Sylvamo Corp (SLVM) AI Stock Analysis

• Market Cap: $2.04B
• Dividend Yield: 3.59%
• Average Volume (3M): 297.28K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 1.04
• Revenue Growth: 0.11%
• EPS Growth: 46.54%
• Country: US
• Employees: 6,500
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.68
• Shares Outstanding: 40,722,730
• 10 Day Avg. Volume: 216,339
• 30 Day Avg. Volume: 297,276
• PEG Ratio: 3.67
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.38
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 1.23
• 1Y Price Target: $61.00
• Price Target Upside: 21.56% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: $54.00 ▲(7.61%Upside)

Sylvamo Corp's overall stock score reflects a combination of strong valuation metrics and financial stability, offset by negative technical indicators and operational challenges highlighted in the earnings call. The leadership transition is viewed positively, suggesting potential for strategic continuity and growth.

Sylvamo Corp Business Overview & Revenue Model

Company Description

Sylvamo Corporation is a global paper company that specializes in the production and distribution of uncoated freesheet paper. Headquartered in Memphis, Tennessee, Sylvamo operates in the paper and forest products industry, offering a range of paper products used for communication, education, and commercial printing purposes. The company is dedicated to sustainable practices and maintains a strong presence in North America, Latin America, and Europe.

How the Company Makes Money

Sylvamo makes money primarily through the manufacturing and sale of uncoated freesheet paper, which is used for various applications such as printing, writing, and digital imaging. Key revenue streams include sales to commercial printers, paper distributors, office supply companies, and retailers. The company benefits from strategic partnerships with suppliers and customers, as well as its focus on operational efficiency and sustainability, which helps to maintain competitive pricing and quality. Additionally, Sylvamo's global reach allows it to capitalize on market opportunities across different regions, contributing to its overall earnings.

Sylvamo Corp Financial Statement Overview

Summary

Sylvamo Corp presents a solid financial profile with commendable profitability margins and cash flow ratios. Despite a slight revenue decline and significant debt levels, the stable profitability and robust cash generation capabilities underscore financial strength. Focus on revenue growth and debt reduction could enhance further stability.

Income Statement

Sylvamo Corp shows a stable income statement with decent profitability margins. The Gross Profit Margin for TTM is 24.66%, and the Net Profit Margin is 7.75%. EBIT Margin stands at 11.30% and EBITDA Margin at 15.70%, indicating healthy core business operations. However, the TTM revenue of $3.689 billion reflects a slight decline compared to the previous year's $3.773 billion, showing a negative revenue growth rate of -2.23%.

Balance Sheet

The balance sheet reflects moderate leverage and equity stability. The Debt-to-Equity Ratio is 0.90, suggesting manageable debt levels. Return on Equity (TTM) is 31.50%, indicating strong profitability relative to equity. The Equity Ratio is 34.53%, showing a reasonable proportion of equity financing. However, total debt remains significant at $817 million, implying potential financial risk.

Cash Flow

Sylvamo Corp's cash flow statement suggests robust cash generation capabilities. Operating Cash Flow to Net Income Ratio is 1.63, and Free Cash Flow to Net Income Ratio is 1.44, both indicating efficient cash conversion. Although Free Cash Flow decreased from the previous year, the company maintained solid operational cash flow at $465 million. The Free Cash Flow Growth Rate is -11.95%, reflecting a contraction that requires monitoring.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.69B	3.77B	3.72B	3.63B	3.50B	3.01B
	Gross Profit
910.00M	940.00M	912.00M	1.01B	1.19B	908.00M
	EBIT
417.00M	444.00M	403.00M	536.00M	458.00M	194.00M
	EBITDA
579.00M	617.00M	576.00M	645.00M	468.00M	352.00M
	Net Income Common Stockholders
286.00M	302.00M	253.00M	336.00M	331.00M	170.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
154.00M	205.00M	220.00M	360.00M	180.00M	95.00M
	Total Assets
2.63B	2.60B	2.87B	2.71B	2.60B	2.91B
	Total Debt
817.00M	804.00M	959.00M	1.03B	1.40B	26.00M
	Net Debt
817.00M	599.00M	959.00M	672.00M	1.22B	-69.00M
	Total Liabilities
1.72B	1.76B	1.97B	2.03B	2.42B	799.00M
	Stockholders Equity
908.00M	847.00M	901.00M	678.00M	182.00M	2.11B
Cash Flow		Free Cash Flow
413.00M	469.00M	294.00M	289.00M	473.00M	284.00M
	Operating Cash Flow
465.00M	469.00M	504.00M	438.00M	549.00M	359.00M
	Investing Cash Flow
-209.00M	-221.00M	-377.00M	180.00M	127.00M	-79.00M
	Financing Cash Flow
-306.00M	-310.00M	-219.00M	-470.00M	-589.00M	-350.00M

Sylvamo Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 50.18 is below the 20-day moving average (MA) of 52.99, below the 50-day MA of 56.32, and below the 200-day MA of 73.10, indicating a bearish trend. The MACD of -1.75 indicates Positive momentum. The RSI at 32.27 is Neutral, neither overbought nor oversold. The STOCH value of 4.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLVM.

Sylvamo Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLVM	65 Neutral	$2.04B	7.35	31.83%	3.59%	0.11%	46.54%
HCC	64 Neutral	$2.47B	23.35	5.20%	0.68%	-21.04%	-75.78%
CLW	60 Neutral	$434.84M	33.74	-8.15%	―	-15.03%	-233.06%
Sector *	51 Neutral	$1.99B	-1.26	-21.11%	5.30%	2.92%	-30.46%
SID	49 Neutral	$1.96B	―	-16.28%	12.34%	-9.84%	-14783.33%
RDUS	49 Neutral	$835.91M	―	-41.03%	2.53%	-2.75%	-339.59%
MERC	48 Neutral	$229.37M	―	-17.96%	8.75%	-1.37%	60.42%

Sylvamo Corp Corporate Events

Sylvamo Corp Updates By-Laws and Elects Directors

On May 15, 2025, Sylvamo Corporation’s Board of Directors approved the second amended and restated By-Laws, which include revisions to procedures for stockholder proposals and director nominations, updates to majority voting provisions, and other administrative changes. At the annual stockholders’ meeting on the same day, the election of ten directors was confirmed, Deloitte & Touche LLP was ratified as the independent auditor, and executive compensation was approved on a non-binding advisory basis.

The most recent analyst rating on (SLVM) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Sylvamo Corp stock, see the SLVM Stock Forecast page.

Sylvamo Announces CEO Transition Plans

On April 15, 2025, Sylvamo announced the retirement of CEO Jean-Michel Ribiéras, effective December 31, 2025, with John Sims set to succeed him as CEO starting January 1, 2026. Sims, who has been with Sylvamo since its inception, will transition from his current role as CFO to COO on May 1, 2025, before taking over as CEO. Don Devlin will replace Sims as CFO, bringing extensive experience from his tenure at International Paper. This leadership transition is expected to maintain Sylvamo’s strong market position and continue its growth trajectory.