Schweitzer-Mauduit International Inc.

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SWM : NYSE : Process Industries
$41.46 up 0.36 | 0.88%
Today's Range: 41.2 - 42.17
Avg. Daily Volume: 162800.0
02/21/18 - 4:02 PM ET

Financial Analysis


SCHWEITZER-MAUDUIT INTL INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. SCHWEITZER-MAUDUIT INTL INC has strong liquidity. Currently, the Quick Ratio is 1.88 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.31% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)257.8209.3
EBITDA ($mil)54.843.4
EBIT ($mil)40.032.2
Net Income ($mil)25.818.7


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)100.689.5
Total Assets ($mil)1532.01204.9
Total Debt ($mil)694.0444.3
Equity ($mil)569.1525.4


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin35.1435.5
EBITDA Margin21.2520.73
Operating Margin15.5215.38
Sales Turnover0.620.71
Return on Assets5.147.26
Return on Equity13.8216.63
Debt Q3 FY17 Q3 FY16
Current Ratio3.062.78
Debt/Capital0.550.46
Interest Expense7.43.9
Interest Coverage5.418.26


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)30.7130.55
Div / share0.420.4
EPS0.840.61
Book value / share18.5317.2
Institutional Own % n/a n/a
Avg Daily Volume161594.0142213.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 28.99 for the Paper & Forest Products industry and a discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 2.26 indicates a discount versus the S&P 500 average of 3.26 and a discount versus the industry average of 2.36. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, SCHWEITZER-MAUDUIT INTL INC proves to trade 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 16.36 Peers 28.99   SWM 9.17 Peers 8.70

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.

 

Average. 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 valuation on par 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 12.36 Peers 10.70   SWM 0.98 Peers 13.39

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

SWM is trading at a premium to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
SWM 2.26 Peers 2.36   SWM -10.49 Peers 23.68

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 1.36 Peers 1.64   SWM 11.05 Peers 13.98

Discount. 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 discount to 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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