Schweitzer-Mauduit International, Inc.
Schweitzer-Mauduit International, Inc. Fundamental Analysis
Schweitzer-Mauduit International, Inc. (SWM) shows weak financial fundamentals with a PE ratio of 16.80, profit margin of 3.86%, and ROE of 17.12%. The company generates $2.0B in annual revenue with weak year-over-year growth of -2.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SWM's fundamental strength across five key dimensions:
Efficiency Score
WeakSWM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSWM trades at attractive valuation levels.
Growth Score
ModerateSWM shows steady but slowing expansion.
Financial Health Score
ModerateSWM shows balanced financial health with some risks.
Profitability Score
WeakSWM struggles to sustain strong margins.
Key Financial Metrics
Is SWM Expensive or Cheap?
P/E Ratio
SWM trades at 16.80 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SWM's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Schweitzer-Mauduit International, Inc. at 2.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.27 times EBITDA. This is generally considered low.
How Well Does SWM Make Money?
Net Profit Margin
For every $100 in sales, Schweitzer-Mauduit International, Inc. keeps $3.86 as profit after all expenses.
Operating Margin
Core operations generate -22.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.12 in profit for every $100 of shareholder equity.
ROA
Schweitzer-Mauduit International, Inc. generates $3.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Schweitzer-Mauduit International, Inc. generates limited operating cash flow of $-81.92M, signaling weaker underlying cash strength.
Free Cash Flow
Schweitzer-Mauduit International, Inc. generates weak or negative free cash flow of $-67.98M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.24 in free cash annually.
FCF Yield
SWM converts -5.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.65
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
-0.25
vs 25 benchmark
How SWM Stacks Against Its Sector Peers
| Metric | SWM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.80 | 24.71 | Better (Cheaper) |
| ROE | 17.12% | 967.00% | Weak |
| Net Margin | 3.86% | -111111.00% (disorted) | Weak |
| Debt/Equity | 2.30 | 0.46 | Weak (High Leverage) |
| Current Ratio | 2.26 | 6.10 | Strong Liquidity |
| ROA | 3.75% | -6637.00% (disorted) | Weak |
SWM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Schweitzer-Mauduit International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.31%
Industry Style: Cyclical, Commodity, Value
GrowingEPS CAGR
-132.03%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
-66.62%
Industry Style: Cyclical, Commodity, Value
Declining