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Sylvamo Corp (SLVM)
NYSE:SLVM
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Sylvamo Corp (SLVM) AI Stock Analysis

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SLVM

Sylvamo Corp

(NYSE:SLVM)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
$47.00
▲(9.12% Upside)
Sylvamo Corp's overall stock score reflects a stable financial performance with strong cash flow and profitability margins. The valuation is attractive, offering a low P/E ratio and high dividend yield. However, technical analysis shows mixed signals, and the earnings call indicates potential challenges in key markets. The company's strategic initiatives and operational improvements are positive, but market conditions in Europe and Latin America present risks.

Sylvamo Corp (SLVM) vs. SPDR S&P 500 ETF (SPY)

Sylvamo Corp Business Overview & Revenue Model

Company DescriptionSylvamo Corp is a leading global producer of uncoated freesheet paper and related products, operating primarily in the paper manufacturing sector. The company focuses on delivering high-quality paper products for various applications, including printing, writing, and specialty uses. Sylvamo serves a diverse range of markets, including commercial printing, publishing, and packaging, leveraging its advanced manufacturing capabilities and commitment to sustainable practices.
How the Company Makes MoneySylvamo Corp generates revenue primarily through the sale of uncoated freesheet paper products to various industries, including commercial printing and publishing. The company's revenue model is based on a combination of direct sales to customers and distribution through partnerships with wholesalers and retailers. Key revenue streams include bulk orders from large printing companies and specialty paper products tailored for specific applications. Additionally, Sylvamo benefits from cost management strategies and operational efficiencies, which enhance its profitability. The company also focuses on sustainable practices, which can appeal to environmentally conscious customers and potentially lead to increased market share.

Sylvamo Corp Earnings Call Summary

Earnings Call Date:Nov 07, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted positive operational improvements, increased shareholder returns, and strategic initiatives, yet faced challenges with European market conditions, demand decline in Latin America, and the potential impact from the end of the Riverdale supply agreement.
Q3-2025 Updates
Positive Updates
Increased Sales Volume and Operational Performance
Uncoated freesheet sales volume increased by 7% quarter-over-quarter, with improved operational performance.
Significant Shareholder Returns
Returned $60 million in cash to shareholders through $18 million in dividends and $42 million in share repurchases. A new $150 million share repurchase authorization was approved.
Strong Adjusted EBITDA Performance
Achieved adjusted EBITDA of $151 million with a margin of 18%, in line with expectations.
Strategic Initiatives and Operational Improvements
Focused on operational excellence across regions, improving margins, reducing costs, and enhancing competitive position.
Secured New Customers and Partnerships
Established new strategic customers in Brazil and expanded partnerships in Latin America, increasing market presence.
Negative Updates
Challenging Market Conditions in Europe
Europe faces challenging conditions with continuous pressure on pulp and uncoated freesheet prices, although some recovery signs are emerging.
Demand Decline in Latin America
Latin American demand is down 5%, particularly affected by economic challenges in Argentina and Mexico, leading to pricing pressure.
Potential Impact of Riverdale Supply Agreement Ending
Ending the Riverdale supply agreement might impact 2026 EBITDA by $30 million and requires building 60,000 tons of inventory.
Uncertainty from U.S. Tariffs
Uncertainty from U.S. tariffs affecting North American market dynamics, though expected to stabilize.
Company Guidance
During Sylvamo's third quarter 2025 earnings call, the company provided specific guidance on its financial performance and future outlook. The adjusted EBITDA for Q3 was reported at $151 million, within the expected range of $145 million to $165 million, with a margin of 18%. The company also generated $33 million in free cash flow and achieved adjusted operating earnings of $1.44 per share. Looking ahead to the fourth quarter, Sylvamo projects adjusted EBITDA between $115 million and $130 million. They anticipate a $20 million to $25 million unfavorable impact on price and mix, primarily due to European paper prices, and expect a favorable volume impact of $15 million to $20 million, driven by Latin America and North America. Additionally, planned maintenance outages are expected to be unfavorable by $18 million. The company is also addressing supply challenges from its Riverdale mill and plans to manage inventory to mitigate impacts until Eastover's increased capacity comes online in late 2026.

