Sylvamo Corporation (SLVM)
NYSE:SLVM
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Sylvamo Corp
(NYSE:SLVM)
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Rating:52Neutral
Price Target:
$36.00
▼(-17.51% Downside)
Action:Reiterated
Date:05/09/26
SLVM’s score is held back primarily by weakening financial performance—sharp margin compression versus 2023–2024 and deteriorating cash generation/free-cash-flow conversion. Technicals also remain soft with the stock trading below major moving averages. Offsetting factors include an attractive dividend yield and an earnings-call outlook that, while acknowledging significant near-term headwinds, highlights refinancing-driven flexibility and actions (price increases and Eastover investments) aimed at a second-half improvement and stronger longer-term cash flow.
Positive Factors
Geographic diversification & distribution footprint
Sylvamo's multi-region manufacturing and distribution presence gives durable market access across commercial and consumer end markets. This geographic mix reduces single-market risk, enables regional pricing actions, and supports stable volume channels with diversified end customers over a multi‑year horizon.
Negative Factors
Weakened cash generation and low FCF conversion
Substantially weaker operating cash flow and low free‑cash‑flow conversion reduce internal funding for capex, dividends and debt paydown. If operational improvements and price realization lag, this constrained cash generation could limit strategic optionality and increase reliance on external financing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Geographic diversification & distribution footprint
Sylvamo's multi-region manufacturing and distribution presence gives durable market access across commercial and consumer end markets. This geographic mix reduces single-market risk, enables regional pricing actions, and supports stable volume channels with diversified end customers over a multi‑year horizon.
Read all positive factors
Sylvamo Corp Key Performance Indicators (KPIs)
Sylvamo Corp (SLVM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.52B
Dividend Yield3.51%
Average Volume (3M)335.91K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-10.95%
EPS Growth-63.39%
CountryUS
Employees6,500
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)2.53
Shares Outstanding39,736,137
10 Day Avg. Volume380,267
30 Day Avg. Volume335,909
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)2.00
Price to Sales (P/S)0.58
P/FCF Ratio43.91
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit3.64
Enterprise Value/Ebitda6.21
Forecast
1Y Price Target
$51.50Price Target Upside18.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.49
Revenue Forecast (FY)$3.34B
Sylvamo Corp Business Overview & Revenue Model
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...
How the Company Makes Money
Sylvamo makes money mainly by producing and selling uncoated freesheet paper. Revenue is generated from the sale of paper rolls and cut-size sheets to customers such as distributors, merchants, retailers, printers, publishers, and other commercial...
Sylvamo Corp Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: near-term performance was negatively affected by operational reliability issues, a large sequential drop in adjusted EBITDA (from $125M to $29M), inventory builds and rising input/transportation costs, and tariff/geopolitical uncertainties that create Q2 headwinds (~$15M). Offsetting these near-term challenges are executed strategic actions — company-wide price increases, a completed debt refinancing that extends maturities, the launch of a multi-year lean transformation, and on-track high-return investments at Eastover that support management's long-term target of >$300M annual free cash flow and >15% ROIC. Management expects improvements in pricing, mix and margins in the second half, but 2026 remains a transition year with most free cash flow weighted to H2.Positive Updates
Price Increases Implemented Across Regions
Implemented uncoated freesheet price increases across all regions: North America 5%–8% (realization beginning in March, bulk in Q2), Brazil ~5% on cut size (about two-thirds realized in Q1), other LatAm ~7% (one-third realized in Q1, additional 7% announced for Q2), Middle East & Africa 4% in Q1 with a second increase for Q2, Europe announced 4% in Q1 (about half realized) and a further 8% effective May.
Negative Updates
Significant Sequential Earnings Decline
Adjusted EBITDA fell from $125 million in Q4 to $29 million in Q1 (a decline of ~$96 million, ~77% sequential), and adjusted operating earnings were negative $0.53 per share.
Read all updates
Q1-2026 Updates
Positive
Negative
Price Increases Implemented Across Regions
Implemented uncoated freesheet price increases across all regions: North America 5%–8% (realization beginning in March, bulk in Q2), Brazil ~5% on cut size (about two-thirds realized in Q1), other LatAm ~7% (one-third realized in Q1, additional 7% announced for Q2), Middle East & Africa 4% in Q1 with a second increase for Q2, Europe announced 4% in Q1 (about half realized) and a further 8% effective May.
