Sylvamo Corp (SLVM)
NYSE:SLVM
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Sylvamo Corp
(NYSE:SLVM)
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Rating:56Neutral
Price Target:
$42.00
▲(1.06% Upside)
Action:ReiteratedDate:02/17/26
The score is held back primarily by weakening 2025 profitability/cash flow and a cautious 2026 setup with sizable transition-year EBITDA/cash headwinds and elevated capex. Offsetting that, the balance sheet is more resilient than prior years, technicals are moderately supportive with price above key moving averages, and valuation is reasonable with a mid-teens P/E and ~3.5% yield.
Positive Factors
Improved balance sheet and manageable leverage
Equity has expanded and net leverage is materially lower versus prior years, leaving the company with greater resilience through the paper cycle. A stronger balance sheet supports funding of capital projects and cushions cash flow volatility, improving long-term financial flexibility.
Negative Factors
Recent revenue and earnings deterioration
A sharp step-down in top-line and net income signals weakened demand/pricing and compresses margin sustainability. Lower scale and profitability reduce cash generation consistency and make the business more sensitive to cost increases and cyclical swings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved balance sheet and manageable leverage
Equity has expanded and net leverage is materially lower versus prior years, leaving the company with greater resilience through the paper cycle. A stronger balance sheet supports funding of capital projects and cushions cash flow volatility, improving long-term financial flexibility.
Read all positive factors
Sylvamo Corp (SLVM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.64B
Dividend Yield3.51%
Average Volume (3M)303.39K
Price to Earnings (P/E)14.6
Beta (1Y)1.05
Revenue Growth-8.92%
EPS Growth-32.30%
CountryUS
Employees6,500
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)1.08
Shares Outstanding39,508,286
10 Day Avg. Volume431,065
30 Day Avg. Volume303,387
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 Cap1.44
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda5.61
Forecast
1Y Price Target
$55.33Price Target Upside33.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.09
Revenue Forecast (FY)$3.32B
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 manufacturing and selling uncoated freesheet paper (printing and writing grades) to a mix of end users and intermediaries. Revenue is generated primarily from (1) sales of paper products—such as cut-size office paper ...
Sylvamo Corp Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: the company has a strong balance sheet, clear strategic investments (notably Eastover) and demonstrated operational execution and historical cash-generation track record, which are positive for long-term value creation. However, near-term headwinds are significant—European pricing and wood-cost pressures, a meaningful North America transition with roughly $85–95 million of largely one-time 2026 EBITDA and cash impacts, elevated 2026 capex, and modest 2025 free cash flow—creating short-term earnings and cash volatility. Management frames 2026 as a transition year with substantial one-time costs and expects improvements as projects ramp and markets recover.Positive Updates
Full-Year Financial Strength and Returns
Fiscal 2025 adjusted EBITDA of $448,000,000 (13% margin); free cash flow of $44,000,000; adjusted operating earnings of $3.54 per share; 12% return on capital; net debt to adjusted EBITDA of 1.6x. Returned $155,000,000 in cash to shareholders and reinvested $224,000,000 into manufacturing and Brazil forest lands.
Negative Updates
Quarter-over-Quarter EBITDA Decline
Q4 adjusted EBITDA of $125,000,000 versus $151,000,000 in the prior quarter, a decline of $26,000,000 (~17% QoQ). Drivers included unfavorable pricing/mix (-$21,000,000), planned maintenance/outage costs (-$17,000,000), and seasonally higher Europe costs, partially offset by volume (+$18,000,000).
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Financial Strength and Returns
Fiscal 2025 adjusted EBITDA of $448,000,000 (13% margin); free cash flow of $44,000,000; adjusted operating earnings of $3.54 per share; 12% return on capital; net debt to adjusted EBITDA of 1.6x. Returned $155,000,000 in cash to shareholders and reinvested $224,000,000 into manufacturing and Brazil forest lands.
