolster its manufacturing capabilities and forestland in Brazil. The company exceeded its Project Horizon cost reduction goals by $34 million, achieving a year-end savings run rate of $144 million. Looking ahead to Q1 2025, Sylvamo projects adjusted EBITDA between $85 million and $105 million, with anticipated challenges in price and volume due to market conditions in Europe and Latin America. Despite these challenges, Sylvamo remains optimistic about delivering increased shareholder value through strategic reinvestments and maintaining a strong cash flow.Sylvamo Corp Corporate Events
Business Operations and Strategy
Sylvamo Corp Adjusts Strategy After Agreement Termination
Neutral
Oct 31, 2024
Sylvamo Corporation and International Paper have mutually agreed to terminate their Georgetown Supply Agreement, effective December 31, 2024, as International Paper plans to discontinue operations at the Georgetown mill. Sylvamo is proactively transitioning its production to other mills to ensure continued supply to customers and is focused on growing earnings and cash flow through strategic investments. This move is part of Sylvamo’s broader strategy post its 2021 spin-off from International Paper.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.