Sylvamo Corp (SLVM) AI Stock Analysis

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Sylvamo Corp

(NYSE:SLVM)

69Neutral

Sylvamo Corp's strong financial performance and attractive valuation support a solid stock score. However, technical indicators reveal weak market momentum, and significant operational challenges were highlighted during the recent earnings call. Leadership transitions are positive but are not enough to offset market and operational difficulties.

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

Market Cap

$2.41B

Dividend Yield3.42%

Average Volume (3M)335.80K

Price to Earnings (P/E)8.3

Beta (1Y)1.00

Revenue Growth0.11%

EPS Growth46.54%

CountryUS

Employees6,500

SectorBasic Materials

Sector Strength62

IndustryPaper, Lumber & Forest Products

Share Statistics

EPS (TTM)0.68

Shares Outstanding40,720,314

10 Day Avg. Volume313,538

30 Day Avg. Volume335,798

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.66

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit4.24

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$81.50

Price Target Upside54.83% Upside

Rating ConsensusHold

Number of Analyst Covering3

Sylvamo Corp Business Overview & Revenue Model

Company DescriptionSylvamo Corporation produces and supplies printing paper in Latin America, Europe, and North America. The company offers uncoated freesheet for paper products, such as cutsize and offset paper; and markets pulp, aseptic, and liquid packaging board, as well as coated unbleached kraft papers. It also produces hardwood pulp, including bleached hardwood kraft and bleached eucalyptus kraft; bleached softwood kraft; and bleached chemi-thermomechanical pulp. The company distributes its products through a variety of channels, including merchants and distributors, office product suppliers, e-commerce, retailers, and dealers. It also sells directly to converters that produce envelopes, forms, and other related products. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

How the Company Makes MoneySylvamo Corp makes money primarily through the manufacturing and sale of uncoated freesheet paper. The company's revenue model is centered around the production and distribution of various paper products used in offices, commercial settings, and industrial applications. Key revenue streams include sales of branded and private-label paper products to a diverse customer base that includes retailers, distributors, and direct consumers. Additionally, Sylvamo benefits from strategic partnerships and long-term contracts with major clients, which help stabilize its revenue flow. The company also focuses on optimizing its supply chain and production processes to manage costs effectively, contributing to its profitability.

Sylvamo Corp Financial Statement Overview

Summary

Sylvamo Corp exhibits a strong financial position with consistent revenue growth and robust cash flow generation. While the company operates with significant leverage, its effective use of equity and strong operating performance mitigate associated risks. Overall, the financial statements reflect a well-managed company with a focus on maintaining profitability and cash flow stability.

Income Statement

Positive

Sylvamo Corp demonstrated steady revenue growth over the years, with a 1.40% increase in 2024. Gross profit margins have remained robust, although net profit margins are moderate. The EBIT and EBITDA margins are solid, indicating efficient operating performance. However, the decline in gross profit from 2023 to 2024 suggests potential cost pressures.

Balance Sheet

Positive

The company's debt-to-equity ratio is relatively high, indicating significant leverage. However, the return on equity (ROE) is strong, reflecting effective use of shareholder capital. The equity ratio is moderate, suggesting a balanced approach to financing assets through equity and debt.

Cash Flow

Positive

Sylvamo Corp has shown strong operating cash flow, consistently exceeding net income, which is a positive indicator of cash generation efficiency. Free cash flow growth is impressive, particularly in 2024, reflecting effective capital management. The company maintains a healthy free cash flow to net income ratio, enhancing financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.77B	3.72B	3.63B	3.50B	3.01B
	Gross Profit
940.00M	912.00M	1.01B	1.19B	908.00M
	EBIT
444.00M	599.00M	536.00M	458.00M	194.00M
	EBITDA
617.00M	576.00M	645.00M	468.00M	352.00M
	Net Income Common Stockholders
302.00M	253.00M	336.00M	331.00M	170.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
205.00M	220.00M	360.00M	180.00M	95.00M
	Total Assets
2.60B	2.87B	2.71B	2.60B	2.91B
	Total Debt
804.00M	959.00M	1.03B	1.40B	26.00M
	Net Debt
599.00M	959.00M	672.00M	1.22B	-69.00M
	Total Liabilities
1.76B	1.97B	2.03B	2.42B	799.00M
	Stockholders Equity
847.00M	901.00M	678.00M	182.00M	2.11B
Cash Flow		Free Cash Flow
469.00M	294.00M	289.00M	473.00M	284.00M
	Operating Cash Flow
469.00M	504.00M	438.00M	549.00M	359.00M
	Investing Cash Flow
-221.00M	-377.00M	180.00M	127.00M	-79.00M
	Financing Cash Flow
-310.00M	-219.00M	-470.00M	-589.00M	-350.00M

