Sylvamo (SLVM): Examining Valuation After Weaker Results, Share Buybacks, and Board Changes

Sylvamo (SLVM) just delivered its third quarter results, showing a drop in both sales and net income compared to last year. The company also completed its multi-year share repurchase program and announced changes to its board.

See our latest analysis for Sylvamo.

Despite softer earnings and boardroom changes, Sylvamo's 8.7% 1-month share price return suggests some renewed interest after a tough stretch. However, its year-to-date share price return and one-year total shareholder return remain sharply negative. Momentum has improved recently, but the longer-term performance has lagged the broader market.

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With shares still trading well below analyst targets despite recent buybacks and leadership shifts, the key question for investors is whether Sylvamo’s beaten-down share price reflects all the risks or if there is a real buying opportunity here.

Most Popular Narrative: 25.1% Undervalued

According to the latest and most widely followed narrative, Sylvamo’s fair value is pegged at $61, which is substantially above the current closing price of $45.66. This difference has focused keen attention on the company's likely catalysts for the coming years.

Ongoing strategic investments in operational efficiency and capacity expansion at the Eastover mill are set to add more than $50 million annually to adjusted EBITDA. This is expected to directly improve cost structure and support stronger earnings and cash flow in 2026 and beyond.

Read the complete narrative.

Want to unlock the full narrative driving this valuation? The forecast rests on a bigger profit margin and a forward earnings multiple rarely seen in this industry. Hungry for the assumptions and specific numbers that shape this high fair value? Dive in for the inside story.

Result: Fair Value of $61 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weak demand in Europe or a continued decline in uncoated freesheet paper could limit Sylvamo’s margin improvement outlook.

Find out about the key risks to this Sylvamo narrative.

Build Your Own Sylvamo Narrative

If you have a different perspective, or prefer to dig into the numbers yourself, you can shape your own Sylvamo narrative in just a few minutes, and Do it your way.

A great starting point for your Sylvamo research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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