NYSE:SWM

Stock Analysis Report

Schweitzer-Mauduit International

Executive Summary

Schweitzer-Mauduit International, Inc., together with its subsidiaries, provides engineered solutions and advanced materials for various industries worldwide.

Rewards

Trading at 22.2% below its fair value

Earnings are forecast to grow 10.79% per year

Earnings grew by 21.1% over the past year

Pays a high and reliable dividend of 5.1%

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has Schweitzer-Mauduit International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SWM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

SWM

-2.3%

US Forestry

0.5%

US Market


1 Year Return

-17.2%

SWM

-8.6%

US Forestry

20.3%

US Market

Return vs Industry: SWM exceeded the US Forestry industry which returned -8.6% over the past year.

Return vs Market: SWM underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

SWMIndustryMarket
7 Day-4.6%-2.3%0.5%
30 Day-9.8%-2.5%2.0%
90 Day-21.0%-1.4%9.4%
1 Year-13.2%-17.2%-5.8%-8.6%22.8%20.3%
3 Year-7.6%-19.4%6.6%-1.5%50.1%40.4%
5 Year-11.6%-28.4%-1.2%-13.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is Schweitzer-Mauduit International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Schweitzer-Mauduit International undervalued compared to its fair value and its price relative to the market?

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SWM ($34.48) is trading below our estimate of fair value ($44.32)

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


Price To Earnings Ratio

PE vs Industry: SWM is good value based on its PE Ratio (14.6x) compared to the Forestry industry average (18x).

PE vs Market: SWM is good value based on its PE Ratio (14.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SWM is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: SWM is overvalued based on its PB Ratio (1.9x) compared to the US Forestry industry average (1.1x).


Next Steps

Future Growth

How is Schweitzer-Mauduit International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SWM's forecast earnings growth (10.8% per year) is above the savings rate (1.7%).

Earnings vs Market: SWM's earnings (10.8% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: SWM's revenue (4.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SWM's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SWM's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Schweitzer-Mauduit International performed over the past 5 years?

-4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SWM has high quality earnings.

Growing Profit Margin: SWM's current net profit margins (7%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: SWM's earnings have declined by -4% per year over the past 5 years.

Accelerating Growth: SWM's earnings growth over the past year (21.1%) exceeds its 5-year average (-4% per year).

Earnings vs Industry: SWM earnings growth over the past year (21.1%) exceeded the Forestry industry 1%.


Return on Equity

High ROE: SWM's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Schweitzer-Mauduit International's financial position?


Financial Position Analysis

Short Term Liabilities: SWM's short term assets ($418.9M) exceed its short term liabilities ($144.5M).

Long Term Liabilities: SWM's short term assets ($418.9M) do not cover its long term liabilities ($730.9M).


Debt to Equity History and Analysis

Debt Level: SWM's debt to equity ratio (97.5%) is considered high.

Reducing Debt: SWM's debt to equity ratio has increased from 85.8% to 97.5% over the past 5 years.

Debt Coverage: SWM's debt is well covered by operating cash flow (29.4%).

Interest Coverage: SWM's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: SWM has a high level of physical assets or inventory.

Debt Coverage by Assets: SWM's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Schweitzer-Mauduit International's current dividend yield, its reliability and sustainability?

5.25%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%1.4%markettop25%3.7%industryaverage3.4%forecastin3Years5.2%

Current dividend yield vs market & industry

Notable Dividend: SWM's dividend (5.1%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: SWM's dividend (5.1%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.5%), SWM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SWM's dividends in 3 years are forecast to be covered by earnings (52.4% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jeff Kramer (59yo)

2.8yrs

Tenure

US$3,250,775

Compensation

Dr. Jeffrey Kramer, Ph.D., also known as Jeff, has been the Chief Executive Officer and Director at Schweitzer-Mauduit International, Inc. since April 21, 2017. Dr. Kramer served as the Chief Executive Off ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD3.25M) is above average for companies of similar size in the US market ($USD2.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Kramer
CEO & Director2.8yrsUS$3.25m0.25% $2.6m
R. Wamser
Executive VP of Finance & CFO1.9yrsUS$1.35m0.074% $765.7k
Ricardo Nuñez
Executive VP2.4yrsUS$981.39k0.063% $655.5k
Michel Fievez
Consultant9.9yrsUS$1.16m0.23% $2.3m
Daniel Lister
Executive Vice President of Advanced Materials & Structures3.6yrsUS$914.86k0.071% $740.7k
Michael Schmit
Corporate Controller & Chief Accounting Officer0.8yrsno data0.014% $146.5k
Mark Chekanow
Director of Investor Relations6.8yrsno datano data
Mari Sifo
Chief Human Resources Officer0yrsno datano data
Omar Hoek
Executive Vice President of Engineered Papers0.08yrsno data0.023% $234.8k

2.6yrs

Average Tenure

50yo

Average Age

Experienced Management: SWM's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Kramer
CEO & Director2.8yrsUS$3.25m0.25% $2.6m
Jeffrey Keenan
Independent Director4yrsUS$175.00k0.097% $1.0m
John Rogers
Chairman & Lead Independent Director1yrsUS$175.00k0.0065% $67.3k
K. Caldabaugh
Independent Director24.3yrsUS$245.00k0.015% $153.2k
Anderson Warlick
Independent Director10.6yrsUS$165.00k0.017% $175.0k
Marco Levi
Independent Director2.8yrsUS$155.00k0.021% $221.2k
Kimberly Ritrievi
Independent Director1.9yrsUS$127.50kno data
Deborah Borg
Independent Director1yrsno datano data

2.8yrs

Average Tenure

60yo

Average Age

Experienced Board: SWM'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: 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Schweitzer-Mauduit International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Schweitzer-Mauduit International, Inc.
  • Ticker: SWM
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Paper Products
  • Sector: Materials
  • Market Cap: US$1.036b
  • Shares outstanding: 30.90m
  • Website: https://www.swmintl.com

Number of Employees


Location

  • Schweitzer-Mauduit International, Inc.
  • 100 North Point Center East
  • Suite 600
  • Alpharetta
  • Georgia
  • 30022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SWMNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1995
MH2DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1995

Biography

Schweitzer-Mauduit International, Inc., together with its subsidiaries, provides engineered solutions and advanced materials for various industries worldwide. The company operates through two segments, Engineered Papers, and Advanced Materials & Structures. The Engineered Papers segment provides low ignition propensity cigarette papers that are designed to self-extinguish when not actively being smoked; reconstituted tobacco products for use in machine-made cigars; alkaline battery separator papers; and commodity paper grades for printing and writing, flooring laminates, and food service packaging. The Advanced Materials & Structures segment manufactures and sells resin-based nets, films, and other non-wovens for filtration, infrastructure and construction, transportation, industrial, and medical end-markets. The company was incorporated in 1995 and is headquartered in Alpharetta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 00:35
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.