DS Smith
Market Cap
UK£3.5b
Last Updated
2020/04/03 20:36 UTC
Data Sources
Company Financials +
Executive Summary
DS Smith Plc designs and manufactures corrugated packaging and plastic packaging for consumer goods.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with proven track record and pays a dividend.
Similar Companies
Share Price & News
How has DS Smith's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SMDS's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-8.4%
SMDS
-0.8%
GB Packaging
-2.2%
GB Market
1 Year Return
-26.7%
SMDS
-7.8%
GB Packaging
-25.9%
GB Market
Return vs Industry: SMDS underperformed the UK Packaging industry which returned -6.1% over the past year.
Return vs Market: SMDS underperformed the UK Market which returned -25.2% over the past year.
Shareholder returns
| SMDS | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.4% | -0.8% | -2.2% |
| 30 Day | -21.8% | -17.6% | -21.7% |
| 90 Day | -34.2% | -22.4% | -29.6% |
| 1 Year | -24.3%-26.7% | -5.1%-7.8% | -22.2%-25.9% |
| 3 Year | -28.8%-39.9% | 0.05%-9.7% | -16.1%-26.6% |
| 5 Year | -13.5%-31.6% | 13.7%-2.3% | -4.6%-26.2% |
Price Volatility Vs. Market
How volatile is DS Smith's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Should We Worry About DS Smith Plc's (LON:SMDS) P/E Ratio?1 month ago | Simply Wall St
Investors In DS Smith Plc (LON:SMDS) Should Consider This, First1 month ago | Simply Wall St
Are Investors Undervaluing DS Smith Plc (LON:SMDS) By 38%?Valuation
Is DS Smith undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SMDS (£2.55) is trading below our estimate of fair value (£5.89)
Significantly Below Fair Value: SMDS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SMDS is good value based on its PE Ratio (11.5x) compared to the Packaging industry average (13.3x).
PE vs Market: SMDS is good value based on its PE Ratio (11.5x) compared to the UK market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: SMDS is poor value based on its PEG Ratio (7.1x)
Price to Book Ratio
PB vs Industry: SMDS is good value based on its PB Ratio (1.1x) compared to the XE Packaging industry average (1.3x).
Next Steps
Future Growth
How is DS Smith forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
1.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SMDS's forecast earnings growth (1.6% per year) is above the savings rate (0.5%).
Earnings vs Market: SMDS's earnings (1.6% per year) are forecast to grow slower than the UK market (15.3% per year).
High Growth Earnings: SMDS's earnings are forecast to grow, but not significantly.
Revenue vs Market: SMDS's revenue is expected to decline over the next 3 years (-0.5% per year).
High Growth Revenue: SMDS's revenue is forecast to decline over the next 3 years (-0.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SMDS's Return on Equity is forecast to be low in 3 years time (10.7%).
Next Steps
Past Performance
How has DS Smith performed over the past 5 years?
14.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SMDS has high quality earnings.
Growing Profit Margin: SMDS's current net profit margins (4.8%) are higher than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: SMDS's earnings have grown by 14.6% per year over the past 5 years.
Accelerating Growth: SMDS's earnings growth over the past year (16.5%) exceeds its 5-year average (14.6% per year).
Earnings vs Industry: SMDS earnings growth over the past year (16.5%) underperformed the Packaging industry 20.1%.
Return on Equity
High ROE: SMDS's Return on Equity (9.5%) is considered low.
Next Steps
Financial Health
How is DS Smith's financial position?
Financial Position Analysis
Short Term Liabilities: SMDS's short term assets (£2.1B) do not cover its short term liabilities (£2.5B).
Long Term Liabilities: SMDS's short term assets (£2.1B) do not cover its long term liabilities (£2.9B).
Debt to Equity History and Analysis
Debt Level: SMDS's debt to equity ratio (84.7%) is considered high.
Reducing Debt: SMDS's debt to equity ratio has increased from 70.1% to 84.7% over the past 5 years.
Debt Coverage: SMDS's debt is well covered by operating cash flow (20.2%).
Interest Coverage: SMDS's interest payments on its debt are well covered by EBIT (7.2x coverage).
Balance Sheet
Inventory Level: SMDS has a high level of physical assets or inventory.
Debt Coverage by Assets: SMDS's debt is not covered by short term assets (assets are 0.8x debt).
Next Steps
Dividend
What is DS Smith's current dividend yield, its reliability and sustainability?
6.36%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SMDS's dividend (6.36%) is higher than the bottom 25% of dividend payers in the UK market (2.68%).
High Dividend: SMDS's dividend (6.36%) is low compared to the top 25% of dividend payers in the UK market (7.57%).
