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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


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

SMDSIndustryMarket
7 Day-1.7%-1.0%-1.2%
30 Day0.4%1.6%0.6%
90 Day2.9%2.8%5.3%
1 Year44.2%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 Year37.4%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

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 (£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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/16 18:04
End of Day Share Price2021/05/14 00:00
Earnings2020/10/31
Annual Earnings2020/04/30


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.