Sylvamo Corp Financial Statement Overview

Summary
Sylvamo Corp demonstrates stable financial performance with strong cash flow generation and profitability margins. Despite a recent decline in revenue growth, the company maintains healthy profit margins and improved leverage position. Continued focus on revenue growth and maintaining strong cash flows will be crucial for future stability and growth.
Income Statement
65
Positive
Sylvamo Corp's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by -3.77%, which is concerning. However, the company maintains a reasonable gross profit margin of 21.69% and a net profit margin of 6.14%. The EBIT and EBITDA margins are also stable at 9.63% and 14.37%, respectively. Despite the recent revenue decline, the company has shown resilience in maintaining profitability margins.
Balance Sheet
70
Positive
The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.85 in the TTM period, indicating better leverage management compared to previous years. Return on equity is strong at 23.88%, suggesting effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.
Cash Flow
75
Positive
Sylvamo Corp's cash flow statement is robust, with a free cash flow growth rate of 12.11% in the TTM period. The operating cash flow to net income ratio is 0.65, and the free cash flow to net income ratio is 1.12, indicating strong cash generation relative to net income. This suggests good liquidity and the ability to fund operations and investments without relying heavily on external financing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.43B3.77B3.72B3.63B2.83B2.38B
Gross Profit505.00M940.00M912.00M1.01B1.19B908.00M
EBITDA325.00M617.00M559.00M645.00M468.00M352.00M
Net Income180.00M302.00M253.00M118.00M331.00M170.00M
Balance Sheet
Total Assets2.70B2.60B2.87B2.71B2.60B2.91B
Cash, Cash Equivalents and Short-Term Investments94.00M205.00M220.00M360.00M159.00M95.00M
Total Debt808.00M804.00M1.03B1.07B1.44B72.00M
Total Liabilities1.73B1.76B1.97B2.03B2.42B799.00M
Stockholders Equity977.00M847.00M901.00M678.00M182.00M2.11B
Cash Flow
Free Cash Flow274.00M469.00M294.00M289.00M473.00M284.00M
Operating Cash Flow338.00M469.00M504.00M438.00M549.00M359.00M
Investing Cash Flow-64.00M-221.00M-377.00M180.00M127.00M-79.00M
Financing Cash Flow-324.00M-310.00M-219.00M-470.00M-589.00M-350.00M

Sylvamo Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price43.07
Price Trends
50DMA
42.93
Positive
100DMA
45.16
Negative
200DMA
53.62
Negative
Market Momentum
MACD
-0.40
Negative
RSI
54.19
Neutral
STOCH
67.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLVM, the sentiment is Positive. The current price of 43.07 is above the 20-day moving average (MA) of 42.08, above the 50-day MA of 42.93, and below the 200-day MA of 53.62, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 67.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLVM.

Sylvamo Corp Risk Analysis

Sylvamo Corp disclosed 1 risk factors in its most recent earnings report. Sylvamo Corp reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Sylvamo Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$5.53B17.099.78%1.50%-3.90%-25.97%
69
Neutral
$1.74B8.2724.37%4.18%-4.03%-5.27%
65
Neutral
$5.44B25.2212.75%1.23%-3.26%-46.80%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
61
Neutral
$11.45B8.1518.34%3.64%11.48%1773.12%
48
Neutral
$296.87M-10.47%-21.76%-1214.73%
41
Neutral
$128.61M-23.39%15.63%-2.16%44.89%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLVM
Sylvamo Corp
43.07
-49.58
-53.51%
CLW
Clearwater Paper
18.08
-9.04
-33.33%
LPX
Louisiana-Pacific
78.50
-31.92
-28.91%
MERC
Mercer International
1.84
-4.46
-70.79%
UFPI
UFP Industries
92.00
-40.79
-30.72%
SUZ
Suzano Papel e Celulose SA
8.91
-1.00
-10.09%

