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SMDS

DS SmithLSE:SMDS Stock Report

Last Price

UK£3.78

Market Cap

UK£5.2b

7D

-4.0%

1Y

-1.5%

Updated

21 Jan, 2022

Data

Company Financials +
SMDS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends4/6

SMDS Stock Overview

DS Smith Plc provides packaging solutions, paper products, and recycling services worldwide.

DS Smith Competitors

Weyerhaeuser

NYSE:WY

US$28.7b

UPM-Kymmene Oyj

HLSE:UPM

€18.9b

Amcor

ASX:AMC

AU$25.2b

Stora Enso Oyj

HLSE:STERV

€13.6b

Price History & Performance

Summary of all time highs, changes and price drops for DS Smith
Historical stock prices
Current Share PriceUK£3.78
52 Week HighUK£4.66
52 Week LowUK£3.56
Beta1.13
1 Month Change0%
3 Month Change0.83%
1 Year Change-1.54%
3 Year Change17.79%
5 Year Change-14.21%
Change since IPO43.89%

Recent News & Updates

Dec 29
Is DS Smith (LON:SMDS) Using Too Much Debt?

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...

Dec 12
DS Smith (LON:SMDS) Is Increasing Its Dividend To UK£0.048

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...

Nov 11
When Should You Buy DS Smith Plc (LON:SMDS)?

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...

Oct 18
Is There An Opportunity With DS Smith Plc's (LON:SMDS) 41% Undervaluation?

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

SMDSGB PackagingGB 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

Is SMDS's price volatile compared to industry and market?
SMDS volatility
SMDS Average Weekly Movement3.0%
Packaging Industry Average Movement3.8%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.7%
10% least volatile stocks in GB Market2.5%

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

FoundedEmployeesCEOWebsite
194028,864Miles Robertshttps://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

How do DS Smith's earnings and revenue compare to its market cap?
SMDS fundamental statistics
Market CapUK£5.18b
Earnings (TTM)UK£243.00m
Revenue (TTM)UK£6.45b

21.3x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMDS income statement (TTM)
RevenueUK£6.45b
Cost of RevenueUK£5.90b
Gross ProfitUK£545.30m
ExpensesUK£302.30m
EarningsUK£243.00m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.18
Gross Margin8.46%
Net Profit Margin3.77%
Debt/Equity Ratio59.7%

How did SMDS perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

73%

Payout Ratio

Does SMDS pay a reliable dividends?

See SMDS dividend history and benchmarks
When do you need to buy SMDS by to receive an upcoming dividend?
DS Smith dividend dates
Ex Dividend DateApr 07 2022
Dividend Pay DateMay 03 2022
Days until Ex dividend75 days
Days until Dividend pay date101 days

Does SMDS pay a reliable dividends?

See SMDS dividend history and benchmarks

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 (£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

TodayJan 22 2022Ex Dividend DateApr 07 2022Dividend Pay DateMay 03 202226 days from Ex DividendBuy in the next 75 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 21:17
End of Day Share Price2022/01/21 00:00
Earnings2021/10/31
Annual Earnings2021/04/30


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.