Stability and Growth of Payments
Stable Dividend: SMDS's dividend payments have been volatile in the past 10 years.
Growing Dividend: SMDS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.9%), SMDS's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SMDS's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.6yrs
Average management tenure
CEO
Miles Roberts (55yo)
9.92s
Tenure
UK£3,017,000
Compensation
Mr. Miles W. Roberts has been Group Chief Executive Officer of DS Smith plc since May 4, 2010 at DS Smith Paper Limited. He served as Chief Executive at DS Smith Packaging Limited. Mr. Roberts served as th ...
CEO Compensation Analysis
Compensation vs Market: Miles's total compensation ($USD3.69M) is above average for companies of similar size in the UK market ($USD2.46M).
Compensation vs Earnings: Miles's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 9.92yrs | UK£3.02m | 0.18% £6.1m | |
| Group Finance Director & Executive Director | 6.58yrs | UK£1.55m | 0.053% £1.8m | |
| Group General Counsel & Company Secretary | 3.83yrs | no data | no data | |
| Group Investor Relations Director | 6.83yrs | no data | no data | |
| Interim Group Human Resources Director | no data | no data | no data | |
| Investor Relations Director | no data | no data | no data | |
| Head of Plastics | no data | no data | no data | |
| Head of Paper & Recycling | no data | no data | no data | |
| Head of Corrugated Packaging | no data | no data | no data | |
| Chief Financial Officer of Global Plastics and North America Packaging & Paper Divisions | 3.58yrs | no data | no data |
6.6yrs
Average Tenure
Experienced Management: SMDS's management team is seasoned and experienced (6.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 9.92yrs | UK£3.02m | 0.18% £6.1m | |
| Group Finance Director & Executive Director | 6.58yrs | UK£1.55m | 0.053% £1.8m | |
| Non-Executive Director | 0.50yr | no data | no data | |
| Independent Chairman | 8.25yrs | UK£276.00k | 0.0099% £346.5k | |
| Senior Independent Director | 0.58yr | UK£10.00k | 0.0021% £73.3k | |
| Non-Executive Director | 1yr | UK£3.00k | 0.0015% £51.0k | |
| Non-Executive Director | 5.83yrs | UK£59.00k | 0.0014% £47.5k | |
| Independent Non-Executive Director | 7.08yrs | UK£59.00k | 0.00098% £34.2k |
6.2yrs
Average Tenure
57.5yo
Average Age
Experienced Board: SMDS's board of directors are considered experienced (6.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.4%.
Top Shareholders
Company Information
DS Smith Plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: DS Smith Plc
- Ticker: SMDS
- Exchange: LSE
- Founded: 1940
- Industry: Paper Packaging
- Sector: Materials
- Market Cap: UK£3.493b
- Shares outstanding: 1.37b
- Website: https://www.dssmith.com
Number of Employees
Location
- DS Smith Plc
- Regent’s Place
- 7th Floor
- London
- Greater London
- NW1 3AX
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DITH.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 1995 |
| SMDS | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Nov 1995 |
| SMDSL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Nov 1995 |
| 1KR | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 1995 |
Biography
DS Smith Plc designs and manufactures corrugated packaging and plastic packaging for consumer goods. The company offers transit and transport, consumer, retail and shelf ready, online and e-retail, industrial, hazardous, multi-material, inserts and cushioning, and electrostatic discharge packaging products, as well as wrap arounds, trays, and bag-in-boxes; displays and promotional packaging products; corrugated pallets; Sheetfeeding products; packaging machine systems; and Sizzlepak, a stuffing material made of paper, folded in a zigzag shape, and cut into narrow strips, as well as provides packaging consultancy services. It also provides various recycling and waste management services, including total waste management, paper and cardboard recycling, confidential shredding, plastics recycling, and zero waste solutions, as well as equipment for the retail, manufacturing, print and publishing, paper mills, automotive, and public sectors. In addition, the company offers recycled corrugated case materials and specialty papers, as well as related technical and supply chain services; and manufactures and sells flexible packaging and dispensing solutions, rigid packaging solutions, and foam and injection molded products for use in the beverage, automotive, pharmaceutical, fresh produce, construction, and retail industries. It provides its packaging solutions for the food and drink, consumer goods, industrial, e-commerce and e-retail, and converter industries. The company has operations in the United Kingdom, Western Europe, Northern Europe, Central Europe, Italy, North America, Germany, and Switzerland. The company was formerly known as David S. Smith (Holdings) PLC and changed its name to DS Smith Plc in 2001. DS Smith Plc was founded in 1940 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 20:36 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/10/31 |
| Annual Earnings | 2019/04/30 |
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.