DS Smith
DS Smith Plc designs and manufactures corrugated packaging and plastic packaging for consumer goods. The last earnings update was 134 days ago. More info.
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SMDS Share Price and Events
7 Day Returns
1 Year Returns
SMDS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| DS Smith (SMDS) | 0.2% | 0.1% | 5.7% | -29.8% | -7% | 14.1% |
| GB Packaging | 2.1% | -0.2% | 6.6% | -21.4% | -4.6% | 16.3% |
| GB Market | 1.9% | 3% | 7.9% | 2.5% | 15.6% | 6.8% |
1 Year Return vs Industry and Market
- SMDS underperformed the Packaging industry which returned -21.4% over the past year.
- SMDS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Value
Is DS Smith undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
DS Smith
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for DS Smith.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 9 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 8.7% |
| Perpetual Growth Rate | 10-Year GB Government Bond Rate | 1.2% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year GB Govt Bond Rate | 1.2% |
| Equity Risk Premium | S&P Global | 6.7% |
| Packaging Unlevered Beta | Simply Wall St/ S&P Global | 0.87 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.865 (1 + (1- 19%) (43.97%)) |
1.116 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.12 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.116 * 6.65%) |
8.65% |
Discounted Cash Flow Calculation for LSE:SMDS using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for DS Smith is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (GBP, Millions) | Source |
Present Value Discounted (@ 8.65%) |
|
|---|---|---|---|
| 2019 | 346.87 | Analyst x7 | 319.26 |
| 2020 | 412.10 | Analyst x7 | 349.09 |
| 2021 | 457.73 | Analyst x7 | 356.88 |
| 2022 | 493.05 | Est @ 7.72% | 353.81 |
| 2023 | 521.50 | Est @ 5.77% | 344.43 |
| 2024 | 544.48 | Est @ 4.41% | 330.98 |
| 2025 | 563.28 | Est @ 3.45% | 315.15 |
| 2026 | 578.97 | Est @ 2.79% | 298.14 |
| 2027 | 592.39 | Est @ 2.32% | 280.76 |
| 2028 | 604.18 | Est @ 1.99% | 263.55 |
| Present value of next 10 years cash flows | £3,212.05 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= £604.18 × (1 + 1.23%) ÷ (8.65% – 1.23%) |
£8,239.08 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= £8,239.08 ÷ (1 + 8.65%)10 |
£3,593.99 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= £3,212.05 + £3,593.99 |
£6,806.04 |
| Equity Value per Share (GBP) |
= Total value / Shares Outstanding
= £6,806.04 / 1,370.29 |
£4.97 |
| Calculation | Result | |
|---|---|---|
| Value per share (GBP) | From above. | £4.97 |
| Current discount | Discount to share price of
£3.56
= -1 x (£3.56 - £4.97) / £4.97 |
28.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- DS Smith's share price is below the future cash flow value, and at a moderate discount (> 20%).
- DS Smith's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for DS Smith's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
DS Smith's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-10-31) in GBP | £0.24 |
| LSE:SMDS Share Price ** | LSE (2019-04-18) in GBP | £3.56 |
| United Kingdom of Great Britain and Northern Ireland Packaging Industry PE Ratio | Median Figure of 5 Publicly-Listed Packaging Companies | 17.02x |
| United Kingdom of Great Britain and Northern Ireland Market PE Ratio | Median Figure of 796 Publicly-Listed Companies | 16.29x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of DS Smith.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = LSE:SMDS Share Price ÷ EPS (both in GBP) = 3.56 ÷ 0.24 |
14.82x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- DS Smith is good value based on earnings compared to the GB Packaging industry average.
- DS Smith is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does
DS Smith's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 14.82x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
17.5%per year |
| Europe Packaging Industry PEG Ratio | Median Figure of 17 Publicly-Listed Packaging Companies | 1.72x |
| United Kingdom of Great Britain and Northern Ireland Market PEG Ratio | Median Figure of 563 Publicly-Listed Companies | 1.47x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 14.82x ÷ 17.5% |
0.85x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- DS Smith is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
DS Smith's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-10-31) in GBP | £2.51 |
| LSE:SMDS Share Price * | LSE (2019-04-18) in GBP | £3.56 |
| United Kingdom of Great Britain and Northern Ireland Packaging Industry PB Ratio | Median Figure of 6 Publicly-Listed Packaging Companies | 0.97x |
| United Kingdom of Great Britain and Northern Ireland Market PB Ratio | Median Figure of 1,365 Publicly-Listed Companies | 1.51x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = LSE:SMDS Share Price ÷ Book Value per Share (both in GBP) = 3.56 ÷ 2.51 |
1.42x |
* Primary Listing of DS Smith.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- DS Smith is overvalued based on assets compared to the GB Packaging industry average.
