Sylvamo Corp Fundamental Analysis (NYSE: SLVM)
Sylvamo Corp Fundamental Analysis (NYSE: SLVM)
Sylvamo Corp (NYSE: SLVM) shows weak financial fundamentals with a PE ratio of 19.07, profit margin of 2.31%, and ROE of 7.84%. The company generates $3.3B in annual revenue with weak year-over-year growth of -11.18%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SLVM's fundamental strength across five key dimensions:
Efficiency Score
WeakSLVM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSLVM trades at attractive valuation levels.
Growth Score
WeakSLVM faces weak or negative growth trends.
Financial Health Score
ModerateSLVM shows balanced financial health with some risks.
Profitability Score
WeakSLVM struggles to sustain strong margins.
Key Financial Metrics
Is SLVM Expensive or Cheap?
P/E Ratio
SLVM trades at 19.07 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SLVM's PEG of -0.30 indicates potential undervaluation.
Price to Book
The market values Sylvamo Corp at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.68 times EBITDA. This is generally considered low.
How Well Does SLVM Make Money?
Net Profit Margin
For every $100 in sales, Sylvamo Corp keeps $2.31 as profit after all expenses.
Operating Margin
Core operations generate 5.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.84 in profit for every $100 of shareholder equity.
ROA
Sylvamo Corp generates $2.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sylvamo Corp generates limited operating cash flow of $208.66M, signaling weaker underlying cash strength.
Free Cash Flow
Sylvamo Corp produces free cash flow of $98.84M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.49 in free cash annually.
FCF Yield
SLVM converts 6.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SLVM Stacks Against Its Sector Peers
| Metric | SLVM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.07 | 27.31 | Better (Cheaper) |
| ROE | 7.84% | 1175.00% | Weak |
| Net Margin | 2.31% | 198.00% | Weak |
| Debt/Equity | 1.01 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.47 | 3.13 | Neutral |
| ROA | 2.64% | 2742.00% | Weak |
SLVM outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sylvamo Corp's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.46%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-14.64%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-17.93%
Industry Style: Cyclical, Commodity, Value
Declining