Schweitzer-Mauduit International Inc

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SWM : NYSE : Consumer Goods
$38.5 up 0.24 | 0.63%
Today's Range: 38.2 - 38.93
Avg. Daily Volume: 139100.0
08/22/17 - 4:02 PM ET

Financial Analysis


SCHWEITZER-MAUDUIT INTL INC's gross profit margin for the second 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 1.88 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.

During the same period, stockholders' equity ("net worth") has increased by 5.50% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)255.3217.3
EBITDA ($mil)56.449.8
EBIT ($mil)41.138.5
Net Income ($mil)22.326.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)97.8143.8
Total Assets ($mil)1511.01243.5
Total Debt ($mil)721.1510.5
Equity ($mil)544.7516.3


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin36.035.99
EBITDA Margin22.0922.91
Operating Margin16.117.72
Sales Turnover0.590.66
Return on Assets4.747.6
Return on Equity13.1618.26
Debt Q2 FY17 Q2 FY16
Current Ratio3.123.48
Debt/Capital0.570.5
Interest Expense6.84.1
Interest Coverage6.049.39


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)30.7130.55
Div / share0.420.4
EPS0.720.85
Book value / share17.7416.9
Institutional Own % n/a n/a
Avg Daily Volume145937.0142495.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.29 for the Paper & Forest Products industry and a discount compared to the S&P 500 average of 24.23. Conducting a second comparison, its price-to-book ratio of 2.15 indicates a discount versus the S&P 500 average of 3.02 and a premium versus the industry average of 2.13. 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 16.36 Peers 24.29   SWM 9.53 Peers 7.79

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 11.21 Peers 12.93   SWM 0.98 Peers 0.54

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 2.15 Peers 2.13   SWM -24.60 Peers 349.60

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 1.31 Peers 1.43   SWM 8.53 Peers 9.07

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

SWM is keeping pace with its peers on the basis of sales growth.

 

 

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