Value checks
We assess DS Smith's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Packaging industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Packaging industry average (and greater than 0)? (1 check) DS Smith has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is DS Smith expected to perform in the next 1 to 3 years based on estimates from 9 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- DS Smith's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
- DS Smith's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
- DS Smith's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| LSE:SMDS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | 17.5% |
| LSE:SMDS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | 6.4% |
| United Kingdom of Great Britain and Northern Ireland Packaging Industry Earnings Growth Rate | Market Cap Weighted Average | 12.8% |
| Europe Packaging Industry Revenue Growth Rate | Market Cap Weighted Average | 4.7% |
| United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate | Market Cap Weighted Average | 10.9% |
| United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate | Market Cap Weighted Average | 4.8% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-04-30 | 7,503 | 1 | ||
| 2021-04-30 | 7,212 | 784 | 440 | 8 |
| 2020-04-30 | 7,008 | 691 | 455 | 9 |
| 2019-04-30 | 6,289 | 613 | 322 | 9 |
| Date (Data in GBP Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-10-31 | 6,175 | 494 | 283 |
| 2018-07-31 | 5,970 | 474 | 271 |
| 2018-04-30 | 5,765 | 453 | 259 |
| 2018-01-31 | 5,358 | 493 | 221 |
| 2017-10-31 | 5,087 | 539 | 191 |
| 2017-07-31 | 4,934 | 531 | 200 |
| 2017-04-30 | 4,781 | 523 | 209 |
| 2017-01-31 | 4,626 | 468 | 211 |
| 2016-10-31 | 4,470 | 413 | 212 |
| 2016-07-31 | 4,268 | 388 | 190 |
| 2016-04-30 | 4,066 | 363 | 167 |
| 2016-01-31 | 3,934 | 378 | 149 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (5 months ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
All data from DS Smith Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2022-04-30 | ||||
| 2021-04-30 | 0.32 | 0.35 | 0.29 | 3.00 |
| 2020-04-30 | 0.33 | 0.44 | 0.28 | 4.00 |
| 2019-04-30 | 0.24 | 0.25 | 0.23 | 4.00 |
| Date (Data in GBP Millions) | EPS * |
|---|---|
| 2018-10-31 | 0.24 |
| 2018-07-31 | 0.21 |
| 2018-04-30 | 0.25 |
| 2018-01-31 | 0.22 |
| 2017-10-31 | 0.20 |
| 2017-07-31 | |
| 2017-04-30 | 0.22 |
| 2017-01-31 | 0.22 |
| 2016-10-31 | 0.22 |
| 2016-07-31 | 0.20 |
| 2016-04-30 | 0.18 |
| 2016-01-31 | 0.16 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess DS Smith's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
DS Smith has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has DS Smith performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- DS Smith's year on year earnings growth rate has been positive over the past 5 years.
- DS Smith's 1-year earnings growth exceeds its 5-year average (48.2% vs 15.8%)
- DS Smith's earnings growth has exceeded the Europe Packaging industry average in the past year (48.2% vs 6.5%).
