GLT

GlatfelterNYSE:GLT Stock Report

Market Cap

US$646.1m

7D

-4.9%

1Y

3.7%

Updated

18 Sep, 2021

Data

Company Financials +
GLT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends4/6

GLT Overview

Glatfelter Corporation, together with its subsidiaries, manufactures and sells engineered materials worldwide.

Glatfelter Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Glatfelter
Historical stock prices
Current Share PriceUS$14.51
52 Week HighUS$12.91
52 Week LowUS$19.48
Beta1.38
1 Month Change-7.76%
3 Month Change4.46%
1 Year Change3.72%
3 Year Change-27.16%
5 Year Change-34.96%
Change since IPO-34.42%

Recent News & Updates

Aug 04

Glatfelter: Predictable Cash Flow And Undervalued

Glatfelter supplies engineered materials from eleven manufacturing facilities in the United States, Canada, Germany, France, the United Kingdom, and the Philippines. Glatfelter has divested non-strategic assets, and is making acquisitions to acquire production capacity in growing markets. Glatfelter Corporation noted in its annual report that it now owns a portfolio of products with a predictable cash flow profile. I ran two scenarios, with a WACC of 8% and a WACC of 9.5%. My sales projections include sales of $1.32 billion in 2025 and 2025 FCF/Sales of 4% in 2025. I assumed a terminal FCF of $59 million, future net debt of approximately $219 million, and a share count of 44 million. With these figures, the implied share price is $20-$33. Given the current share price of $14-$17, there is an upside potential in the company’s valuation.

Shareholder Returns

GLTUS ForestryUS Market
7D-4.9%-2.9%-0.6%
1Y3.7%61.8%33.8%

Return vs Industry: GLT underperformed the US Forestry industry which returned 61.5% over the past year.

Return vs Market: GLT underperformed the US Market which returned 33.6% over the past year.

Price Volatility

Is GLT's price volatile compared to industry and market?
GLT volatility
GLT Beta1.38
Industry Beta1.84
Market Beta1

Stable Share Price: GLT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GLT's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18642,415Dante Parrinihttps://www.glatfelter.com

Glatfelter Corporation, together with its subsidiaries, manufactures and sells engineered materials worldwide. It operated through two segments, Composite Fibers and Airlaid Materials. The company’s Composite Fibers segment offers food and beverage filtration materials for single-serve coffee and tea products; wallcover base materials for wallpaper manufacturers; metallized products that are used in labels, packaging liners, gift wrap, and other consumer product applications; composite laminate, consisting of decorative laminates for use in furniture, household and commercial flooring, and other applications; and specialty engineered products, which are used in electrical energy storage, homecare, hygiene, and other engineered fiber-based applications.

Valuation

Is Glatfelter undervalued compared to its fair value and its price relative to the market?

25.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GLT ($14.51) is trading above our estimate of fair value ($13.5)

Significantly Below Fair Value: GLT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GLT is poor value based on its PE Ratio (25.3x) compared to the US Forestry industry average (18x).

PE vs Market: GLT is poor value based on its PE Ratio (25.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GLT is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: GLT's PB Ratio (1.1x) is in line with the US Forestry industry average.


Future Growth

How is Glatfelter forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

35.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLT's forecast earnings growth (35.6% per year) is above the savings rate (2%).

Earnings vs Market: GLT's earnings (35.6% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GLT's revenue (6.5% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: GLT's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GLT's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Glatfelter performed over the past 5 years?

-30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLT has high quality earnings.

Growing Profit Margin: GLT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GLT's earnings have declined by 30.1% per year over the past 5 years.

Accelerating Growth: GLT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GLT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Forestry industry (178.8%).


Return on Equity

High ROE: GLT's Return on Equity (4.5%) is considered low.


Financial Health

How is Glatfelter's financial position?


Financial Position Analysis

Short Term Liabilities: GLT's short term assets ($492.1M) exceed its short term liabilities ($242.4M).

Long Term Liabilities: GLT's short term assets ($492.1M) do not cover its long term liabilities ($646.5M).


Debt to Equity History and Analysis

Debt Level: GLT's debt to equity ratio (84.3%) is considered high.

Reducing Debt: GLT's debt to equity ratio has increased from 54.3% to 84.3% over the past 5 years.

Debt Coverage: GLT's debt is well covered by operating cash flow (22.9%).

Interest Coverage: GLT's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Dividend

What is Glatfelter current dividend yield, its reliability and sustainability?

3.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GLT's dividend (3.86%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: GLT's dividend (3.86%) is in the top 25% of dividend payers in the US market (3.6%)


Stability and Growth of Payments

Stable Dividend: GLT's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.8%), GLT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Dante Parrini (56 yo)

10.67yrs

Tenure

US$4,561,385

Compensation

Mr. Dante C. Parrini has been the Chief Executive Officer and President of P. H. Glatfelter Company since January 1, 2011 and has been its Chairman since May 4, 2011 and has been its Director since June 3,...


CEO Compensation Analysis

Compensation vs Market: Dante's total compensation ($USD4.56M) is above average for companies of similar size in the US market ($USD2.33M).

Compensation vs Earnings: Dante's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GLT's management team is seasoned and experienced (7.2 years average tenure).


Board Members

Experienced Board: GLT's board of directors are seasoned and experienced ( 10.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Glatfelter Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Glatfelter Corporation
  • Ticker: GLT
  • Exchange: NYSE
  • Founded: 1864
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$646.059m
  • Shares outstanding: 44.53m
  • Website: https://www.glatfelter.com

Number of Employees


Location

  • Glatfelter Corporation
  • Capitol Towers South
  • 4350 Congress Street
  • Charlotte
  • North Carolina
  • 28209
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 00:47
End of Day Share Price2021/09/17 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.