company background image
SMDS

DS Smith LSE:SMDS Stock Report

Last Price

UK£2.95

Market Cap

UK£4.1b

7D

4.8%

1Y

-32.5%

Updated

14 Aug, 2022

Data

Company Financials +
SMDS fundamental analysis
Snowflake Score
Valuation5/6
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

Price History & Performance

Summary of all time highs, changes and price drops for DS Smith
Historical stock prices
Current Share PriceUK£2.95
52 Week HighUK£4.66
52 Week LowUK£2.64
Beta1.07
1 Month Change4.17%
3 Month Change-3.28%
1 Year Change-32.49%
3 Year Change-6.06%
5 Year Change-40.76%
Change since IPO12.37%

Recent News & Updates

Aug 06
Here's Why DS Smith (LON:SMDS) Can Manage Its Debt Responsibly

Here's Why DS Smith (LON:SMDS) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 22
DS Smith (LON:SMDS) Is Increasing Its Dividend To £0.102

DS Smith (LON:SMDS) Is Increasing Its Dividend To £0.102

DS Smith Plc's ( LON:SMDS ) dividend will be increasing from last year's payment of the same period to £0.102 on 1st of...

Jul 08
DS Smith's (LON:SMDS) Dividend Will Be Increased To UK£0.10

DS Smith's (LON:SMDS) Dividend Will Be Increased To UK£0.10

DS Smith Plc ( LON:SMDS ) has announced that it will be increasing its dividend on the 1st of November to UK£0.10. This...

Jun 24
DS Smith's (LON:SMDS) Dividend Will Be Increased To UK£0.10

DS Smith's (LON:SMDS) Dividend Will Be Increased To UK£0.10

DS Smith Plc ( LON:SMDS ) has announced that it will be increasing its dividend on the 1st of November to UK£0.10. This...

Shareholder Returns

SMDSGB PackagingGB Market
7D4.8%2.8%0.4%
1Y-32.5%-19.5%-9.0%

Return vs Industry: SMDS underperformed the UK Packaging industry which returned -19.5% over the past year.

Return vs Market: SMDS underperformed the UK Market which returned -9% over the past year.

Price Volatility

Is SMDS's price volatile compared to industry and market?
SMDS volatility
SMDS Average Weekly Movement5.3%
Packaging Industry Average Movement4.8%
Market Average Movement5.4%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: SMDS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SMDS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194029,584Miles 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, 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 coffee cups 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£4.05b
Earnings (TTM)UK£280.00m
Revenue (TTM)UK£7.24b

14.5x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMDS income statement (TTM)
RevenueUK£7.24b
Cost of RevenueUK£6.65b
Gross ProfitUK£587.00m
Other ExpensesUK£307.00m
EarningsUK£280.00m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Dec 08, 2022

Earnings per share (EPS)0.20
Gross Margin8.11%
Net Profit Margin3.87%
Debt/Equity Ratio50.7%

How did SMDS perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

74%

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 DateOct 06 2022
Dividend Pay DateNov 01 2022
Days until Ex dividend52 days
Days until Dividend pay date78 days

Does SMDS pay a reliable dividends?

See SMDS dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is SMDS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMDS?

Other financial metrics that can be useful for relative valuation.

SMDS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA7.1x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does SMDS's PE Ratio compare to its peers?

SMDS PE Ratio vs Peers
The above table shows the PE ratio for SMDS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average18.2x
JMAT Johnson Matthey
34.5x19.0%UK£4.0b
FRES Fresnillo
28.3x12.6%UK£5.5b
NLMK Novolipetsk Steel
1.7x-20.8%US$8.6b
MNDI Mondi
8.1x-1.6%UK£8.3b
SMDS DS Smith
14.5x11.0%UK£4.1b

Price-To-Earnings vs Peers: SMDS is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (18.2x).


Price to Earnings Ratio vs Industry

How does SMDS's PE Ratio compare vs other companies in the European Packaging Industry?

Price-To-Earnings vs Industry: SMDS is good value based on its Price-To-Earnings Ratio (14.5x) compared to the European Packaging industry average (16.5x)


Price to Earnings Ratio vs Fair Ratio

What is SMDS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMDS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: SMDS is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).


Share Price vs Fair Value

What is the Fair Price of SMDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMDS (£2.95) is trading below our estimate of fair value (£4.77)

Significantly Below Fair Value: SMDS is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is DS Smith forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMDS's forecast earnings growth (11% per year) is above the savings rate (0.9%).

Earnings vs Market: SMDS's earnings (11% per year) are forecast to grow faster than the UK market (9.9% per year).

High Growth Earnings: SMDS's earnings are forecast to grow, but not significantly.

Revenue vs Market: SMDS's revenue (1.4% per year) is forecast to grow slower than the UK market (4.4% per year).

High Growth Revenue: SMDS's revenue (1.4% 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 (10.8%).


Discover growth companies

Past Performance

How has DS Smith performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMDS has high quality earnings.

Growing Profit Margin: SMDS's current net profit margins (3.9%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: SMDS's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: SMDS's earnings growth over the past year (53.8%) exceeds its 5-year average (2.3% per year).

Earnings vs Industry: SMDS earnings growth over the past year (53.8%) exceeded the Packaging industry 10.4%.


Return on Equity

High ROE: SMDS's Return on Equity (6.6%) is considered low.


Discover strong past performing companies

Financial Health

How is DS Smith's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMDS's short term assets (£3.1B) do not cover its short term liabilities (£3.6B).

Long Term Liabilities: SMDS's short term assets (£3.1B) exceed its long term liabilities (£2.1B).


Debt to Equity History and Analysis

Debt Level: SMDS's net debt to equity ratio (31.3%) is considered satisfactory.

Reducing Debt: SMDS's debt to equity ratio has reduced from 93.4% to 50.7% over the past 5 years.

Debt Coverage: SMDS's debt is well covered by operating cash flow (42.9%).

Interest Coverage: SMDS's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is DS Smith current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.09%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 15 2022Ex Dividend DateOct 06 2022Dividend Pay DateNov 01 202226 days from Ex DividendBuy in the next 52 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SMDS's dividend (5.09%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: SMDS's dividend (5.09%) is low compared to the top 25% of dividend payers in the UK market (5.1%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (73.6%), SMDS's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (42.1%), SMDS's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

Miles Roberts (58 yo)

12.25yrs

Tenure

UK£2,580,000

Compensation

Mr. Miles William 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...


CEO Compensation Analysis

Compensation vs Market: Miles's total compensation ($USD3.13M) is about average for companies of similar size in the UK market ($USD3.25M).

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 (9 years average tenure).


Board Members

Experienced Board: SMDS's board of directors are considered experienced (3.3 years average tenure).


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£4.055b
  • Shares outstanding: 1.38b
  • 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 Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/04/30
Annual Earnings2022/04/30


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.