Sylvamo Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Glatfelter Corp.

Sylvamo Corp.

Mercer International, Inc.

Clearwater Paper Corp.

Why is Sylvamo Corp. ?

The company has declared negative results in Mar'2025 after 3 consecutive positive quarters

ROCE(HY) Lowest at 24.37%
INTEREST COVERAGE RATIO(Q) Lowest at 681.82
RAW MATERIAL COST(Y) Grown by 41.39% (YoY)

With ROCE of 26.49%, it has a attractive valuation with a 1.81 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -44.20%, its profits have risen by 35.8% ; the PEG ratio of the company is 0.2

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -44.20% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Sylvamo Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sylvamo Corp.

-20.3%

-0.68

43.05%

S&P 500

21.51%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.61%

EBIT Growth (5y)

15.63%

EBIT to Interest (avg)

17.13

Debt to EBITDA (avg)

1.51

Net Debt to Equity (avg)

0.74

Sales to Capital Employed (avg)

2.03

Tax Ratio

24.34%

Dividend Payout Ratio

55.50%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

27.50%

ROE (avg)

44.68%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.64

EV to EBIT

9.29

EV to EBITDA

5.51

EV to Capital Employed

1.37

EV to Sales

0.69

PEG Ratio

Dividend Yield

4.57%

ROCE (Latest)

14.71%

ROE (Latest)

14.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 235 MM

INTEREST(HY)

At USD 23 MM has Grown at 43.75%

ROCE(HY)

Lowest at 10.81%

INTEREST COVERAGE RATIO(Q)

Lowest at 400

RAW MATERIAL COST(Y)

Grown by 24.91% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.47 times

NET SALES(Q)

Lowest at USD 755 MM

OPERATING PROFIT(Q)

Lowest at USD 44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.83 %

PRE-TAX PROFIT(Q)

Lowest at USD -6 MM

NET PROFIT(Q)

Lowest at USD -3 MM

EPS(Q)

Lowest at USD -0.08

Here's what is not working for Sylvamo Corp.

Pre-Tax Profit

At USD -6 MM has Fallen at -111.43%

over average net sales of the previous four periods of USD 52.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -3 MM has Fallen at -108.68%

over average net sales of the previous four periods of USD 34.56 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 235 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Lowest at 400

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 23 MM has Grown at 43.75%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Lowest at USD 755 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Sales

At USD 755 MM has Fallen at -9.88%

over average net sales of the previous four periods of USD 837.75 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 5.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD -6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD -3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Inventory Turnover Ratio

Lowest at 6.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 24.91% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales