* Note: Prices are in Million (M) USD.
Description:
Smurfit Westrock Plc, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company is headquartered in Dublin, Ireland.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $855 M
Debt : $12,542 M
EBITDA : $3,575 M
Net Debt (Debt - Cash): $11,687 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: NA
Industry: NA
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.32
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $294 M
Average Revenue: $12,405 M
Revenue Converted To Free Cash FLow(%): 2%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 23.55%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $20,385 M
Revenue 4 Years Ago (2020-12-31): $8,530 M
Last 5 Years Average Revenue Growth: 28%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $389 M
Share Count 5 Years Ago (2020-12-31): $241 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.30
Trailing 12-Month Earnings Per Share (EPS): $1.82
Average Earnings Per Share (EPS): $2.56
Dividend Per Share (DPS): $1
Payout Ratio: 40%
Dividend Yield: 4%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 14%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $44
52-Week Low: $37
Threshold Price (15% Above 52-Week Low): $42
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $24,597 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Smurfit WestRock plc (SW) stock.
Last 1 Years Avg PE (Limited to last 1 years of EPS data) 38, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 15. Based on these all values average assigned is 20.75.
Value-Trades has assined P/E value 20.75. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.5609.
The fair value of Smurfit WestRock plc (SW) stock should be (20.75 x $2.5609) = $53.14
