Smurfit Westrock Plc
Smurfit Westrock Plc Fundamental Analysis
Smurfit Westrock Plc (SW) shows weak financial fundamentals with a PE ratio of 37.61, profit margin of 2.33%, and ROE of 3.62%. The company generates $28.9B in annual revenue with strong year-over-year growth of 74.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SW's fundamental strength across five key dimensions:
Efficiency Score
WeakSW struggles to generate sufficient returns from assets.
Valuation Score
ModerateSW shows balanced valuation metrics.
Growth Score
ModerateSW shows steady but slowing expansion.
Financial Health Score
ExcellentSW maintains a strong and stable balance sheet.
Profitability Score
WeakSW struggles to sustain strong margins.
Key Financial Metrics
Is SW Expensive or Cheap?
P/E Ratio
SW trades at 37.61 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SW's PEG of -3.51 indicates potential undervaluation.
Price to Book
The market values Smurfit Westrock Plc at 1.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.17 times EBITDA. This is generally considered low.
How Well Does SW Make Money?
Net Profit Margin
For every $100 in sales, Smurfit Westrock Plc keeps $2.33 as profit after all expenses.
Operating Margin
Core operations generate 5.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.62 in profit for every $100 of shareholder equity.
ROA
Smurfit Westrock Plc generates $1.46 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smurfit Westrock Plc produces operating cash flow of $3.47B, showing steady but balanced cash generation.
Free Cash Flow
Smurfit Westrock Plc produces free cash flow of $1.23B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.35 in free cash annually.
FCF Yield
SW converts 4.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.48
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SW Stacks Against Its Sector Peers
| Metric | SW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.61 | 25.25 | Worse (Expensive) |
| ROE | 3.62% | 1170.00% | Weak |
| Net Margin | 2.33% | 742.00% | Weak |
| Debt/Equity | 0.02 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.48 | 9.19 | Neutral |
| ROA | 1.46% | -6467.00% (disorted) | Weak |
SW outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smurfit Westrock Plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.34%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-63.42%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-30.40%
Industry Style: Cyclical, Growth, Discretionary
Declining