DS Smith
Market Cap
UK£5.8b
Last Updated
2021/05/16 18:04 UTC
Data Sources
Company Financials +
Executive Summary
DS Smith Plc designs and manufactures corrugated packaging and plastic packaging for consumer goods. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value average dividend payer.
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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SMDS's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.7%
SMDS
-1.0%
GB Packaging
-1.2%
GB Market
1 Year Return
42.9%
SMDS
40.8%
GB Packaging
27.6%
GB Market
Return vs Industry: SMDS exceeded the UK Packaging industry which returned 40.8% over the past year.
Return vs Market: SMDS exceeded the UK Market which returned 27.6% over the past year.
Shareholder returns
| SMDS | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.7% | -1.0% | -1.2% |
| 30 Day | 0.4% | 1.6% | 0.6% |
| 90 Day | 2.9% | 2.8% | 5.3% |
| 1 Year | 44.2%42.9% | 44.5%40.8% | 33.1%27.6% |
| 3 Year | -11.7%-23.9% | 21.9%11.1% | 11.1%-1.6% |
| 5 Year | 37.4%10.9% | 71.8%48.1% | 48.7%20.7% |
Long-Term 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
6 days ago | Simply Wall St
How Many DS Smith Plc (LON:SMDS) Shares Did Insiders Buy, In The Last Year?3 weeks ago | Simply Wall St
Is There Now An Opportunity In DS Smith Plc (LON:SMDS)?1 month ago | Simply Wall St
Only Four Days Left To Cash In On DS Smith's (LON:SMDS) DividendValuation
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 (£4.22) is trading below our estimate of fair value (£9.76)
Significantly Below Fair Value: SMDS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SMDS is poor value based on its PE Ratio (28.9x) compared to the European Packaging industry average (17.9x).
PE vs Market: SMDS is poor value based on its PE Ratio (28.9x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: SMDS is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: SMDS is good value based on its PB Ratio (1.7x) compared to the XE Packaging industry average (2.2x).
Future Growth
How is DS Smith forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
29.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SMDS's forecast earnings growth (29.2% per year) is above the savings rate (0.9%).
Earnings vs Market: SMDS's earnings (29.2% per year) are forecast to grow faster than the UK market (17.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SMDS's revenue (3.2% per year) is forecast to grow slower than the UK market (5.3% per year).
High Growth Revenue: SMDS's revenue (3.2% per year) is forecast to grow slower than 20% 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 (11.3%).
Past Performance
How has DS Smith performed over the past 5 years?
10.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SMDS has high quality earnings.
Growing Profit Margin: SMDS's current net profit margins (3.5%) are lower than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: SMDS's earnings have grown by 10.9% per year over the past 5 years.
Accelerating Growth: SMDS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SMDS had negative earnings growth (-34.2%) over the past year, making it difficult to compare to the Packaging industry average (11.7%).
Return on Equity
High ROE: SMDS's Return on Equity (5.7%) is considered low.
Financial Health
How is DS Smith's financial position?
Financial Position Analysis
Short Term Liabilities: SMDS's short term assets (£2.0B) do not cover its short term liabilities (£2.3B).
Long Term Liabilities: SMDS's short term assets (£2.0B) do not cover its long term liabilities (£2.9B).
Debt to Equity History and Analysis
Debt Level: SMDS's debt to equity ratio (69.2%) is considered high.
Reducing Debt: SMDS's debt to equity ratio has reduced from 104.9% to 69.2% over the past 5 years.
Debt Coverage: SMDS's debt is well covered by operating cash flow (26.5%).
Interest Coverage: SMDS's interest payments on its debt are well covered by EBIT (6.2x coverage).
Balance Sheet
Dividend
What is DS Smith current dividend yield, its reliability and sustainability?
1.90%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SMDS's dividend (1.9%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: SMDS's dividend (1.9%) is low compared to the top 25% of dividend payers in the UK market (4.09%).
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 reasonably low payout ratio (27.4%), SMDS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: SMDS's dividends in 3 years are forecast to be well covered by earnings (46.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.7yrs
Average management tenure
CEO
Miles Roberts (56 yo)
11yrs
Tenure
UK£1,468,000
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 ($USD2.07M) is about average for companies of similar size in the UK market ($USD2.25M).
Compensation vs Earnings: Miles's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SMDS's management team is seasoned and experienced (7.7 years average tenure).
Board Members
Experienced Board: SMDS's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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£5.788b
- 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
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, industr...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/16 18:04 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2020/10/31 |
| Annual Earnings | 2020/04/30 |
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.