DB:SK3

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Smurfit Kappa Group

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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

Stable Share Price: SK3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

SK3

3.0%

DE Packaging

2.0%

DE Market


1 Year Return

16.9%

SK3

14.0%

DE Packaging

-2.6%

DE Market

Return vs Industry: SK3 exceeded the German Packaging industry which returned 10.9% over the past year.

Return vs Market: SK3 exceeded the German Market which returned -3.9% over the past year.


Shareholder returns

SK3IndustryMarket
7 Day0.8%3.0%2.0%
30 Day11.2%7.0%8.4%
90 Day-10.7%-3.7%-7.3%
1 Year18.2%16.9%16.2%14.0%-1.0%-2.6%
3 Year27.3%18.2%12.9%2.8%-6.6%-13.9%
5 Year25.0%9.0%39.3%20.0%1.1%-11.7%

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 compared to its fair value and its price relative to the market?

14.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SK3 (€29.42) is trading above our estimate of fair value (€23.55)

Significantly Below Fair Value: SK3 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SK3 is good value based on its PE Ratio (14.6x) compared to the Packaging industry average (15.1x).

PE vs Market: SK3 is good value based on its PE Ratio (14.6x) compared to the German market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SK3 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: SK3 is overvalued based on its PB Ratio (2.4x) compared to the XE Packaging industry average (1.8x).


Next Steps

Future Growth

How is Smurfit Kappa Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SK3's forecast earnings growth (13.8% per year) is above the savings rate (0.2%).

Earnings vs Market: SK3's earnings (13.8% per year) are forecast to grow slower than the German market (21.7% per year).

High Growth Earnings: SK3's earnings are forecast to grow, but not significantly.

Revenue vs Market: SK3's revenue (0.4% per year) is forecast to grow slower than the German market (5.6% per year).

High Growth Revenue: SK3's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SK3's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

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

-29.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SK3 has a large one-off loss of €188.0M impacting its December 31 2019 financial results.

Growing Profit Margin: SK3 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SK3's earnings have declined by -29% per year over the past 5 years.

Accelerating Growth: SK3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SK3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Packaging industry (16%).


Return on Equity

High ROE: SK3's Return on Equity (16.2%) is considered low.


Next Steps

Financial Health

How is Smurfit Kappa Group's financial position?


Financial Position Analysis

Short Term Liabilities: SK3's short term assets (€2.7B) exceed its short term liabilities (€2.2B).

Long Term Liabilities: SK3's short term assets (€2.7B) do not cover its long term liabilities (€4.7B).


Debt to Equity History and Analysis

Debt Level: SK3's debt to equity ratio (110.7%) is considered high.

Reducing Debt: SK3's debt to equity ratio has reduced from 131.2% to 110.7% over the past 5 years.

Debt Coverage: SK3's debt is well covered by operating cash flow (35.1%).

Interest Coverage: SK3's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.73%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SK3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SK3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SK3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SK3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SK3 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SK3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Tony J. Smurfit (56yo)

4.67yrs

Tenure

€1,963,000

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

Compensation vs Market: Tony's total compensation ($USD2.14M) is below average for companies of similar size in the German market ($USD3.58M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Paul J. Smurfit
Group CEO & Director4.67yrs€1.96m0.54% 37.5m
Ken Bowles
Group CFO & Director3.42yrs€1.10m0.024% 1.7m
Brian Marshall
Group General Counsel21.33yrsno datano data
Ruth Cosgrove
Group Director of Communications1.33yrsno datano data
Steven Stoffer
Group Vice President Development15.33yrsno datano data
Sharon Whitehead
Group Vice President Human Resources1.33yrsno datano data
Laurent Sellier
Chief Operations Officer of Paper Europe4.58yrsno datano data
Paul Regan
Group Treasurer25.33yrsno data0.033% 2.3m
Michael O'Riordan
Group Company Secretary20.33yrsno data0.053% 3.7m
Juan Guillermo Castañeda Regalado
Chief Executive Officer of the Americas6.33yrsno data0.016% 1.1m

5.5yrs

Average Tenure

57yo

Average Age

Experienced Management: SK3's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Paul J. Smurfit
Group CEO & Director4.67yrs€1.96m0.54% 37.5m
Ken Bowles
Group CFO & Director3.42yrs€1.10m0.024% 1.7m
Frits Beurskens
Non-Executive Director14.42yrs€150.00k0.0022% 156.2k
James Lawrence
Independent Non-Executive Director4.58yrs€90.00k0.14% 9.9m
Irial Finan
Independent Non-Executive Chairman1yr€277.00k0.0075% 519.4k
John Moloney
Independent Non-Executive Director6.42yrs€117.00k0.0034% 235.6k
Jørgen Rasmussen
Independent Non-Executive Director3.17yrs€93.00k0.0010% 72.5k
Gonzalo Restrepo López
Senior Independent Director0.42yr€93.00kno data
Carol Fairweather
Independent Non-Executive Director2.33yrs€130.00k0.0013% 88.5k
Anne Anderson
Independent Non Executive Director1.33yrs€88.00k0.0015% 108.1k

3.3yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SK3's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SK3 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: €6.972b
  • Shares outstanding: 236.97m
  • Website: https://www.smurfitkappa.com

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 SharesIEEURMar 2007
SKGLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPMar 2007
SK3DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURMar 2007
SMFT.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDMar 2007
SK3IBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBEURMar 2007
SKGLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPMar 2007
SMFK.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2012

Biography

Smurfit Kappa Group plc, together with its subsidiaries, manufactures, distributes, and sells paper-based packaging products. It operates in two segments, Europe and the Americas. The company offers consumer, retail, industrial, ecommerce, heavy-duty corrugated, and hexacomb packaging products, as well as composite cardboard tubes, and bags and sacks; and bag-in-box, a single-use packaging system that comprises films, accessories, bags, taps, and boxes. It also provides point of sale displays; automated packing lines; various types of containerboards, such as Kraftliners, testliners, and containerboard flutings; and corrugated sheet boards, solid board sheets, folding carton sheet boards, sack Kraft papers, MG Kraft papers, preprints, printing and writing papers, pine and eucalyptus seedlings, and bleached eucalyptus Kraft pulp, as well as agro paper. In addition, the company offers recycling solutions to cardboard and paper products, as well as operates as a finance company. It primarily serves food and drink, consumer goods, and industrial goods sectors. Smurfit Kappa Group plc was founded in 1934 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 06:26
End of Day Share Price2020/05/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.