Read all positive updates
Company Guidance
The company reiterated 2026 is a transition year and provided numeric guidance and expectations: Q1 adjusted EBITDA was $29 million (4% margin) and adjusted operating earnings were negative $0.53 per share (versus $125 million adjusted EBITDA in Q4); free cash flow is expected to be heavily weighted to the second half as the business weathers near‑term headwinds but targets greater than $300 million of annual free cash flow and >15% ROIC over the next 3–5 years. Management now estimates the full‑year North America footprint transition will be about $65 million negative (improved from ~$85 million) and said most of that impact will hit in the second half; they expect previously announced price increases to realize more in Q2 (North America ~5–8%; Brazil cut‑size 5% with ~2/3 realized in Q1; other LatAm 7% with ~1/3 realized and a second 7% in Q2; MEA 4% with a second increase in Q2; Europe 4% with ~50% realized and an additional 8% effective in May). Operational reliability issues cost nearly $9 million vs Q4 and operations & other costs were $29 million unfavorable (price & mix unfavorable $13M, mix alone $17M; volume down $36M); input/transportation costs were $18 million unfavorable (including a one‑time ~$10M Riverdale gas charge), and management expects a Q2 war‑related input/transportation headwind of roughly $15 million (~$5M per region). Newmala’s debarker adds about $1–2M of incremental cost per quarter until repaired in Q4 (Sept), planned outage costs rise ~$20M in Q2 versus Q1 with >50% of total outage cost now in Q4 for Eastover, and Eastover investments (paper machine adding 60k tons, new sheeter in Q3 with ramp in Q4) remain on schedule and are expected to contribute up to ~$50M of value with material benefits as the asset ramps into 2027; balance‑sheet flexibility was increased via refinancing (term loan extended to 2032, A/R facility to 2029).Sylvamo Corp Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.29B | 3.35B | 3.77B | 3.72B | 3.63B | 2.83B |
| Gross Profit | 649.00M | 735.00M | 940.00M | 912.00M | 1.01B | 685.00M |
| EBITDA | 381.00M | 423.00M | 617.00M | 572.00M | 645.00M | 485.00M |
| Net Income | 102.00M | 132.00M | 302.00M | 253.00M | 118.00M | 331.00M |
Balance Sheet | ||||||
| Total Assets | 2.83B | 2.76B | 2.60B | 2.87B | 2.71B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 130.00M | 135.00M | 205.00M | 220.00M | 360.00M | 159.00M |
| Total Debt | 981.00M | 853.00M | 804.00M | 959.00M | 1.03B | 1.40B |
| Total Liabilities | 1.85B | 1.80B | 1.76B | 1.97B | 2.03B | 2.42B |
| Stockholders Equity | 979.00M | 966.00M | 847.00M | 901.00M | 678.00M | 182.00M |
Cash Flow | ||||||
| Free Cash Flow | 10.00M | 44.00M | 248.00M | 294.00M | 289.00M | 480.00M |
| Operating Cash Flow | 235.00M | 268.00M | 469.00M | 504.00M | 438.00M | 549.00M |
| Investing Cash Flow | -225.00M | -224.00M | -221.00M | -377.00M | 180.00M | 127.00M |
| Financing Cash Flow | -41.00M | -125.00M | -310.00M | -219.00M | -470.00M | -589.00M |
Sylvamo Corp Technical Analysis
Negative
43.64
Price Trends
40.97
Negative
44.50
Negative
44.18
Negative
Market Momentum
-1.37
Positive
40.84
Neutral
34.17
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 43.64 is above the 20-day moving average (MA) of 40.70, above the 50-day MA of 40.97, and below the 200-day MA of 44.18, indicating a bearish trend. The MACD of -1.37 indicates Positive momentum. The RSI at 40.84 is Neutral, neither overbought nor oversold. The STOCH value of 34.17 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $10.51B | 3.72 | 25.27% | 1.96% | 3.06% | ― | |
64 Neutral | $4.55B | 24.91 | 8.44% | 1.53% | -6.40% | -24.83% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $4.90B | 47.15 | 4.72% | 1.37% | -12.99% | -79.48% | |
52 Neutral | $1.52B | -140.80 | 10.51% | 3.51% | -10.95% | -63.39% | |
45 Neutral | $229.46M | -4.52 | -3.08% | ― | -11.89% | 79.35% | |
41 Neutral | $65.15M | -0.46 | -242.96% | 10.77% | -7.34% | -479.98% |
* Basic Materials Sector Average
SLVM
Sylvamo Corp
38.10
-14.01
-26.89%
CLW
Clearwater Paper
14.08
-14.85
-51.33%
LPX
Louisiana-Pacific
70.51
-20.81
-22.79%
MERC
Mercer International
1.04
-2.45
-70.23%
UFPI
UFP Industries
80.54
-14.44
-15.20%
SUZ
Suzano Papel e Celulose SA
8.31
-0.86
-9.37%
Sylvamo Corp Corporate Events
Executive/Board ChangesShareholder Meetings
Sylvamo Shareholders Approve Directors and Auditor at Meeting
Neutral
May 18, 2026
Sylvamo Corp. held its annual meeting of stockholders on May 15, 2026, with 33,470,136 shares present in person or by proxy out of 39,735,377 shares entitled to vote, representing an 84% quorum. Shareholders voted on three proposals, reflecting br...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.