Smurfit Westrock (SW)

Materials · $23.1B market cap · SEC CIK 0002005951

Next reports on Feb 9, 2027, with analysts expecting $0.64 in earnings per share.

52-week range $32.73 to $52.65. 16% below its 52-week high and 36% above its low.

The case for SW

• Pays a 4.0% dividend while you wait.
• Has compounded revenue at 26.3% a year over five years.

The case against

• Expensive for its growth: 45.8× mid-cycle earnings, where 0% a year of growth plus a 4.0% dividend would justify about 14×.
• Revenue fell 29.4% year over year.
• Operating profit covers its interest bill only 2.3 times.
• Return on equity of only 3%.
• Net margin of 1.6% leaves very little room for error.
• Dividend takes 186% of earnings, leaving little cushion.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Materials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (4), and last year's change in earnings per share is not counted as growth.
• Each factor except momentum is half fixed thresholds, half rank among the 26 Materials companies.

The financials

The financials, five years deep

Pulled from Smurfit Westrock's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Smurfit Westrock says it does

Overview Smurfit Westrock was created in July 2024 as a strategic combination between Smurfit Kappa Group plc ( re-registered as Smurfit Kappa Group Limited) ( “Smurfit Kappa”), one of the leading integrated corrugated packaging manufacturers in Europe, with a large- scale pan-regional presence in Latin America, and WestRock Company (“WestRock”), one of the leaders in North America in corrugated and consumer packaging solutions and a multinational provider of sustainable fiber-based paper and packaging solutions. We are a global leader in sustainable, paper-based packaging with extensive scale, quality products and geographic reach and diversity . We aim to create the ‘go-to’ packaging partner of choice, bringing together highly complementary portfolios and sets of capabilities benefiting customers, employees and shareholders. Background Smurfit Westrock was incorporated and registered in Ireland on July 6, 2017, under the Irish…

Risk factors SW lists in its 10-K

• As a leading global manufacturing business, we have been, and may be in the future, materially adversely affected by factors that
• are beyond our control, such as economic and financial market conditions, geopolitical conflicts and other social and political
• We may be adversely affected by uncertainty, downturns, actions taken by competitors (such as the addition of new capacity) or
• other changes in the paper and packaging industry; in addition, the cyclical nature of the paper and packaging industry could
• result in overcapacity and depress prices for our products
• Our earnings are highly dependent on demand
• Price fluctuations in, or shortages in the availability of, energy, transportation and raw materials could adversely affect our
• We are exposed to significant competition in the paper and packaging industry, and if we are unable to compete effectively, our
• results of operations, cash flows and financial condition, and the trading price of our ordinary shares, could be adversely affected
• We may experience business disruptions that adversely affect our operations
• We may fail to anticipate trends and develop or integrate new technologies that would enable us to offer products that respond to
• changing customer preferences or to protect intellectual property related to our products and technologies
• Our capital expenditures may not achieve the desired outcomes or may be completed at a higher cost than anticipated
• We are exposed to risks related to international sales and operations
• We could be exposed to currency exchange rate fluctuation risks
• We may produce faulty or contaminated products due to failures in quality control measures and systems, which could negatively
• impact our business and share price
• We are subject to cybersecurity risks that could threaten the confidentiality, integrity and availability of data in our systems, and
• could result in disruptions to our operations and adversely affect our operations, cash flows and financial condition
• We may be adversely impacted by work stoppages and other labor relations matters
• We operate in a challenging market for talent and may not be able to attract, motivate and/or retain qualified personnel, including
• We face challenges associated with sustainability matters, including the impact of climate change and its potential impact on areas
• such as our operations and raw material availability, which could have a significant impact on our reputation, business, results of
• condition, and the trading price of our ordinary shares
• We are subject to a growing number of environmental laws and regulations, and the
• cost of compliance or the failure to comply with, and any liabilities under, current and future laws and regulations may negatively
• Failure by us to successfully implement strategic transformation initiatives, including those relating to information technology
• infrastructure, or to achieve our mid-range or long-range targets and goals could adversely affect our business and share price
• If we are unsuccessful in integrating acquisitions or if disposals result in unexpected costs or liabilities, our business could be
• We face risks related to the Combination
• Our continued growth depends on our ability to retain existing customers and attract new customers
• Our debt could adversely affect our financial health and operating flexibility
• Adverse credit and financial market events and conditions, as well as credit rating downgrades, could, among other things,
• access to or increase the cost of financing, which could have a material adverse impact on our business, results of operations, cash
• flows and financial condition, and the trading price of our ordinary shares
• We have a significant amount of goodwill and other intangible assets and a write-down could materially adversely impact our
• We have a number of pension arrangements that are currently in deficit and may require increased funding due to statutory
• Our decision or ability to pay dividends in respect of our shares or conduct share repurchases is subject to a number of factors,
• including the distributions of earnings to the Company by its subsidiaries, the financial condition and results of operations of the
• Company, as well as the distributable reserves of the Company at the discretion of the Company’s Board, and there are no
• guarantees that the Company will pay dividends or will maintain or increase the level of any such dividends or that the Company
• Changes in existing financial accounting standards or practices may have a material adverse effect on our business, results of
• operations, cash flows and financial condition, and the trading price of our ordinary shares
• We are subject to a wide variety of laws, regulations and other requirements that may change or may impose substantial
• compliance costs, and non-compliance with such laws and regulations may negatively affect our business
• with, and any liabilities under, current and future laws and regulations may negatively affect our business
• Changes to trade policy, including tariff and customs regulations, or failure to comply with such regulations may have an adverse
• We are subject to compliance with antitrust and similar legislation in the jurisdictions in which we operate
• We are subject to a number of laws and regulations relating to privacy, security and data protection, and failure to comply with
• such laws and regulations could adversely affect our business and our financial condition or lead to fines and/or litigation
• We are subject to cybersecurity risks that could
• threaten the confidentiality, integrity and availability of data in our systems, and could result in disruptions to our operations and
• adversely affect our operations, cash flows and financial condition
• Failure to comply with applicable occupational health and safety laws and regulations or maintain good health and safety and
• employee well-being practices in our facilities may have a material adverse effect on our business
• “As a leading global manufacturing business, we have been, and may be in the future, adversely affected by
• factors that are beyond our control, such as economic and financial market conditions, geopolitical conflicts and other social and
• The Company’s maintenance of two exchange listings may adversely affect liquidity in the market for our shares and result in
• pricing differentials of our shares between the two exchanges
• We are required to comply with the Sarbanes-Oxley Act, and we may continue to incur significant costs and devote substantial
• management time towards maintaining and improving our internal controls, which may materially adversely affect our operating
• We are incorporated in Ireland and Irish law differs from the laws in effect in the U.S. and might afford less protection to our
• Any attempts to acquire the Company will be subject to the Irish Takeover Rules and subject to the supervisory jurisdiction of the
• Irish Takeover Panel and the Board may be limited by the Irish Takeover Rules in its ability to defend an unsolicited takeover

Filings

Other Materials companies