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SK3

Smurfit Kappa GroupISE:SK3 Stock Report

Market Cap

€11.0b

7D

-6.2%

1Y

24.5%

Updated

21 Oct, 2021

Data

Company Financials +
SK3 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends4/6

SK3 Overview

Smurfit Kappa Group plc, together with its subsidiaries, manufactures, distributes, and sells paper-based packaging products.

Smurfit Kappa Group Competitors

Weyerhaeuser

NYSE:WY

US$27.6b

Amcor

ASX:AMC

AU$24.3b

WestRock

NYSE:WRK

US$13.0b

Packaging Corporation of America

NYSE:PKG

US$12.7b

Price History & Performance

Summary of all time highs, changes and price drops for Smurfit Kappa Group
Historical stock prices
Current Share Price€42.74
52 Week High€31.52
52 Week Low€50.44
Beta0.77
1 Month Change-7.99%
3 Month Change-9.20%
1 Year Change24.53%
3 Year Change51.03%
5 Year Change114.77%
Change since IPO145.77%

Recent News & Updates

Oct 02
Smurfit Kappa Group (ISE:SK3) Has More To Do To Multiply In Value Going Forward

Smurfit Kappa Group (ISE:SK3) Has More To Do To Multiply In Value Going Forward

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Sep 19
We Think Smurfit Kappa Group (ISE:SK3) Can Stay On Top Of Its Debt

We Think Smurfit Kappa Group (ISE:SK3) Can Stay On Top Of Its Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Sep 07
Smurfit Kappa Group Plc's (ISE:SK3) Intrinsic Value Is Potentially 29% Above Its Share Price

Smurfit Kappa Group Plc's (ISE:SK3) Intrinsic Value Is Potentially 29% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Smurfit Kappa Group...

Aug 02
Here's Why I Think Smurfit Kappa Group (ISE:SK3) Is An Interesting Stock

Here's Why I Think Smurfit Kappa Group (ISE:SK3) Is An Interesting Stock

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

SK3IE PackagingIE Market
7D-6.2%-0.7%1.0%
1Y24.5%19.6%31.0%

Return vs Industry: SK3 exceeded the Irish Packaging industry which returned 19.6% over the past year.

Return vs Market: SK3 underperformed the Irish Market which returned 31% over the past year.

Price Volatility

Is SK3's price volatile compared to industry and market?
SK3 volatility
SK3 Beta0.77
Industry Beta0.75
Market Beta1

Stable Share Price: SK3 is less volatile than 75% of Irish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SK3's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193446,000Tony J. Smurfithttps://www.smurfitkappa.com

Smurfit Kappa Group plc, together with its subsidiaries, manufactures, distributes, and sells paper-based packaging products. It operates in two segments, Europe and the Americas. The company offers consumer, retail, industrial, ecommerce, heavy-duty corrugated, and hexacomb packaging products, as well as composite cardboard tubes, and bags and sacks; and bag-in-box, a single-use packaging system that comprises films, accessories, bags, taps, and boxes.

Smurfit Kappa Group Fundamentals Summary

How do Smurfit Kappa Group's earnings and revenue compare to its market cap?
SK3 fundamental statistics
Market Cap€11.00b
Earnings (TTM)€576.00m
Revenue (TTM)€9.01b

19.1x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SK3 income statement (TTM)
Revenue€9.01b
Cost of Revenue€6.09b
Gross Profit€2.92b
Expenses€2.34b
Earnings€576.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.24
Gross Margin32.40%
Net Profit Margin6.40%
Debt/Equity Ratio71.2%

How did SK3 perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

62%

Payout Ratio

Valuation

Is Smurfit Kappa Group undervalued compared to its fair value and its price relative to the market?

37.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SK3 (€42.74) is trading below our estimate of fair value (€68.76)

Significantly Below Fair Value: SK3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SK3 is poor value based on its PE Ratio (19.1x) compared to the European Packaging industry average (16.5x).

PE vs Market: SK3 is good value based on its PE Ratio (19.1x) compared to the Irish market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: SK3 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: SK3 is overvalued based on its PB Ratio (2.8x) compared to the XE Packaging industry average (2.2x).


Future Growth

How is Smurfit Kappa Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SK3's forecast earnings growth (14.6% per year) is above the savings rate (0.5%).

Earnings vs Market: SK3's earnings (14.6% per year) are forecast to grow slower than the Irish market (26.6% per year).

High Growth Earnings: SK3's earnings are forecast to grow, but not significantly.

Revenue vs Market: SK3's revenue (4.5% per year) is forecast to grow slower than the Irish market (8.8% per year).

High Growth Revenue: SK3's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SK3's Return on Equity is forecast to be low in 3 years time (17.6%).


Past Performance

How has Smurfit Kappa Group performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SK3 has high quality earnings.

Growing Profit Margin: SK3's current net profit margins (6.4%) are higher than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: SK3's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: SK3's earnings growth over the past year (36.8%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: SK3 earnings growth over the past year (36.8%) exceeded the Packaging industry 28.5%.


Return on Equity

High ROE: SK3's Return on Equity (14.4%) is considered low.


Financial Health

How is Smurfit Kappa Group's financial position?


Financial Position Analysis

Short Term Liabilities: SK3's short term assets (€3.4B) exceed its short term liabilities (€2.4B).

Long Term Liabilities: SK3's short term assets (€3.4B) do not cover its long term liabilities (€4.0B).


Debt to Equity History and Analysis

Debt Level: SK3's debt to equity ratio (71.2%) is considered high.

Reducing Debt: SK3's debt to equity ratio has reduced from 152.6% to 71.2% over the past 5 years.

Debt Coverage: SK3's debt is well covered by operating cash flow (38.5%).

Interest Coverage: SK3's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


Dividend

What is Smurfit Kappa Group current dividend yield, its reliability and sustainability?

3.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SK3's dividend (3.38%) is higher than the bottom 25% of dividend payers in the Irish market (1.4%).

High Dividend: SK3's dividend (3.38%) is low compared to the top 25% of dividend payers in the Irish market (4.62%).


Stability and Growth of Payments

Stable Dividend: SK3's dividend payments have been volatile in the past 10 years.

Growing Dividend: SK3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.4%), SK3's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SK3's dividends in 3 years are forecast to be well covered by earnings (41.2% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Tony J. Smurfit (58 yo)

6.08yrs

Tenure

€5,263,000

Compensation

Mr. Anthony Paul J. Smurfit, also known as Tony, has been Group Chief Executive Officer of Smurfit Kappa Group plc since September 1, 2015. Mr. Smurfit served as the Chief Operating Officer of Smurfit Kapp...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD6.13M) is about average for companies of similar size in the Irish market ($USD4.92M).

Compensation vs Earnings: Tony's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SK3's management team is seasoned and experienced (5.8 years average tenure).


Board Members

Experienced Board: SK3's board of directors are considered experienced (4.2 years average tenure).


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 been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

Company Information

Smurfit Kappa Group Plc's employee growth, exchange listings and data sources


Key Information

  • Name: Smurfit Kappa Group Plc
  • Ticker: SK3
  • Exchange: ISE
  • Founded: 1934
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: €10.997b
  • Shares outstanding: 257.30m
  • Website: https://www.smurfitkappa.com

Number of Employees


Location

  • Smurfit Kappa Group Plc
  • Beech Hill
  • Clonskeagh
  • Dublin
  • Co. Dublin
  • 4
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:49
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.