Sylvamo Corp Corporate Events

Sylvamo Corporation Reports Strong Q3 2025 Results
Nov 8, 2025

Sylvamo Corporation, known as the world’s paper company, operates in the paper industry with a focus on transforming renewable resources into essential paper products across Europe, Latin America, and North America. Headquartered in Memphis, Tennessee, Sylvamo employs over 6,500 people and reported net sales of $3.8 billion in 2024.

Executive/Board Changes
Sylvamo Corp Board Members Resign Amid Cooperation End
Neutral
Nov 6, 2025

On November 5, 2025, Sylvamo Corporation saw the resignation of two of its board members, Karl Meyers and Mark Wilde, as part of the termination of the ‘Cooperation Period’ under the Cooperation Agreement with Atlas FRM LLC. The Atlas Group also waived its rights to recommend replacements for these directors, leading to the end of the Cooperation Period on November 13, 2025.

The most recent analyst rating on (SLVM) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Sylvamo Corp stock, see the SLVM Stock Forecast page.

Business Operations and Strategy
Sylvamo Corp Signs New Agreement with International Paper
Neutral
Oct 29, 2025

On October 27, 2025, Sylvamo North America, LLC entered into a Letter Agreement with International Paper Company and amended a Brazil Payment Agreement involving International Paper Investments and Sylvamo Papers Holding. These agreements, signed by Sylvamo Corporation’s Senior Vice President and Chief Administrative and Legal Officer, Matthew Barron, signify ongoing strategic collaborations and financial arrangements between Sylvamo and International Paper, potentially impacting their operational and financial dynamics.

The most recent analyst rating on (SLVM) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on Sylvamo Corp stock, see the SLVM Stock Forecast page.

Executive/Board Changes
Sylvamo Corp Board Member Resigns Due to Health
Neutral
Aug 22, 2025

On August 19, 2025, Stan Askren announced his resignation from the Board of Directors of Sylvamo Corporation, effective September 1, 2025, due to health reasons. His departure is not related to any disagreements with the company, and the Board has expressed gratitude for his contributions since the company’s spinoff in 2021.

The most recent analyst rating on (SLVM) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on Sylvamo Corp stock, see the SLVM Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Sylvamo Corp Announces Riverdale Mill Transition Plan
Neutral
Aug 21, 2025

On August 21, 2025, Sylvamo Corporation announced that International Paper plans to convert its Riverdale Mill’s paper machine no. 16 to produce containerboard by the third quarter of 2026. This machine currently supplies Sylvamo with 260,000 short tons of cutsize uncoated freesheet annually under a supply agreement. Although the agreement remains in place, Sylvamo has been planning for this transition since its 2021 spinoff, making strategic investments in North America to support its customers during the change.

The most recent analyst rating on (SLVM) stock is a Hold with a $47.00 price target. To see the full list of analyst forecasts on Sylvamo Corp stock, see the SLVM Stock Forecast page.

Sylvamo Corporation’s Earnings Call: Strategic Moves Amid Challenges
Aug 13, 2025

Sylvamo Corporation’s recent earnings call presented a mixed sentiment, balancing strong operational recovery and strategic investments against challenges such as negative cash flow, volume decreases, and pricing pressures in key markets. Despite these hurdles, the outlook for the third quarter remains optimistic with expected improvements in EBITDA.

Sylvamo Corporation Reports Steady Q2, Eyes Stronger H2
Aug 9, 2025

Sylvamo Corporation, a global leader in the paper industry, transforms renewable resources into essential paper products for education, communication, and entertainment, with operations spanning Europe, Latin America, and North America.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 08, 2025