DS Smith Plc
DS Smith Plc Fundamental Analysis
DS Smith Plc (DSSMY) shows weak financial fundamentals with a PE ratio of 19.81, profit margin of 5.64%, and ROE of 9.59%. The company generates $27.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze DSSMY's fundamental strength across five key dimensions:
Efficiency Score
WeakDSSMY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentDSSMY trades at attractive valuation levels.
Growth Score
ModerateDSSMY shows steady but slowing expansion.
Financial Health Score
ModerateDSSMY shows balanced financial health with some risks.
Profitability Score
WeakDSSMY struggles to sustain strong margins.
Key Financial Metrics
Is DSSMY Expensive or Cheap?
P/E Ratio
DSSMY trades at 19.81 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, DSSMY's PEG of -0.63 indicates potential undervaluation.
Price to Book
The market values DS Smith Plc at 1.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 27.25 times EBITDA. This signals the market has high growth expectations.
How Well Does DSSMY Make Money?
Net Profit Margin
For every $100 in sales, DS Smith Plc keeps $5.64 as profit after all expenses.
Operating Margin
Core operations generate 8.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.59 in profit for every $100 of shareholder equity.
ROA
DS Smith Plc generates $4.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
DS Smith Plc generates limited operating cash flow of $1.28B, signaling weaker underlying cash strength.
Free Cash Flow
DS Smith Plc generates weak or negative free cash flow of $-910.29M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.66 in free cash annually.
FCF Yield
DSSMY converts -0.74% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How DSSMY Stacks Against Its Sector Peers
| Metric | DSSMY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.81 | 24.38 | Better (Cheaper) |
| ROE | 9.59% | 1159.00% | Weak |
| Net Margin | 5.64% | -390.00% (disorted) | Weak |
| Debt/Equity | 0.70 | 0.78 | Neutral |
| Current Ratio | 0.86 | 2.60 | Weak Liquidity |
| ROA | 4.16% | -30346.00% (disorted) | Weak |
DSSMY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews DS Smith Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
EPS CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary
FCF CAGR
N/A
Industry Style: Cyclical, Growth, Discretionary