Schweitzer-Mauduit International Inc

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SWM : NYSE : Consumer Goods
$36.53 -0.8 | -2.14%
Today's Range: 36.33 - 37.26
Avg. Daily Volume: 148100.0
06/27/17 - 4:02 PM ET

Financial Analysis


SCHWEITZER-MAUDUIT INTL INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. SCHWEITZER-MAUDUIT INTL INC has strong liquidity. Currently, the Quick Ratio is 1.68 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.96% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)233.3214.6
EBITDA ($mil)44.444.4
EBIT ($mil)27.833.6
Net Income ($mil)13.721.1


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)99.8200.2
Total Assets ($mil)1487.51330.0
Total Debt ($mil)726.1582.3
Equity ($mil)517.7502.8


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin34.1634.62
EBITDA Margin19.0320.68
Operating Margin11.9215.66
Sales Turnover0.580.59
Return on Assets5.066.91
Return on Equity14.5618.45
Debt Q1 FY17 Q1 FY16
Current Ratio2.83.5
Debt/Capital0.580.54
Interest Expense5.84.6
Interest Coverage4.797.3


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)30.6930.55
Div / share0.420.4
EPS0.450.69
Book value / share16.8716.46
Institutional Own % n/a n/a
Avg Daily Volume146614.0125649.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 20.71 for the Paper & Forest Products industry and a significant discount compared to the S&P 500 average of 25.75. Conducting a second comparison, its price-to-book ratio of 2.19 indicates a discount versus the S&P 500 average of 3.09 and a premium versus the industry average of 2.19. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, SCHWEITZER-MAUDUIT INTL INC seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
SWM 14.99 Peers 20.71   SWM 9.02 Peers 8.10

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

SWM is trading at a significant discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

SWM is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
SWM 10.85 Peers 12.56   SWM 0.88 Peers 0.34

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

SWM is trading at a valuation on par with its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

SWM trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SWM 2.19 Peers 2.19   SWM -19.08 Peers 895.19

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

SWM is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, SWM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
SWM 1.32 Peers 1.36   SWM 8.58 Peers 10.79

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

SWM is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

SWM trails its peers on the basis of sales growth

 

 

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