Earnings and Revenue History
All data from DS Smith Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in GBP Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-10-31 | 6,175.00 | 283.00 | 3.00 | |
| 2018-07-31 | 5,970.00 | 271.00 | 3.50 | |
| 2018-04-30 | 5,765.00 | 259.00 | 4.00 | |
| 2018-01-31 | 5,357.50 | 220.50 | 4.00 | |
| 2017-10-31 | 5,087.00 | 191.00 | 4.00 | |
| 2017-07-31 | 4,934.00 | 200.00 | 4.50 | |
| 2017-04-30 | 4,781.00 | 209.00 | 5.00 | |
| 2017-01-31 | 4,625.50 | 210.50 | 5.50 | |
| 2016-10-31 | 4,470.00 | 212.00 | 6.00 | |
| 2016-07-31 | 4,268.00 | 189.50 | 6.00 | |
| 2016-04-30 | 4,066.00 | 167.00 | 6.00 | |
| 2016-01-31 | 3,934.00 | 149.00 | 6.00 | |
| 2015-10-31 | 3,802.00 | 131.00 | 6.00 | |
| 2015-07-31 | 3,811.00 | 143.50 | 6.00 | |
| 2015-04-30 | 3,820.00 | 156.00 | 6.00 | |
| 2014-10-31 | 3,925.00 | 169.00 | 6.00 | |
| 2014-07-31 | 3,980.00 | 156.00 | 6.50 | |
| 2014-04-30 | 4,035.00 | 143.00 | 7.00 | |
| 2013-10-31 | 4,078.20 | 94.80 | -583.10 | |
| 2013-07-31 | 3,873.60 | 80.90 | -288.05 | |
| 2013-04-30 | 3,669.00 | 67.00 | 7.00 | |
| 2012-10-31 | 2,606.70 | 21.50 | 746.70 | |
| 2012-07-31 | 2,288.05 | 14.75 | 531.75 | |
| 2012-04-30 | 1,969.40 | 8.00 | 316.80 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- DS Smith has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- DS Smith used its assets more efficiently than the GB Packaging industry average last year based on Return on Assets.
- DS Smith's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess DS Smith's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Packaging industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
DS Smith has a total score of 4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is DS Smith's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up DS Smith's finances.
The net worth of a company is the difference between its assets and liabilities.
- DS Smith is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- DS Smith's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from DS Smith Company Filings, last reported 5 months ago.
| Date (Data in GBP Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-10-31 | 3,231.00 | 2,147.00 | 435.00 |
| 2018-07-31 | 3,231.00 | 2,147.00 | 435.00 |
| 2018-04-30 | 2,110.00 | 2,002.00 | 297.00 |
| 2018-01-31 | 2,110.00 | 2,002.00 | 297.00 |
| 2017-10-31 | 2,025.00 | 2,005.00 | 558.00 |
| 2017-07-31 | 2,025.00 | 2,005.00 | 558.00 |
| 2017-04-30 | 1,355.00 | 1,279.00 | 139.00 |
| 2017-01-31 | 1,355.00 | 1,279.00 | 139.00 |
| 2016-10-31 | 1,303.00 | 1,359.00 | 134.00 |
| 2016-07-31 | 1,303.00 | 1,359.00 | 134.00 |
| 2016-04-30 | 1,140.00 | 1,277.00 | 134.00 |
| 2016-01-31 | 1,140.00 | 1,277.00 | 134.00 |
| 2015-10-31 | 1,045.00 | 1,108.00 | 140.00 |
| 2015-07-31 | 1,045.00 | 1,108.00 | 140.00 |
| 2015-04-30 | 1,018.00 | 796.00 | 96.00 |
| 2014-10-31 | 1,133.00 | 800.00 | 90.00 |
| 2014-07-31 | 1,133.00 | 800.00 | 90.00 |
| 2014-04-30 | 1,131.00 | 916.00 | 98.00 |
| 2013-10-31 | 1,156.90 | 932.10 | 161.10 |
| 2013-07-31 | 1,156.90 | 932.10 | 161.10 |
| 2013-04-30 | 1,085.00 | 962.00 | 116.00 |
| 2012-10-31 | 1,094.40 | 936.90 | 99.90 |
| 2012-07-31 | 1,094.40 | 936.90 | 99.90 |
| 2012-04-30 | 1,057.50 | 332.30 | 664.60 |
- DS Smith's level of debt (66.5%) 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 (80.6% vs 66.5% today).
- Debt is well covered by operating cash flow (23%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 8x coverage).
Financial health checks
We assess DS Smith's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) DS Smith has a total score of 5/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is DS Smith's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
£2,000 of
DS Smith
shares you are expected to receive
£83
in your first year as a dividend.
