DB:SK3

Stock Analysis Report

Smurfit Kappa Group

Executive Summary

Smurfit Kappa Group plc, together with its subsidiaries, manufactures, distributes, and sells paper-based packaging products.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Smurfit Kappa Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.0%

DB:SK3

0%

DE Packaging

0.3%

DE Market


1 Year Return

-23.7%

DB:SK3

-5.6%

DE Packaging

-11.7%

DE Market

SK3 underperformed the Packaging industry which returned -12.9% over the past year.

SK3 underperformed the Market in Germany which returned -11.7% over the past year.


Share holder returns

SK3IndustryMarket
7 Day7.0%0%0.3%
30 Day5.2%1.0%-2.3%
90 Day1.1%1.0%-1.1%
1 Year-21.0%-23.7%-2.4%-5.6%-8.9%-11.7%
3 Year29.9%17.8%14.2%4.1%22.9%12.2%
5 Year80.1%55.2%28.4%17.1%23.2%6.1%

Price Volatility Vs. Market

How volatile is Smurfit Kappa Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Smurfit Kappa Group undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Smurfit Kappa Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Smurfit Kappa Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Smurfit Kappa Group is loss making, we can't compare its value to the Europe Packaging industry average.

Smurfit Kappa Group is loss making, we can't compare the value of its earnings to the Germany market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Smurfit Kappa Group, we can't assess if its growth is good value.


Price Based on Value of Assets

Smurfit Kappa Group is overvalued based on assets compared to the Europe Packaging industry average.


Next Steps

Future Growth

How is Smurfit Kappa Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

65.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Smurfit Kappa Group's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

Smurfit Kappa Group's earnings are expected to grow significantly at over 20% yearly.

Smurfit Kappa Group's revenue growth is positive but not above the Germany market average.

Smurfit Kappa Group's earnings growth is expected to exceed the Germany market average.

Smurfit Kappa Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Smurfit Kappa Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Smurfit Kappa Group performed over the past 5 years?

-6.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Smurfit Kappa Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Smurfit Kappa Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Smurfit Kappa Group's 1-year growth to the Europe Packaging industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Smurfit Kappa Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Smurfit Kappa Group has efficiently used its assets last year compared to the Europe Packaging industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Smurfit Kappa Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Smurfit Kappa Group's financial position?


Financial Position Analysis

Smurfit Kappa Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Smurfit Kappa Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Smurfit Kappa Group's level of debt (122.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (123.1% vs 122.7% today).

Debt is well covered by operating cash flow (29.1%, greater than 20% of total debt).

Smurfit Kappa Group is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

What is Smurfit Kappa Group's current dividend yield, its reliability and sustainability?

4.06%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Smurfit Kappa Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).

Smurfit Kappa Group's dividend is below the markets top 25% of dividend payers in Germany (3.91%).

Whilst dividend payments have been stable, Smurfit Kappa Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but Smurfit Kappa Group only paid a dividend in the past 7 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

What is the CEO of Smurfit Kappa Group's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Tony Smurfit (55yo)

3.8yrs

Tenure

€2,167,000

Compensation

Mr. Anthony Paul J. Smurfit, also known as Tony, has been Group Chief Executive Officer of Smurfit Kappa Group plc since September 1, 2015. Mr. Smurfit served as the Chief Operating Officer of Smurfit Kapp ...


CEO Compensation Analysis

Tony's remuneration is lower than average for companies of similar size in Germany.

Tony's compensation has increased whilst company is loss making.


Management Age and Tenure

4.6yrs

Average Tenure

56yo

Average Age

The tenure for the Smurfit Kappa Group management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

62.5yo

Average Age

The tenure for the Smurfit Kappa Group board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

Buy€248,57617 Dec 18
W. I. O'Mahony
EntityIndividual
Shares10,000
Max Price€24.86
Buy€200,34010 Dec 18
Irial Finan
EntityIndividual
Role
Chairman of the Board
Shares9,000
Max Price€22.26

Ownership Breakdown


Management Team

  • Steven Stoffer (60yo)

    Group Vice President Development

    • Tenure: 14.4yrs
  • Ruth Cosgrove

    Group Director of Communications

    • Tenure: 0.4yrs
  • Ken Bowles (47yo)

    Group CFO & Director

    • Tenure: 3.2yrs
    • Compensation: €1.17m
  • Sharon Whitehead (44yo)

    Group Vice President Human Resources

    • Tenure: 0.4yrs
  • R. Guillermo Castañeda (57yo)

    Chief Executive Officer of the Americas

    • Tenure: 5.4yrs
  • Laurent Sellier

    Chief Operations Officer of Paper Europe

    • Tenure: 3.7yrs
  • Tony Smurfit (55yo)

    Group CEO & Director

    • Tenure: 3.8yrs
    • Compensation: €2.17m
  • Paul Regan (55yo)

    Group Treasurer

    • Tenure: 24.4yrs
  • Brian Marshall (61yo)

    Group General Counsel

    • Tenure: 20.4yrs
  • Michael O'Riordan (61yo)

    Group Company Secretary

    • Tenure: 19.4yrs

Board Members

  • Frits Beurskens (71yo)

    Non-Executive Director

    • Tenure: 13.5yrs
    • Compensation: €135.00k
  • Christel Bories (54yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: €90.00k
  • Ken Bowles (47yo)

    Group CFO & Director

    • Tenure: 2.5yrs
    • Compensation: €1.17m
  • Carol Fairweather (57yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: €117.00k
  • John Moloney (64yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: €90.00k
  • Irial Finan (61yo)

    Chairman

    • Tenure: 0.1yrs
    • Compensation: €130.00k
  • Tony Smurfit (55yo)

    Group CEO & Director

    • Tenure: 30.4yrs
    • Compensation: €2.17m
  • Roberto Newell García (70yo)

    Senior Independent Director

    • Tenure: 2.1yrs
    • Compensation: €130.00k
  • Jim Lawrence (66yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: €90.00k
  • Gonzalo Restrepo López (67yo)

    Independent Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: €90.00k

Company Information

Smurfit Kappa Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smurfit Kappa Group plc
  • Ticker: SK3
  • Exchange: DB
  • Founded: 1934
  • Industry: paper packaging
  • Sector: materials
  • Market Cap: €6.297b
  • Shares outstanding: 236.74m
  • Website: Click here

Number of Employees


Location

  • Smurfit Kappa Group plc
  • Beech Hill
  • Clonskeagh
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SK3ISE (Irish Stock Exchange)YesNew Ordinary SharesIEEURJan 1970
SKGLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPJan 1970
SK3DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURJan 1970
SMFT.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDJan 1970
SK3IBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEURJan 1970
SKGLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPJan 1970
SMFK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 1970

Biography

Smurfit Kappa Group plc, together with its subsidiaries, manufactures, distributes, and sells paper-based packaging products. It operates through two segments, Europe and the Americas. The company offers c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/17 21:04
End of Day Share Price2019/06/17 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.