Read all positive updates
Company Guidance
Management said it will no longer provide full‑year adjusted EBITDA or free cash flow guidance (or a quarterly adjusted EBITDA outlook) but will continue to disclose selected metrics; for 2026 it guides capital spending of $245 million (including the bulk of a $145 million Eastover program that will add ~60,000 tons of uncoated freesheet and require a ~45‑day outage), characterizes 2026 as a North America transition year with ~ $65 million of negative adjusted EBITDA impacts (≈$20M from ~55,000 tons lower sales volume, ≈$20M from external sourcing/conversion/freight and ≈$25M of Eastover one‑time outage costs), an additional ≈$20M European EBITDA headwind from shipping ~80,000 tons to the U.S. (tariffs/freight), a ~$10M one‑time Riverdale energy charge in Q1 (bringing largely non‑recurring costs to roughly $95M), and a ~ $25M negative working‑capital timing impact; management expects capex to normalize in 2027 and, as markets recover and investments ramp, believes the company can generate >$300M of annual free cash flow and >15% returns on invested capital.Sylvamo Corp Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.35B | 3.77B | 3.72B | 3.63B | 2.83B |
| Gross Profit | 556.00M | 940.00M | 912.00M | 1.01B | 685.00M |
| EBITDA | 416.00M | 617.00M | 572.00M | 645.00M | 485.00M |
| Net Income | 132.00M | 302.00M | 253.00M | 118.00M | 331.00M |
Balance Sheet | |||||
| Total Assets | 2.76B | 2.60B | 2.87B | 2.71B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 135.00M | 205.00M | 220.00M | 360.00M | 159.00M |
| Total Debt | 853.00M | 804.00M | 959.00M | 1.03B | 1.40B |
| Total Liabilities | 1.80B | 1.76B | 1.97B | 2.03B | 2.42B |
| Stockholders Equity | 966.00M | 847.00M | 901.00M | 678.00M | 182.00M |
Cash Flow | |||||
| Free Cash Flow | 44.00M | 248.00M | 294.00M | 289.00M | 480.00M |
| Operating Cash Flow | 268.00M | 469.00M | 504.00M | 438.00M | 549.00M |
| Investing Cash Flow | -224.00M | -221.00M | -377.00M | 180.00M | 127.00M |
| Financing Cash Flow | -125.00M | -310.00M | -219.00M | -470.00M | -589.00M |
Sylvamo Corp Technical Analysis
Neutral
41.56
Price Trends
44.80
Negative
46.36
Negative
45.27
Negative
Market Momentum
-0.80
Negative
47.42
Neutral
60.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLVM, the sentiment is Neutral. The current price of 41.56 is above the 20-day moving average (MA) of 40.53, below the 50-day MA of 44.80, and below the 200-day MA of 45.27, indicating a neutral trend. The MACD of -0.80 indicates Negative momentum. The RSI at 47.42 is Neutral, neither overbought nor oversold. The STOCH value of 60.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $5.39B | 18.57 | 9.23% | 1.53% | -3.90% | -25.97% | |
67 Neutral | $11.62B | 4.81 | 31.48% | 1.96% | 6.65% | 47.88% | |
64 Neutral | $5.26B | 38.72 | 8.46% | 1.37% | -3.26% | -46.80% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $1.64B | 14.64 | 13.86% | 3.51% | -8.92% | -32.30% | |
44 Neutral | $239.78M | 1.93 | -2.50% | ― | -21.76% | -1214.73% | |
44 Neutral | $94.45M | -0.27 | -151.86% | 10.77% | -5.85% | 9.13% |
* Basic Materials Sector Average
SLVM
Sylvamo Corp
41.56
-15.09
-26.64%
CLW
Clearwater Paper
14.95
-9.60
-39.10%
LPX
Louisiana-Pacific
75.26
-9.27
-10.97%
MERC
Mercer International
1.41
-3.74
-72.62%
UFPI
UFP Industries
94.87
-9.42
-9.03%
SUZ
Suzano Papel e Celulose SA
9.24
0.56
6.48%
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.