Dividend Amount
- DS Smith's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
- DS Smith's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Europe Packaging Industry Average Dividend Yield | Market Cap Weighted Average of 24 Stocks | 3.2% |
| United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield | Market Cap Weighted Average of 705 Stocks | 4.2% |
| United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield | 10th Percentile | 1% |
| United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield | 25th Percentile | 2% |
| United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield | 75th Percentile | 5.2% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in £) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2022-04-30 | 0.21 | 1.00 |
| 2021-04-30 | 0.19 | 11.00 |
| 2020-04-30 | 0.18 | 12.00 |
| 2019-04-30 | 0.16 | 10.00 |
| Date (Data in £) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-06-18 | 0.147 | 3.797 |
| 2017-07-11 | 0.152 | 3.000 |
| 2017-06-29 | 0.152 | 3.142 |
| 2016-07-21 | 0.128 | 3.044 |
| 2016-06-23 | 0.128 | 3.324 |
| 2015-06-29 | 0.114 | 2.936 |
| 2015-06-25 | 0.114 | 2.931 |
| 2014-12-04 | 0.105 | 3.033 |
| 2014-08-15 | 0.100 | 3.693 |
| 2014-06-26 | 0.100 | 3.709 |
| 2013-06-27 | 0.080 | 2.671 |
| 2012-07-25 | 0.059 | 2.840 |
| 2012-06-28 | 0.059 | 3.951 |
| 2011-06-23 | 0.065 | 3.509 |
| 2010-06-24 | 0.046 | 2.604 |
| 2010-06-23 | 0.046 | 3.810 |
| 2009-12-10 | 0.030 | 2.429 |
| 2009-11-02 | 0.030 | 2.486 |
| 2009-06-29 | 0.044 | 5.069 |
| 2009-04-20 | 0.088 | 12.105 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
DS Smith's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are covered by earnings (1.6x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
Income/ dividend checks
We assess DS Smith's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can DS Smith afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) DS Smith has a total score of 4/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | £4,045,000 |
| AGE | 54 |
| TENURE AS CEO | 8.9 years |
CEO Bio
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 the Chief Executive of McBride plc from July 2005 to April 2010 and joined as its Group Finance Director. At McBride plc, he has led a programme to deliver significant growth and improved shareholder value. He was Senior Independent Director of Poundland Group Limited until September 2016 and Independent Non-Executive Director since October 30, 2014. He has been an Executive Director of DS Smith plc since May 4, 2010. He brought to the Board extensive financial experience. He was a Non-Executive Director of Aggreko plc since March 07, 2017. He gained an engineering degree at Bristol University. Following his engineering degree he qualified as chartered accountant. His Key strengths: • Clear strategic mindset • Strong leadership skills
CEO Compensation
- Miles's compensation has been consistent with company performance over the past year.
- Miles's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure
Average tenure of the DS Smith management team in years:
- The average tenure for the DS Smith management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Miles Roberts
Group Chief Executive & Executive Director
£4M
54
8.9 yrs
Adrian R. Marsh
Group Finance Director & Executive Director
£2M
51
5.6 yrs
Rachel Stevens
Investor Relations Director
Iain Simm
Group General Counsel & Company Secretary
2.8 yrs
Hugo Fisher
Group Communications Director
5.8 yrs
Alan Taylor
Interim Group Human Resources Director
Jean Lienhardt
Head of Packaging - Spain & South East Region and Divisional Chief Executive of DS Smith Kaysersberg
Mark Smith
Head of Plastics
Colin McIntyre
Head of Paper & Recycling
Stefano Rossi
Head of Corrugated Packaging
Board of Directors Tenure
Average tenure and age of the DS Smith board of directors in years:
- The tenure for the DS Smith board of directors is about average.
Board of Directors
Gareth Davis
Chairman
£269K
68
7.3 yrs
Miles Roberts
Group Chief Executive & Executive Director
£4M
54
8.9 yrs
Adrian R. Marsh
Group Finance Director & Executive Director
£2M
51
5.6 yrs
Jonathan Nicholls
Senior Independent Director
£75K
60
6.8 yrs
Kathleen O’Donovan
Non-Executive Director
£68K
61
6.3 yrs
Chris Britton
Non-Executive Director
£57K
60
6.1 yrs
Louise Smalley
Non-Executive Director
£57K
50
4.8 yrs
Rupert Soames
Non-Executive Director
59
0.1 yrs
David Robbie
Non-Executive Director
54
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (£) | Value (£) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 07. Dec 18 | Buy | Adrian R. Marsh | Individual | 07. Dec 18 | 07. Dec 18 | 15,922 | £3.12 | £49,721 | ||
| 06. Dec 18 | Buy | Jonathan Nicholls | Individual | 06. Dec 18 | 06. Dec 18 | 15,000 | £3.19 | £47,857 | ||
| 07. Sep 18 | Buy | Adrian R. Marsh | Individual | 04. Sep 18 | 04. Sep 18 | 7,978 | £5.03 | £40,106 | ||
Management checks
We assess DS Smith's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) DS Smith has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Need To Know: DS Smith Plc (LON:SMDS) Insiders Have Been Buying Shares
So before you buy or sell DS Smith Plc (LON:SMDS), you may well want to know whether insiders have been buying or selling. … DS Smith Insider Transactions Over The Last Year. … While DS Smith insiders bought shares last year, they didn't sell
Simply Wall St - – Full articleRead This Before You Buy DS Smith Plc (LON:SMDS) Because Of Its P/E Ratio
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how DS Smith Plc's (LON:SMDS) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleStocks Take A Hit: How Will DS Smith Plc (LON:SMDS) Fare?