Sylvamo Corp Technical Analysis

Technical Analysis Sentiment

Negative

Last Price52.64

Price Trends

50DMA

63.00

Negative

100DMA

70.30

Negative

200DMA

75.87

Negative

Market Momentum

MACD

-1.59

Positive

RSI

30.09

Neutral

STOCH

34.43

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLVM, the sentiment is Negative. The current price of 52.64 is below the 20-day moving average (MA) of 59.37, below the 50-day MA of 63.00, and below the 200-day MA of 75.87, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 30.09 is Neutral, neither overbought nor oversold. The STOCH value of 34.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLVM	69 Neutral	$2.41B	8.26	31.83%	3.42%	0.11%	46.54%
HCC	65 Neutral	$2.49B	23.54	5.20%	0.70%	-21.04%	-75.78%
CLW	60 Neutral	$412.41M	33.74	-8.15%	―	-15.03%	-233.06%
SID	55 Neutral	$2.16B	―	-17.19%	13.26%	-10.94%	-756.50%
RDUS	53 Neutral	$829.14M	―	-41.03%	2.56%	-2.75%	-339.59%
MERC	51 Neutral	$238.06M	―	-17.96%	7.98%	-1.37%	60.42%
Sector *	49 Neutral	$1.96B	-1.17	-21.28%	3.71%	1.14%	-30.35%

* Basic Materials Sector Average

Performance Comparison

SLVM

Sylvamo Corp

52.64

-14.18

-21.22%

CLW

Clearwater Paper

27.10

-23.15

-46.07%

MERC

Mercer International

3.76

-6.68

-63.98%

SID

Companhia Siderúrgica Nacional

1.58

-0.93

-37.05%

RDUS

Schnitzer Steel Industries

29.34

11.59

65.30%

HCC

Warrior Met Coal

45.33

-18.10

-28.54%

Sylvamo Corp Earnings Call Summary

Earnings Call Date:May 09, 2025

(Q1-2025)

% Change Since: -12.56%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook. While Sylvamo demonstrated strong leadership transitions and returned cash to shareholders, the company faced significant operational and market challenges, particularly in North America and Europe. The highlights and lowlights were fairly balanced, resulting in a neutral sentiment.

Q1-2025 Updates

Positive Updates

Successful Leadership Transition

Jean-Michel Ribiéras announced his retirement, and John Sims will become the next CEO of Sylvamo. Don Devlin has been named the new CFO, effective May 1, 2025.

Cash Returns to Shareholders

Sylvamo returned nearly $40 million in cash to shareholders, distributing $18 million via dividends and repurchasing $20 million in shares.

Adjusted EBITDA Achieved

The company achieved adjusted EBITDA of $90 million, within the expected range of $85 million to $105 million, with an 11% margin.

Future Cash Flow Expectations

Sylvamo anticipates significantly better adjusted EBITDA performance in the second half of the year due to lower maintenance costs and improved operations.

Negative Updates

Operational Challenges in North America

North America faced operational issues impacting the company by roughly $5 million to $10 million, partly due to issues at the Ticonderoga and Eastover mills.

European Business Underperformance

Sylvamo's European business underperformed due to escalating wood costs and challenging industry conditions, leading to a significant decrease in profitability.

Increased Wood Costs in Europe

The Nymolla mill experienced a $41 million increase in wood costs in 2024 due to supply constraints caused by geopolitical issues, impacting overall European performance.

Weak Demand and Supply Chain Issues

First quarter demand was weak, with apparent demand in North America down 1% and operational challenges leading to reduced sales volume.

Company Guidance

During Sylvamo's first quarter 2025 earnings call, the company provided guidance expecting second-quarter adjusted EBITDA between $75 million and $95 million. Key financial metrics for the first quarter included an adjusted EBITDA of $90 million with an 11% margin. The company highlighted $30 million in planned maintenance outages costs and a weakened demand quarter in Latin America. Sylvamo also returned nearly $40 million to shareholders through $18 million in dividends and $20 million in share repurchases. For the second quarter, the company anticipates price and mix improvements to contribute $5 million to $10 million favorably, with operations and other costs projected to be favorable by $10 million to $15 million. Input and transportation costs are expected to improve by $5 million to $10 million. The company is navigating operational challenges and expects to execute the heaviest outage quarter of the year, with planned maintenance outages projected to increase by $36 million.

Sylvamo Corp Corporate Events

Executive/Board Changes

Sylvamo Announces CEO Transition Plans

Positive

Apr 16, 2025

On April 15, 2025, Sylvamo announced the retirement of CEO Jean-Michel Ribiéras, effective December 31, 2025, with John Sims set to succeed him as CEO starting January 1, 2026. Sims, who has been with Sylvamo since its inception, will transition from his current role as CFO to COO on May 1, 2025, before taking over as CEO. Don Devlin will replace Sims as CFO, bringing extensive experience from his tenure at International Paper. This leadership transition is expected to maintain Sylvamo’s strong market position and continue its growth trajectory.

Spark’s Take on SLVM Stock

According to Spark, TipRanks’ AI Analyst, SLVM is a Neutral.

Sylvamo Corp’s strong financial performance and strategic reinvestment drive a solid stock score, countered by market challenges and weak technical indicators. The stock is attractively valued, appealing to long-term investors.

To see Spark’s full report on SLVM stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.