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Sylvamo Corp
(NYSE:SLVM)
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Rating:59Neutral
Price Target:
$43.00
▲(12.36% Upside)
Action:Reiterated
Date:08/09/26
SLVM scores 59 primarily due to mixed financial performance: improving top-line trends and a steadier balance sheet are outweighed by materially lower margins and weak cash conversion versus prior years. Valuation is supportive (mid-teens P/E and ~4.8% yield), and technicals show a modest near-term uptrend, but the earnings call reinforces a transition-year setup with a hoped-for H2 recovery that carries outage/volume and Europe-related execution risk.
Positive Factors
Integrated manufacturing and distribution
Vertical integration across pulp, paper mills and distribution gives Sylvamo durable control over feedstock conversion, quality and logistics. That structural setup supports margin resilience, quicker response to regional demand shifts and cost management advantages versus pure-play distributors.
Negative Factors
Weak cash conversion
Earnings are not translating efficiently into cash, limiting internal funding for capex, dividends or debt reduction. Persistently low cash conversion raises reliance on external financing during downturns and increases execution risk for multi‑year projects and stated cash/ROIC targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated manufacturing and distribution
Vertical integration across pulp, paper mills and distribution gives Sylvamo durable control over feedstock conversion, quality and logistics. That structural setup supports margin resilience, quicker response to regional demand shifts and cost management advantages versus pure-play distributors.
Read all positive factors
Sylvamo Corp Key Performance Indicators (KPIs)
Sylvamo Corp (SLVM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.60B
Dividend Yield4.53%
Average Volume (3M)311.75K
Price to Earnings (P/E)20.8
Beta (1Y)1.05
Revenue Growth-7.13%
EPS Growth-64.17%
CountryUS
Employees6,500
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)1.88
Shares Outstanding39,760,242
10 Day Avg. Volume307,306
30 Day Avg. Volume311,753
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)2.00
Price to Sales (P/S)0.58
P/FCF Ratio43.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$46.67Price Target Upside21.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.54
Revenue Forecast (FY)$3.31B
Sylvamo Corp Business Overview & Revenue Model
Company Description
Sylvamo Corporation produces and markets uncoated freesheet for cutsize, offset paper, and pulp in Europe, Latin America, and North America. It offers copy, tinted, and colored laser printing paper under the REY brand; and graphic and high-speed i...
How the Company Makes Money
Sylvamo makes money primarily by manufacturing and selling uncoated freesheet paper (printing and writing grades) to a variety of commercial channels. Revenue is generated from (1) paper sales to distributors, merchants, and large end users (inclu...
Sylvamo Corp Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed but constructive tone: the company reported meaningful sequential improvement (adjusted EBITDA more than doubled to $60M, improved free cash flow trends, and successful implementation of price increases) and provided clear, quantified expectations for second-half price/mix benefits ($75M–$85M) and tangible progress on high-return Eastover investments that should drive multi-year benefits. However, material near-term challenges remain — including negative free cash flow in the quarter, an extended outage at Eastover, lost Riverdale volumes, persistent European market weakness (with a strategic review underway), tariff-related sourcing disruptions, and some input cost pressures — which create uncertainty before the second-half recovery. Given the balance of notable operational and financial improvements against significant headwinds and execution risk, the overall sentiment is Neutral.Positive Updates
Sequential Adjusted EBITDA Improvement
Adjusted EBITDA more than doubled sequentially from $29 million in Q1 to $60 million in Q2, representing a margin of 7%.
Negative Updates
Transition Year Headwinds and Negative Free Cash Flow
2026 characterized as a transition year due to the termination of the Riverdale supply agreement and an extended Eastover outage. Free cash flow remained negative $23 million in Q2 despite improvement, and the company called 2025–2026 low points for FCF generation.
Read all updates
Q2-2026 Updates
Positive
Negative
Sequential Adjusted EBITDA Improvement
Adjusted EBITDA more than doubled sequentially from $29 million in Q1 to $60 million in Q2, representing a margin of 7%.
