| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
SMDS Stock Overview
DS Smith Plc provides packaging solutions, paper products, and recycling services worldwide.
DS Smith Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£3.78 |
| 52 Week High | UK£4.66 |
| 52 Week Low | UK£3.56 |
| Beta | 1.13 |
| 1 Month Change | 0% |
| 3 Month Change | 0.83% |
| 1 Year Change | -1.54% |
| 3 Year Change | 17.79% |
| 5 Year Change | -14.21% |
| Change since IPO | 43.89% |
Recent News & Updates
Is DS Smith (LON:SMDS) Using Too Much Debt?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
DS Smith (LON:SMDS) Is Increasing Its Dividend To UK£0.048
The board of DS Smith Plc ( LON:SMDS ) has announced that it will be increasing its dividend by 20% on the 3rd of May...
When Should You Buy DS Smith Plc (LON:SMDS)?
While DS Smith Plc ( LON:SMDS ) might not be the most widely known stock at the moment, it received a lot of attention...
Is There An Opportunity With DS Smith Plc's (LON:SMDS) 41% Undervaluation?
Does the October share price for DS Smith Plc ( LON:SMDS ) reflect what it's really worth? Today, we will estimate the...
Shareholder Returns
| SMDS | GB Packaging | GB Market | |
|---|---|---|---|
| 7D | -4.0% | -2.0% | -0.5% |
| 1Y | -1.5% | 4.2% | 8.7% |
Return vs Industry: SMDS underperformed the UK Packaging industry which returned 4.2% over the past year.
Return vs Market: SMDS underperformed the UK Market which returned 8.7% over the past year.
Price Volatility
| SMDS volatility | |
|---|---|
| SMDS Average Weekly Movement | 3.0% |
| Packaging Industry Average Movement | 3.8% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.7% |
| 10% least volatile stocks in GB Market | 2.5% |
Stable Share Price: SMDS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: SMDS's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1940 | 28,864 | Miles Roberts | https://www.dssmith.com |
DS Smith Plc provides packaging solutions, paper products, and recycling services worldwide. 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 outdoor advertising services. It also provides various recycling and waste management services, including total waste management, paper and cardboard recycling, confidential shredding, and plastics recycling, as well as equipment for the retail, manufacturing, print and publishing, paper mills, automotive, and public sectors.
DS Smith Fundamentals Summary
| SMDS fundamental statistics | |
|---|---|
| Market Cap | UK£5.18b |
| Earnings (TTM) | UK£243.00m |
| Revenue (TTM) | UK£6.45b |
21.3x
P/E Ratio0.8x
P/S RatioIs SMDS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SMDS income statement (TTM) | |
|---|---|
| Revenue | UK£6.45b |
| Cost of Revenue | UK£5.90b |
| Gross Profit | UK£545.30m |
| Expenses | UK£302.30m |
| Earnings | UK£243.00m |
Last Reported Earnings
Oct 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.18 |
| Gross Margin | 8.46% |
| Net Profit Margin | 3.77% |
| Debt/Equity Ratio | 59.7% |
How did SMDS perform over the long term?
See historical performance and comparisonDividends
3.2%
Current Dividend Yield73%
Payout RatioDoes SMDS pay a reliable dividends?
See SMDS dividend history and benchmarks| DS Smith dividend dates | |
|---|---|
| Ex Dividend Date | Apr 07 2022 |
| Dividend Pay Date | May 03 2022 |
| Days until Ex dividend | 75 days |
| Days until Dividend pay date | 101 days |
Does SMDS pay a reliable dividends?
See SMDS dividend history and benchmarksValuation
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 (£3.78) is trading below our estimate of fair value (£7.95)
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 (21.3x) compared to the European Packaging industry average (18.5x).
PE vs Market: SMDS is poor value based on its PE Ratio (21.3x) compared to the UK market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: SMDS is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: SMDS is good value based on its PB Ratio (1.4x) compared to the XE Packaging industry average (2.4x).
Future Growth
How is DS Smith forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
18.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SMDS's forecast earnings growth (18.2% per year) is above the savings rate (0.9%).
Earnings vs Market: SMDS's earnings (18.2% per year) are forecast to grow faster than the UK market (12.1% per year).
High Growth Earnings: SMDS's earnings are forecast to grow, but not significantly.
Revenue vs Market: SMDS's revenue (2.1% per year) is forecast to grow slower than the UK market (4.9% per year).
High Growth Revenue: SMDS's revenue (2.1% 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 (12.5%).
Past Performance
How has DS Smith performed over the past 5 years?
1.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SMDS has high quality earnings.
Growing Profit Margin: SMDS's current net profit margins (3.8%) are higher than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: SMDS's earnings have grown by 1.6% per year over the past 5 years.
Accelerating Growth: SMDS's earnings growth over the past year (21.5%) exceeds its 5-year average (1.6% per year).
Earnings vs Industry: SMDS earnings growth over the past year (21.5%) exceeded the Packaging industry 8.5%.
Return on Equity
High ROE: SMDS's Return on Equity (6.5%) is considered low.
Financial Health
How is DS Smith's financial position?
Financial Position Analysis
Short Term Liabilities: SMDS's short term assets (£2.6B) do not cover its short term liabilities (£3.2B).
Long Term Liabilities: SMDS's short term assets (£2.6B) exceed its long term liabilities (£2.0B).
Debt to Equity History and Analysis
Debt Level: SMDS's net debt to equity ratio (39.7%) is considered satisfactory.
Reducing Debt: SMDS's debt to equity ratio has reduced from 103% to 59.7% over the past 5 years.
Debt Coverage: SMDS's debt is well covered by operating cash flow (33.3%).
Interest Coverage: SMDS's interest payments on its debt are well covered by EBIT (6.6x coverage).
Balance Sheet
Dividend
What is DS Smith current dividend yield, its reliability and sustainability?
3.21%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: SMDS's dividend (3.21%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: SMDS's dividend (3.21%) is low compared to the top 25% of dividend payers in the UK market (4.04%).
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 (72.8%), 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 well covered by earnings (46.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.5yrs
Average management tenure
CEO
Miles Roberts (57 yo)
11.67yrs
Tenure
UK£2,525,000
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 ($USD3.42M) is above average for companies of similar size in the UK market ($USD2.24M).
Compensation vs Earnings: Miles's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: SMDS's management team is seasoned and experienced (8.5 years average tenure).
Board Members
Experienced Board: SMDS's board of directors are not considered experienced ( 2.8 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: SMDS 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 employee growth, exchange listings and data sources
Key Information
- Name: DS Smith Plc
- Ticker: SMDS
- Exchange: LSE
- Founded: 1940
- Industry: Paper Packaging
- Sector: Materials
- Implied Market Cap: UK£5.183b
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 21:17 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/10/31 |
| Annual Earnings | 2021/04/30 |
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.