This is when all the stock prices start falling around the same time. … This is the best time to buy stocks like DS Smith Plc at a discount. … DS Smith Plc designs and manufactures corrugated packaging and plastic packaging for consumer goods
Simply Wall St - – Full articleThese Factors Make DS Smith Plc (LON:SMDS) An Interesting Investment
As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.
Simply Wall St - – Full articleShould You Worry About DS Smith Plc's (LON:SMDS) CEO Salary Level?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Miles Roberts's Compensation Compare With Similar Sized Companies. … According to our data, DS Smith Plc has a market capitalization of UK£4.7b, and pays its CEO total annual compensation worth UK£4.0m.
Simply Wall St - – Full articleBefore Investing In DS Smith Plc (LON:SMDS), Consider This
Two important questions to ask before you buy DS Smith Plc (LON:SMDS) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of DS Smith’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash DS Smith has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.
Simply Wall St - – Full articleShould DS Smith Plc (LON:SMDS) Be Part Of Your Dividend Portfolio?
Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, DS Smith Plc (LON:SMDS) has paid a dividend to shareholders. … Let's take a look at DS Smith in more detail.
Simply Wall St - – Full articleAre DS Smith Plc's (LON:SMDS) Interest Costs Too High?
Mid-caps stocks, like DS Smith Plc (LON:SMDS) with a market capitalization of UK£4.6b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis.
Simply Wall St - – Full articleDS Smith Plc (LON:SMDS): Is Growth Priced In?
Growth expectations for DS Smith Plc (LON:SMDS) are high, but many investors are starting to ask whether its last close at £3.372 can still be rationalized by the future potential. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Want to help shape the future of investing tools and platforms.
Simply Wall St - – Full articleWith A Return On Equity Of 8.8%, Has DS Smith Plc's (LON:SMDS) Management Done Well?
With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each £1 of shareholders' equity it has, the company made £0.088 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleCompany Info
Description
DS Smith Plc designs and manufactures corrugated packaging and plastic packaging for consumer goods. It provides 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. The company serves the food and drinks, consumer goods, industrial, e-commerce, e-retail, and converters markets. It also provides various recycling and waste management services, including paper, cardboard, mixed dry, and plastics recycling services; confidential security shredding services; organics and food products; general waste recycling and shredding services; zero waste solutions; and added value services to medium and large corporates, and small businesses in the retail, manufacturing, print and publishing, public, and automotive sectors. In addition, the company offers recycled corrugated case materials and specialty papers; offers 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 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.
Details
| Name: | DS Smith Plc |
| SMDS | |
| Exchange: | LSE |
| Founded: | 1940 |
| £4,882,356,563 | |
| 1,370,293,731 | |
| Website: | http://www.dssmith.com |
| Address: |
DS Smith Plc Regent’s Place, 7th Floor, London, Greater London, NW1 3AX, United Kingdom |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| LSE | SMDS | Ordinary Shares | London Stock Exchange | GB | GBP | 07. Nov 1995 | |
| OTCPK | DITH.F | Ordinary Shares | Pink Sheets LLC | US | USD | 07. Nov 1995 | |
| DB | 1KR | Ordinary Shares | Deutsche Boerse AG | DE | EUR | 07. Nov 1995 | |
| BATS-CHIXE | SMDSL | Ordinary Shares | BATS 'Chi-X Europe' | GB | GBP | 07. Nov 1995 |
Number of employees
Current staff
Industry
| Paper Packaging | |
| Materials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 20:35 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/12 |
| Last earnings filing: | 2018/12/06 |
| Last earnings reported: | 2018/10/31 |
| Last annual earnings reported: | 2018/04/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