Read all positive updates
Company Guidance
Management said 2026 is a transition year and expects materially stronger H2 results, calling for a $75–$85 million benefit from better price and mix versus H1 (about 70% of that from price) with most realization through Q3 and at run‑rate by end‑Q4; adjusted EBITDA was $60 million in Q2 (7% margin) versus $29 million in Q1, adjusted operating earnings were $0.03 per share, free cash flow was -$23 million (a $36 million sequential improvement) with the majority of FCF expected in H2 and working capital (including a ~50,000‑ton North America inventory build) to unwind by year‑end; they expect operations and other costs to improve in H2 (except the Nymölla debarking drum) but planed outages will be unfavorable ~ $5 million in H2 and Eastover’s extended outage will reduce North American production (compounded by the ~90k‑ton Riverdale supply loss, partially offset over time by a 60,000‑ton annual Eastover speed‑up for a net ~40k ton gap); strategic Eastover projects add ~60k tons capacity, ~$50 million of annual benefits (with ~$30–$40 million in 2027), the sheeter/PM speed‑up plus warehouse expansion contribute ~ $55 million/year and >$5 million/year savings respectively, and longer term Sylvamo targets >$300 million FCF annually and >15% ROIC while driving OME +400 bps, a 3–5x uplift to 2022–25 annual cash cost improvement, employee NPS >50 (currently 46), customer NPS +20 points and >90% perfect order.Sylvamo Corp Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.30B | 3.35B | 3.77B | 3.72B | 3.63B | 2.83B |
| Gross Profit | 672.00M | 735.00M | 940.00M | 912.00M | 1.01B | 685.00M |
| EBITDA | 363.00M | 423.00M | 617.00M | 572.00M | 645.00M | 485.00M |
| Net Income | 76.00M | 132.00M | 302.00M | 253.00M | 118.00M | 331.00M |
Balance Sheet | ||||||
| Total Assets | 2.88B | 2.76B | 2.60B | 2.87B | 2.71B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 123.00M | 135.00M | 205.00M | 220.00M | 360.00M | 159.00M |
| Total Debt | 964.00M | 853.00M | 804.00M | 959.00M | 1.03B | 1.40B |
| Total Liabilities | 1.92B | 1.80B | 1.76B | 1.97B | 2.03B | 2.42B |
| Stockholders Equity | 955.00M | 966.00M | 847.00M | 901.00M | 678.00M | 182.00M |
Cash Flow | ||||||
| Free Cash Flow | 99.00M | 44.00M | 248.00M | 294.00M | 289.00M | 480.00M |
| Operating Cash Flow | 209.00M | 268.00M | 469.00M | 504.00M | 438.00M | 549.00M |
| Investing Cash Flow | -219.00M | -224.00M | -221.00M | -377.00M | 180.00M | 127.00M |
| Financing Cash Flow | 19.00M | -125.00M | -310.00M | -219.00M | -470.00M | -589.00M |
Sylvamo Corp Technical Analysis
Positive
38.27
Price Trends
38.64
Positive
39.50
Positive
42.75
Negative
Market Momentum
0.33
Negative
54.57
Neutral
71.22
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 38.27 is below the 20-day moving average (MA) of 38.45, below the 50-day MA of 38.64, and below the 200-day MA of 42.75, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 71.22 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $9.99B | 4.39 | 25.27% | 2.57% | 3.06% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $706.43M | 7.86 | 19.47% | 4.58% | 1.06% | ― | |
59 Neutral | $1.60B | 20.77 | 7.84% | 4.70% | -7.13% | -64.17% | |
58 Neutral | $368.20M | -7.46 | -6.13% | ― | -1.93% | 48.75% | |
58 Neutral | $21.89B | -6.34 | -22.39% | 4.39% | 10.34% | -7165.92% | |
42 Neutral | $34.18M | -0.06 | -242.96% | 11.18% | -4.81% | -372.95% |
* Basic Materials Sector Average
SLVM
Sylvamo Corp
38.43
-5.38
-12.29%
CLW
Clearwater Paper
22.10
-0.67
-2.94%
IP
International Paper Co
41.14
-5.28
-11.37%
MERC
Mercer International
0.48
-2.57
-84.20%
MATV
Mativ Holdings
12.50
1.76
16.35%
SUZ
Suzano Papel e Celulose SA
8.02
-1.78
-18.13%
Sylvamo Corp Corporate Events
Executive/Board ChangesShareholder Meetings
Sylvamo Shareholders Approve Directors and Auditor at Meeting
Neutral
May 18, 2026
Sylvamo Corp. held its annual meeting of stockholders on May 15, 2026, with 33,470,136 shares present in person or by proxy out of 39,735,377 shares entitled to vote, representing an 84% quorum. Shareholders voted on three proposals, reflecting br...
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.